Background
Tendering is the process usually practiced by Indian Government Deptt / Ministries in awarding large project works to qualifying Foreign as well as Indian OEMs, Suppliers & Service Providers. Herein the End User compares different prices and technical parameters quoted by International / National bidders, who generally are pre-registered with the End User, with the competitive price, technically qualifying and generally experienced Bidder winning the tender.
Business Case
The procurement process of the Government entities in India, for award of Tenders & Contracts, is apparently complex and unique with the objective of maintaining a balance between the competitive acquisition and the best value for money given the sector-specific characteristics such as supplier constraints, technological complexity, high cost, foreign exchange implications, foreign suppliers, and geopolitical ramifications. Aerospace procurement, done under two Revenue / Capital Heads, follows voluminous Procurement Procedures , attempting to streamline procurement of Capital equipment under six categories, namely Buy (Indian), Buy & Make (Indian), Make (Indian), Buy & Make (with Transfer of Technology), Buy (Global), and Buy (Indian Designed, Developed and Manufactured). On the other hand, Procurement Manual covers the procurements under Revenue head. One of the perennial issues faced by Foreign Bidders relates to the typical tendering process, documentation, regulatory requirement fulfillment and longish tender timeframes.
APSPL Solution / Approach
Our Tenders & Bid Strategy consultants have expertise in Aviation / Aerospace, Engineering Technology domains in identifying the most technically and commercially appropriate Bids for consideration of the Foreign Partner’s participation so as to ensure favorable outcome in ‘securing’ Tenders & Contracts. After adequate procurement related business discussions and understanding with its Foreign Client / Partner, APSPL’s team provides the following primary Tenders & Bid Strategy Services for effectively applying and succeeding in Government and Public Sector Tenders:-
Very first but most critical step is getting the Foreign Business Enterprise registered for bidding in Govt Tenders, with the support of necessary application, company details, financial and technical status, documentation, certifications, etc.
Identifying the appropriate tender well in time for Foreign Enterprise that perfectly suits its business objectives & niche.
Next is to outline the tender technical proposal that consists of all key benefits of the Foreign OEM / Supplier & the provided Product / Services along with the most reasonable and profit-generating bid for the tender.
Post timely submission of the proposal / bid under, next step is the Bid to get evaluated by the client Govt Institution as per criteria specified in tender document.
Proposal having met all Govt Institution tender criteria, with the most competitive bid, the Foreign Enterprise is invited for Commercial Negotiations, followed by Contract documentation negotiations, finalization of Terms and Sign-off.
Contract kicks-off with various contractual obligations to be met which are technical, financial, administrative, logistical, trade related and which are to be coordinated between various stakeholders locally and with the Foreign Supplier Enterprise, through various forms of communication, negotiations and consultations, in order to adhere to the timelines and to avoid commercial loss as well as safeguard Foreign Suppliers’ Brand.
Outcome / Result
Assisted with updated Communications & Status Reports, Decision-Making Inputs, Business Intelligence, Presentations, real Business Cases, Trainings / Familiarization, Procurement Document & Regulation Explanations, Bid Management & Negotiation Strategy Discussions, Stakeholder Engagement, etc. APSPL supports its Foreign Client to objectively assess and execute Tendering processes for Indian Govt & PSU End-Users, while APSPL continues as the former’s Advisory outsourcing Partner.