Why companies fail at government bidding
For companies, securing a contract with the government is an opportunity to attract and further grow their business.
However, signing that contract will have to go through a very detailed process. This procedure is guided by Republic Act 9184, or the Government Procurement Reform Act.
The law covers the national government, its departments, bureaus, offices, and agencies, including state universities and colleges, government-owned and/or -controlled corporations, government financial institutions, and local government units.
Under RA 9184, the procurement of any public office should be transparent in process and implementation, competitive by giving equal opportunity to enable private contracting parties to join in the public bidding, streamlined, and should have a system of accountability.
Procurement in government involves competitive bidding, which the law defines as the method of procurement that is open to participation by any interested party. This involves advertisement, pre-bidding conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract.
This process shall apply to the procurement of infrastructure projects, goods, and consulting services.
Given how sensitive this process is, there will really be companies that will fail to make it to the final cut. But why does this happen?
According to digital consultancy firm Monstarlab Philippines, there are five reasons why a company fails at a government bidding. These are:
1. You did not check the checklist from the agency
When a government agency opens a project for bidding, a checklist is usually provided for those interested to join. It is important for companies to comply with these to ensure that they will not get kicked out of the list even just at the beginning of the process.
2. You are not qualified
One of the most important requirements when joining a bid is the Single Largest Completed Contract, which ensures that a bidder has experience. This is a list of a companies’ achievements that are similar to the ones being bid on by a government agency. It will be better for a company to have completed a similar project that is at least 50% of the total Approved Budget Contract. Otherwise, the company will not be qualified.
3. You did not connect with the agency
It will be better for interested bidders to connect with the personnel of the concerned agency to build a relationship with their possible clients. It will be advisable to also know the project stakeholders and know what are their purpose and interests in the project.
4. You did not attend the pre-bid conference
A pre-bid conference is required for projects with an Approved Budget Contract of more than P1 million. Attending this is a must.
5. You did not submit the documents on time
In any situation, if it requires on-time submission of the requirements, any excuse will never work. Many bidders get disqualified just because they were late in the submission of documents. If it cannot be prevented, at least submit it a day before the deadline.
For companies who are interested to work with the government, make sure to read up to prevent failing to enter the bidding process.
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