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Mehdi Mahfoud

Successful Tendering - STBS Model

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Page 1: Successful Tendering - STBS Model

Mehdi Mahfoud

Page 2: Successful Tendering - STBS Model

الله عنده علم الساعة وينزل الغيث ويعلم ما في إن ”الرحام وما تدري نفس ماذا تكسب غدا وما تدري

ليم ع نفس بأي أرض تموت إن الله ي “

حيم حمان ال بسم اهلل ال

صدق اهلل العظيم34آية : سورة لقمان

Page 3: Successful Tendering - STBS Model

الوظيفة ؟

الخلفية العلمية؟ الخبرة في مجال العطاءات أو

العروض؟

اإلسم؟

ما الذي تتوقعه من تاسيلي؟

!! من فضلك قدم لنا نفسك

Page 4: Successful Tendering - STBS Model

Robert Klitgaard on Corruption in tendering process

Page 5: Successful Tendering - STBS Model

At contract awarding!

Page 6: Successful Tendering - STBS Model

After!

Page 7: Successful Tendering - STBS Model

Justifying Tender benefits to all stakeholders

Point of view!

Page 8: Successful Tendering - STBS Model

Tender

An offer, usually in writing, to execute work or supply goods or services at a stated price, and under stated conditions.

Page 9: Successful Tendering - STBS Model

Common terms

RFQ : Request for Quotation.

RFP: Request for Proposal.

RFT: Request for Tender.

RFI: Request for Information.

EOI: Expression of Interest.

Page 10: Successful Tendering - STBS Model

How do you usually initiate your tendering Process?

Page 11: Successful Tendering - STBS Model

Business Case / Feasibility Study

Page 12: Successful Tendering - STBS Model

Time Quality

Pricing

Experience

Technical Capability

Delivery time

Availability

Legal Terms

Degree of control over strategic resources

Strategic partners

Service/Product/Equipment Reliability

Safety policies

Management system

Bid Selection Criteria

Page 13: Successful Tendering - STBS Model

Example A

You desire to buy a brand new Car and you receive the following three bids, by chance all bids are at same price, Bids are:

1. Hyundai Sonata LYD25000

2. KIA Optima LYD25000

3. Nissan Altima LYD25000

Which bid would you choose?

Page 14: Successful Tendering - STBS Model

Example B

You are required to purchase Libyan “sweet crude oil” acting on behalf of a refinery in China, you have received the following prices per barrel from NOC, Bids are:

1. Elsharara 43.1 $67

2. Melita 41.6 $64

3. Sirtica 42.2 $58

Which bid would you choose?

Page 15: Successful Tendering - STBS Model

Example C

You are required to purchase a central AC unit for Nafoura Oil field, you have received the following, Bids :

1. Carrier LYD2.3M

2. LG LYD1.8M

3. WWH LYD2.1M

Which bid would you choose?

Page 16: Successful Tendering - STBS Model

What was your selection criteria?

Page 17: Successful Tendering - STBS Model

Classic pitfalls

• It’s all about (Cost, Time and quality), • hastening prequalification, • Effective selection criteria Vs. Flexible selection

criteria • Tender urgency Vs. Tender efficiency, • trusted approved list of providers? • Historical data, • Will fix it on the next one! • It’s all about the right provider! • It’s all about the output!

Page 18: Successful Tendering - STBS Model

Common Practice!

Service Requirements

Produce Specification/B

rief

Advertise the Service/Supply

Receive Expressions of

Interest

Shortlist Providers

Issue Invitation to Tender/

Quote

Receive proposals

Evaluate proposals

Clarification with first

choice

Award Contract

Start Contract

Manage Contract

Page 19: Successful Tendering - STBS Model

The higher process maturity, the less Tendering challenges!

Service Provision? Functional benefit

Process/System ? Organization benefit

Tendering is NOT Shopping !!! Or is it?

Page 20: Successful Tendering - STBS Model

TASSILI Competitive Tendering Model

BEFORE AFTER DURING

Corporate Strategies

SELECTION

X2 X3

Entry Criteria

Exit Criteria

X1 X4

Tendering PM

Page 21: Successful Tendering - STBS Model

Before you seek quotations or tenders !!

Business Case

Competition Strategy

Project Plan

What could we do? How could we do it? What is our plan?

BEFORE

Competitive Tendering Process

Why ? How? What?

Page 22: Successful Tendering - STBS Model

Seeking quotations/tenders

Procurement Strategy

Specification or Brief

The Competition

*External Bids *In-house Bids

Evaluation

How do we go about it? What do we want? Let’s see what is on offer?

DURING

Competitive Tendering Process

Page 23: Successful Tendering - STBS Model

After you have selected a provider

The Client Side Contract

Management Implementing

the partnership

Are we set up to manage it? Let’s manage it? Let us see how well we did?

(Documenting lessons learned)

AFTER

Competitive Tendering Process

Page 24: Successful Tendering - STBS Model

• A tendering framework to enhance transparency and lower fraud. • Process oriented system (continuous improvement) • Easy to implement and Maintain in considerably short time • Converting conventional Tendering process into a PLC. • Tailored to PM thinking and Methodologies (IPPM). • Stage gate planning oriented (road map - go/no go). • Entry and exit criteria for every tendering stage X1, X2, X3,X4 • Involvement of PMO and top management • Availability of Performance Measures at every stage • Organizational benefits represented along the process.

Why TASSILI Competitive Tendering Model?

Page 25: Successful Tendering - STBS Model

Questions & Discussion

?