Winning tenders is a great way to grow your business and gain large reputable clients, as many large companies and most government agencies purchase products and services through tenders annually. According to the Australian tender website, government tenders are published on over 500 websites and in 300 newspapers across the country. The government market is worth more than $30 billion, and more than 20,000 tenders are published annually!
How do you land a government contract? Learning how the tender process works, primarily when registering for government tenders, is essential, as this may be decisive in securing the tender.
What is a government tender?
A government tender is an offer to supply goods, services or buildings to the government. Various government departments, agencies and public sector organisations issue government tenders to invite suppliers to bid on the provision of goods, services or construction work. Winning a government tender allows businesses to gain access to public sector contracts while also increasing their visibility.
Terms and Acronyms
Buyers are the organisations that publish tenders and seek interest from businesses that can do the work. They do this through various tender request types, such as a Request for Tender (RFT). Suppliers are the individuals or companies that offer their goods and services to buyers.
The answer is often referred to as a Response to Tender, and the organisation responding to the tender request is the supplier or tenderer. Accepting a tender typically results in a contract between the buyer and the supplier. This process is called tendering.
Tenders issued by the government are listed in various online databases and publications, such as Tenders Electronic Daily (TED) or other regional and national tender databases. They are frequently posted on government websites as well. Tenders are generally classified using acronyms such as RFQ (Request For Quotation), RFP (Request For Proposal), ITT (Invitation To Tender) or RFT (Request For Tender).
Why is Tendering Difficult For Small Businesses
Despite some efforts to make the tender process easier and simpler for small businesses, it has stayed the same for many years.
Tendering can be difficult for small businesses because competition is often fierce. Small businesses must understand the tender process, know their competition and present a compelling bid to increase their chances of winning a tender.
Government tenders NSW are typically awarded based on the lowest bid, but they also consider who provides the most value for money. Small businesses may lack the resources or capabilities to submit a low-priced bid, putting them at a disadvantage when competing against larger corporations.
Small businesses may need help comprehending the complex and frequently lengthy tender documents released. They may also find it daunting to meet all the criteria outlined in the tender documents. Ultimately tenders mostly favour bigger companies who have the time, money and resources to satisfy all the criteria.
Why Bagging a Government Tender Can Benefit Your Company
The results of catching an excellent tender are noteworthy; some tenders could cover your team’s cost for months. The opportunity to get more work increases, and your visibility increases as you become registered with the department or organisation. As a successful tender bidder, your company will be regarded as a dependable supplier of goods or services. This will make your company more appealing to potential customers and establish its credibility as a reputable provider.
Winning a government tender can also help you gain experience in a specific field. As a successful bidder, you will gain tendering expertise and better understand the criteria that must be met. You can then apply this valuable knowledge to future bids and proposals.
Where To Find Tenders
To follow and acquire all tender-related information, you can check these sources:
- www.australiantenders.com.au
- www.tenders.gov.au
- www.vendorpanel.com.au
- www.tenders.vic.gov.au
Key Takeaways
Winning a government tender can help small businesses gain access to public sector contracts and raise their business profile. Small companies must understand the tendering process, know their competition and present compelling bids to increase their chances of winning a tender. Securing a tender also means increased work, visibility and experience for the business.
