Competitive tendering is a term that is usually applied in bidding and is largely applied in the procurement process. Competitive tending’s idea is to push suppliers to involve themselves in a competition for the value of money to the buyer. This process engages a purchasing association advertising business and applying for tenders to supply the precise business. In most cases, the tendering is usually open to all interested suppliers. This case study provided provides a situation of a competitive tendering between five different firms. In most countries all over the world, application of competitive tendering is obligatory for all the registered companies. Competitive tendering comes along with several merits that will be discussed below (David& Sheila 56).
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The process of competitive tendering usually promotes the competition between the interested or the designated suppliers and this resulting in the finest value of money for buyers and consumers. This process relies on competition in order to come up with an efficient and good quality services and finally to obtain the best value for the services. Second, competitive tendering requires councils to have a closer look at the point of the desires specification and quality levels. This activity improves the in house performance. Third, another merit is that this process majors its attention on the strategic goals. It focuses on outcomes instead of focusing on the processes. In designing stipulation for tenders, a council will require to examine the precise service it wishes to buy and the objectives it desires to gratify. Finally, competitive tendering takes an advantage for innovation; looking for input from external commissions can lead to ground-breaking solutions and to better practices. For instance, service provider may be able to tender specialist know-how and stylish technical solutions which Council would be incapable to meet the expense of or support by means of its own resources (David& Sheila 154).