PART 1 OVERVIEW TO TENDERING

1. What is international tendering?

International tendering is a process in which the client emits an International
Invitation to Bid (ITB). ITB is an written act through which the client express a
need of a specific request (for instance international engineering consultancy
service). The client will explicit the scope of work, the objective of work and the
terms and conditions of the ITB. The interested bidders can submit a proposal.
Thus International tendering is a particular form that helps matching buyers and
suppliers on a specific field of expertise.
2. TYPES OF TENDER
There are three main typical of the tendering method: Open Tendering, Selective
Tendering and Negotiated Tendering.
2.1 Open Tendering
Open tender is an arrangement where an advertisement in local newspapers or
other media invites expecting bidders to apply for tender documents and to bid in
competition for carrying out the work.Usually a deposit is required to discourage
irresponsible applicants, the deposit being returnable on the submission of the
bid.
Advantages
- Can get the maximum benefit from competition.
- An opportunity is provided for any capable firm.
Disadvantages
- There is a danger that a firm inexperienced in preparing bids may submit the
lowest bid.
- There is no guarantee that the lowest bidder is sufficiently capable or
financially stable.
- Total cost of bidding is increased due to an inordinate number of bids.
Applicable Condition

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 - This is generally used for work of a low level of technical and management
complexity.
2.2 Restricted Tendering
Feature
- A service provider has first to submit an expression of interest or a request to
be selected as a candidate for tendering through pre-qualification.
- The company then invites tenders from the pre-qualified candidates.
- Most contracts with values that make them subject to the public procurement
rules are awarded under this procedure.
Advantages
- Ensures that only capable and approved firms submit bids.
- Reduce the cost of bidding.
Disadvantages
- Cost level of the bids will be higher due to less competition and also due to the
higher caliber of the bidders.
Applicable Condition
- This is generally used for work of a high level of technical and management
complexity.
2.3 Negotiated Tendering
Feature
- The company may go directly to one or two service providers and negotiate
with them the terms of a contract.
Advantages
- Contract sum will be arrived by a process of negotiations.
Disadvantages
- Competition is eliminated and that will lead to a higher price.
Applicable Conditions
- The contract can be performed only by a particular provider due to technical
reasons or exclusive rights.

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 - The company has a preference for a particular firm, often because it has done
satisfactory works for him before.
Under the open and restricted procedures, the client may ask bidders for further
information to help evaluate tenders, and bidders may request clarification on points
of fact or procedure, but negotiating about the content of tenders, and in particular
about prices, is not permitted. Discussions may take place between bidders and the
client only for the purpose of clarifying or supplementing the content of tenders or the
requirements of the client.

3. TENDERING PROCESS
The tendering activities are generally carried out in the following steps：
3.1 Decision to Contract Out
 Issue tender notice and pre-qualification document
 Pre-qualifying for tender opportunities
 Prequalification of tenderers
 Confirm short list
 Deciding to bid
3.2 Inviting tenders and supplying tender documents
 The "Invitation to Tender" letter
 Instructions to Tenderers
 Tender Acknowledgement
 Company Information
 Form of Tender
 Contract Documents (General Conditions and Special Conditions)
3.3 Preparation of Tender
 Visit and inspect the site
 Make clarifications to the Company (if any)
 Inspect any information
 Interpret the data provided by the Company
 Base tender on the data

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3.4 Tender Submission (with Letter of Tender and Tender Security)
 Electronic submission
 Packaging and delivery
3.5 Evaluation of Tenders
 Formal tender opening and checks for compliance
 Proposal evaluation-quality and price
 Selection of the lowest price tender or the most economically advantageous
tender.
3.6 Decision on Award
 Notification to successful bidder-letter of acceptance
 Notification to unsuccessful bidder
 Contract award

I. WORDS & TERMS

company 业主 Acknowledgement 确认函

contractor 承包商 Form of Tender 投标书格式

contract out 外包 Clarification 澄清

Open Tendering 公开招标 General Conditions 通用条款

Restricted Tendering 邀标 Special Conditions 特殊条款

Negotiated Tendering 议标 Evaluation 评标

pre-qualification 资格预审 tender opening 开标

tender notice 招标公告 Contract award 授标

short list 短名单 successful bidder 中标人

Invitation to Tender 投标邀请函 letter of acceptance 中标函

Instructions to Tenderer 投标人须知 most economically advantageous tender

性价比最高的投标人

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Exercise: Please pair off the following.

The company go directly to one or more

Open Tendering service providers and negotiate with them
the terms of a contract

A service provider has first to submit an

expression of interest or a request to be
Restricted Tendering
selected as a candidate for tendering through
pre-qualification.

This way may lead to an inordinate number

Negotiated tendering
of bids

II. QUESTIONS

1. List the three types of tender.

2. What are the advantages and disadvantages of restricted tendering?

3. When to use open tendering?

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4. Describe the stages and processes involved in carrying out a tender exercise.

5. What is the basis of contract awarded?

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III. LANGUAGE SPOT

NUMBERS

1. Learn how to read the following numbers.

Number Words
118 One hundred and eighteen
One billion two hundred and thirty-four million five hundred and
1,234,567,890
sixty-seven thousand eight hundred and ninety
3.24 three point twenty-four
0.0089 point zero zero eight nine
37.5% thirty-seven point five percent
11.3% eleven point three percent
3/8 three eighths
41/3 four and one third
1/2 a/one half
1.23×10-4 one point two three times ten to the minus four

2. Expression of amount in contract.

The formal expressions of amount in contract are as follows:

1) SAY + CURRENCY + AMOUNT IN WORDS +ONLY;

USD1,146,725.00 (SAY US DOLLARS ONE MILLION ONE HUNDRED AND FORTY

SIX THOUSAND SEVEN HUNDRED AND TWENTY FIVE ONLY)

2) SAY + CURRENCY...AND CENTS…(CENTS IN WORDS) ONLY

USD 100.25 (SAY US DOLLARS ONE HUNDRED AND CENTS TWENTY FIVE ONLY

3) SAY + CURRENCY…AND POINT…ONLY.

USD 1,100.55 (SAY US DOLLARS ONE THOUSAND ONE HUNDRED AND POINT
FIFTY FIVE ONLY)

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IV. WRITING

Invitation to Bid Letter

Al-WAHA Petroleum Co., Ltd.
Floor 3 Tongxun Building, A2 Andeli North Street,
Xicheng District,
Beijing, China
Post Code: 100011
Tel: 0086 10 59565524
Fax: 0086 10 59565524

Re: Bid for PROVISION OF PE100 Lining Tube

Invitation to Bid Letter

To Whom It May Concern:

Al-WAHA Petroleum Co., Ltd. (the “Company”) is pleased to invite you to participate in the
aforementioned Bid for the Contract. The Company is sincerely appreciative and thankful for your
interest to date and looks forward to a successful Bid process.
Included with this letter are the following documents (collectively, the “Bid Package”):

(a) INVITATION TO BID LETTER

(b) ACKNOWLEDGEMENT FORM
(C) LETTER OF COMMITMENT
(d) INSTRUCTIONS TO BIDDER
(e) GENERAL CONDITIONS OF CONTRACT
(f) SCOPE OF WORK
(g) GENERAL QUESTIONNAIRE
(h) FORM OF BID
(i) BID BOND
Please acknowledge receipt of this Invitation to Bid Letter and the Bid Package within seven days

by completing, executing and delivering the attached Acknowledgement Form to Mr Tony by

facsimile at 010-59565524.and emailed the scanned it to tony@oiltime.com, Tender Close Date:

May 12, 2015. Your failure to properly deliver the Acknowledgement Form within such time

period will result in your disqualification.

Thank you for your time and consideration and for your interest in the Bid.

Yours faithfully,

Mr. Tony

President of OILTIME

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 OILTIME PIPELINE COMPANY LIMITED
MB/NT/569C/22
14th June 2015

Managing Director,
Oiltime Co. Ltd

Dear Sir,

RE: LETTER OF AWARD

TENDER FOR CONSULTANCY SERVICES FOR LINE 3 PIPELINE
REPALCEMENT PROJECT

We refer you to your tender for the above.

Following detailed evaluation of the tenders received, OILTIME is pleased to advice you that you
have been awarded the tender for the above at a contract sum of USD. 18,976,600.00 (Eighteen
Million Nine Hundred and Seventy Six thousand Six Hundred Only) - Inclusive of 16% VAT.

The contract documents are currently under preparation and will be signed after expiry of the
statutory 14 days notification period effective from the date of this letter.

Kindly signify your acceptance of the award by signing the duplicate of this letter and return to the
undersigned within 7 days; 11st June 2015.

Yours faithfully,

-----------------------------------------
KELLY
MANAGING DIRECTOR