The award method or placement procedure is the procedure a contracting authority follows to place and award a public contract. The award method determines, among other things, how the contract is advertised, how many and which bidders are invited, how bids are submitted and evaluated, and how the contract is concluded.
How does the client choose the award method?
The principal has a certain amount of freedom to choose the award method that is most appropriate for the contract. However, he must consider the following factors:
- The nature, size and complexity of the contract. Some assignments require more competition, transparency or dialogue than others.
- The value of the contract. There are different threshold amounts that determine whether the contract must be advertised European, national or local.
- The legislation and principles of procurement law. The principal must know and respect the rules and exceptions applicable to the various award methods.
The client must also disclose the award method in advance in the notice or specifications.
What methods of awarding exist?
There are several award methods that vary in the degree of openness, competition and negotiation. The main ones are:
- The tender (open or restricted): a procedure in which any interested operator may submit a tender (open) or in which only the selected operators may submit a tender (restricted). The contract is awarded on the basis of the lowest price or best value for money. No negotiation is possible.
- The call for tender (open or restricted): a procedure similar to the tender, but offering more flexibility and simplification. The contract is always awarded on the basis of best value for money. No negotiation is possible.
- The negotiated procedure (without or with publication): a procedure in which the principal negotiates the terms of the contract with one or more economic operators. The contract is awarded on the basis of best value for money. This procedure is possible only in certain exceptional cases listed in the law.
- Competitive dialogue: a procedure in which the principal conducts a dialogue with several entrepreneurs to find the solution that best meets its needs. The contract is awarded on the basis of best value for money. This procedure is possible only for particularly complex contracts.
- Innovation partnership: a procedure in which the client enters into a partnership with one or more entrepreneurs to develop and procure an innovative product, service or work. The contract is awarded on the basis of best value for money. This procedure is possible only for contracts focused on innovation.
How can the company that wants to compete to win the contract use the award method?
The company that wants to compete to win the contract must know and understand the award method. It should keep the following tips in mind:
- Follow up public procurement publications through official channels or through specialized software and select the contracts that match your activities, capabilities and ambitions.
- Read the notice or specifications carefully and check which award method applies, what conditions and criteria apply, and what documents and information you must submit.
- Prepare your quotation carefully and respect the client's instructions, deadlines and form requirements. Make sure your quotation is complete, clear and convincing.
- If possible, take advantage of opportunities for information, clarification or dialogue offered by the client. Ask relevant questions, offer helpful suggestions or feedback, and show your interest and motivation.
- If applicable, participate in the negotiations or electronic auction in a professional and constructive manner. Be prepared to modify or improve your offer if necessary.
