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what is a bid specification

by Florian Stracke Published 3 years ago Updated 2 years ago
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Definition of Bid Specification The term “specification” refers to a description of the characteristics of a commodity or service required or desired. Specifically, it is defined as the explicit requirements furnished with a solicitation upon which a purchase order or contract is to be based.

Definition of Bid Specification
Specifically, it is defined as the explicit requirements furnished with a solicitation upon which a purchase order or contract is to be based.

Full Answer

What is bid specification in contract law?

Definition of Bid Specification The term “specification” refers to a description of the characteristics of a commodity or service required or desired. Specifically, it is defined as the explicit requirements furnished with a solicitation upon which a purchase order or contract is to be based.

What is the purpose of specifications?

Specifications are used by the university to describe what it intends to purchase. They are used by suppliers to prepare bids to supply the items or services requested. During the evaluation of bids, the specifications are used to determine each bidder’s compliance with the requirements and ultimately to select the contracted supplier.

Do bid requirements justify a special or name brand product?

The bid requirements usually not sufficient to justify a special or name brand product. Consequently, specifications are developed around a manufacturer’s product specifications. If the specification did not have to satisfy state statutes requiring competitive bidding, the task would be much easier.

Who is eligible to bid on a bid spec?

Any bidder who meets the bid specs is eligible, even if the product they bid is missing key features. The idea is to be as specific as possible while allowing room for comparable products to come into light. This means evaluating the critical features of the product or service you’re writing the spec for.

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What does bid Spec mean?

Bid specification means the standards or qualities which must be met before a contract to purchase will be awarded and any terms which the director has set as a condition precedent to the awarding of a contract.

What are the 3 basic bidding documents?

Bid documents include the plans, specifications and estimates (PS&E) developed to describe all of the elements of a construction project and become the contract between the local government and the selected contractor.

What are the three main stages of bid evaluation?

I will classify the bid evaluation process into four basic stages including (1) preliminary examination for responsiveness to formal qualification requirements, (2) evaluation for compliance with technical requirements, (3) price/financial evaluation and (4) post qualification/due diligence.

How many types of bids are there?

There are two variants of this type of bidding : highest unique bidding and lowest unique bidding. Dynamic bidding: This is a type of bidding where one user can set his bid for the product. Whether the user is present or not for the bidding, the bidding will automatically increase up to his defined amount.

What are the process of bidding?

Preliminary Examination of Bids Evaluation of bidder's eligibility, examination of documents and bid prices and Clarification of bids. Preparation of Abstract of Bids Determining the lowest calculated responsive bid and ranking of the total bid prices as calculated from lowest to highest and Bid Evaluation Report.

What are the 4 stages of the bidding process?

The necessary steps are: Bid Solicitation. Bid Submission. Bid Selection.

How do you do a bid analysis?

The bid analysis process takes place in four stages....How are bids evaluated?Preliminary evaluations.Compliance with technical requirements.Financial evaluation.Due diligence.

How do you evaluate a bid?

There are a number of criteria upon which a preferred bidder can be identified:Lowest price.Most economically advantageous tender (MEAT)Mean value.Exclusion of the extremes.

What are the types of bidding documents?

In addition to the Invitation for Bids, the bidding documents include:Instructions to Bidders (ITB)Contract for Supply and Delivery of Goods.Schedule of Requirements.Technical Specifications.Sample Forms.

What are the standard bidding documents?

The Standard Bidding Document for Procurement of Goods reflects the structure and the provisions of the Master Procurement Document for the Procurement of Goods, except where specific considerations within the World Bank have required a change.

What are the bidding documents?

Bidding Documents – The documents issued by the Procuring Entity as the bases for bids, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and/or Consulting Services required by the Procuring Entity. (

What are the tender documents?

A tender document clearly specifies the scope and obligations of the bidder during the bidding process and also for the procurement project as a whole. Here, the bidders have to ensure that they are in a position to fulfill the obligations that are expected to be performed.

Examples of Bid specifications in a sentence

A bidder may not be compensated for damages arising from inaccurate or incomplete information in the Invitation to Bid specifications or from inaccurate assumptions based upon the specifications.

More Definitions of Bid specifications

Bid specifications means the information OHCA will use for bid evaluation, when such information is exactly detailed within a solicitation and is based on the subject matter of the solicitation, the type of solicitation, and the needs to be met by the supplier (s) awarded a contract from the solicitation.

What is specification in a contract?

Specifically, it is defined as the explicit requirements furnished with a solicitation upon which a purchase order or contract is to be based.

What is the purpose of specifications?

Specifications should be written to encourage, not discourage, competition consistent with seeking overall economy for the purpose intended. The function of specifications is to provide a basis for obtaining a commodity or service that will satisfy a particular need at an economical cost. A good specification should do these things:

What is a brand name specification?

Brand name specifications cite a brand name, model number, or some other designation that identifies a specific product of a manufacturer. Brand name specifications are not the preferred method, but they can have a legitimate use in public bid solicitation activities. An example might be when a particular brand name item must be purchased in order to be compatible with existing equipment. The most restrictive type of specification, they have the effect of limiting bidding to a single product and are only used when only one product will meet an intended need.

What is a non standard specification?

A non-standard specification can be anything from a simple brand-name-or-equal description to a statement of work for professional or construction/renovation services.

Why are standard specifications important?

This establishes performance and quality levels, reduces the variety of things bought, simplifies inventories, allows for large volume contracts to be developed, and eliminates duplicative specification writing. Most statewide contracts use standard specifications to describe products required.

When samples are required, should they be clearly identified as a requirement in the specifications?

All samples and test results should be retained for delivery compliance of products ordered. When possible, a test inspection plan should be developed and included in the specification.

Why is it important to understand the specifications of a tender?

Fully understanding the specification for a tender might be an onerous task, but it is an important one. Knowing the demands of your submission will allow you to structure your response well, make sure all vital requirements are met and stand out against competitors; and above all it can help you win that bid.

Why do you need a second opinion in bid writing?

A second opinion is always favourable in bid writing, as a fresh pair of eyes can provide another perspective and may pick up on something you previously missed.

What to do if you are unsure of a specification?

If there is anything you are unsure of within the specification, raise a clarification question as soon as possible with the contracting authority. Do not feel wary in doing this – it is in all parties’ best interest that the correct information is provided and understood so that ultimately the most suitable contractor is appointed.

What should not be overlooked when compiling a bid?

Even smaller aspects such as font style and size should not be overlooked when compiling a submission, so make sure you double check all requirements before submitting your bid. A specification is likely to include what is expected of you, but not exactly how this is to be achieved.

What are deliberate restrictions?

Deliberate restrictions, such as word count and page numbers, exist not only to guide you when writing a bid, but to test the quality of your answers. It is crucial that you adhere to all limits and requirements of a specification – as this can be the difference between a pass and fail.

How long do bid specs last?

Bids often secure suppliers for 1 – 3 years, meaning once you’ve made a change, you may be locked in. So where to start?

Who can help you narrow down your bid specifications?

Your local school business official association, for example, may do webinars on the bid process. Or, your janitorial supplier can provide more product information to help you narrow down your bid specifications. Whatever you need, there are resources out there.

Why do you put items out for bid?

It’s simple; the process is designed to provide you with pricing and information on products that you have tested and evaluated. Bids encourage suppliers and vendors to put their best pricing forward for products and services that meet all the purchaser’s requirements. The bid will typically go to the lowest bidder that meets all the bid specs.

What is the case yield?

The case YIELD is what is important to pay attention to. The value is in the number of in-use gallons of product delivered and the cost per in-use gallon.

When to request product samples?

Always request product samples when you’re deciding on what to spec. By getting samples ahead of time, you can better evaluate what the critical product features are. Then, once you’ve done your due diligence, you can write your bid spec to get exactly what you need.

Who gets awarded the lowest bid?

Bids typically get awarded to the lowest bidder that meets all the specifications. Any bidder who meets the bid specs is eligible, even if the product they bid is missing key features. The idea is to be as specific as possible while allowing room for comparable products to come into light.

Do you have to put a purchase out to bid?

Additionally, each school board may have its own policies around bids. These typically include a dollar amount that a purchase has to exceed in order to be put out for bid. You may not even need to put a purchase out to bid!

What is the common standard in competitive procurement?

Bidders must submit bids on an equal basis. In competitive sealed bidding, the term “lowest bidder” implies a common standard under which bids must be received. The common standard implies a specification and terms and conditions that are freely accessible to all competitors. The bids must be based upon the specification and the terms and conditions.

Why do we need clear specifications?

The most obvious reason for writing clear specifications is to ensure that you will inform the contractors well enough that they can actually produce or provide the product you need . However, there is another reason why the specifications for public contracts must be clear: fairness to all bidders.

Why is it important to be fair to all suppliers?

Being fair to all suppliers is important for three reasons:    The most obvious when we are writing specifications for a public contract is that everyone has a right to be treated equally by a public agency spending taxpayer money. Requiring one supplier’s product to the exclusion of others would serve to deny the others an opportunity to benefit by receiving the order.

What is a bidder's description?

All bidders shall provide a detailed description, on the forms enclosed herewith, of the bidder’s experience, organization and qualifications to perform the work involved. The determination that a bidder is qualified to perform the Contract shall be based upon the information submitted by the bidder and the District’s independent investigation. The decision of the District in this regard shall be final.

What is the responsibility of each bidder?

Each Bidder is charged with the responsibility of acquainting themselves, by personal examination, with the location of the proposed work, and shall, therefore, be informed of the actual conditions and requirements of the work, including risks, means of access, and character of the proposed location of work, restrictions and regulations. Failure to do so will not relieve a successful Bidder of its obligations to furnish all material and labor necessary to carry out the provisions of the Contract and to complete the contemplated work for the amount set forth in the Bid. The submission of a bid shall constitute and imply full knowledge of such conditions and regulations and acceptance of the risks contained therein. Where borings are indicated on Plans, it is understood that they were made in the usual manner and with reasonable care, and their location, depths and the character of the material have been recorded in good faith. There is no expressed or implied agreement that the depths or the character of materials have been correctly indicated, and bidders should take into account the possibility that conditions affecting the work may differ from those indicated. Bidders may request and examine all available information that was considered in preparing the Plans.

How long can a bid be withdrawn?

Bids may be withdrawn upon the written request of the bidder prior to the time fixed for opening. No bid may be changed, amended or supplemented in any way after the exact time for submission of bids specified in the advertisement for bids. Any bidder that cancels or withdraws its bid after the bid opening will be deemed unqualified, and be prohibited from receiving a District contract, for a period of one (1) year from the date of bid opening. While it is the practice of the District to return the bid security, the District reserves the right to retain bid security as liquidated damages at its discretion. Repeated instances of cancellation or withdrawal of bids by a contractor may be cause for retaining bid security.

How long does a bid bond have to be in place?

The actual bond shall be provided within fourteen (14) days of the notice of award. (Note: Refer to “I-10. Bid Security – Section ” for Bond Rating and Financial Size Category requirements). In the event that the bidder fails to satisfactorily furnish a Performance Bond and Payment Bond, then the District may elect to retain the Bid Security of the bidder as liquidated damages and the Contract award may be canceled. The District may also deem the bidder as unqualified and the bidder may be prohibited from receiving a District Contract for a period of one (1) year from the date of bid opening.

What happens if you fail to attend a mandatory pre-bid meeting?

FAILURE TO ATTEND A MANDATORY PRE-BID CONFERENCE WILL RESULT IN DISQUALIFICATION OF THE BID.

Where to deposit a bid in Cook County?

All bidders shall submit two (2) original signed bids(i.e., completed documents included in the Bid Proposal section (see Section VI of Bid Specifications) sealed in an envelope and shall deposit them in the bid box located outside the Cook County, Office of the Purchasing Agent, Suite 2060, 69 W. Washington, Chicago, Illinois, by the date and time for the bid opening. Any bid deposited in the bid box after the date and hour set for the bid opening will not be considered and will be returned. If only one bidder submits a bid at the initial bid date and time, it will not be opened. The Purchasing Agent will notify the only bidder to ask if the bid should be kept for the re-bid, which will be held at a later date or returned to them. At the subsequent bid opening, if only one bidder has submitted a bid, it will be opened and reviewed. Any bid not accompanied by the required Bid Security deposit or any bid which fails to fully comply with the terms and conditions stated in the Bid Specifications for such project is a non-responsive bid and may not be considered. Bidders may not change, alter, add to or supplement in any way their bid after the date and exact time for submission of bids as specified in the Bid Specifications for such project.

Do you need a permit for a Cook County project?

Projects on District property require a building permit only from the Cook County Building and Zoning Department and not local municipalities; however, other permits, licenses, or bonds may be required from other jurisdictional agencies.

What is the purpose of specification?

The overall purpose of a specification is to provide a basis for obtaining a good or service that ill satisfy a particular need at an economical cost and to invite maximum reasonable competition. To this end, specifications may not be unduly restrictive. By definition, a specification sets limits ...

What is the most restrictive kind of specification?

1. BRAND-NAME SPECIFICATIONS: The brand-name specifications has the effect of limiting the bidding to a single product and is the most restrictive kind of specification. Its use will not be permitted unless only one product will meet an intended need, there are at least ten competitors that can supply the product, the department head has submitted written justification to this effect and the Director of Procurement has approved the use.

What is a qualified product list?

QUALIFIED PRODUCT LIST (QPL): A qualified product list (QPL) is a specification based on manufacturers' names, brand names and model numbers, but it is arrived at by a systematic and formal process. A QPL is predicated on a written specification which includes certain tests or other criteria for comparing, examining and approving products before soliciting competitive bids. These criteria and the methods for establishing and maintaining a QPL varies widely for different products. Some may require that committees test the products, others may simply require that brands be tested under controlled conditions and assessments made of their performance and others may require laboratory tests.

What is procurement duty?

The duty of Procurement to promote both product and price competition requires that specifications be as non-restrictive as practicable, consistent with satisfying legitimate needs. Procurement is responsible for final editing of specifications, and ensuring clarity of language with jargon or in-house terminology.

What is brand name or equal?

BRAND-NAME-OR-EQUAL SPECIFICATIONS: A brand-name-or-equal specification cites one or more brand-names, model numbers, or other designations that identify the specific products of a particular manufacturer as having the characteristics of the item desired. Any other brands or models substantially equivalent to those named are considered for award, with the Procurement Officer reserving the final right to determine equivalency. Brand-name-or-equal specifications have a legitimate but limited place in public purchasing.

What is performance requirement?

Performance requirements describe the characteristics and capabilities that are pertinent to the intended use of the article. a. Departments using performance specifications must explain in detail the results required, testing methods, and characteristics that the goods or service must perform.

Does procurement develop specifications?

DEVELOPING SPECIFICATIONS: Although Procurement has final responsibility for the competitiveness and suitability of specifications, Procurement cannot initiate or prepare all specifications. The size of staff necessary to do this would be prohibitive.

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Read Through and Analyse

Scoring Criteria

  • Most tender submissions are scored in terms of both price and quality, but these can be weighted differently depending upon the individual contract. In the specification it will state the criteria in which your bid is being scored; this allows you to work out what must be included, and in which section, in order to score highly. The criteria can al...
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Limits and Requirements

  • When assessing the specification for a tender, it is important to note that the contracting authority may have already considered the capabilities of suppliers within the market. This may then be reflected in the requirements outlined in the specification. Deliberate restrictions, such as word count and page numbers, exist not only to guide you when writing a bid, but to test the quality of …
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Quality Assurance

  • Whilst cutting through the many different aspects of the specification, it is also necessary to make sure your own work is quality assured to meet all of the requirements. A second opinion is always favourable in bid writing, as a fresh pair of eyes can provide another perspective and may pick up on something you previously missed. If you require full support with your bid manageme…
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