An invitation to tender (ITT) is the formal request to systems suppliers to offer their product against a specification...
People Management (article updated June 2002), 25 Jun 1998
An invitation to tender (ITT) allows the buyer to choose the most appropriate system on the basis of competitive bidding and suitability.
An ITT, sometimes referred to as a request for proposal, should provide sufficient detail for suppliers to respond as clearly, consistently and fully as you require. Contrary to popular practice, it should not be used as the single instrument by which to choose a supplier or any guarantee of the final bill.
Suppliers' responses are seldom comprehensive enough for you to make a decision there and then. Think of it as similar to a recruitment decision. Who would hire an individual based on the evidence of their CV alone, and without any further discussion?
Suppliers are acutely aware of the cost of each sale. The great importance of your project may not matter at all to suppliers with half a dozen other ITTs awaiting their reply. They will direct their attention to potential customers whom they believe are most likely to buy their systems. Your ITT should be "marketed" well to make them want to win your business.
Do your homework on each supplier by using a preliminary request for information to identify suitable products, looking at their web sites, reading directory reports - for instance, those from Conspectus (www.conspectus.com) or Ovum (www.ovum.com) - and asking other firms which software they use, and why. And simply talking to suppliers, perhaps at HR systems exhibitions, will give a clearer idea of how to frame your ITT.
It is tempting to request many more tenders than you need, but this tactic can be counterproductive. Broad-brush ITTs sent to inappropriate companies will serve only to show your ignorance, annoy suppliers and potentially cause extra work.
An ITT should be in at least seven sections (see "Creating the framework for an invitation to tender"), but you can focus more closely on some areas, depending on your requirements and knowledge. It should be written on the basis that the supplier knows nothing about your organisation.
Ask direct, open-ended questions and don't be shy about seeking price information. Try not to send War and Peace, but, at the same time, don't assume that a supplier will answer a question that you haven't asked.
Before sending the ITT, let each supplier know that it is coming. This will give them some warning, establish a rapport and allow you to re-emphasise deadlines.
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