Invitation to tender

A tender announcement from the Indonesian Ministry of Finance

An invitation to tender (ITT, otherwise known as a call for bids[1] or a request for tenders) is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business activity in works, supply, or service contracts, often from companies who have been previously assessed for suitability by means of a supplier questionnaire (SQ) or pre-qualification questionnaire (PQQ).

The term "notice inviting tenders" (NIT) is often used in purchasing in India.[2] The European Union's institutions often use the term "calls" in reference to tendering procedures, covering both "calls for tenders" and "calls for expressions of interest for the award of supply, service and works contracts".[3]

An ITT differs from a request for quotation (RFQ) or a request for proposal (RFP), in which case other reasons (technology used, quality) might cause or allow choice of the second-best offer. An RFP is a request for a price from a supplier, but the buyer would also expect suggestions and ideas on how the project work should be done. RFPs are thus focused on more than just pricing/cost, they entail some consultation with the contractor or vendor. The closest equivalent to an ITT in the mainstream private sector is an RFP which, since public money is not involved, typically has a less rigid structure.

  1. ^ Consular reports: Commerce, manufactures, etc, Issues 164-167. United States. Bureau of Foreign Commerce, United States. Dept. of Commerce and Labor G.P.O., 1894. Pg 361
  2. ^ Telecommunications Consultants India Limited, Notice Inviting Tenders (NIT), accessed 6 March 2019
  3. ^ Council of the EU, Procurement at the General Secretariat, last reviewed on 25 October 2022, accessed 9 May 2023, reproduction authorised provided that the Council of the EU is always acknowledged as the original source of the material.