How the Tender Process Works: A Guide for Public Sector Suppliers
Public sector tenders are formal invitations issued by public bodies. This includes central government departments, local authorities, and National Health Service (NHS) trusts.
For suppliers, understanding the tendering process is essential to finding opportunities and submitting compliant bids. Every step affects eligibility, scoring, and success.
In this article, we’ll discuss how the tender process works in the UK. We will also explain the key stages, procedures, and what suppliers must know to compete with clarity and compliance.
Types of Tender Processes
Public sector buyers use different tender processes depending on contract value, risk, and complexity. For suppliers, understanding these routes helps judge which opportunities to target, how much effort to invest, and what to expect from the procedure.
Open Tender
In an open tender, any supplier who meets the minimum requirements can submit a bid. It is the most transparent route and is widely used in public procurement to maximise competition and demonstrate equal treatment.
Open tenders offer clear access to opportunities but often attract a large number of competitors. Strong bid qualification and clear differentiation are essential for suppliers to succeed.
Selective Tender (Restricted Tender)
In a selective or restricted tender, the buyer invites only a shortlist of pre-qualified suppliers to submit a bid. The shortlist is usually based on capability, experience, and capacity, often assessed through a selection questionnaire or prior participation in a framework.
Competition is narrower, but the entry bar is higher. For suppliers, this type of process rewards a track record in the sector and prior investment in pre-qualification.
Negotiated Tender
In a negotiated tender, the buyer works directly with one or more suppliers to agree on the scope, price, and contract terms. This approach is typically reserved for complex, specialist, or urgent requirements where a standard open process would not be suitable.
Suppliers have the opportunity to shape the solution with the buyer, but they need strong commercial discipline and documentation, as the audit trail still matters in the public sector.
Two-stage Tender
Two-stage tendering splits the process into an early appointment stage and a later pricing stage.
- In stage one, the buyer selects a preferred supplier or shortlist based on capability, approach, or outline prices.
- In stage two, the supplier develops detailed designs, programmes, and final pricing with the buyer.
This route is used for complex or construction-led projects where early contractor input reduces delivery risk. For suppliers, it offers earlier engagement but requires more collaboration and ongoing bid effort.