When the auction is announced, the prices from the bidders are disclosed and sorted in descending order. Tenders are divided into three stages - in each stage, the participants carry out a reduction of the price of the offer in a predetermined sequence. A new round of bidding begins with the last price of the preceding stage.
There is no rigid framework for reducing supply. The main thing is to follow the rules: price reduction should not exceed the lowest threshold of the auction declared in the conditions of the tender. At each stage of the bidding process, bidders can track how the tender is going, price changes, and which competitor remained in the bidding.
At the end of the final round of bets, all offers are made public, namely:
- prices
- conditions for submission of the subject matter of the procurement
- documents attesting to the qualifications of potential performers
According to this data the customer evaluates the proposal. But the main criterion is economic benefit. They are usually the first to consider a bid with the lowest price. When the customer has determined a good offer for himself, he studies it within 5 days, sometimes the process of examination of the offer can be extended up to 20 days.
If the documentation of the selected participant fulfils the conditions of the tender, the customer is entitled to declare it the winner without consideration of other tenders - on this tender is considered to be completed.
But if the first offer does not meet the requirements, the customer continues further evaluation of the bids. The customer at this stage analyzes not only the price offer and documentation, but also additional conditions:
- Acceptable forms of payment;
- Conditions of guarantee service/ Warranty service conditions
- Operating costs/operational expenses
- The proposed terms of the contract execution.
The tender lasts either until the final winner is determined or until all applications are rejected. In the second case, the auction is considered canceled.