Area Contract (Gross Cost) / Legal and Regulatory Framework / Tendering Documents / Tendering Procedures

Tendering Procedures
The tendering of a gross-cost area-contract, by way of competitive bidding, can be a complicated process. It requires substantial time and effort from the transport authority and the bus operators bidding for the contract.

Under a competitive bidding process, tendering generally involves the following:

Public notification by the transport authority of its intent to enter into a gross-cost area-contract with a bus operator and a request for expressions of interest.
Distribution of information memoranda, bidding documents and a draft gross-cost area-contract to potential bidders.
A formal process for pre-qualifying potential bidders.
A formal public process for presenting and evaluating proposals, and selecting the winner.

Within this broad framework there may be important design differences on, for example:

whether and how to pre-qualify bidders
how bids will be structured and evaluated
how offers will be presented and awarded

It’s impossible to discuss all the rules, general or specific, that govern tendering by way of competitive bidding because there are many variations.

When national legislation mandating competitive bidding for public contracts in general or bus services in particular exists, such legislation may provide a general framework for the transport authority to rely on.

When no such legislation exist, or when it sheds no light on procedural matters, the transport authority should try to conform with established best practices. See, for example, the World Bank procurement guidelines.

However, the tendering of a gross-cost area-contract through competitive bidding has peculiarities of its own which are addressed. See: Tendering — special issues for gross-cost area-contracts.