Structuring Own Cleint Bids

We have received a large number of enquiries regarding how to bid if you are in the process of considering joint bids for Duty Contracts – either via “partnering arrangements” or following merger. Some are even considering new ABS ventures.

The key section of the IFA in this regard is subtitled “Structuring Bids” at paragraphs 1.17 – 1.22. It goes without saying that this guidance is hopelessly inadequate, made worse by the lack of the IFA regarding Duty Contracts (due in July). It is hoped that the Question and Answer process might shed some light.

Our take on this is as follows:

  • A successful Own Client bid is essential to generate an Invitation To Tender (ITT) for a Duty Contract.
  • If you are considering merger or reorganisation after the Own Client round you can, and should, bid both as your current entity AND as the proposed new entity. (IFA 1.19)
  • At the point of Duty Bid submission you will only be able to bid for 1 contract per Procurement Area – so you will have to chose on which legal entity to bid, solo or merged. This gives a little more time to consider merger/reorgansation but still not nearly enough. (IFA 1.21)
  • Should this Duty bid fail you will be able to choose which Own Client bid you wish to proceed with, your solo or merged bid. (IFA 1.20 b)
  • Essentially you need to cover all bases by bidding for an Own Client contract in any potential legal configuration you are presently considering. You will only be able to proceed at Duty stage on the basis of one of those however.
  • If you have ruled out merger/reorganisation but are considering “partnering arrangements” you simply need to bid as currently constituted.

If you read this differently please let us know – we might be wrong. As above hopefully the Q&A will clarify, though we anticipate a simple referral back to this section of the IFA.

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