Small business owners sometimes believe that tenders conducted by government ministries, government companies, municipalities, and other public bodies are intended for "big players" in the market - large and medium-sized companies - and that small businesses have no "chance" to compete in this vast and fertile market. This is a false assumption.
Public bodies often advertise tenders for small-scale works, suitable for small businesses and artisans in the industrial sector. In these cases, the "big players" sometimes refrain from participating for reasons of profitability, which leaves only small businesses in the "game".
Prefer blue and white
Moreover, the mandatory tender regulations give preference to domestically produced goods over goods produced abroad. Even higher preference is given to goods produced in national priority areas, the Gaza perimeter area, and within the Greater Sderot area.
Giving priority to women bidders in tenders
In addition, with a desire to encourage women in business, the Mandatory Tenders Law gives greater weight to a bid submitted by a company or business controlled by a woman. So that where, after weighing the results, two or more bids receive the same result, which is the highest result (usually a weighting of price and quality), the bid from a company or business controlled by a woman will be selected, provided that the required documents stipulated by law for this purpose are attached to the bid documents.
The bank guarantee
Tender laws are numerous and varied. For example, in many tenders there is a requirement to include an autonomous bank guarantee, the main purpose of which is to secure the bidder's commitment according to its bid in the tender. The bank guarantee must be in exact accordance with the wording stipulated in the tender documents (the wording of the guarantee, the validity of the guarantee, the amount stated therein, etc.). Court rulings on the subject of bank guarantees are very strict and almost any deviation from the required wording will inevitably lead to the disqualification of the guarantee and, consequently, the bid in its entirety.
Despite the strict requirements regarding the bank guarantee, it should be noted that Not every defect in the bidder's documents necessarily leads to the bid being invalid.. Sometimes, in a bidder's proposal, especially an inexperienced bidder, the tenderer finds various technical defects, such as the absence of a signature on a certain document, or the absence of any certificate in the bidder's possession and which, due to the lack of appropriate attention, he did not attach to the bid documents. In accordance with court rulings, the tender committees of the various public bodies have the authority to exercise discretion in the matter and to request corrections and additions in appropriate cases.
What do you do if the proposal you submitted is rejected or does not win?
In the event of a bid being rejected, the Tenders Committee must notify the bidder and explain its decision. The bidder has the right to argue before the Tenders Committee and the right to review the committee's minutes, its decisions, and the winning bid - within the deadlines set by law. A bidder who believes that there were flaws in the Tenders Committee's decision in his case has various legal tools that allow him to try to change the Tenders Committee's decision. At this stage, it is of great importance to obtain prompt and professional legal advice, as any delay in taking action may, in itself, prevent the bidder from changing the Tenders Committee's decision or obtaining relief from the court.
For example, in a case represented by our firm, a bidder whose bid was rejected by the Tenders Committee due to failure to meet the threshold conditions set forth in the tender, applied to the court, demanding an extension of the deadline for filing an administrative petition against the Tenders Committee for the rejection decision. Among other things, the Tenders Committee argued in court for the petitioner's delay and for the petitioner's deviation, of only a few days, from the deadlines set forth in the law. The court adopted the delay argument asserted by the Tenders Committee and dismissed the request, charging the petitioner with costs.
Therefore, it is recommended that small business owners monitor the tenders that are frequently published by public bodies, and in the current technological age, there are various platforms that assist and facilitate this monitoring. It is also recommended to seek the assistance of a lawyer specializing in tender law in all procedures and processes related to the tender, especially before submitting a bid.
Attorney Erez Ben-David fromWolfson Weinstein Co. Office', Engaged inTender Laws and serves as legal advisor and member of a government company's tender committee.
* The text is not a substitute for individual legal advice. Reliance on the information is the sole responsibility of the user.
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