Blog/Did you lose the tender? How to learn from the bids you didn't win

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Did you lose the tender? How to learn from the bids you didn't win

Lost a public tender? The reasons for the decision, your right of access and the review system give you concrete insight you can use to win next time.

Many suppliers read the rejection, shrug and move on to the next deadline. That is understandable, but it means missing the most concrete feedback available in public procurement: a written explanation of why somebody else won. Here is how to get that insight out, step by step.

You are entitled to reasons

Once the buyer has selected a supplier, every affected tenderer must be told who won and why. This follows from the EU remedies rules (Directive 89/665/EEC, as amended by Directive 2007/66/EC) and applies across the EEA. The notice must name the successful tenderer and set out the characteristics and relative advantages of the winning tender, measured against the award criteria. In plain language: what was good about the winning bid, and what made it better than yours.

What varies from country to country is who you complain to and how much of the winning bid you are allowed to see.

How to read the reasons like a professional

A statement of reasons is not a formality, it is raw material for improvement. Read it against the award criteria in the competition, meaning what the buyer said the tenders would be judged on.

Ask yourself:

  • Did you lose on price or on quality? Those are two completely different problems with two completely different solutions.
  • How big was the gap? Losing narrowly on quality means something different from being left far behind.
  • Was there something the buyer could not find in your tender? The expertise often exists in the company, but it never came across clearly on paper.
  • Were you rejected on formalities? Then the problem is not your tender but your routines, for example qualification requirements or mandatory forms that were not answered correctly.

Do you find the reasons too thin to answer these questions? Ask for elaboration immediately. Reasons you cannot learn anything from are not good enough under the rules either.

The standstill period is your thinking time

Between the notice and the signing of the contract there is a standstill period, a waiting time in which the buyer is not allowed to sign. Where the notice is sent electronically the minimum is 10 calendar days, and 15 days when it is sent by other means. Note that the requirement does not apply in every situation, including for many call-offs under a framework agreement.

The period exists precisely so that you and the others who missed out have time to consider whether everything was done properly, and to react before the contract is a done deal. Use it actively: read the reasons closely, ask for elaboration if anything is unclear, and tell the buyer straight away if you believe a mistake has been made.

Access: see what the winner actually delivered

This is where national rules differ most, and where many suppliers leave value on the table. In several countries the procurement record and the winning tender become accessible once the supplier has been selected or the contract has been signed, with trade secrets redacted. Elsewhere the winning bid is effectively closed to competitors, and your access runs through the review procedure instead. Check which regime applies before you assume either.

In Norway specifically, the rule is generous: under the Freedom of Information Act, tenders and the procurement record may be withheld only until the choice of supplier has been made. After that you can ask for the procurement record, the buyer's own log of how the competition was run, and for the winning tender itself.

Where you do get access, this is often where the biggest realisation comes. It is one thing to be told the winner scored better on quality, quite another to see how a winning tender is actually put together.

When should you complain, and when should you let it go?

First, an important distinction: do you disagree with the buyer's professional judgement, or do you believe a mistake was made? Buyers have wide discretion in matters of judgement. Mistakes, such as missing reasons, award criteria that were changed along the way, or a winner who did not meet the requirements, are something you can act on.

You generally have three routes:

  • Complain to the buyer. Free, informal and often the most effective, especially during the standstill period while the decision can still be reversed.
  • Go to the national review body. Every EEA country has one, and the fees, deadlines and binding force differ considerably. Some are free, others charge four-figure or five-figure sums.
  • Go to court. Relevant in large cases, for example claims for damages, but you should have a lawyer and the threshold is higher.

In Norway specifically, the review body is KOFA. The fee is NOK 8,000 in ordinary advisory cases and the deadline is six months after the contract was concluded. Its opinions are advisory rather than binding, but most buyers follow them.

And sometimes the right answer is not to complain: if the analysis shows you lost fair and square, the insight is worth more than the rematch.

Make loss analysis a fixed routine

What you should do, gathered in one list:

  1. File every statement of reasons together with the tender it belongs to, not in someone's inbox but somewhere the team can find it.
  2. Categorise the loss: price, quality, formalities or wrong competition. One category per loss.
  3. Request access to the winning tender in competitions that resemble the ones you want to win more of.
  4. Look for patterns over time. If you always lose on the same criterion, you have found your next improvement project.
  5. Consider whether you are picking the right competitions. Many "losses" are tenders that should never have been submitted. Read the contract notice critically before you spend two weeks on a bid, and use tender alerts to find the competitions that actually fit you.

If you use Cobrief, this whole routine can live on the tender itself, with the award decision letter, the disclosed documents, the reason for the loss and the patterns in one place: see how to run loss analysis in Cobrief.

Losses are data

A lost tender is expensive enough as it is, so do not let it be wasted too. The reasons, the right of access and the standstill period are tools the rules give you for free, and used systematically they turn every loss into a slightly better starting point for the next bid.

We at Cobrief are happy to talk about how you can find, and win, more of the right tenders.

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