If you think that there’s little chance for your MSME to win government tenders in India, think again. Contrary to popular myth, government tenders are not restricted to large enterprises only. Today, many MSMEs and emerging businesses in India are applying and winning relevant government tenders to accelerate business growth.
This obviously stems from the fact that earlier, applying to government e-Procurement was a time-consuming, tedious, and complex task. It required adhering by several tender guidelines, elaborate paperwork and documentation, rounds of evaluation, detailed bid proposal writing – in short, not the most optimal condition for small businesses with limited resources to make the most of tendering opportunities.
But with the government encouraging digitisation and digital transformation in India, the tendering process has also evolved. Today, there are tenders made available exclusively for the MSME sector, reliable tender websites to search for latest tenders, and online tenders to keep the process transparent, quick, and open to all.
On that note, let us take a closer look at how MSMEs can find and apply to government tenders, with minimal effort and maximise their chances of winning it.
5 steps to search for and apply to government tenders in India
The first thing to understand is that winning government contracts is great news for emerging businesses.
- It builds trust and credibility for your brand
- It is usually for a larger sum and longer period
- It ensures timely payments
- It helps you to find new opportunities for MSME growth
As such, if you have been apprehensive and hesitant to try applying to government tenders, here are five tips to help you find and apply to latest government tenders confidently.
1. Never miss a tender notice
If you want to win a government contract, the first thing you have to do is keep track of relevant tender invitations. You can visit the public procurement portal (CPPP) to stay updated on the latest tender announcements or register your business on a reliable tender website to receive alerts.
The e-Procurement system is easy to navigate, and you can find all tender announcements in one place. The challenge is, that you will have to invest some time to find relevant tenders for your business.
Tender websites on the other hand comes with several benefits. You will be able to:
- Set filters and preferences and get relevant tender alerts, saving you time and effort
- Study the tender documents and information in detail to understand if your MSME is eligible for it
- Bookmark/shortlist relevant tenders and get notifications on due dates or any updates
2. Find relevant government tenders
There are thousands of government tenders (central, state, public sectors) announced every month, each with its specific requirements and eligibilities. Not all will be relevant to your business, nor will you be eligible for all. You will have to find the right tenders for your business, prepare the documents, and write an authentic proposal, to increase your chances of winning the government tender.
- It is recommended to allot time and resources to search for government tenders. This may sound tedious, but the results are satisfactory. If you sign-up on a tender platform, the task is easier as platforms usually send alerts on the latest active tenders in India.
- When trying to filter and find relevant tenders use parameters such as industry, location (city, state), tender value, due date, tender inviting authority (e.g., railways, defense, housing, and urban affairs, power, energy, etc.), and more to find relevant government tenders.
- Also, register as a seller on the GeM portal (Government e-Marketplace). If you are not familiar with the registration process, get GeM portal registration assistance from external vendors to help you with it.
As a pro tip, try to find MSME tenders. These tenders have requirements and eligibilities aligned to MSMEs and you stand a greater chance of winning it.
3. Research the tender requirements
Once you have shortlisted the government e-tenders you want to apply to, the next step would be to understand the requirements of the tenders.
Follow the basic tender guidelines. Check for details like pre-qualifications, eligibility, value, timelines, specific requirements, fees and EMD (usually exempted for MSMEs), certifications, technology skills, etc. You will realize that in many cases you may not fit the requirements and save yourself time and effort.
For instance, if the tender value is of ₹10 crores and your annual turnover is between ₹5-6 crores, it is likely that your bid proposal will be rejected. This is because the tender authority will be skeptical if your business has the capabilities, infrastructure, and resources to undertake a tender of such high value.
Similarly, if the tender requires specific IT skills and certifications, it is unlikely you will win the tender if you do not have them. In a nutshell, read the tender information thoroughly before application.
4. Write a winning proposal
This is probably the most crucial and challenging part of e-tendering for MSMEs – writing the tender bid proposal.
As mentioned previously, there are guidelines to follow when applying for e-tenders. As an MSME owner, if you are new to this process, it can seem overwhelming. There are bid writing services provided by many tendering consultants to help you with it. This will ensure that your proposal has the key facts highlighted, and is accurate and authentic.
Bid consultants will help you to get your tender documents in place. They will guide you on how to calculate and quote prices to increase your chances of winning while maintaining profits. For instance, most businesses spend almost 1% of the tender amount in preparing the documents. While quoting, it is important to calculate such costs and make a bid.
Moreover, writing proposals for government contracts is not just text. There is also the need to design your proposal, with relevant charts, graphs, images, etc. to make it interesting, easy to understand, and memorable.
As a rule of thumb, keep the following handy:
- A checklist of the documents required and details on team expertise, case studies, industry experience, certificates and awards, patents, and any other information
- A sample write-up based on common tender requirements and details about your business to keep the proposal writing process less expensive and quick
5. Before you submit
And finally, before you submit your proposal, keep the following in mind:
- There should be consistency, assertiveness, and less ambiguity in the government procurement contract details. It is recommended to check it multiple times to ensure that all relevant information is present.
- Write your proposal in a way that it highlights your strengths and achievements. It should also explain how you can efficiently execute the contract within the timelines. Details on team expertise, industry experience, cost breakup, delivery process, etc. add value to your proposal. Ensure they are present.
- It’s untrue that you will have to make the lowest bid to win the contract. Remember, the tendering authority will verify all details (e.g., product quality, the method used, safety standards, etc.) and give the order to the right bidder. It is recommended therefore to bid intelligently, keeping profits and market rates in mind to increase your chances of winning government tenders.
Finding growth opportunities with tenders in India
As an emerging business, growth is probably the first thing on your mind. Government e-tenders are one of the most lucrative and beneficial opportunities you can leverage. The online process keeps it transparent and fair, and reduces expenses, time spent, and effort given. It also makes it possible for eligible businesses from across the country to apply (unless the tender is location specific).
Moreover, today the government is encouraging more MSME participation in tendering to boost the sector. This has given rise to many new MSMEs exploring tendering opportunities to grow their business.
As an MSME owner, if growth is on your mind, try applying to government tenders. With the right team and support by your side, you stand every chance of winning government contracts!
