competitive tendering

Competitive Tender

A way to distribute a bond to investors. In a competitive tender, the issuer receives bids from large companies or other investors to buy the bond issue; the highest bid receives the issue. The winner, at its discretion, may or may not distribute portions of the issue on the secondary market. The Bank of Canada uses competitive tenders to sell its bonds.

competitive tendering

the system of awarding contracts for public services on the basis of competitive tenders. Private sector firms as well as public sector organizations are invited to submit tenders to provide services previously run directly by public sector organizations e.g. local authority refuse-collection. The assumption underlying this is that competition for contracts will drive down costs and encourage efficiency Competitive tendering was encouraged from the 1980s onwards and eventually became compulsory (compulsory competitive tendering or CCT) for a range of local authority services. However, CCT was abolished in 2000 and replaced by BEST VALUE, whereby local authorities are under a duty to operate services with regard to economy, efficiency and effectiveness. In most cases contracts have been awarded to the ‘in-house’ organization. Where they are awarded to an external organization it is common for most of the public sector workforce to be transferred to the contractor. See ENABLING AUTHORITY, NEW PUBLIC MANAGEMENT, PURCHASER-PROVIDER SPLIT.
References in periodicals archive ?
By competitive tendering at 1 supplier of contract selected.
But once you go down the competitive tendering route, you have to play by the EU rules and accept that the best bid may not be the incumbent state-owned operator.
Freemont says the cost is excessive and could have been reduced had the council gone to competitive tendering.
The firms that came through the competitive tendering process are DAC Beachcroft, Eversheds, Geldards Hill Dickinson, Hugh James and Morgan Cole.
Almost all appointments are made through a competitive tendering processes and this is no different from utilising specialist skills in other areas such as lawyers, property advice or accountancy support.
Traditionally, urban regeneration projects have been delivered through competitive tendering, but major weaknesses led policymakers to investigate alternative procurement methods.
Unlike other provinces, Saskatchewan is the only province to use a competitive tendering process to purchase generic drugs, which Saskatchewan Health estimates saved its residents about $13 million in 2000-01.
With the passing of the Local government (competitive tendering) act 1994 Victoria's public library sector became the first in the world to be exposed to compulsory competitive tendering (CCT).
Keith Greetham told the Sunday Mercury he would consider launching a legal challenge against the city council if the management contract, currently renewed to the NEC Group on a rolling basis, was not opened up to competitive tendering.
It replaces compulsory competitive tendering and Cllr Harvey said: "Compulsory competitive tendering turned out to be a straitjacket, concentrating mainly on price, and stifling innovation and improvement
Keystone was chosen through a competitive tendering process.
Support of offshore oil & gas drilling operations and construction support are shown as the largest sectors, together with submarine cable maintenance - but this activity is mostly not open to competitive tendering.

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