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 ?
The announcement that the Scottish Government now intend to award CalMac ferry contracts directly to the state-owned company instead of going through a competitive tendering process is indeed welcome news.
BVG will order around 1000 cars by 2030, which will be procured through competitive tendering.
Freemont says the cost is excessive and could have been reduced had the council gone to competitive tendering.
Experience in those member states which already use competitive tendering shows it will also save the taxpayer a significant amount of money and properly compensate railways for the services that they provide.
The book really comes alive when it moves on to the more engineering-related chapters that look at pricing contracts and the art of competitive tendering.
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.
Competitive tendering regulations being introduced for work-placed learning schemes are demoralising staff and destabilising the college budget, a college vice principal said yesterday.
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

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