How to take part in European tenders

Winning a European tender can be a massive boost for your business. A tender is a method of procurement by governments in Europe. Or by European organisations that carry out tasks for governments. For example, schools, universities, or water authorities. But the procedure can be challenging and very time-consuming. Read how to participate in a European tender.

Government agencies all over the world purchase billions of euros worth of public works every year. From hiring IT specialists to buying Christmas presents and building roads. 

European tenders 

Supplying goods or services to the government is done through a purchase order. This is called a tender or invitation to tender. Is the estimated value of a contract equal to or more than the European threshold amount? Then the government must issue a Europe-wide tender. The government is then the commissioner of the tender.

Threshold amounts 

The same threshold amounts apply to all countries in the EU and are set by the European Commission every two years based on Guidelines. The current threshold amounts apply from 1 January 2024 to 31 December 2025. Different Guidelines specify different threshold amounts. Central governments like the Dutch government, for example, have to issue European tenders for all supplies and services from €143,000. 

Dutch business owners can also submit bids for tenders issued in other EU member states. You do not need a company abroad to do this.  

Current tenders 

An overview of current tenders in the Netherlands can be found on TenderNed (in Dutch), the public procurement system of the Dutch government. Signing up for TenderNed is easy, quick, and entirely digital and means you can access contract announcements, award notices, and more. 

The European counterpart of TenderNed is called Tenders Electronic Daily (TED). This website publishes European government tenders and can be searched by country, region, or sector. 

Registering 

When you register you can create a TED profile. This way you will automatically receive messages about areas that interest you. 

Procedure 

Tender procedures can be either open or restricted. 

Open 

With open procedures, any company can draw up a plan and submit a bid. Only plans that meet the requirements will actually be assessed. The procedure consists of just one round. In this round, the contracting party assesses the companies' suitability. The plan that provides the best solution is chosen. 

Restricted 

Restricted procedures are similar to open ones, but have two rounds. In the selection phase, companies apply based on pre-announced selection criteria. Only companies that are selected are allowed to actually submit a tender bid. The contracting party must invite at least three companies to put in a bid for the second round of the tender. This encourages healthy competition. 

Customised

Some projects require a  customised approach. In that case, the contracting party may opt for a special procedure. For example, a contest or electronic auction. This approach is primarily used for architectural contracts, such as a land use plan or urban planning design. 

Registration 

Every tender goes through three stages. 

1. Announcement; the contract is published on the TED website. 
2. Bidding; you submit your tender documents. 
3. Award; the client has reviewed the bids and awards the contract to the winning bid. 

Bidding is the most important stage in the tender process. Your bid should set you apart from the competition. In your action plan, describe why your product or approach is the best possible solution for the client, 

Also make sure you provide on time all necessary legal, financial, and contractual documents or manuals. Make sure to submit only the documents requested in the schedule of requirements and nothing more or less. In the schedule of requirements, the contracting party describes what will have to be delivered and the work involved. 

Assignment 

Make sure that your plan meets all the requirements set out in the tender. If you do not meet the requirements, there is little sense in competing. If the tender requires the use of 6 mm screws, do not suggest using 8 mm screws. The same goes for submitting a bid after a deadline. The contracting party will not consider a late bid, so you will simply be wasting your time.  

If you manage to win the tender, you will usually get a sizeable contract. Once you are in, you may also be awarded any subsequent contracts. In the award notice, the contracting party explains how they came to their decision. For example, by picking the most economically advantageous tender (MEAT), the cheapest tender, or the most  sustainable tender. Each bidder is given a score for each part of the schedule of requirements. The bidder with the highest overall score wins the tender. 

Support 

Participating in a tender in another country is often difficult. You will probably not know your way around. You may not speak the language. Laws and regulations may be different. If your company is based in the EU, you can compete for a public contract in another EU country without a local partner. However, bringing in a local partner or local network does have its advantages. Your partner will be familiar with the market and with local laws and regulations. 

Government agencies like the Netherlands Enterprise Agency  (RVO) can help you. You can also turn to trade associations for support. Commercial companies will help you prepare your bid for a fee. 

More information 

Check out the government tender roadmap on Business.gov.nl. On the website of PIANOo, the Expertise Center for Procurement of the Ministry of Economic Affairs and Climate, you will find ten practical tips (in Dutch) for contracting authorities and business owners. 

This article incorporates the advice of Milan Bijl, Socially Responsible Purchasing advisor at PIANOo.