- Limited Competition

Limited competition is a type of tender where a select number of companies or suppliers are invited to submit their bids based on specific requirements. This type of competition is used when the announcing body needs to engage with selected suppliers who have specific expertise or competence to execute the project.

When is Limited Competition Used?

1. Specialized Projects: When the nature of the project requires companies with specific expertise or technical qualifications.
2. Confidentiality: If the information related to the project is sensitive and cannot be widely shared.
3. Tight Timeframe: When the available time for execution is limited and does not allow for a public tender.
4. Few Qualified Suppliers: In cases where there are only a limited number of suppliers capable of executing the work.

Procedures in Limited Competition

• The announcing body prepares a list of qualified companies or potential suppliers based on past performance records and specific qualification criteria.
• Direct invitations are sent to the selected companies with the details of the competition documents.
• The same procedures for technical and financial evaluation as in public tenders are applied to ensure fairness.

Importance of Limited Competition

1. Quality Assurance: Engaging with specialized and experienced entities ensures that projects are executed with the required quality.
2. Time Cost Reduction: Avoiding extensive procedures like public announcements saves time and effort.
3. Enhancing Trust: The invited companies are well-acquainted with the project requirements and the history of the announcing body.

Challenges in Limited Competition

• Possibility of Bias: Selecting companies might be mistakenly interpreted as favoritism.
• Limited Competitiveness: Reducing the number of competitors may lead to less competitive financial offers.
• Transparency: Requires accurate documentation of the procedures for selecting companies to ensure the integrity of the process.

Role of the Etimad Tenders Platform

Within the framework of the governmental competitions and procurement system, limited competition can be managed electronically via the Etimad Tenders platform, enhancing transparency and reducing bias. The platform allows for the fair and clear invitation of suppliers and provides digital records of every step.