Draft for Tamir's review. Not published.
Test each commitment against your capability
List the technology commitments in the tender and the evidence of capability for each. Ask which ones rely on partners and whether those partners are contracted for the bid. Ask for the worst-case penalty exposure against the contract's value.
Map each required digital service to its equipment, software, staffing and support. Include maintenance, connectivity, replacement and integration changes. The cheapest equipment is rarely the lowest operating cost.
Limit the dependence on your partner
A partner can make the bid credible without owning your operation. Ask what you would own and control: systems, data and the right to change supplier for later phases. Ask what happens if the partner fails mid-contract and who covers the authority's penalties.
Ask procurement and counsel to review the performance and liability terms, and check which supplier commitments match the concession's service requirements.
Depending on your seat
If you're on the board, approve the bid with conditions on partner contracts and risk limits. After a loss on the technical score, compare the bid's technical sections with the criteria and with what the winner offered, as far as it is known. Decide any challenge with counsel, separately from the lessons.
If you're the CEO, check who wrote the technical sections and whether they could deliver them. Ask which technology obligation the bid has priced incompletely before you set the price.
What to check before you decide
- List each technology commitment in the tender and the evidence that you can deliver it.
- Ask which commitments rely on partners and whether they are contracted for the bid.
- Ask for the worst-case penalty exposure relative to the contract's value.
- Price each required service with maintenance, connectivity, replacement and support.
- Read the partnership terms on scope, exclusivity, term, exit and later phases.
- Ask what you would do if a partner fails mid-contract.
- After a lost bid, compare the technical sections with the scoring criteria and the feedback.
Questions people ask
Management wants to bid on a tender with technology commitments we've never delivered, what should the board check before approving the bid?
Ask for the delivery plan behind each technology commitment: who delivers, on what evidence of capability, with what fallback, and what the penalties could cost in the worst case. A bid without those is a bet. It depends on whether partners with the capability are committed in writing and on the penalty exposure relative to the contract's value.
Management wants to bid on an electrification tender with a technology partner, what should the board ask about the dependence?
Ask what the company would own and control under the partnership: systems, data, the right to change supplier for later phases, and the partner's obligations if it underperforms. A partner can make the bid credible without owning the company's operation. It depends on the contract's length and on whether the partner's role can be split into phases.
We lost a tender on the technical score and management says it was unfair, what should the board learn before the next bid?
Get the scoring feedback and compare the bid's technical content with what the tender asked for and what the winner offered, as far as it is known. Fair or not, the comparison shows where the bid was weak. Then decide what capability or partner the next bid needs. It depends on the feedback's detail and on whether the bid's technical sections were written by people who could deliver them.
What technology costs should we verify before bidding for a transport concession?
Price the service obligation and its full operating dependencies, beyond the initial equipment. It depends on the actual tender requirements, support model, connectivity, replacement needs, and allocation of performance risk.
How I can help with this decision
- Ask or talk (Free)
- I give my view on which commitments carry the risk and which obligation the bid may have priced incompletely. I tell you what to require before the bid goes in.
- Review (Pay if it was worth it)
- I write an independent assessment of the technology commitments, the partner terms, the operating cost and the exposure, for the board. I recommend to approve, condition, revise or decline the bid.
- Retain (When it makes sense)
- I stay available to the board through delivery to review the commitments and the partner's performance at each milestone.