the complexity of the selection process of the winning bid, has constituted fertile ground for attempts to contest the results of tenders. Indeed, during the last 20 years, litigation relating to tenders in Israel has exploded. Now many public entities issuing large tenders add within the project timetable an expected period for the legal proceedings that may be initiated by a losing bidder requesting to cancel the tender or to be awarded the tender. Furthermore, contesting the results of a tender has been made easier, thanks to the increasing rights of access to information granted to the public in general, and to bidders in particular. For example, bidders are entitled to request copies of the minutes of the tender committee's meetings, of the correspondence with all bidders, of legal and professional opinions requested by the tender committee, and mainly of the winning bid itself. Such disclosure may only be limited in few specific cases, such as commercial secrets in certain circumstances. Such information rights give the "disappointed bidder" a powerful weapon, since the review of such extensive documentation will in most cases reveal some deviation or alleged deviation from the terms of the tender. This is why a foreign entity, when considering submitting proposals in international tenders published in Israel, is always surprised to find its legal counsel so picky regarding the risk of a possible deviation from the terms of the tender in the proposal, while such deviations may not have similar consequences in other countries. Bidders In order to make it easy to check compliance, it is highly suggested to formulate the response using the same wording used in the tender itself. Bidders should refrain from attaching documents or certifications that suggest even a small deviation from the requirements of the tender. prepared forms to be completed by bidders. Tenders documents are not always provided in Word format, and many bidders retype the forms in order to insert the responses and submit a nice looking proposal. However, such retyping often involves modifications, or even unintentional typos that may be meaningful (for instance, omitting the word "not" in a sentence). Any deviation from the wording of the forms as they appear in the tender may lead to disqualification of the bidder. If possible, it is recommended to complete the forms in handwriting, to request a Word format version or to ask for specific instructions as to how the forms should be completed. The rules applying to deviations also apply to any reservations expressed by a bidder in its proposal with respect to a tender request, or with respect to any provision to which a bidder may condition its proposal. Any reservations or conditions in a proposal may lead to disqualification of the proposal. Accordingly, to the extent a bidder has any issues to discuss with the entity issuing the tender, the matter should be carefully examined on a case by case basis by the bidder with its local legal counsel, in order to determine the best course of action in any specific case. All that has been said with respect to strictness applies even more to the bid bond or tender guaranty. ANY deviation will lead to disqualification, even if the deviation does not modify the scope of the bond, and believe it or not, even if the modification benefits the entity issuing the tender! Israeli courts have disqualified a bid submitted with a bond which validity period was exceeding the period requested in the tender documents, since the tender issuer should not have to exercise its discretion in order to decide if any change in the wording of the bond is beneficial or not. Bidders should submit requests for clarification for any issue that is unclear, even for technical issues which, as detailed above, may have great importance. In addition, as a result of modifications made in the tender tender prior to the submission date, some contradictions or ambiguities may arise. For example, if the submission date has been postponed, and one of the prerequisites in the tender is experience of five years during the seven years preceding the submission date, a bidder fulfilling this requirement with respect to the original submission date may not be able to comply with respect to the postponed submission date. In specific circumstances, for example in the case of a tender with special technological complexity, the selection process may include a best and final stage, in which the tender issuer requests bidders who have scored the highest scores in the tender to submit their best and final offers. In addition, negotiations may be conducted with certain or all of the bidders. The above may have implications with respect to the price and conditions proposed by a bidder in its bid, which should take into account that a discount may be requested at a later stage. law, the local laws in different countries may often be similar, based on judicial common sense or general principles of equity, it seems that tender laws are more to be seen as local laws. This may be especially true in Israel, where the courts had such a major contribution in shaping the tenders rules, based on specific cases brought before them. Accordingly, it is strongly recommended that any foreign company considering participating in a tender in Israel seeks legal guidance from a local firm specializing in international tenders. image of a company, the sensitivity level of information and safety aspects so that all employees know the company's rules and you can enforce them. It is advisable to include such a policy as standard in the staff regulations. |