Step 1: Needs Assessment

This includes the financial, human resource and technical aspects as well as a market analysis (i.e. which suppliers may be interested).

Step 2: Specifications and tender document

Neutral specifications that do not favor any specific supplier have to be prepared. A bidding document has to be prepared based on a published standard document, together with the model of the contract to be signed.

Step 3: Tender publication and bid opening

During the bidding period, bidders may ask questions and the buyer may change the requirements in the tender. Bid opening is conducted in public, bidders representatives may attend and receive a bid opening protocol.

Step 4: Evaluation of tenders

The bids are subsequently evaluated by the buyer, a phase during which the bidders may not contact the buyer, but the buyer may ask the bidders for clarifications.
If a separate prequalification procedure has not been conducted, the buyer first verifies if the bidders are sufficiently qualified to be awarded the contract - based on administrative criteria, prior contract experience and financial standing.
Subsequently, the offered equipment and related services are evaluated. Depending on the complexity of the equipment, the technical characteristics of the equipment are evaluated on a pass/fail basis against the requirements in the tender and the ranking of bidders is based only on the offered price (cost-based selection); all other issues are deemed acceptable.
Alternatively, in particular if the equipment is more complex or if the tender consists of many different items, the equipment is evaluated against various criteria on a sliding scale and points are given, so that every bid obtains a technical score. The technical score and the bid price are combined in a formula to obtain a ranking of the bids to identify the most advantageous bid. The latter procedure also applies if lifecycle cost are evaluated.

Step 5: Contract negotiation and award

After establishing the ranking of the bids, contract negotiations are started with the first ranked bidder. The contract signature must be obtained before the end of the bid validity period, typically 90 or 120 days.

Step 6: Delivery, installation and other after-sales services

Depending on the complexity of the equipment and the contract requirements, the bidder has numerous responsibilities, such as: preparation of the rooms in the hospital, installation of the equipment, integration of the equipment into the hospital information system (i.e. software installations), calibration of the equipment, training of equipment operators and maintenance technicians, maintenance of the equipment - which is never part of the product warranty - and possibly maintenance services beyond the duration of the product warranty such as calibration, software and firmware updates or spare parts.