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Procurement Glossary

Side offer: Definition, significance, and strategic application in Procurement

November 19, 2025

A secondary bid is an alternative solution that bidders can submit in addition to their main bid. This type of bid allows suppliers to present innovative or more cost-effective alternatives that deviate from the original tender requirements. Find out below what exactly a secondary bid is, what evaluation methods exist, and how you can use them strategically in the procurement process.

Key Facts

  • Side offers are alternative solutions proposed in addition to the main offer that complies with the rules.
  • They must be explicitly permitted in the tender in order to be legally admissible.
  • Bidders may propose innovative technologies or cost savings through alternative specifications.
  • The evaluation is carried out separately from the main tender with its own evaluation criteria.
  • Parallel offers promote competition and can lead to better overall solutions.

Contents

Definition: Alternative offer – clear explanation and meaning

A secondary bid refers to an alternative bid variant that is submitted in addition to the main bid that complies with the rules and deviates from the original tender requirements.

Basic characteristics of ancillary offers

Alternative bids are characterized by specific features that distinguish them from the main bid. They must always be submitted in addition to a compliant main bid and may only be considered if they have been explicitly permitted in the service description.

  • Alternative technical solutions
  • Different material specifications
  • Modified delivery terms
  • Innovative contract design

Secondary offer vs. primary offer

The main difference lies in compliance with the tender requirements. While the main bid must meet all the specified requirements, the secondary bid may deviate from them. The bids are evaluated separately for both variants using different evaluation criteria.

Significance of ancillary offers in Procurement

Alternative offers create scope for innovation and cost optimization in the procurement process. They enable suppliers to contribute their expertise and present alternative solutions that may achieve better results than the originally specified requirements.

Methods and procedures

The systematic handling of secondary offers requires structured methods for approval, evaluation, and decision-making.

Approval procedure for secondary offers

The acceptance of secondary offers must be taken into account in the tendering strategy. Clear framework conditions must be defined within which deviations are permissible.

  • Explicit mention in the tender documents
  • Definition of permissible deviation ranges
  • Minimum requirements for secondary offers

Valuation methodology

The evaluation of secondary bids is carried out using an adapted evaluation matrix that takes both quantitative and qualitative factors into account. The award criteria must be adjusted accordingly.

settlement procedure

The systematic comparison between the main and secondary offers requires a standardized basis for evaluation. This involves quantifying and comparing both direct costs and indirect benefits.

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Key figures for managing secondary offerings

Measuring the success of ancillary offers requires specific key figures for evaluating quality, cost-effectiveness, and degree of innovation.

Quantitative performance indicators

Measurable indicators enable an objective evaluation of alternative offers in comparison to conventional solutions. These include both direct cost savings and indirect benefits.

  • Cost savings compared to main offer (%)
  • Number of alternative bids received per tender
  • Surcharge rate for secondary bids (%)
  • Implementation time comparison

Qualitative evaluation criteria

In addition to quantitative factors, qualitative aspects such as degree of innovation and strategic fit must also be evaluated. A structured scoring model supports the systematic recording of these factors.

risk-return ratio

Assessing the relationship between potential benefits and implementation risks is crucial for decision-making. Both financial and operational risks are taken into account.

Risks, dependencies and countermeasures

Dealing with secondary offers involves specific risks that can be minimized by taking appropriate measures.

Legal risks

Insufficient documentation of the admissibility of alternative bids may lead to legal challenges. The procurement guidelines must clearly define the conditions under which deviations are accepted.

  • Unclear admission criteria
  • Non-transparent evaluation procedures
  • allegations of discrimination

evaluation complexity

Comparability between main and secondary offers can be made difficult by differing specifications. This requires careful development of evaluation criteria and corresponding technical expertise.

Implementation risks

Alternative solutions may involve higher implementation risks, as they are less proven. A thorough risk analysis and appropriate safeguards are required.

Side offer: definition, evaluation, and strategic application

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Practical example

An automobile manufacturer puts out a tender for the supply of vehicle seats and allows for alternative bids. While the main bid is for conventional leather seats, one supplier submits an alternative bid using sustainable materials made from recycled fibers. Although the material costs are 8% higher, the alternative solution offers advantages in terms of carbon footprint and is in line with the company's sustainability strategy.

  • Systematic evaluation of both bid variants
  • Consideration of strategic sustainability goals
  • Decision in favor of the secondary offer despite higher direct costs

Trends and developments relating to ancillary services

The development of ancillary services is shaped by technological innovations and changing market requirements.

Digitization of bid evaluation

Modern electronic tendering systems enable more efficient management and evaluation of alternative bids. AI-based analysis tools support automated preliminary testing and comparison of alternative solutions.

  • Automated compliance testing
  • AI-supported evaluation algorithms
  • Digital comparison matrices

Sustainability-oriented ancillary services

Side offers are increasingly being used to present more sustainable alternatives to conventional solutions. This encompasses both ecological and social aspects of procurement.

Collaborative innovation

The trend is toward greater involvement of suppliers in solution development even before the actual tender. This leads to higher-quality secondary offers with a higher degree of innovation.

Conclusion

Alternative bids are a valuable tool for promoting innovation and competition in procurement. They make it possible to explore alternative solutions and implement potential improvements to the original specifications. However, success depends on careful planning, a clear legal framework, and systematic evaluation procedures. When handled professionally, alternative bids can create significant added value for companies.

FAQ

What is the difference between a secondary offer and an alternative offer?

A secondary bid is submitted in addition to a compliant primary bid and deviates from the original specifications. An alternative bid, on the other hand, completely replaces the primary bid and must still meet all minimum requirements.

When are alternative offers legally permissible?

Alternative bids are only permissible if they have been explicitly permitted in the tender documents. The tender must define clear framework conditions within which deviations are accepted. Without this explicit permission, alternative bids must be excluded.

How are secondary offers evaluated and compared?

The evaluation is based on adjusted evaluation criteria that allow for a fair comparison of both the main and secondary offers. Normalized evaluation standards are applied in order to objectively compare different specifications.

What advantages do ancillary offers offer for Procurement?

Alternative offers promote innovation and competition, can lead to cost savings, and enable suppliers to contribute their expertise. They create flexibility in the procurement process and can lead to better overall solutions than originally specified.

Side offer: definition, evaluation, and strategic application

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