What is the purpose of an Invitation to Tender (ITT)?

The purpose of an Invitation to Tender (ITT) is to invite potential suppliers to submit their quotations for the provision of goods or services. This process is essential in procurement as it allows organizations to communicate their requirements clearly and solicit competitive bids from multiple vendors. By requesting tenders, the procuring entity ensures that they are exploring various options and can evaluate different proposals to ensure they choose the best supplier based on criteria such as price, quality, and delivery terms.

An ITT serves as a formal request that typically includes detailed specifications, terms and conditions, and the criteria for selection, enabling suppliers to understand exactly what is being sought. This structured approach promotes transparency and fairness in the procurement process, which is crucial for making informed decisions.

The other options do not accurately represent the primary function of an ITT. While negotiating prices occurs later in the procurement process after tenders have been submitted, that is not the main purpose of the ITT itself. Informing stakeholders of procurement needs might involve different methods of communication, but it doesn't encapsulate the specific intent of soliciting bids. Announcing the selection of a supplier happens after the evaluation of the tenders, rather than being a function of the ITT.