What is it multi-lot Purchase

A multi-lot purchase is a purchase that contains several items or goods or works or services that belong to the same CPV category by the first five characters. This type of procedure is also called multi-lot procurement. It is used in public and commercial online auctions, usually when the customer wants to reduce the time spent on preparing the necessary documents.

How Does the Auction Stage in Multi-lot Public Procurement Work?

Even though the customer announces a single procedure, a separate auction is held for each of its lots, which has its own start time. This is because the objects of purchase can be goods, services, or works that are supplied by different companies.

The auction itself does not differ from a similar procedure in other public procurements: during three rounds, participants alternately lower or leave their initial price offers unchanged, and the winner is the one who offered the most favorable amount.

After that comes the stage of qualification, during which the customer gets acquainted with the proposal of each winner and decides on the intention to conclude a contract.

An example of a multi-lot electronic tender

Let's imagine that the institution wants to purchase the following products on the electronic trading platform for a public event:

• • 03222111-4 Bananas
  • 03222313-0 Strawberry
  • 03222400-7 Olives

The customer can announce a regular tender, and then each participant who submits their offer must be able to supply all three types of goods. But this will narrow the circle of potential suppliers, as one company may sell only tropical fruits, while another may not sell olives.

Since the first 5 characters in the CPV codes of these goods are the same, the customer can announce a multi-lot purchase – in this case, each supplier will have the opportunity to choose which lots they can offer.

What Is the Benefit of Multi-lot Procurement?

Conducting a multi-lot tender is beneficial for both parties:

1. 1. Suppliers get the opportunity to submit applications in a larger number of tenders and, accordingly, earn more.
   2. Customers receive higher competition, which contributes to better savings of budget funds.

Is the Multi-lot Procedure Used in Commercial Procurement?

If desired, a private company can hold a multi-lot tender to speed up the search for the right customers on SmartTender. In this case, each supplier also chooses which lots they submit an offer for.