What is a tender?

A tender is fundamentally understood as a formal invitation extended to suppliers, inviting them to submit bids for a specific contract or project. This process is typically used in procurement to ensure transparency and competitiveness.

When organizations require goods or services, they often use a tendering process to solicit offers from potential suppliers. This method helps to identify the best value for the organization while ensuring fair competition among suppliers. The tender documents usually include detailed specifications, terms and conditions, and evaluation criteria to guide suppliers in preparing their bids.

The other options describe different concepts in procurement but do not accurately capture the essence of a tender. Direct negotiation with suppliers, for instance, involves a more informal process than issuing a formal invitation. A contract signifies a legal agreement that may result from a tender process, but it is not synonymous with the tender itself. Lastly, a framework for ongoing supplier evaluation relates to managing supplier performance rather than the act of inviting bids. Thus, the fundamental definition and role of a tender clearly align with the description provided in the correct answer.