In the tender phase, SMEs compete to win contracts from operators through a rigorous evaluation process. Operators assess bidders based on technical qualifications, commercial offers, HSE standards, as well as ICV performance. Initially, all bidders undergo a technical qualification review. Those who do not meet the criteria are excluded from further consideration. Successful bidders then submit their financial proposals, which remain confidential within a tightly controlled procurement team to avoid information leakage and manipulation. Bidders are subsequently ranked as L1, L2, L3, etc., with the lowest financial bid typically receiving priority, as operators prioritize cost efficiency.
While ICV scoring generally accounts for 10 to 15% of the evaluation, it can decisively influence outcomes in closely contested tenders. Therefore, maximizing your SME’s ICV score is crucial to enhancing your chances of success. During this phase, operators require SMEs to submit several key ICV documents, including commitment letters, ICV technical plans, and ICV commercial plans.
The ICV commitment letter marks the first formal step in the tendering and ICV process. It is your official pledge to meet the operator’s ICV requirements for the scope. Operators send these letters to all SMEs participating in a tender, specifying the ICV requirements dedicated to the tender’s scope. These commitments can range from relatively simple obligations — such as training fresh graduates, employing skilled Omani professionals, or sourcing certain goods locally — to more complex requirements like establishing factories and acquiring fixed assets in Oman. Signing the commitment letter is mandatory to proceed with both technical and commercial evaluations in the tendering process. This step involves no scoring and functions as a straightforward pass/fail gate. Failure to submit or properly complete the ICV commitment letter results in automatic exclusion from the tender.
Given its critical role, the ICV commitment letter is foundational to a successful bid.
At ICV TEAM, we specialize in preparing and finalizing ICV commitment letters that precisely reflect your capabilities while fully meeting operator requirements. This ensures you pass this essential threshold with confidence and avoid early elimination from the competition.
The second step in the ICV process is the technical evaluation. Bidders submit their product samples or service qualifications to the operators for assessment. Usually, this technical evaluation is conducted by the department or the end-user requesting the tender to ensure SMEs meet the required standards. Alongside this, the ICV department requests detailed technical ICV plans—typically Excel spreadsheets covering details on employees, goods, services, and fixed assets related to the tender’s scope.
For the employees spreadsheet, the SMEs must outline the number of personnel involved, their nationalities, skill levels (managers, supervisors, skilled, semi-skilled, entry-level), and hours worked. The goods and services section specifies whether these are sourced locally or internationally. The fixed assets section is used when the tender scope involves investing in physical assets and factories within Oman. These technical ICV plans allow operators to assess how the contract’s value will be distributed locally. The higher the local spend on Omani resources, the higher the potential ICV score. Importantly, these plans do not include any financial values. Failure at the technical stage leads to immediate exclusion from the tendering process.
From our experience, many SMEs find these Excel sheets confusing, complex, and often outdated. Completing them correctly is not straightforward and can be time-consuming and stressful, causing unnecessary pressure during an already demanding tendering process.
At ICV TEAM, we alleviate this burden by expertly preparing these technical plans for you. Our deep understanding of operator expectations ensures your submissions are accurate, compliant, and maximize your ICV score potential — helping you avoid exclusion and strengthening your bid.
Once technical qualifications are met, SMEs submit commercial ICV plans that mirror the technical plans but incorporate financial details. This includes employees’ hourly rates and estimated expenditures on goods and services. These financial details allow operators’ ICV teams to validate the bid’s local spending and ensure proper compensation for Omani personnel. Any discrepancies — such as undercompensation or excessive international sourcing — may trigger concerns and needs for local alternatives. The operator’s ICV function also plays a role in connecting SMEs with suitable local suppliers.
Many SMEs find completing the ICV commercial plan as challenging due to their complexity and the level of financial detail required. It is time consuming and mistakes or omissions can lead to scoring penalties or delays, increasing stress and pressure during the tendering process.
At ICV TEAM, we meticulously craft commercial ICV plans that reflect your SME’s accurate financial details and ICV spending distributions, helping you avoid penalties and strengthen your ICV status with operators.
