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Value for money in procurement of goods, works and services Integrity avoiding corruption and conflicts of interest Accountability Equal Opportunities and equal treatment for providers Fair treatment for providers Efficiency in the procurement process
* Sue Arrowsmith
Procurement process
Procurement decision Preparation of RFP or Tender document Internal validation Publication of RFP Await proposal Receipt of proposals Evaluation of best proposal or best bidder Selection of best proposal or best bidder Presentation by best bidders Decision by soliciting company Contract / Agreement finalisation & signature
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Types of Tender
In broader terms there are three types of tender : Open Tender Limited Tender Single Tender
Add Value:
Demonstrate a clear understanding of the specification Adds value and brings innovation to the specification Explains why choose us?
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Receipt of tenders
Tenderers may visit the site Double clarification Announcement of respective bids Disqualified bids
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Evaluation of tenderers
Technical Commercial Managerial contractual
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Usually evaluated by a panel Scoring matrix used to objectify subjective opinions Scores are weighted Tendering rigorously controlled and audited
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Proposal
Technical Financial No of copies to be prepared as per the RFP
Technical proposal
Executive summary Understanding of RFP
Understanding of problems Analysis of situation
Project description
Project scope and objectives Approach, methodology, task breakdown and deliverable(s) by task Plan of work Facilities and Equipments Any special requirement of project in terms of , logistics and permits Clarification of roles (service provider and client)
Team
Team, team composition and CVs Past experience relevant to the project
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Financial proposal
Services being charged and provided (but not charged) Labour / expertise cost and rates per day Cost of product or service (production and delivery) Distribution and logistics charges Administration fees Contingency charges covering unforeseen circumstances
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Preparation of proposal
Tendering / Bidder / Proposing organisation may have to research on soliciting organisation in areas:
Problems Corporate culture and the resulting attitudes Current financial status Business goals
SelfSelf-check of proposal
What are the weaknesses of the plan from the clients point of view? How can we counter any weaknesses and clients potential objections? How can we make our plan appealing? How can we show that we understand their needs? How can we best present our capability to this project? What are our strengths?
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SelfSelf-check of proposal
From our knowledge of our organisation, what are our weaknesses to complete the project as proposed? Do we need to modify our proposed plan to avoid misleading the client about our ability to perform certain tasks on time, as proposed, and at cost? Can we sell our idea without compromising the accuracy of what we can actually do?
Must Haves
Price Period for Validity of Offer Responsive Offer from Responsible Offeror Compliant with Request except for Certifications Representations/WarrantiesWhat are they? Identification of Authorized Negotiators Others?
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Nice to Haves
Alternative Offers Negotiable Items
You may be willing to eliminate these items Relationship to Price
Options Nice to have and must have provisions can impact price
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