Vendor Questions, Coursework Example

What are the key events in the pre award phase from both the buyer and the seller perspectives?

The pre award phase of the procurement contracts is the most crucial stage for the both the buyer and the supplier. The buyer’s aim in the contract is to obtain goods or services from the supplier of high quality at favorable terms that entails fair prices, discounts and prompt delivery of the products. The supplier on the other side is driven by urge to accomplish good deals that ensure prompt payment and minimization of complain from the buyer. The stage is characterized by an evaluation of both the buyer and the supplier. In most cases supplier evaluation forms the major part of the pre award process as most suppliers are never interested in evaluating their buyers, the suppliers in most cases are interested in making sales.

The buyer should conduct an evaluation of the supplier based on the following

Experience: it is important the buyer deals with experienced suppliers to ensure proper performance of the contract. Experienced suppliers provide quality services as they are have the necessary skills and competencies.

The pre award face on the buyer’s side also entails the buyer evaluating the history of the supplier to ascertain the how the supplier has dealt with other customers. This enables the buyer to identify any instances of bad dealings with other buyers.

Assessment of financial capacity is done to enable both parties to determine the financial positions of both parties. The assessment enables the buyer to ensure that the supplier has the adequate financial resources to supply the goods and services stated in the contract. The process enables the supplier to determine whether the supplier can pay for the goods stated in the contract.

Establishment of eligibility for both buyers and sellers: this is conducted to determine whether both parties in the contract satisfy the legal requirements to participate in the contract, this enables the buyer to identify whether the supplier is barred by some court orders or regulatory authorities to partake the contract. The supplier is also able to identify whether buyer satisfy the legal obligations that are required to pursue the contract.

What factors should be taken into consideration as to whether or not to participate in a bid?

The factors determines ones participation include the following

Price: The price of commodities determines whether or not can participate in a bid, as procurement officer I have been denied to the chance to pursue certain bids to high prices quoted by the suppliers. The main aim of competitive bidding is to get the best price that ensures cost efficiency to the organization therefore the price quoted by the supplier can encourage or bar one’s participation in a bid.

Quality: The main objective of procurement is to foster quality by purchasing goods that meet the specifications in the purchase requisition. As a procurement officer I pursue bids that provide ensure quality is attained. In most cases I have rejected some bids to poor quality of goods and services that are offered by the suppliers in question.

Reliability of suppliers: Suppliers that are reliable are very easy to deal with since they enable the procuring entity to save costs that are associated with delays in the delivery process. Unreliable suppliers have cost me a lot of in terms of delays and unfulfilled promises in the delivery of goods and services.

What tools are available to make a wise bid/no-bid decision?

The tools that can enable the procurement team make a good bidding decision are

• Bid documents which contain the list of goods or services to be purchase by entity
• The bidder contacts and data administration device that contain information of previous suppliers and the goods or services that they supply.
• Notices of invitation sent to the suppliers that guide the buyer when establishing the correct number and the type of suppliers to deal with.
• Bid submission documents which enable the procuring entity to establish the number of suppliers who have shown interest to pursue the bid and therefore form the basis of evaluation.

The absence of the above tools translates to poor decision making in the bidding process.

• What are some consequences of declining a bid on a particular project?

• Declining a bid on a particular project is very costly to the organization, since the time spent in preparing the bid process is wasted and no gain is recovered from such a process.
• Declining of a bid also leads to delays in the procurement of items which subsequently slows down or stops the process that rely on the procurement of the required items.
• Declining of a bid also leads low supplier morale and deteriorates the relationship between the supplier and the organization. Such suppliers may reject deals from the organization when there is an urgent need that should be supplied and hence lose of business.
• Consider and explain the role of research as it pertains to a bid decision. How can research reduce risk?

Research is very important to enable the procuring entity make proper bid decisions. Proper research enables the buying organization to have access to adequate information that pertains to the various suppliers and goods. The information provided by the research is useful when sourcing for the suppliers of various goods and services. The information also enables the procuring entity to establish the locations and avenues of various goods and services.