3. Supplier Selection & Bid Evaluation
The aim of this module is to provide the participants with the skills necessary to develop a tender document that provides their organisation with the necessary data to make informed judgements in respect of its strategic sourcing requirements.
Who Should Attend
The module is aimed at staff at all levels, including Directors and Senior Managers who have a strategic procurement responsibility. It is applicable to procurement professionals as well as those from a wide range of business disciplines who have a devolved procurement responsibility. Those disciplines include finance, legal, compliance, audit, engineering, design, project management, construction, purchasing, procurement, commercial/contracts and general management. Those who will benefit most will have a current or planned interface with suppliers or customers through which contracts are awarded and managed. The module will suit those with little or no previous procurement or purchasing training but will serve as a refresher for those who have some training but do not practice their skills frequently.
The Teaching Method
The teaching method is based on the Kolb learning cycle and incorporates a balanced mixture of a didactic approach and practical exercises centred on PowerPoint presentations. The structure is consistent with the skills framework for Procurement Project in Local Government in ensuring that Levels 1 and 2 (Understanding & Knowledge) are covered within the programme thus providing a firm base upon which the delegates can build their practical experience to reach Level 3 (Expertise). The module is tutor led throughout using syndicate work, highly interactive plenary discussion groups, easily understood case studies and role playing where appropriate. A formal framework is built around the delegates’ current knowledge and they are encouraged to re-discover and share their knowledge and experiences. The ideal group size is eight to twelve delegates but it is possible to extend the group size to fifteen. Copies of the training material are provided in the form of a workbook. Delegates are encouraged to develop both their short and long term memories to increase the value for money provided for the employer.
The Learning Outcomes
By the end of this module, delegates will have been afforded an opportunity to gain an understanding of the need for a well-crafted tender covering the sourcing and selection phases of the procurement process. This will enable them to obtain the maximum data possible in order for an informed judgement to take place. The delegates will review, discuss and understand the procurement cycle and differentiate between the terms Sourcing, Pre-Qualification, Pre-selection and Selection within the framework of fair competitive procurement against public procurement criteria (MEAT). Methods of sourcing will be explained against the context of the supply market. The tutor will identify the tools required in support of these activities and delegates will be made aware of the risks of using “standing or approved contractor” lists. The delegates will understand the difference in the contractual/legal status between information received during Sourcing and generic Pre-Qualification and that received as part of the two stage “Restricted Procedure” in which pre-qualification is necessary in order for an “economic operator” to receive the Invitation to Tender ITT. The importance of financial checks will be examined and some practical tips in obtaining and interpreting data will be discussed. The need for contractor visits will be discussed as an integral part of the appraisal process and techniques which will include discussion on the need for references. The delegates will learn the difference between the terms “cost” and “price” and a model for cost to price conversion used by contractors so that they gain an understanding of pricing structures. This will provide a platform for an understanding of through life costing and provide methods for obtaining best value in a co-operative, non-aggressive manner.
The module is scheduled for 1 day.
The topics covered include:
- Competitive Tendering Overview & Terminology
- The procurement process – a road map
- Forms of Tendering
- Competitive – closed or open
- Web based
- E auctions
- Written or Oral
- Competitive Tendering - a structured process
- Competitive Tendering Terminology
- Procurement Terminology
- Sourcing, Pre-qualifying, Pre-selection, Selection
- Sourcing potential suppliers
- Understanding the market
- Sourcing methods – e sourcing, trade associations/publications/shows, CofC
- Appraisal techniques & criteria
- Preparation of the RFI/RFQ
- Purpose, ownership, structure, content, evaluation strategy and criteria, stakeholders, supplier creativity and capability
- Pre-selection – Restricted Procedure
- The need, the justification, the pitfalls
- Qualification requirements, preferred suppliers, recommended suppliers, “politically” directed suppliers, managing approved suppliers list
- Managing the competitive tender process – RFQ/ITT release
- Ownership of the process, Full and fair competition, schedule, bidders’ instructions, use of e-commerce and the internet, structure of responses, options & qualifications to the bid
- Inability to re-validate pre-qualification appraisal
- Managing the bid responses
- Bid response date and time, handling extensions of time, bidders’ queries & clarifications.
- Managing the evaluation
- Real & Virtual Teams, location, skills, scoring against the evaluation criteria, time frame, points of contact for suppliers, compliance matrix, team communications
- The decision making process
- Recording, internal communication, corporate approval, client approval,
Down-selection & award
- Outstanding issues, feedback and close
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