Organizations specify and choose technology goods and service providers using a range of techniques and vehicles. Organization-wide policies and procedures, as well as, in certain situations, the law, govern the shape, substance, and processes to a large extent. The following are the most common forms of technology procurements:
Sole-Source Procurements: Choosing a vendor or consultant without first qualifying them or comparing their services to those of others. This method can save time, but it does not allow for formal review of several bids and proposals. Open Competitive Procurements: Used for products and services where the review of various competitors’ offerings is likely to yield the greatest value. Competitive procurements not only conform with companies’ fairness policies, but they also allow for a thorough assessment of numerous offers, methods, and capabilities in order to select items / solutions that best meet the organization’s needs at a competitive price. A request for proposal (RFP), request for qualifications (RFQ), or request for bid are the most common instruments used in competitive procurements (RFB). The RFP and RFQ methods enable a competitive selection based on the quality of submitted items or services as well as the recommended pricing (best value selection). When there are well-defined commodity items (e.g., computer hardware) or technical services, the RFB strategy works best since it concentrates on the lowest price offers for firm selection. The expression of interest or EOI (similar to RFQ), invitation to bid or ITB (similar to RFB), and a formal tender are other competitive purchasing vehicles comparable to the RFP, RFQ, and RFB method utilised by certain businesses (similar to RFP).
Selection (or pricing contract) from a pre-qualified pool of providers: This method enables for the selection of a product or service supplier from a pre-qualified pool of businesses. This pool is the product of a competitive selection procedure based on qualifications. As a consequence, there is a list of products and services, as well as a list of firms that have agreed to deliver the items and services at the given pricing. This procurement vehicle is best suited to specific commodities and services and is less suitable for bespoke services procurement. The finest example is the introduction of “buy schedules” by the General Services Administration (GSA), sometimes known as “multiple award schedules” (MAS).
Contract extension or modification: An existing contract is used to award further work or provide additional items to a contractor or vendor. Typically, this necessitates a formal change to the existing contract. If an organization’s procurement regulations allow it, this is an administratively efficient option. This strategy saves substantial time in selection and contracting and, if the contractor has performed well under the previous contract, provides reasonable certainty of future performance.
Organizations differ in the precise rules and processes that govern each of these types of procurements. Normally, the buying department of the company oversees and records them. For public sector companies, competitive procurements and price contract choices are typical (especially for products and services that exceed a certain maximum price level). Private companies may utilise any of the procurement vehicles, although sole source procurements are more common since they are more administratively efficient and corporate policy does not require the use of competitive procurement methods. GIS project managers should become familiar with their company’s procurement regulations and adhere to them strictly. Failure to follow the policies might result in bidder objections and the procurement being canceled.
The evaluation and scoring of submitted proposals and bids in response to these official procurement solicitations should follow a clear, documented procedure that incorporates technical merit and suggested pricing. The ultimate result is a legal agreement or contract that defines the parameters of product and service delivery.
