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ddavies
12-07-2009, 01:36 PM
I am interested in benchmarking Companies threshold for bidding process.

For instance, for a company with $10B annual revenue at what $ amount would require one quote, two quotes, and at what $'s for formal bidding process begin? Would bid above $1M be subjected to special requirements, (control group etc.). We are doing a study here at EmblemHealth on our contracting/bidding processes.

dost
01-09-2010, 12:16 AM
Hi,
the answer to your question is, that it all depends on the category of item, & your objective what are you trying to achieve, plus the type of business & procurement stategy, i.e. if you were buying for Dell and the item was low value but critical part or component, you would not rely on quotation which are short term and might not support your long term requirements, even if the total aggregate value of that spend is within 5 or 6 digits. Similarly if you were soliciting a technical service or support contract you would need a proper RFP depending on the complexity of the requirement with SLA etc.

Procurement strategy is based on your business requirements and objectives, never on just $ thresholds. Again this differs in each geographic region in some countries the laws are complex i.e. a RFQ can create contract A and many a times there are court cases challenging the bid allocations. So remember Solicitations are only a tool and has to be used based on many factors that includes your procurement strategic objectives.
regards
Kay