Seeking Competitive Quotations
Introduction
Issue of Bids
Receipt of Bids
Award of the Quotation
Introduction
The requirement to seek competitive quotations is as follows:
| £2,500 - £30,000 |
All purchases of goods and services require at least three written quotations. |
Please note these values are applicable before calculation of VAT and do not apply to goods and services for which the University has a contract or framework agreement.
In order to determine whether the above applies to a purchase, the aggregated total of the goods and services required - over a specific period if the requirement is not a 'one-off' - should be taken into account.
Issue of Bids
Invitations to quote should be sent to the required number of suppliers of the goods/services. This should consist of the following:-
- a letter of request for quotation which should include
- details of the ordering department including a contact name and telephone number in case of queries
- a closing date and time for the quotations to be submitted (this should give suppliers a realistic amount of time to submit a reply)
- a full address to where submissions must be sent
- delivery details
- any special requirements
- a specification of the goods/services required, including a pricing schedule. This forces all suppliers to submit the information in a structured way and makes comparison of prices etc easier. It is important that the potential supplier knows exactly what is required so the specification should be unambiguous whilst also ensuring that competition is not restricted or that it would "lock out" certain suppliers. The use of brand names is normally not permitted, however there may be occasions when they are necessary particularly if the requirement is quite technical. On these occasions "or equal or approved"/"or equivalent" must be used..
A record should be kept of the suppliers that the quotations were sent to.
An important aspect of the quotation procedure is that potential suppliers are given an equal opportunity to bid for the University's business ie the procedures should be transparent and non-discriminatory. It is necessary, therefore, that all suppliers receive the enquiry at the same time, have the same opportunity to discuss the requirement and submit the sealed bids on or before a stated date and time.
After the closing date and time has passed, the submissions received should be opened at the same time and a record kept of replies received.
The quotations should be evaluated on the basis of the 'most economically advantageous' bid and not necessarily the lowest bid. The most economically advantageous bid can include factors such as:-
- running costs;
- back-up service
- technical support
- delivery
- price etc.
The final decision relating to the award of the quotation rests with the end user. Once the quotations have been evaluated and a decision is made, an official order should go to the successful supplier.
If the purchase order is to be approved by a member of staff in the Purchasing Office, copies of all the quotations should be forwarded to the Purchasing Office. If the lowest quote is not accepted, a written justification should be given stating the reason for declining it.
Unsuccessful suppliers should be advised that they will not be receiving an order and the reason given if requested (note that suppliers are entitled to receive a de-brief as to the outcome of a competitive exercise within 15 days of the result being made known.) Whilst it will be necessary to provide certain advice to the unsuccessful firm as to why their bid did not succeed, details of the successful bid should not be discussed with unsuccessful firms as this is commercially sensitive information.
