Procurement
Methods
Open Tendering Restricted Tendering
This is a selective procurement method where suppliers are
This is a competitive procurement method where
invited to submit bids or proposals based on a pre-deter-
suppliers are invited to submit bids or proposals in
mined list of suppliers who have been pre-qualified.
response to public notice or advertisement.
Request for Quotations (RFQ)
Request for Proposals (RFP) This procurement method is used for low-value purchases
This procurement method is used when the desired where suppliers are asked to submit a price quote for a
outcome needs to be better defined and a detailed specific product or service. Suppliers will still need to meet
proposal is required from suppliers. all organizational requirements for suppliers to be onboard-
ed.
Framework Agreements Electronic Reverse Auctions
This is a procurement method where an agreement is This is a procurement method where suppliers compete
established with one or more suppliers to provide against each other in a real-time online auction to win a
goods or services over a period, often at pre-agreed contract. Suppliers must be pre-qualified to meet all
prices and terms. organizational onboarding requirements (Insurance, NDA,
legal compliance, etc.).
Two-Stage Tendering
Negotiated Procurement This is a procurement method where suppliers are invited to
This is a procurement method where negotiations submit initial bids, which are then evaluated, and shortlisted
take place with a supplier to agree on terms and suppliers are invited to submit a second, more detailed bid. It
conditions for the supply of goods or services. will also investigate supplier capabilities using RFI and then
shortlisting, which results in an RFP, RFQ, or IFB. Found a lot
in governmental procurement activities.
Design and Build
This is a procurement method where the supplier is
responsible for both the design and construction of a
project, often resulting in a faster and more cost-ef-
fective process. The key here is to ensure the supplier
meets all onboarding criteria and agrees to strict
Service Level Agreements and Key Performance
Indicator reporting to ensure the project remains on
track.
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