forum pin post

Procurement Question Clarification

Exclusive forum for iZenBirdge PMP® clients
salman_2005
Participant
Participant
Posts: 58
Joined: Wed Sep 26, 2018 8:15 pm

Procurement Question Clarification

Tue Oct 23, 2018 10:35 pm

Larry is the project manager and working with procurement department of his organization to do procurement for this project. As per Procurement department, there are common commodities and has been procured many times. Also as these have been procured multiple times, generally they receive the response from 4-5 vendors for this procurement. To everyone’s surprise, almost 10-15 vendors responded, and two of the bids are evidently lesser than independent estimate Larry has created. What can be the best explanation for lower bid in this scenario?
A) Price for the commodity in current market changed due to change in demand/supply for it
B) Procurement SOW created by buyer was not clear enough for seller to make out the requirement
C) Procurement SOW created by buyer was clear, but seller understood it incorrectly resulting lower bids
D) Bid document supplied by seller is having formula mistake resulting in lower bid

The Answer is given as A.

But, had the price been changed in pricing then there would have been more number of proposals quoting the lesser price. Only 2 out of 10-15 vendors quoted lesser price in this case?
There can be a possibility that these 2 sellers understood it incorrectly?

Please suggest the approach.

Thank You.
manishpn
Expert
Expert
Posts: 2846
Joined: Sat Jan 04, 2014 3:55 pm

Re: Procurement Question Clarification

Thu Oct 25, 2018 7:03 pm

Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

Return to “PMP® Queries and Tips”