Buying at Right Price

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    Buying at Right PriceBuying at Right Price

    S.C. SEHGALS.C. SEHGAL

    MATERIALS MANAGEMENT CONSULTANTMATERIALS MANAGEMENT CONSULTANT

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    Buying at Right PriceBuying at Right Price

    PRICEPRICE

    Can be defined asCan be defined as

    Value of commodi! o" se"#ice measu"ed inValue of commodi! o" se"#ice measu"ed in e"ms of Sanda"d Monea"! Uni. Ine"ms of Sanda"d Monea"! Uni. In com$a"in% &o 'uoaions $"ice enables uscom$a"in% &o 'uoaions $"ice enables us

    o a$$"aise "elai#e #alue offe"ed b! eac(o a$$"aise "elai#e #alue offe"ed b! eac(su$$lie"su$$lie"

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    Buying at Right PriceBuying at Right Price

    P"ice Info"maionP"ice Info"maion

    ) P"ice Caalo%ue) P"ice Caalo%ue ) T"ade *ou"nals) T"ade *ou"nals

    ) Tende"in%) Tende"in%

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    TENDERINGTENDERING

    Tende"in% is o $"esen an!(in% fo"Tende"in% is o $"esen an!(in% fo" a$$"o#al and acce$ancea$$"o#al and acce$ance

    ) In Pu"c(asin% ende"in% ma! be defined asIn Pu"c(asin% ende"in% ma! be defined as

      P"ocedu"es b! &(ic( $oenial su$$lie"sP"ocedu"es b! &(ic( $oenial su$$lie"s

    a"e in#ied o ma+e a fi"m and a"e in#ied o ma+e a fi"m and

    une'ui#ocal offe" of $"ice , e"ms ,une'ui#ocal offe" of $"ice , e"ms , condiions &(ic(- on acce$ance- s(allcondiions &(ic(- on acce$ance- s(all bebe (e basis of subse'uen con"ac(e basis of subse'uen con"ac

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    TENDERINGTENDERING

    ) Tende"in% mosl! used b! Go#.Tende"in% mosl! used b! Go#.

    o"%aniaions o ensu"eo"%aniaions o ensu"e

    ) obse"#ance of $"inci$le of $ublicobse"#ance of $"inci$le of $ublic accounabili!-accounabili!-

    ) al(ou%( i is someime used b! $"i#aeal(ou%( i is someime used b! $"i#ae o"%aniaion alsoo"%aniaion also

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    Competitive BiddingsCompetitive Biddings

    PrerequisitesPrerequisites

    ) Ru$ee #alue of s$ecific $u"c(ase mus beRu$ee #alue of s$ecific $u"c(ase mus be sufficien o 4usif! e3$enses bo( o bu!e"sufficien o 4usif! e3$enses bo( o bu!e" and selle" (a accom$anies (is me(od ofand selle" (a accom$anies (is me(od of sou"ce selecion and $"icin%.sou"ce selecion and $"icin%.

    ) S$ecificaion of iems o" se"#ices o beS$ecificaion of iems o" se"#ices o be $u"c(ased mus be e3$licil! clea" o bo($u"c(ased mus be e3$licil! clea" o bo( bu!e" and selle".bu!e" and selle".

    ) Ma"+e mus consis of ade'uae No ofMa"+e mus consis of ade'uae No of selle"s.selle"s.

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    Competitive BiddingsCompetitive Biddings

    PrerequisitesPrerequisites

    ) Selle"s (a ma+e ma"+e mus beSelle"s (a ma+e ma"+e mus be

    ec(nicall! 'ualified andec(nicall! 'ualified and

    ) aci#el! &an con"ac and (e"efo"e beaci#el! &an con"ac and (e"efo"e be &illin% o 'uoe com$eii#el!&illin% o 'uoe com$eii#el!

    ) Time a#ailable mus be sufficienTime a#ailable mus be sufficien

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    Competitive BiddingsCompetitive Biddings

    Conditions must be fufiedConditions must be fufied

    ) Aleas &o 'ualified su$$lie"s 5P"efe"abl!Aleas &o 'ualified su$$lie"s 5P"efe"abl!

    ("ee in Go#. de$s6 (a#e "es$onded o("ee in Go#. de$s6 (a#e "es$onded o

    soliciaionsoliciaion

    ) P"o$osal a"e "es$onsi#e o bu!in% fi"ms7P"o$osal a"e "es$onsi#e o bu!in% fi"ms7

    needsneeds

    ) Su$$lie"s com$eed inde$endenl! fo" (eSu$$lie"s com$eed inde$endenl! fo" (e

    a&a"da&a"d

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    Competitive BiddingsCompetitive Biddings

    Conditions must be fufiedConditions must be fufied

    ) Su$$lie" submiin% lo&es offe" does noSu$$lie" submiin% lo&es offe" does no

    (a#e an unfai" ad#ana%e o#e" is(a#e an unfai" ad#ana%e o#e" is com$eio"s.com$eio"s.

    ) Lo&es e#aluaed $"ice is "easonableLo&es e#aluaed $"ice is "easonable..

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    Tendering! Broad ProceduresTendering! Broad Procedures

     Sanda"d $"ocedu"e $"o#ides a monea"!Sanda"d $"ocedu"e $"o#ides a monea"!

    limi abo#e &(ic( ende" mus be in#iedlimi abo#e &(ic( ende" mus be in#ied

     Tende" ma! a+e &o fo"ms- i.e. OT 5NIT o"Tende" ma! a+e &o fo"ms- i.e. OT 5NIT o" 8o"mal Tende"6 , LT 5Seleced9 Info"mal8o"mal Tende"6 , LT 5Seleced9 Info"mal

    Tende"6Tende"6

     Since cos of OT and len%( of LT is (i%(-Since cos of OT and len%( of LT is (i%(-

    suiable limis a"e fi3ed- abo#e &(ic( NIT a"esuiable limis a"e fi3ed- abo#e &(ic( NIT a"e

    "eso"ed"eso"ed

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    Tendering! Broad ProceduresTendering! Broad Procedures

     8ull and idenical s$ecificaions a"e issued8ull and idenical s$ecificaions a"e issued

    o all $"os$eci#e su$$lie"so all $"os$eci#e su$$lie"s

    P"os$eci#e su$$lie"s a"e "e'ui"ed oP"os$eci#e su$$lie"s a"e "e'ui"ed o

    submi (ei" offe"9ende" in a sealed andsubmi (ei" offe"9ende" in a sealed and

    idenifiable en#elo$e b! a $"esc"ibedidenifiable en#elo$e b! a $"esc"ibed dae and imedae and ime

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    Tendering! Broad ProceduresTendering! Broad Procedures

    On due dae and ime- ende"s a"eOn due dae and ime- ende"s a"e o$ened b! a commiee no"mall!o$ened b! a commiee no"mall!

    com$"isin% of office"s f"om Accouns andcom$"isin% of office"s f"om Accouns and

    Mae"ials de$a"mens.Mae"ials de$a"mens.

     Some o"%aniaion allo& su$$lie"sSome o"%aniaion allo& su$$lie"s

    "e$"esenai#e &iness o$enin% of ende" if"e$"esenai#e &iness o$enin% of ende" if

    (e! so &is((e! so &is(

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    Tendering! Broad ProceduresTendering! Broad Procedures

     Lae ende" a"e no usuall! conside"ed andLae ende" a"e no usuall! conside"ed and

    "eu"ned o su$$lie"s uno$ened"eu"ned o su$$lie"s uno$ened

     Tende"s a"e lised- iniialed and ene"ed inoTende"s a"e lised- iniialed and ene"ed ino ende" o$enin% "e%ise" andende" o$enin% "e%ise" and

    )) bid anal!sis s(ee- s(o&in% deails ofbid anal!sis s(ee- s(o&in% deails of

    $"ice- $"ice basis- a3es9 duies) e3"a$"ice- $"ice basis- a3es9 duies) e3"a o"o"

    inclusi#e- "ans$o"aion c(a"%es-inclusi#e- "ans$o"aion c(a"%es-

    deli#e"!- $a!mens , o(e" "ele#andeli#e"!- $a!mens , o(e" "ele#an

    info"maion fo" ende" e#aluaioninfo"maion fo" ende" e#aluaion

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    Tendering! Broad ProceduresTendering! Broad Procedures

     Com$a"ison of $"ices is done on basis ofCom$a"ison of $"ices is done on basis of landed $"ices ,landed $"ices ,

    )) 'uoed $"ices a"e suiabl! loaded fo"'uoed $"ices a"e suiabl! loaded fo" de#iaions o bu!e" sanda"d e"ms ,de#iaions o bu!e" sanda"d e"ms , condiions so as o b"in% (em a acondiions so as o b"in% (em a a

    common $lafo"mcommon $lafo"m

     Tec(. e#aluaion of offe"s is done b! use"Tec(. e#aluaion of offe"s is done b! use" de$sde$s

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    Tendering! Broad ProceduresTendering! Broad Procedures

     O"de"s a"e no"mall! $laced on lo&esO"de"s a"e no"mall! $laced on lo&es amon% (e ec(nicall! 'ualified bidde".amon% (e ec(nicall! 'ualified bidde".

     Sanda"d $"ocedu"e no"mall! dele%aeSanda"d $"ocedu"e no"mall! dele%ae $o&e" o Pu"c(ase Mana%e" o" office" of$o&e" o Pu"c(ase Mana%e" o" office" of $u"c(ase funcions o $lace o"de"s uno$u"c(ase funcions o $lace o"de"s uno

    s$ecified limis on lo&es bidde"s$ecified limis on lo&es bidde"

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    Tendering! Broad ProceduresTendering