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Define, compare, contrast, and summarize the most common procurement documents used in industry.
Identify the most acceptable/logical business case use for each procurement document (i.e., when, where, under what business conditions would you use the specific procurement document most appropriately, etc.). Providing an example of each document, as part of your reply, garners extra points.
Select any two (2) of the following procurement document pairs to review. This means, select just two procurement types to review. The procurement types are “paired” thus, pick only one of the pairs, and review both procurement types within the pair. Select ONLY RFP & ITB and review this pair or select ONLY RFQ & IFB and review this pair, or select ONLY RFT & IFN, and review this pair. You are only selecting and reviewing one pair of procurement types.
RFP and ITB
RFQ and IFB
RFT and IFN
Summarize your reviews of the selected procurement document in an executive summary/overview paper. Length of paper should be (a) graduate-level work, and (b) sufficiant to adequately review and discuss the procurement types you have selected.
Procurement document is an integral part of procurement management. Procurement means buying products or services in exchange for the most effective deal so that the demand for quality, quantity, size and dimensions of the buyers can be met successfully (Watermeyer, 2002). The procurement documents come to the fore at the very beginning of the project initiation stage. This process basically accumulates the records of resources used and the outcomes in terms of tools and techniques that have been required during the bidding process. It can also be projected as the contractual association between the product or service suppliers and customers. The following section will define, contrast and summarize RFQ and IFB to understand procurement documents better.
Comparative Analysis between RFQ and IFB
RFQ stands for the request for quotation, and invitation for bid is abbreviated as IFB. Both are different types of procurement documents. The RFQ is a procurement process where the suppliers quote for an entire plan to fulfil the buyer need in the best possible way, whereas IFB allows the suppliers to offer the lowest price or rate to deliver the finished project within a given deadline. In the RFQ, a number of suppliers who are qualified beforehand for the procurement are requested to propose detailed financial planning along with policies, regulations and a project draft. The prior process, request for proposal (RFP) is generally conducted to qualify suppliers for the RFQ process (Love, 2002). However, the RFP is another independent procurement document as well. The steps of RFQ include preparation, tender, awarding and closing. The object of this type is determined on the basis of the buyer specifications, and the suppliers must be obliged to follow the buyer need strictly. An example of the RFQ is when an IT company is requested to send a quote for developing a new website. Thus, along with a cost-effective quote, it is very much necessary for the website to be user-friendly. Thus, the authority of the project cannot only concern the price in such procurements.
In the invitation for bid, the suppliers or the contractors are invited to propose their bid regarding a specific project or contract. The core concern of IFB is the pricing rather than quality and quantity. It should be noted that in the IFB, the price is offered and not quoted; the offer will be fulfilled by the concerned supplier or contractor if the bid is accepted. In a bidding process, the product usually comprises certain basic criteria for being beaten, and the bidder with the lowest price gets the project or contract (Love, 2002). The logistics procurements are mostly asked for by the IFB. The basic criteria of such projects are timely, safe, secure and undamaged delivery. Thus, the authority only looks for the lowest price.