Request for Quotations (RFQ) GOODS

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Request for Quotations (RFQ) GOODS

Practical training

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RFQ Goods – Training List

1. Overview of Public Procurement Act 2021 2. Examples of Limited Bidding RFQ Vehicles: Technical Specifications Request for Quotations document Evaluation of Quotations grid Evaluation Report Notification of Contract Award Close Out Checklist Contract handover from the Procurement Team to the Technical and Contract Management Unit at the Procuring Entity

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RFQ Goods

A selection method based on comparing price quotations from firms. It is used for off-the-shelf items of goods or standard specification goods available from several sources of supply from within the country or from abroad. This method may also be more efficient than the complex methods for procuring limited quantities of readily available off-the-shelf Goods or Non-consulting Services, standard specification commodities, or simple civil Works of small value. Limited Bidding A limited competitive approach to market is by invitation only, without advertisement. It may be an appropriate method of selection where there are only a limited number of firms or there are other exceptional reasons that justify departure from open competitive procurement approaches.

A group of trucks parked in a building Description automatically generated with low confidence

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RFQ Goods - Limited bidding in Public Procurement Act 2021

(1) A procuring entity may award a procurement contract by the limited bidding method of procurement where: (a) no suitable bids have been submitted in response to a competitive bidding method of procurement or a selective bidding method of procurement and the procuring entity makes the procurement contract subject to the condition that the requirements of the initial bid may not be substantially modified by the bidder; (b) for technical or artistic reasons or for reasons connected with protection of exclusive rights, the procurement contract may be performed only by a particular supplier and no reasonable alternative or substitute exists; (c) for reasons of emergency or extreme urgency provided the circumstances giving rise to the urgency were neither foreseeable by the procuring entity nor the result of dilatory conduct on its part, including where: ( i ) the country is seriously threatened or impacted by a natural disaster, catastrophe, war or an event of force majeure; (ii) the life or quality of life or the environment may be seriously compromised; (iii) the condition or quality of goods, equipment, building or publicly owned capital goods may seriously deteriorate unless action is urgently taken to maintain the capital goods in their actual value or usefulness; (iv) an investment project may be seriously delayed for want of an item of a minor nature, the goods or services could not be obtained in time by means of competitive or selective bidding procedures;

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RFQ Goods - Limited Bidding in Public Procurement Act 2021

(d) the procurement contract is for additional deliveries of goods or services by an original supplier in circumstances where a change of supplier would: ( i ) compel the procuring entity to procure goods or services not meeting the requirements of interchangeability with already existing goods or services procured under the initial procurement; (ii) cause significant inconvenience or substantial duplication of costs to the procuring entity; (e) the procuring entity procures prototypes or goods or services developed at its request in the course of and for a specific contract for research, experiment, study or original development; (f) additional services within the objectives of the original bid documentation but not included in the initial procurement contract have, through unforeseen circumstances, become necessary to complete the services described in such documentation and the total value of procurement contracts awarded for such additional services do not exceed twenty-five per cent of the amount of the initial procurement contract; (g) the procurement contract is for new services: ( i ) consisting of the repetition of similar services which conform to a basic project for which an initial procurement contract was awarded following the competitive bidding method of procurement or the selective bidding method of procurement; (ii) for which the procuring entity has indicated in the notice of procurement that a limited bidding method of procurement might be used in awarding procurement contracts for such new services;

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RFQ Goods - Limited Bidding in Public Procurement Act 2021

(h) the procurement contract is for goods purchased on a commodity market; or the procurement contract is for purchase: ( i ) made under exceptionally advantageous conditions of unusual disposals which arise only in the very short term such as from liquidations, receiverships or bankruptcies; and (ii) which are not routine purchases from regular suppliers. (2) Under the limited bidding method of procurement: (a) the procuring entity shall prepare a written description of its needs and any special requirements as to quality, quantity, terms and time of delivery, except where circumstances of emergency or extreme urgency render this task impractical because of the time involved; (b) a quotation shall be invited from at least one and, where possible, additional suppliers or contractors; (c) the procuring entity may give a time limit to the bidders to prepare and submit bids or may fix a time limit by mutual agreement with the bidders; (d) the compliance of an offer or offers with the specifications, terms and conditions shall be considered; and (e) negotiations to bring down the prices may be carried out if the prices offered are deemed to be excessive or substantially in excess of the prevailing market prices.

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RFQ Goods - Limited Bidding in Public Procurement Act 2021

(3) Where a procuring entity awards a procurement contract by the limited bidding method of procurement in accordance with subsection (1)(c), that procuring entity shall within 21 days: (a) provide written justification of the decision to utilize the procurement method, including the grounds for taking such a decision; and (b) ensure that the procured goods, works or services are distributed in accordance with the urgent need which necessitated the procurement and submit written evidence of the distribution to the Chief Procurement Officer.

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RFQ Goods - Important Considerations

In cases of complex specifications or when an elaborate, detailed evaluation system is required (i.e., efficiencies, delivery times, etc.,) that needs substantial documentation, a formal open, competitive, bidding process instead of RFQ is used. RFQ selection method is not appropriate in these cases, because it is a method that does not require complex documentation or all the formalities of an open tendering process. As a basic principle, the specifications are generic and not biased to any specific brand or product.

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RFQ Goods - Important Considerations

Quotations are obtained through advertisement (SPN) or, when limited competition is justified, through a request for quotations (RFQ) to a limited number of firms. To ensure competition, quotations are requested normally from not fewer than three (3) technically and financially qualified firms; In order to minimize the risk of not receiving a satisfactory number of responsive quotations, all potential Bidders are requested to confirm whether or not they will be submitting a quotation in order to invite other Bidders to replace those who are not submitting a quotation;

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RFQ Goods - Important Considerations

Firms are given sufficient time to prepare and submit their quotations. RFQs includes the description, quantity, delivery period, place of delivery, including any installation requirements, as appropriate. The request must indicate the deadline for submission of quotations and specify that quotations are to be submitted by electronic means; The evaluation of the quotations and contract award is carried out according to the criteria specified in the RFQ. The Procurement Unit selects the firm offering the lowest evaluated price.

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RFQ Goods – Steps to be Followed

Prepare Technical Specifications; Prepare list of suppliers broad enough to generate good competition but to yield at least three quotations as required. Such list may be prepared based on the past experience with suppliers, Internet, direct market research; Prepare the Request for Quotation (RFQ) document; Send RFQ to the suppliers; Make sure that the requirement of obtaining a minimum of three quotations has been fulfilled; Receive quotations by a deadline, open them and evaluate them;

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RFQ Goods – Steps to be Followed

Prepare an evaluation report and make recommendation for award of contract; Submit evaluation report to the Central Tenders Board for review and approval of contract award recommendation; Finalize the Notification of Award (Form included in the RFQ), and along with the Terms and Conditions of Supply send them to the selected Bidder; Keep the process confidential until the contract has been awarded; Receive and inspect goods for acceptance, and make payments as per the Contract; and Keep all documents on file.

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RFQ Goods – Flow Chart

Procurement Plan

Preparation of the List of Goods, Technical Specification and requirements

Preparation of RFQ

Advertisement and send RFQ to a list of qualified suppliers.

Evaluation and Evaluation Report

Negotiations, Contract Signature and Notification of Contract Award to all Bidders

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RFQ is appropriate for simple and rapid procurement. It is one of the least competitive procurement methods and it is not used as an expedient to by-pass more competitive methods or fraction large procurements into smaller ones solely to allow its use.