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May I ask what aspects should be considered when evaluating the documents sent by the purchaser for bidding purposes? Is it not reasonable to provide technicians with a fair purchase price?

2022-10-25View Original

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May I ask what aspects should be considered when evaluating the documents sent by the purchaser for bidding purposes? The more comprehensive, the better. Is it not reasonable to provide technicians with an appropriate purchase price?
Reply #22022-10-25
It is reasonable not to provide the procurement price to technical personnel; technology is technology after all, and it should not be affected by commercial pricing factors in terms of technical evaluation. For technical evaluations, there is usually a standard scoring sheet; scores are assigned for each scoring factor listed in the sheet, and then these scores are aggregated one by one. The main scoring factors include: system, performance in similar applications, operational stability, service life, product advancement, technical parameters, maintainability, spare parts, service responsiveness, ……, and so on.
Reply #32022-10-28
A sound institutional framework makes things a bit more comfortable. Private technology companies are ahead in terms of production, research and development, quality control, and sales. If procurement remains stagnant for ten years, they will only be able to win bids at low prices; their financial management will be disorganized, with no sense of planning at all
Reply #42022-10-28
I don’t think it’s reasonable enough. Unless the purchasing department is highly competent enough to provide a scientific and fair evaluation. Evaluations in terms of technology can also be accurate. Only in this way can the total score obtained from the procurement evaluation be valid. If neither the technical nor the procurement capabilities are up to standard, adopting this model blindly will only increase the subjective discretion in procurement, which is beneficial to **
Reply #52022-10-31
The weights assigned to technical and commercial criteria vary depending on the item in question; only in special cases is technology ignored and price alone used as the evaluation criterion, such as when purchasing a pen.
Reply #62022-10-31
The problem is that things are handled on a project basis at the moment, while procurement takes place at the company level. If the project’s technical staff do not consider prices, then procurement can set prices arbitrarily. As a result, the items purchased cannot be guaranteed in quality, and it is very likely that the project will suffer losses, since the prices have not been approved by the project’s technical staff, and procurement does not take into account whether the project will be profitable or not
Reply #72022-11-01
That’s how I see it. First of all, the project has a budget, so under normal circumstances, technical personnel only consider whether the equipment specifications of various manufacturers meet the requirements or provide sufficient redundancy, and they eliminate those that do not meet the standards through scoring; Then it moves on to procurement ; In procurement, the overall score for the procurement portion is taken into account. Therefore, after comparing the quotes, it’s necessary to discuss with the project manager whether the costs appear abnormal (either too high or too low) ; After the evaluation is complete, consider reducing costs with qualified suppliers; if the price difference is significant, analyze whether it is a budget issue or a problem with the supplier’s quote ;
Reply #82022-11-01
I forgot to reply to the subject. If there are any issues that require technical intervention, everything is fine; it’s a reliable supplier with reasonable prices. I don’t think it’s necessary. For new product categories, they can be sent to the technical team for further processing
Reply #92022-11-01
You are overestimating the authority of procurement staff. For each item purchased, including electrical and instrumentation equipment, a budget limit is set by the project control personnel in order to manage the project’s procurement costs. Within the procurement process, the pricing must be approved step by step by the project control personnel, the project procurement manager, and the project manager; procurement staff cannot set prices arbitrarily.
Reply #102022-11-01
This post was last edited by Wise Ming on 2022-11-1 at 12:42. Moreover, the project’s technical staff do not even know what the specific components of the project’s cost (the project budget) are; so how can they determine whether the project is a loss or a profit? The responsibility of the project’s technical staff is to ensure that the equipment and materials purchased meet the design performance specifications, in order to guarantee the proper operation of the project.
Reply #112022-11-01
In most cases, ordinary engineers indeed do not have access to the actual costs; they only hear about them or have only a rough idea

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