Bid Selection Methods

Open Competitive Bidding:

When to Use:

• Routine procurement – widely available items, common specifications, low value, low risk, low effort in evaluation, low cost of participation

Advantages:

• Shorter award cycle, more competition

Disadvantages:

• High Cost of participation vs. low likelihood of success
• Unqualified bidders increase procurement risk
• High bid spread – Apples vs. Oranges

Restricted Bidding:

When to Use:

• Large/Complex procurements – Specialized items, complex specifications, high value, high risk, high effort in evaluation, high cost of participation

Advantages:

• Lower procurement risk
• Competition between qualified

Disadvantages:

• Collusion between fewer bidders
• Longer award cycle

Direct Selection:

When to Use:

• Emergency, Additional work, specialized spares

Advantages:

• Faster procurement
• Cost efficient is specific cases

Disadvantages;

• JUSTIFICATION!
• Clash between Need, Efficiency, Transparency