The Procurement Process
Procurement is the acquisition of goods or services at the best possible cost, in the right quantity, at the right time, in the right place, generally via a bidding process.
Understanding the Opportunity
It has become evident that the way governments and companies’ purchase products and services are changing. There is an increasing trend to actively seek out, not just the best price, but also the best value for the best price by the most qualified suppliers. Purchasing has become very sophisticated and so must the selling of products and services.
There are five types of Bids:
- ITQ - Invitation to Quote requires companies to submit quotes for a product rigidly specified by the purchaser. Ninety-nine percent of the consideration is price.
- EOI - Expression of Interest is the first of a two-stage bid proposal. It pre-qualifies a shortlist of vendors who will then be invited to submit full proposals. EOI will request standard marketing information including a description of the company, the services and products, experience, and potentially some references.
- RFQ - Request for Qualification is almost identical to a request for EOI. It is the first of a two-stage selection process and the intent of the RFQ is to short-list vendors who will then be asked to submit full proposals.
- ITT - Invitation to Tender is similar to an ITQ and is typically used on construction projects. It requires a detailed set of specifications often with a bundle of products and services required for the overall project. Price and experience are the main considerations.
- RFP - Request for Proposal is used for ‘sophisticated’ purchasing requirements. Typically it requires a company to assemble an extensive proposal or bid document describing goods, services and pricing. The proposed ‘solution’ can be as important as pricing.
As RFPs are becoming prevalent in the procurement process, presenting bid documents to the requesting party properly is of the utmost importance. When it comes to Games opportunities, a RFP often replaces sales people and serves as both a planning and marketing document. It is used by both the private and public sector. Understanding the Games environment and the key buyers can help you leverage Games opportunities.