1.0 Introduction to procurement
Procurement is acquiring services, material, or equipment. Good procurement is acquiring these items at the required quality at the right/lowest cost. For procurement of bulk material; quality, quantity, and delivery are the main criteria. Procurement of services, equipment or systems demands compliance with a variety of nonmaterial requirements such as personnel qualification, equipment or system configuration, installation interfaces, etc. Effective procurement is a prerequisite for successful project execution.
Bornemann Consultancy can provide procurement services by either handling, participating in, or supporting your procurement activities. A detailed procurement plan can be developed on request.
● Vendor prequalification.
● Technical and commercial bid evaluation.
● Vendor selection, long and short listing.
● Recommendation for purchase.
● Purchase order follow up; delivery, and transportation.
2.0 Procurement plan
Following are some key items that must be addressed in a typical procurement plan.
● Procurement Responsibilities and authorities.
● Development of the bid lists
● Developing request for quotation packages
● Issuing request for quotations
● Tracking the status of the bids
● Preparing technical evaluations
● Preparing commercial evaluations
● Requesting technical clarifications from bidders
● Issuing letters of recommendation to end user/client
● Coordinating pre-award meetings
● Issuing purchase orders on behalf of the end user/client
● Expediting vendor data
● Organize and monitor Inspection and expediting of purchase order items or equipment
● Receiving and distributing vendor data and certifications
● Arranging material shipments
● Monitoring and verification of receiving materials at jobsite
● Reviewing and processing invoices
Capital and modular equipment packages require bid clarifications and coordination meetings with the selected bidders. Such meetings shall be used to confirm bidder’s full understanding of the technical, inspection, scheduling, and commercial requirements of the order. The procurement coordinator is to arrange these meetings in communication with the end user/client.