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gagan1986
Posts: 11
Joined: Sun Jun 26, 2016 5:17 am

Procurement

Postby gagan1986 Sun Apr 02, 2017 5:36 pm

Question 60

1.00/0.00
Larry is the project manager and working with procurement department of his organization to do procurement for his project. Procurement department said these are usual commodities and same has been procured many time. Also as this has been procured multiple times, generally they receive response from 4-5 vendors for this procurement. To everyone’s surprise, almost 10-15 vendors responded and two of the bids are evidently lesser than independent estimate Larry has created. What can be the best explanation for lower bid in this scenario?

Price for the commodity in current market changed due to change in demand/supply for it

Procurement SOW created by buyer was not clear enough for seller to make out the requirement

Procurement SOW created by buyer was clear but seller understood it incorrectly resulting lower bids

Bid document supplied by seller is having formula mistake resulting in lower bid
+
manishpn
Expert
Expert
Posts: 1950
Joined: Sat Jan 04, 2014 3:55 pm

Re: Procurement

Postby manishpn Sun Apr 02, 2017 6:33 pm

gagan1986 wrote:Question 60

1.00/0.00
Larry is the project manager and working with procurement department of his organization to do procurement for his project. Procurement department said these are usual commodities and same has been procured many time. Also as this has been procured multiple times, generally they receive response from 4-5 vendors for this procurement. To everyone’s surprise, almost 10-15 vendors responded and two of the bids are evidently lesser than independent estimate Larry has created. What can be the best explanation for lower bid in this scenario?

Not a very good question, based on options provided I would go for option #C with minor correction as stated below If market price has changed all sellers bids would reflect that not just 2

Price for the commodity in current market changed due to change in demand/supply for it

Procurement SOW created by buyer was not clear enough for seller to make out the requirement

Procurement SOW created by buyer was clear but two of the seller understood it incorrectly resulting lower bids

Bid document supplied by seller is having formula mistake resulting in lower bid
+
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

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