During the requirement identification stage, the entity with the need determines when they want the goods delivered, services rendered, or construction works completed. It is important to consult with the procuring entity at this early stage in order to determine the most appropriate procurement method for their specific need.
The procurement method should be determined at this early stage because of the impact it has on the procurement lead-time, and also to ensure that the responsible entity is able to set realistic timeframes and expectations for contract award in the initial stages of development and definition of their procurement requirement.
This simple exercise of obtaining the assistance of the procuring entity early on helps to avoid disappointments, unrealistic expectations and frustrations when, due to poor planning, it is impossible to meet expectations set during the requirement definition phase.
At this stage of the process, it is also important to decide if a competitive or non-competitive procurement method will be used. The complexity of a requirement, procurement category, and monetary value are all important factors to consider when deciding on the procurement method.
A decision to use a particular procurement method must be based on the stipulations of the procurement rules.
1 thought on “Deciding on a Procurement Method”
Decision on the method of procurement also depends on the estimated cost of a particular requirement. Procurement rules and regulations directs a specific cost amount to use for a specified method of procurement, and also on the time frame for the method of procurement selected.