The Bid Process

The bid process starts with the creation and the sharing of bid documents. On large projects, bidder conferences will be held and then the process ends with the selection of a bidder.

Bidder Conferences – A meeting where the product/project owners can share specifications, expectations, etc. This allows all vendors to understand the procurement process and requirements of the project. It helps create a fair process for all parties submitting a bid.

Bid documents can include:

Request for Information (RFI)

• A request for information is used to gather more information from the market and suppliers prior to sending out bid documents.

Request for Proposal (RFP)

• This type of request is used for complex or complicated scopes where the buyer is looking for a proposal where the vendor is presenting a solution.

Request for Quote (RFQ)

• This type of request is used when price is going to be the main deciding factor. The proposed solution is readily available and shared to the bidder.

The three types of bid documents shown above cover most bidding needs, but there are other bid documents out there. When it comes to selecting the best vendor, there are several criteria that the selection will be based on. These criteria can include experience, references, price, timeline, etc. These criteria might be weighted to reflect the relative importance to each other. A tool that one can use to analyze and compare this data is called a Vendor Comparison Matrix.

How to Use a Vendor Comparison Matrix – RFP360

For more insights and guidance, A Guide to Better Manage Small Capital Projects is a great resource!

A Guide to Better Mange Small Capital Projects – Initiation Process Group – Peak Project Solutions