Procurement is the method of discovering and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual obligation to "procure", i.e. to "ensure" that something is done. When a government agency buys goods or services through this practice, it is referred to as government procurement or public procurement.
A business proposal is a written offer from a seller to a prospective sponsor. Business proposals are often a key step in the complex sales process—i.e., whenever a buyer considers more than price in a purchase. When one person signifies to another their willingness to do or to abstain from doing anything with a view to obtaining the assent of the other to such act or abstinence, they are said to make a proposal.
Purchasing is the process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.
Strategic sourcing is the process of developing channels of supply at the lowest total cost, not just the lowest purchase price. It expands upon traditional organisational purchasing activities to embrace all activities within the procurement cycle, from specification to receipt, payment for goods and services to sourcing production lines where the labor market would increase firms' ROI. Strategic sourcing processes aim for continuous improvement and re-evaluation of the purchasing activities of an organisation.
Construction management (CM) is a professional service that uses specialized, project management techniques and software to oversee the planning, design, construction and closeout of a project. The purpose of construction management is to control the quality of a project's scope, time / delivery and cost—sometimes referred to as a project management triangle or "triple constraints." CM is compatible with all project delivery systems, including design-bid-build, design-build, CM At-Risk and Public Private Partnerships. Professional construction managers may be hired for large to jumbo-scale, high budget undertakings, called capital projects.
Bid rigging is a fraudulent scheme in procurement auctions resulting in non-competitive bids and can be performed by corrupt officials, by firms in an orchestrated act of collusion, or between officials and firms. This form of collusion is illegal in most countries. It is a form of price fixing and market allocation, often practiced where contracts are determined by a call for bids, for example in the case of government construction contracts. The typical objective of bid rigging is to enable the "winning" party to obtain contracts at uncompetitive prices. The other parties are compensated in various ways, for example, by cash payments, or by being designated to be the "winning" bidder on other contracts, or by an arrangement where some parts of the successful bidder's contract will be subcontracted to them. In this way, they "share the spoils" among themselves. Bid rigging almost always results in economic harm to the agency which is seeking the bids, and to the public, who ultimately bear the costs as taxpayers or consumers.
In the United States, the processes of government procurement enable federal, state and local government bodies in the country to acquire goods, services, and interests in real property.
Government procurement or public procurement is undertaken by the public authorities of the European Union (EU) and its member states in order to award contracts for public works and for the purchase of goods and services in accordance with principles derived from the Treaties of the European Union. Such procurement represents 14% of EU GDP as of 2017, and has been the subject of increasing European regulation since the 1970s because of its importance to the European single market.
Bidding is an offer to set a price tag by an individual or business for a product or service or a demand that something be done. Bidding is used to determine the cost or value of something.
KC-X was the United States Air Force (USAF) program to procure its next-generation aerial refueling tanker aircraft to replace some of the older Boeing KC-135 Stratotankers. The contest was for a production contract for 179 new tankers with estimated value of US$35 billion. The two contenders to replace the KC-135 aircraft were Boeing and EADS, following the elimination of US Aerospace, Inc. from the bidding process.
Peregrino is an oil field located offshore of Brazil, east of Rio de Janeiro, in the southwest part of the Campos Basin area with about 2.3 billion barrels of oil in place within the sanctioned area. The oil field was discovered in 2004 and was formerly known as Chinook.
Construction bidding is the process of submitting a proposal (tender) to undertake, or manage the undertaking of a construction project. The process starts with a cost estimate from blueprints and material take offs.
Qualifications-Based Selection (QBS) is a procurement process established by the United States Congress as a part of the Brooks Act and further developed as a process for public agencies to use for the selection of architectural and engineering services for public construction projects. It is a competitive contract procurement process whereby consulting firms submit qualifications to a procuring entity (owner) who evaluates and selects the most qualified firm, and then negotiates the project scope of work, schedule, budget, and consultant fee.
Chennai Monorail was a proposal for a number of lines as part of mass transit system for the Indian city of Chennai. Originally the city planned to use monorail on all lines but many were subsequently changed to railways as part of the Chennai Metro.
Harry Humphry Mellon is a retired Lieutenant Colonel of the United States Army, American businessman, inventor of Job Order Contracting, entrepreneur, and founder and Chairman of The Gordian Group, Inc.
Fast-track building construction is construction industry jargon for a project delivery strategy to start construction before the design is complete. The purpose is to shorten the time to completion.
The Lansdowne Park redevelopment was a public-private partnership redevelopment of the Lansdowne Park fairgrounds in Ottawa, Ontario, Canada. In September 2007, cracks were discovered in Frank Clair Stadium, and a portion of the south-side stands was demolished due to safety concerns. The City of Ottawa subsequently initiated an international design competition to redevelop Lansdowne Park. However, it suspended the competition when a group of Ottawa businessmen known as the Ottawa Sports and Entertainment Group (OSEG), who had been awarded a Canadian Football League franchise on the condition of securing a home venue in Ottawa, proposed a public-private partnership with the City to rebuild the stadium and redevelop the grounds with residential and commercial uses to finance the reconstruction and annual upkeep of the site. Ottawa City Council entered into a partnership with the OSEG group and cancelled its competitive process.
A reverse auction is a type of auction in which the traditional roles of buyer and seller are reversed. Thus, there is one buyer and many potential sellers. In an ordinary auction also known as a forward auction, buyers compete to obtain goods or services by offering increasingly higher prices. In contrast, in a reverse auction, the sellers compete to obtain business from the buyer and prices will typically decrease as the sellers underbid each other.
Suicide bidding is a response to a tendering exercise in which a potential supplier, anxious to win business, submits a proposal to carry out the work for less than it will cost. These procurement processes are typically modelled as reverse sealed-bid auctions with the lowest bid winning.
An invitation to tender is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business activity in works, supply, or service contracts, often from companies who have been previously assessed for suitability by means of a supplier questionnaire (SQ) or pre-qualification questionnaire (PQQ).
