Government Procurement Cycle
The the process involves acquiring goods and services from different suppliers at the best price. Management in any business must, therefore, understand the art of acquiring goods and services. Procurement process is part of almost every company since the ability to purchase certain types of equipment will influence operation. Procurement should be a wide process which involves every department in the business. Procurement is also a dynamic process which requires regular monitoring and evaluation for it to be effective. Some of them include the open tender, prequalified tender and the limited tender option and how to bid on government contracts.
You should first review the requirements before looking for the government contract jobs. Conducting an internal needs analysis is essential before selecting the best procurement process to use for your business. The items being benchmarked can be brand new items or sometimes old goods which need to be ordered again. The right good being ordered is critical hence it is important to be specific.
Vendor selection is one of the most significant steps in the procurement cycle. Find a vendor who does not only supply quality services, but one who is trustworthy. A thorough research should be done especially on the government contract website to look for a vendor who can meet all your needs. You can also develop a list of vendors that offer the goods your business needs. To avoid losses as a result of vendors negligence, make sure you do a thorough selection process for the vendors.
You must get consent from the highest authority before you request for quotation. The purchase order will specify the goods and services being ordered as well as their prices. If approved a purchase order will be given to buy the goods from the seller. The purchase orders are normally issued if the buyer wants to get goods or inventory on account. An invoice will confirm the contents of the order and tell the seller when they will receive the payments.
Once the seller receives the order, the next step involves making of the payments within the time frame that both parties agreed on. In the case of audits the company must maintain proper records to assist the auditor. A procurement process that is done very well can add a lot of value to most business and companies. Through it you will not only save time but also get the goods and services you need at the best price. You should also ensure that once the bids have been submitted, a thorough evaluation of the tenders must be done. A the contract should be developed which explain to both parties their roles and obligations.