Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 1 00:00:01,180 --> 00:00:02,480 How should the winning bidder 2 2 00:00:02,480 --> 00:00:04,053 for a procurement be selected? 3 3 00:00:05,160 --> 00:00:08,510 As the project manager, you are responsible for deciding 4 4 00:00:08,510 --> 00:00:11,113 each contract type and award procedure. 5 5 00:00:12,170 --> 00:00:15,100 Having said that, the procurement department usually 6 6 00:00:15,100 --> 00:00:17,150 will have their own policies 7 7 00:00:17,150 --> 00:00:19,850 and may well prefer the fixed price structure 8 8 00:00:19,850 --> 00:00:22,960 with the lowest price award even for projects 9 9 00:00:22,960 --> 00:00:25,700 where the scope is likely to change since fixed price 10 10 00:00:25,700 --> 00:00:27,853 and lowest price sound good. 11 11 00:00:29,090 --> 00:00:32,380 However the project manager is accountable for project 12 12 00:00:32,380 --> 00:00:35,570 performance and that gives you a lot of power. 13 13 00:00:35,570 --> 00:00:38,240 So you can negotiate with the procurement personnel 14 14 00:00:38,240 --> 00:00:41,820 to choose the best contract type and award procedure 15 15 00:00:41,820 --> 00:00:43,103 for each procurement. 16 16 00:00:45,040 --> 00:00:47,820 There are two main approaches to selecting the winner 17 17 00:00:47,820 --> 00:00:49,253 on competitive contracts. 18 18 00:00:50,260 --> 00:00:55,260 First, lowest price, it's easy but its dangerous for all 19 19 00:00:55,560 --> 00:00:57,343 but the simplest procurements. 20 20 00:00:58,500 --> 00:01:01,200 The way it works is, you filter the set of bidders 21 21 00:01:01,200 --> 00:01:03,810 that meet the requirements and choose the one with 22 22 00:01:03,810 --> 00:01:04,993 the lowest price. 23 23 00:01:06,090 --> 00:01:09,580 The problem with this is you an easily get gamed 24 24 00:01:09,580 --> 00:01:11,120 on the requirements. 25 25 00:01:11,120 --> 00:01:13,740 All bidders claiming they will meet them fully 26 26 00:01:13,740 --> 00:01:15,270 but really you are getting 27 27 00:01:15,270 --> 00:01:18,370 their lowest possible quality response 28 28 00:01:18,370 --> 00:01:21,470 and then will have to pay much more for changes later 29 29 00:01:21,470 --> 00:01:23,183 to get what you really need. 30 30 00:01:24,740 --> 00:01:27,490 The other approach is best value. 31 31 00:01:27,490 --> 00:01:30,450 It's more complicated but it's much better for work 32 32 00:01:30,450 --> 00:01:31,743 of any complexity. 33 33 00:01:33,010 --> 00:01:35,810 With best value procurements the project manager 34 34 00:01:35,810 --> 00:01:39,360 first establishes the bid evaluation criteria. 35 35 00:01:39,360 --> 00:01:43,620 For example, 15% for experience of the contract team leads, 36 36 00:01:43,620 --> 00:01:46,770 20% for experience of the firm in this domain, 37 37 00:01:46,770 --> 00:01:49,170 50% for the response to the requirements, 38 38 00:01:49,170 --> 00:01:51,163 and 15% for their support solution. 39 39 00:01:52,750 --> 00:01:56,420 The team then scores each contractor's proposal, 40 40 00:01:56,420 --> 00:01:59,550 divides by the price to get their bid value, and then 41 41 00:01:59,550 --> 00:02:02,350 awards the contract to the one with the greatest number. 42 42 00:02:03,970 --> 00:02:07,320 With this approach, each contractor will now bid 43 43 00:02:07,320 --> 00:02:11,080 the best solution and team they can since they know 44 44 00:02:11,080 --> 00:02:14,073 they will get credit to offset any higher price. 45 45 00:02:15,310 --> 00:02:19,530 This usually provides the genuine best value winner 46 46 00:02:19,530 --> 00:02:23,193 and in reality, usually the least cost too. 4104