CHOOSING A PROCUREMENT METHOD
| Procurement Method | Use When | Advantages | Disadvantages |
|---|
| Invitation to Bid | Lots of competition exists.
The product or service is available from more than one source. | Award process is simpler.
Award is made to the lowest responsive, responsible bidder providing the best value to the State. | Defined specifications may be difficult to develop.
Does not encourage innovative solutions |
|---|
| Request for Proposal | When factors other than price are evaluated.
When negotiations are desired.
Vendor is expected to provide innovative ideas. | Allows factors other than price to be considered.
Allows for customized proposals suggesting different approaches to the same business need.
Allows for negotiations in order to obtain the best value for the state. | Lead times for procurement are much greater.
Evaluations are more complex and subjective. |
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| Request for Information | There is insufficient information to write specifications for any procurement method | Provides information to prepare a complete bid or proposal document.
Allows the business community to have input into the agency’s solicitation document based on current industry practices and market factors.
Informs agency of any potential problems early in the procurement. | |
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| Request for Qualifications | Selection is made solely on the skills and qualifications of the contractor.
Price is not a factor until after a vendor is selected. | Emphasizes the competency of the proposed contractors. | Contractor is selected before price is negotiated. |
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APPROVED BY: POLICY DATE: REVISED DATE: