10-28-2008, 07:19 PM
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Regular Member
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Join Date: Jan 2007
South Africa
Posts: 45
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Price Quotations vs Price and Functionality Quotations
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This may seem an odd question, but I'd be interested in any precedents out there as there can sometimes be an odd response to such policy matters....
National Treasury recently increased the Quotation/Bid threshold from R200,000 to R500,000. Many organisation previously applied specifications based evaluation practices (using both pricing and functionality) to Bids between R200,000 and R500,000. It follows that with the raising of the threshold, organisations can now procure these services via a quotation practice. However the Practice Notes still refer to Price Quotations where previously these service were evaluated on the basis of price and functionality.
My advice to organisations has been to apply functional and price based evaluation criteria against the quotations received, on the following basis:- The nature of the service has not changed. These services have been and most likely are still complex and cannot only be selected on the basis of price alone
- The threshold has changed, not the service and nature of the commodity being sourced.
I will be asking National Treasury for a response, but would like any other perspectives and experiences beforehand please.
ShaunScott
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