Procurement is the process of buying goods or services. Procurement is often carried out by the process of tendering (inviting many suppliers to respond to a formal request for goods or services), rather than buying products directly from a seller.
It includes invitations to possible suppliers, then through a process of qualification, assessment and evaluation, getting to a preferred supplier.
Properly done, tender management will start with a “procurement trigger” (Purchase request or procurement plan) and include components of meeting management, committee appointments, declarations of interest and specification management.
Tender management is also used by project management organizations to analyze data of proposed & current projects. Project portfolio managers provide forecasting & business analysis when looking to invest in new projects. It starts with obtaining approval and extends into the procurement cycle. By seeing the big picture of how a proposed project will fit into the goals and objectives of the organization, companies can make better decisions on what projects to choose and what initiatives will create the most return.
The objective is a formal, cost effective process, removing subjectivity and increasing governance & transparency.
It involves filtering through (like a funnel which starts off with many and end with few) all suppliers that responded to the invitation through steps of Qualification of supplier as an organization; doing technical analysis on the content of the supplier response, final evaluation looking at pricing and possible costs, ending in a recommended shortlist.
Finally, Tender management concludes with contracts. Contracting officers should have a common thread through the tenders – back to the initial procurement trigger.
They should also set up and maintain complete and up to date records on every aspect of the contract, both to provide a list of actions taken, and to protect the organization’s interests under the contract. This will give an organizational memory of activities and events.
Consider using the “Most Economically Advantageous Tender” (MEAT) methodology. It means you assess the tenders received using a variety of objective and non-discriminatory criteria linked to the subject matter of the contract to identify the tender which is best value for money.
Interface is the place at which independent and often unrelated systems meet and act on or communicate with each other. GRC 365 talks to the "outside world". Here is where users connect GRC to external independent systems.
Before a tender is issued, a pre-qualification process is conducted to identify and shortlist potential suppliers/vendors. The prequalification process assesses various criteria, such as technical expertise, financial stability, past performance, and other relevant qualifications. Only those who successfully meet the pre qualification criteria are invited to participate in the subsequent tendering stage. In GRC 365 pre-qualification is applied on the prospective vendors that registered to become vendors.
Go to: GRC > Setup > GRC parameters
Open the Governance tab
Expand the Sourcing and tender governance Fast tab
In the Default team field, select the team responsible for pre-qualification, from the dropdown list
Select the Default job plan. The lines on the selected job plan will be used to create checklists for completion to pre-qualify the prospective vendors/suppliers.
For keeping the audit trail on the RFQ under the Sign off Fast tab, select the default Signature type from the dropdown list
Enable contract governance for a specific area by selecting the relevant value from the dropdown list under the Enable field
To allow manual selection of a baseline contract when RFQ is awarded (on acceptance of RFQ vendor bid), move the Choose template slider to Yes
Users can auto create a contract on the acceptance/awarding of a bid. In this scenario it will be useful to use the RFQ number in the name of the contract. To enable this. Under the Contracts governance Fast tab:
Select the Numbering format to be used for contracts. Basically a free text option or using the RFQ number.
Enter the Constant to be used in the numbering for contracts
Select the relevant SOW project budget model to be used, from the dropdown list
Move the Choose template slider to Yes to allow manual selection of a baseline contract when the RFQ is awarded (on acceptance of the RFQ vendor bid)
Go to: Procurement and sourcing > Setup > Procurement and sourcing parameters
Open the Request for quotation tab
Under the RFQ reply field group, select Yes for Purchaser can edit vendors bid
Move the Show the RFQ description Fast tab slider to Yes
Allow vendor questions: Enables or disables vendor questions for RFQ cases.
Default direct response: When you reply to a question, you can choose to reply to all vendors who received the RFQ or to reply only to the specific vendor who submitted the question. You may choose this option each time you reply, but this setting controls the default. If you usually reply to all vendors, set this to No. If you usually reply to individual vendors, set this to Yes.
Task lists are useful for users that prefer having a list of steps to follow when doing spesific tasks. For example a task list for internal procurement users to guide buyers on a proces to follow when managing replies from bidders. Created task lists are displayed on the home page of Dynamics 365 with color coded due and over due border.
A Task list is selected on the Solicitation type under the Governance Fast tab
Go to: Human resources > Task management > Generic checklists
On the Action pane, click on the New button
Enter a task checklist Name
Enter a brief Description for the task checklist
In the Process type field, select Generic from the dropdown list
Select the Owner of the task checklist from the dropdown list
Under the Tasks Fast tab, click on the New button
Enter the following on the Create a new checklist task dialog:
Task name
Task description
In the Assignment type field, select Worker from the dropdown list
Select the relevant worker from the Assigned to dropdown list
In the Due date offset from start date... field, enter the required number
A Process is selected on the Procurement plan under the Planning and approvals Fast tab. This in turn will create an overall process for the users. With mark as "complete" options.
Meetings are formally scheduled and recorded in GRC 365. With a list of people invited and record of those that attended. In the Tender events it is used for Briefing sessions and more.
Go to: GRC > Meetings > Setup for meetings > Meeting types
On the Action pane, click on the New button
In the Meeting type field, select Procurement bid from the dropdown list
Enter a Name for the new meeting type
Select the relevant frequency Period for the meeting type
In the Quorum field, enter the percentage necessary for a quorum
Select the relevant Standard agenda from the dropdown list
In the Used for field, specify what the meeting type will be used for. Select either Bid committee meetings, Tender briefing meetings, Clarification or Site visit meetings.
In the Active field, indicate whether the Approval system is activated for this meeting type
In the Approve field, select the Group authorized to approve the meeting from the dropdown list
The Technical and Commercial checklists, as well as the Pre-qualification check lists are created based on job plans (and scoring criteria) which are setup on this form.
Go to: GRC > Setup > Job plan
On the Action pane, click New
Under the General Fast tab:
In the Job plan field, enter a job plan identifier
In the Name field, enter a name for the job plan:
Qualification job plan
Technical job plan
Commercial job plan
Enter a brief Description for the job plan
In the Checklist option field, select Default from the dropdown list
Enter the Max score for the job plan
Enter the Minimum % to pass for the job plan
Select the relevant Job plan group from the dropdown list
Under the Checklist Fast tab:
Under the Checklist Index tab, click on the Add button
Enter a Line number and Name for the checklist line
Enter additional Notes if required. These notes will be displayed on the checklist feedback form.
For some tender processes, a zero checklist line can be used because they will not be part of the scoring mechanism.
For enhanced scoring, additional fields exist on the Scoring criteria form
Go to: GRC > Governance > Setup for governance > Scoring method
On the Action pane, click on the New button
Enter a Name for the scoring method
Enter a brief Description of the scoring method
Select the relevant Stage for the scoring method
Under the Scoring criteria Fast tab, in the Button strip, click on the New button
Enter a Name for the Scoring criteria. This will be the text displayed on the checklist lines on the checklist feedback form.
Enter a Description for the Scoring criteria. The text entered here will be displayed on the checklist feedback form in the Notes box under the grid.
Enter the Range from and Range to for the Scoring criteria
Enter the scoring Weight percentage for the Scoring criteria
Enter scoring criteria Reference, explaining the reason for the weighting
In the Include in checklist field, the user can choose to include the scoring lines into a Checklist
Tick the Pricing checkbox for the relevant commercial checklist line. (This is used to auto populate the commercial score value, for all team members using the Overall pricing enquiry, when the commercial envelope is opened)
The Status of the record can be changed. Once it is set to Approved the record will be locked.
Note that both Job plans and Scoring methods configurations are required for the creation and scoring of Checklists
For certain actions (such as a Bid waivers) GRC can provide questions to users to answer, thus justifing the action.
Go to: GRC > Setup > GRC actions and questions
On the Action pane, click on the New button
In the Question ID field, enter the unique question id
In the Source field, select RFQ
In the Action field, select Bid waiver
Enter the Question text
Select the relevant Answer type from the dropdown list
Select the relevant Negative outcome from the dropdown list
The Question text is the text that is displayed on the Bid waiver dialogue.
A question must have an Answer type:
Yes/No declaration – this will display the Question text with a tick box on the Bid waiver dialogue
Yes/No answer - this will display the Question text with a tick box on the Bid waiver dialogue
Free text – this will display the Question text with a free text input box on the Bid waiver dialogue
The response to the question is set by the Negative outcome setting:
Force entry – The Bid waiver dialog will not be able to be closed if this field is not completed i.e. a Tick is required in the tick box, or text in the free text box
Warning – this will give a warning if there is no input against the question, but will allow the action to continue
Ignore – the action can continue if there is no response to the question
The selections made under the Lines Fast tab, will determine how calculations are done, and which columns will be displayed on the Evaluation dialog, opened from the RFQ.
Go to: GRC > Governance > Setup for governance > Evaluation setup
On the Action pane, click on the New button
Enter an Evaluation ID
Enter a brief Description for the Evaluation setup
Select the relevant Evaluation criteria from the dropdown list
Indicate whether disqualified bidders should be displayed
Evaluation criteria determine the distribution of weight between the average commercial score and the average technical score in a bid to calculate the combined score. For example, with the evaluation criteria 80/20, the average commercial score contributes 80% of the combined score, while the average technical score contributes 20% of the combined score.
Tick the Hide tick box to hide columns that should not be displayed on the Evaluation dialog
Explanations for the values selected in the Display column:
Quoted price: The sum of the Net amount values received from the bidder. (Total net price on the manage replies header)
% Scored price: Using the quoted price and then applying the user selected split. (Selected in the Evaluation criteria field on the header)
Level: The BEE status level from the supplier/vendor profile. (Certifications, BEE Fast tab, B-BBEE status field)
% Scored level: The BEE recognition level from the supplier/vendor profile. (Certifications, BEE Fast tab, Recognition level field)
Bafo price: This is the total value of the last round of the best and final offer (Bafo) found on the header view of Manage replies
To approve the Evaluation setup, expand the Approval Fast tab and move the Approve slider to Yes. The record will now be locked.
To copy an Evaluation setup:
In the Action pane, click on the Copy button
Enter an Evaluation ID for the new Evaluation setup
Enter a Description for the new Evaluation setup
Click on OK
The Evaluation criteria, as well as all the lines will be copied to the new Evaluation setup
Solicitation is the act of requesting. The objective of solicitation is to prepare and issue a solicitation to ensure that all qualified bidders are given the opportunity to compete for a contract. For Advance procurement this object/form is where most of the rules are specified. Default values and rules spesified here are carried over and applied to Procurement plans and RFQs.
Go to: GRC > Governance > Setup for governance > Solicitation type
On the Action pane, click on the New button
Enter a Name for the Solicitation type
Enter a brief Description of the Solicitation type
Expand the General Fast tab
Select the relevant Scoring method from the dropdown list
Expand the Governance Fast tab
Select the following under the TEAMS field group:
Commercial job plan
Commercial team
Technical job plan
Technical team
Specification team
Evaluation team
If any team member should be able to open the envelopes, move the Any team member can open envelope slider to Yes
Bid teams are explained below in Step 13.
Enter the following under the RULES field group:
Maximum value of bid
Select the relevant Currency from the dropdown list
Select whether a Bid waiver is applicable, optional or mandatory
Select the relevant Action and question group from the dropdown list
Enter the Minimum number of bids required for this classification
Select the relevant Evaluation setup from the dropdown list
The Evaluation criteria selected on the selected Evaluation setup, will be displayed
If the Lock amendments slider is moved to Yes:
Requests for due date extensions can be made by any user
Only users that belong to the Approver group/committee selected on the RFQ, will be able to approve due date extension requests
Enter the following under the PROCESS field group:
Select the relevant SOP from the dropdown list
Select the relevant Document pack from the dropdown list
Select the relevant Qualification job plan from the dropdown list
Select the relevant Qualification team from the dropdown list
Select the relevant Baseline contract from the dropdown list
Select the relevant Task list from the dropdown list
If the Create manage reply tasks slider is moved to Yes, the following buttons will be enabled on the Action pane of the RFQ Manage replies:
Create task
Show tasks
Enter the following under the OTHER field group:
A Default item can be selected for RFQ services
Enter the duration in days of the bidding process
Enter the number of days to hold the purchase agreement
Select the relevant Envelope opening option from the dropdown list. (If Single is selected, Technical checklists will be hidden on the RFQ).
Indicate whether suppliers should be “masked”
By moving the Validate attachments slider to Yes, Procurement plan records will not be allowed to be approved if attachments have not been added
The user can choose to hide/display the following index tabs under the Governance Fast tab on the RFQHeader:
Committee
Specification
Enterprise portal
Commercial checklist
Technical checklist
The Job plan that is selected in the Qualification job plan field, will be displayed on the RFQ, Governance Fast tab, Qualification checklist Index tab
The Job plan that is selected in the Technical job plan field, will be displayed on the RFQ, Governance Fast tab, Technical checklist Index tab
On Awarding of the bid, the RFQ will create the purchase agreement with an effective date of Today + “7”
When selecting the Baseline contract, make sure that the clauses that have to be copied to the contract when the RFQ is awarded, are ticked to be copied
A Default item can be selected for RFQ lines. When users creates an RFQ; a line is created for them using this value.
The purchase agreement classification allows you to control the administrative information that is available on purchase agreements. For example, it allows workflow to be used or not.
Inside the general tab, there are several fields available which are relevant to specific businesses. Some of them are visible when public sector configuration key is enabled. Others needs to be enabled in feature management (Purchase agreement responsible party, Purchase agreement responsible status, Purchase agreement matching policy).
Go to: GRC > Governance > Setup for governance > Purchase agreement classification
On the Action pane, click New
Enter a Name that describes the purchase agreement classification. The classification will be available on the Purchase agreement page when you create new purchase agreements
Enter a brief Description for the Purchase agreement classification
Under the General Fast tab:
Indicate whether Subcontractors may be used for this classification
Under Certifications, select Yes to enable the entry of insurance policies and bonds on purchase agreements that use this classification
Indicate whether this classification will Require direct invoicing
Under Activities, select Yes to enable the entry of milestones and tasks on purchase agreements that use this classification
Under Workflow, select Yes to indicate that the OHS workflow is enabled for this classification
Under the Governance Fast tab:
Select the relevant Performance goal category from the dropdown list
Indicate whether the Contract value should be enforced when this classification is selected
Move the Lock value from contract register to Yes if it is required when this classification is selected
Before launching the tender event, the buyers should satisfy themselves that all planning, budget analyses and exercises have come to a satisfactory conclusion. It is good practice to develop a check list and confirm/check that all relevant conditions of preparation and structuring are met. In addition an Approval authority matrix should be defined. This is useful for Workflow as well reporting inside the tender evaluation report (TER).
Go to: GRC > Governance > Setup for governance > Approval authority
On the Action pane, click New
Enter the applicable Year
Select the relevant approval Level from the dropdown list
Enter the name of the Authority
Enter the Maximum amount
Select the relevant Currency from the dropdown list
Enter a brief Description
Select the relevant Approver authority role from the dropdown list
The Responsible worker field will be populated according to the Approver role selected
Choose a Dimension and based on this value
Select a Dimension value
The approval authority is also used in the gift register. Users define thresholds (per department/cost centre etc.) for gifts received and subsequent approval based on said threshold value.
Tender management is all about obtaining approval of doing a new project and starting a program. It begins with a plan and extends into the procurement cycle and ends in formal project accounting and management. The last mentioned is not covered in this document.
Procurement planning is the process of identifying and consolidating requirements and determining the timeframes for the procurement steps; with the aim of sourcing quality suppliers, services and items.
A good procurement plan will describe the process in the identification and selection of suppliers/contractors/consultants.
GRC aids towards this by adding some functions to RFQ and Projects.
Go to: GRC > Governance > Tender management > All procurement plans
Columns on the Procurement plan list page:
Number
Legal entity
Parent
Ref number
Date created
Currency
Reporting status
Estimated value (incl. all taxes)
Project description
Project
Programme (Business unit)
Specification submission
Planned method of procurement
Evaluation criteria
Envisaged date of bid award
Envisaged date of advertisement
Envisaged closing date of bid
Planned currency range
Envisaged evaluation start date
Envisaged evaluation end date
Planned award year
Planned award quarter
PP additions per quarter
Stage of procurement
Actual award quarter
Actual award year
Budget register entry
Currency value ranges
RFQ case number
In the Action pane, click on the New button
Enter the following on the Create procurement plan dialog:
Select Yes for Top level if this is a Parent/Top level procurement plan
A unique Reference number/description for the procurement plan
Select the Date on which the procurement plan was created (the default is today’s date)
Select the Responsible person from the dropdown list
Select the relevant Approval team from the dropdown list
Select the relevant Solicitation type from the dropdown list (Only Solicitation types where the currency is the same as the currncy selected above, will be on the list. )
Enter the Estimated value (incl. all taxes)
Select the relevant Currency from the dropdown list
Select the relevant Evaluation criteria from the dropdown list
Click OK
Only members of the Approval team can re-open a procurement plan
The Responsible worker’s name will be displayed according to the selection made on the parameters (Step 2 above)
On the Header view, under the General Fast tab, enter the following:
Enter the Execution strategy for the Procurement plan
Select the relevant Parent plan from the dropdown list (Optional)
Select the relevant Department from the dropdown list (Optional)
Select the relevant Project from the dropdown list (Optional)
Enter a Project description
Select the relevant Qualification team from the dropdown list
The information from the selected Solicitation type (Planned method of procurement) will populate the relevant fields
An email can be sent to the selected worker in the following fields if they have a Primary email address: Project manager and the Responsible person
The value displayed in the Expense budget field comes from the Expense total field under the Budget details Fast tab
Expand the Planning and approvals Fast tab
If the tender process was not planned, move the Unplanned slider to Yes
The value in the Process field is passed from the Solicitation type. This can be edited.
Select the relevant value in the Envelope opening field
Select the Planned start date year
Select the Planned award year from the dropdown list
Select the Planned award quarter from the dropdown list
Enter the relevant dates under the BIDDATES field group
Select the Approval team from the dropdown list
Select the relevant worker from the Requested by dropdown list
To view the details of the process, click on the Process button in the Action pane
Expand the Reporting Fast tab
Enter the Planned currency range
If a presentation is required, move the Presentation required slider to Yes
Enter the PP additions per quarter
Select the Actual award year from the dropdown list
Select the Actual award quarter from the dropdown list
Select the Stage of procurement from the dropdown list
Enter the Currency value ranges
If a Package ID is required, click on the icon next to the Package ID field
The package ID will be displayed on the linked RFQ under the Governance Fast tab, and subsequently on the Contract
Expand the Governance Fast tab
Enter a Description in the space provided
Enter the Business justification in the space provided
Enter any Internal comments in the space provided
Enter any External comments in the space provided
Select the relevant Email template from the dropdown list
Select the relevant Safety plan form the dropdown list (If applicable)
Select the relevant Risk register form the dropdown list (If applicable)
Select the relevant Risk assessment form the dropdown list (If applicable)
Indicate the Bid type by moving the relevant slider to Yes
Enter the Approved list of bidders (If applicable)
Expand the Budget details Fast tab
Select the relevant Budget register entry from the dropdown list
Enter the Source of the budget in the field provided
A Top-level procurement plan is a procurement plan with one or more Child procurement plans linked to it.
To indicate that this is the Top-level procurement plan:
On the Procurement plan Header view, under the General Fast tab, move the Top-level slider to Yes
Expand the Related information fact box to view the related Child procurement plans
The following is displayed for each Child procurement plan in the Related information pane:
Procurement plan number
Legal entity
Date created
Reporting status
Estimated value (incl. all taxes)
By clicking on the Number of a Child procurement plan, the user can jump to the child plan.
If you want to go back to the Top procurement plan from the child, click on the back arrow (top left-hand side of the form)
Certain enterprises need to consolidate procurement plans across multiple legal entities. GRC allows users to link different plans to a “top level” (parent) plan and calculate the consolidated plan amount from the child plans.
The approvals and RFQ process can start on the parent or child level.
The Consolidate button:
The Consolidate button is only available if the selected record is marked as a Parent
When this button is clicked, the values from the “children” Procurement plans are added and displayed in the Estimated value field on the Parent Procurement plan Header
The status of the Procurement plan must be Created or Likely to award
The Currency on the Parent must be the same on the “Child”
On the Action pane, click on the Send email notification button
Click on the Responsible person radio button
Click OK
An email notification will be sent to the Responsible person selected under the General Fast tab
Placeholders
Field on form
%ReferenceNumber %
%DateCreated%
%ProjectDescription%
%PlannedMethodOfProcurement%
%EstimatedValue%
%urlLink%
Reference number
Date created
Project description
Planned method of procurement
Estimated value
URL
Click on the link below for instructions on how to setup email templates in D365:
The Procurement Plan is an annual document which defines the products and services that a Public Body will obtain from external suppliers. A sound procurement plan helps a Procuring Entity to define their procurement requirements and to decide where and when to procure. It normally is used for high value service, items and/or projects.
The procurement plan will be in accordance with the entities’ approved budget for the Year. Procurement plans can be revised and updated during the course of the financial year, with regards to new arising projects, which was not initially listed
On the Action pane, click on Change status
Select Approved from the dropdown list
Only members of the selected Approval team can approve the procurement plan.
If no team is selected, any user can approve the procurement plan.
Only an Approved Project and program portfolio line can be used to create an RFQ
Project and program portfolio statuses:
Status
Rules
Created:
Default status when a record is created
The record can be deleted
Will be greyed out when any other status is selected
Approved:
This status is required for Sub statuses to be used
The status can only be changed to Submitted
The record cannot be deleted
Likely to award:
Status can only be changed to: Approve/Defer/Withdraw
Award:
The status cannot be changed
The record cannot be deleted
Defer:
Status can be changed to any other status except Created
The record cannot be deleted
Withdraw:
All statuses are disabled
The record cannot be deleted
Alternatively (do not use a procurement plan) users can initiate a bid from a Purchase requisition
Purchase requisitions are first filled out by an employee who sees the need for a product or a service. The employee fills in all the details, including the price, suggested vendor, and the specifics of the goods or services. The document is then sent to the purchasing department for approval.
Go to: Procurement and sourcing > Purchase requisitions > All purchase requisitions
On the Action pane, click on the New button
On the Create purchase requisition dialog, enter a Name for the purchase requisition
Click OK
On the Purchase requisition Lines view, under the Purchase requisition Fast tab, select the relevant Business justification reason from the dropdown list
Select the relevant Contract from the dropdown list
Expand the Purchase requisition lines Fast tab
Click on the Add button
Select either an Item or a Procurement category
Enter the Quantity, Unit and Unit price
Expand the Line details Fast tab and select the relevant Financial dimensions
Open the Header view
If a Package ID is required, click on the icon next to the Package ID field
The package ID will be displayed on the linked RFQ under the Governance Fast tab, and subsequently on the Contract
¶ Step 12.2.1: Workflow and purchase requisition approval
On the Action pane, click on the Workflow button
On the Purchase requisition review dialog, click Submit
On the Action pane, click on the Create RFQ button
The information from the Procurement plan line will populate the fields on the New request for quotation dialog
In the Purchase type field, select Purchase agreement from the dropdown list
Enter a Document title
Expand the Additional information Fast tab
Select the Expiration date
Select the relevant Purchase agreement classification from the dropdown list
Click OK
The status of the Procurement plan has to be Approved
A purchase agreement will automatically be created when Purchase agreement is selected in the Purchase type field
On the Procurement plan header view
Expand the Request for quote details Fast tab
The newly created RFQ is displayed here. In addition the fields in this Fast tab will be updated as the detail on the RFQ is changed.
¶ Step 12.3.1: Changing the Solicitation type on the Request for quotation
Go to: GRC > Governance > Tender management > All requests for quotations
Select the relevant RFQ
On the Request for quotation header, expand the General Fast tab
In the Solicitation type field, delete the current value and select the prefered value form the dropdown list
In the Action pane, click on the Save button
When the Solicitation type is changed on the RFQ, some values that came from the original Solicitation type might now be different on the RFQ. A dialog will come up giving the user the option to apply changes to the following:
Scoring method, Committees, Qualification job plan and Standard operating procedure (SOP)
Choose one of the following for each of the abovementioned parameters: Keep existing, Add and remove existing, or Add to existing
Click on OK
On the next form, select the relevant option and click on OK
¶ Step 12.3.2: Complete additional information on the Request for quotation
Go to: GRC > Governance > Tender management > All requests for quotations
Select the relevant RFQ
On the Request for quotation header, expand the Governance Fast tab
Open the Business information Index tab
The Minimum number of bids field will be populated with the information relevant to the Purchase agreement classification selected under the General Fast tab
The Bid type indicated on the Procurement plan Header, will also be indicated
Under the Meeting Field group:
Select the relevant Bid committee meeting
Select the relevant Briefing session
Select the relevant Clarrification meeting (if required)
After user selected a briefing session, if suppliers exist on the selected Briefing session, a pop-up will prompt the user to confirm that these suppliers can be copied to the RFQ
Detail from the Procurement plan is visable under the Buisness information Index tab.
Additional under the Governance Fast tab:
It is required by law (think Government tenders) for RFQs to be made public via advertisement. To this end an identifier is available on the header under the Business information Index tab
In addition, the value of RFQs can be limited by using the Maximum value of bid field.
On the RFQ header: If a Baseline contract is selected where the AP enforce slidewr is on Yes, and a Purcahse agreement classification is selected under the General Fast tab, where the Contract value enforced slider set to No, a message will pop up to notify the user.
¶ Step 12.4: Create RFQ and reference back to Procurement plan
It might be required that an RFQ is created while the Procurement plan has not yet been approved. Then, once the Procurement plan is approved, for the RFQ should be linked to the approved Procurement plan.
Go to: GRC > Governance > Tender management > All requests for quotations
In the Action pane, click on the New button
Enter the relevant detail on the New request for quotation dialog
Enter the required detail on the RFQ as described above
On the Action pane, in the Process button group, click on the Add plan button
Select the Procurement plan that you want to link the RFQ to, from the drop dialog
The Procurement plan will now be referenced on the RFQ header under the Governance Fast tab, Business information Index tab
Only the following Procurement plans will be on the dropdown list:
Procurement plans that do not have an RFQ linked
Approved procurement plans
Procurement plans where the Solicitation type is the same as on the RFQ
It is important to choose the right evaluation team for your procurement bids. Small groups work better, bringing a balanced perspective to the scoring process. Ideally organisations should include a combination of financial, technical, and purchasing expertise within a bid team. Properly done, bid teams will ensure proper segragation of duties and proper governance.
Inside GRC, a Team is a collection of workers (and system users) who are getting together for a temporary assignment. An example is a bid adjudication committee.
Go to: GRC > Governance > Setup for governance > Teams
On the Action pane, click on the New button
Enter a Name for the team
Select the relevant Team type from the dropdown list
Under the General Fast tab:
Enter a brief Description for the team
Select the Administrator for the team from the dropdown list
Bid committees are crucial to mitigate the risk of corruption and fraud. Different roles are assigned to these committees. One such example would be the bid evaluation committee (BEC). They are responsible for the evaluation of bids submitted in response to a public invitation for bids.
Under the Governance Fast tab, open the Committee Index tab
In the Button strip, click on the Add button
Choose the Role that the selected team will perform during the RFQ process
Select the relevant Team from the dropdown list
The Scoring role ensures segregation of duties when the Scoring criteria button is clicked on the Action pane.
Employees need to declare any actual or potential conflict of interest. It is the responsibility of all staff to ensure that they are not placed in a position which risks, or appears to risk, conflict between their private interests and their company duties.
Team members will be able to do a declaration of interest from the Request for quotation form under the Committee Index tab.
Go to: GRC > Governance > Tender management > All requests for quotations
Select the relevant RFQ
On the Request for quotationheader:
Expand the Governance Fast tab
Open the Committee Index tab
On the Button strip, click on the Add button
Select the relevant Team from the dropdown list and click Save
On the Button strip, click on the Do declaration of interest button
On the Declaration of interest register:
Select the relevant worker and indicate that he/she has something to declare
Click Save in order to be able to enter the relevant information
Complete the relevant fields in the line
The Declaration of interest status will now be Complete
When users click on the Do declaration of interest button, all members in the team will be created as records in the Declaration of interest register
It is assumed that all members have done a DOI
If a member did not do a DOI, then the record for that member can be deleted
Repeat this step of clicking on the Do declaration of interest button to do a complete DOI
A Document pack is used to group multiple documents together. These documents normally support tender and contracting activities. Thus, when a set of templates is needed for a tender, they can be referenced on the RFQ by using a Document pack. Additionally, a list of recipients can also be added to the pack. This is useful when needing to send a set of documents to a bid committee.
Go to: GRC > Governance > Setup for governance > Document pack
On the Action pane, click New
In the Document pack ID field, enter a name
Enter a Description of the document pack
A SharePoint URL can be entered
Expand the Recipients Fast tab
Click the Add button
Select the Workers that you want to send the Document pack to
Expand the Related documents Fast tab to view the documents related to the selected Document pack
The link between the Document pack and the Related documents is created on the Specifications form.
Also note the URL reference is most likely to a SharePoint site/document library.
Only approved packs can be used on the tender event (RFQ).
Bid specification is all about the standards or qualities which must be met before a contract will be awarded, and any terms which the buyer has set as a condition precedent to the awarding of a contract. The bid specification normally forms the backbone of the technical evaluation.
Users can create a detailed specification for inclusion in the RFQ. Only documents of type Specification are available for selection on the RFQ.
Go to: GRC > Governance > Tender management > Specifications
Select the relevant PDF integration template from the dropdown list (if applicable)
Enter a SharePointURL
Select the relevant Email template from the dropdown list
Select the Approval team from the dropdown list
Select the Department from the dropdown list
Select the Date on which the document was created
Enter the Version number
The Follow up indicator can be moved to Yes once a follow up has been done on the specification
When linked, the RFQ ID will be displayed in the Where used field
Select a Bill of material (If required)
Select the relevant Document pack (If required)
Indicate whether this is document is a Baseline/template to be used for copy purposes
Only members of the Approval team can approve the specification
Dynamics 365 contracts and tender management includes the ability for users to create, maintain and use the bid specification inside Dynamics 365.
Down stream users can (and should) use the bid specification to create the bid/rfq lines (items).
An invitation to bid is a call by organisations to suppliers/vendors/contractors to provide specific products or services that meet product specifications. It is assumed that at this point all the building blocks are in place. These being Approval to solicit, teams available for evaluation, declarations done, proper specifications and a complete set of documents to be submitted.
A tender briefing session is conducted as part of the overall tender process to help the organisations team explain and present to the tenderers the general expectations and scope for the particular works to ensure they and the tender conditions are understood, allowing better and more accurate proposals.
Go to: GRC > Meetings > Meetings
On the Action pane, click New and expand the General Fast tab
In the Meeting type field, select Procurement bid from the dropdown list
Complete the remaining fields with the relevant information
Expand the All attendees Fast tab
Click on the Add button
Select the relevant Vendor from the dropdown list
Enter the name of the Representative for the vendor
Indicate whether the vendor has been Invited to the meeting, or has Attended the meeting
To send an email to a specific vendor, select the vendor and click on the Send email to vendor button in the button strip
Enter the relevant text/message on the Send email dialog
Click on the Send button
The selected vendor must have a Primary email address
Expand the Integration Fast tab
Select the relevant details under the Procurement and sourcing field group
It is important to record the number of suppliers that attended the meeting
On the RFQ Header, under the Governance Fast tab, open the Business information Index tab
Select the relevant Bid committee meeting held, from the dropdown list
Select the relevant Briefing session/meeting held, from the dropdown list
Select the relevant Vendor account from the dropdown list
In the Registered field, select how the bidder registered for the event
On selecting of a tender briefing (Governance Fast tab), GRC 365 will prompt the buyer if the would like to add the vendors from the tender briefing to the RFQ list.
¶ Step 16.5.1: Create Qualification checklists for vendors
Expand the Supplier/Vendor Fast tab
Select the Vendor that you want to create the Qualification checklist for
**In the Button strip, click on the Vendor options button and select Create qualification checklist form the dropdown list
The Create new checklist dialog will open
Enter a Checklist description
In the Action by field, select the relevant worker form the dropdown list
Enter the Due date
Click on Create
If you want to create Qualification checklists for all the vendors simultaneously, click on the Select all button and then follow the steps above from the **
¶ Step 16.5.2: Completion of Qualification checklists
To do scoring on the checklist, click on the Qualification button on the Action pane in the Process group
On the Qualification checklist list page, select the checklist that you want to do the feedback on, and click on the Feedback button in the Action pane
On the Checklist feedback form, enter the Score for every line
Comments can be added per line in the Comments box provided at the bottom of the form
Click on the Back button to go back to the Qualification checklist list page
The feedback history/audit trail can be viewed by clicking on the View history button on the Checklist feedback form
In the Action pane, click on the Closed button to change the completed Checklist status to Closed
Enter a Note on the Checklist close drop-dialog and click on OK. This note will be displayed in the Note box at the bottom of the screen.
To declare that a checklist is void:
On the Qualification checklist list page, in the Action pane, click on the Void button
Enter a Note on the Checklist void drop-dialog and click on OK. This note will be displayed in the Note box at the bottom of the screen.
The checklist status will be changed to Void
The Task status of the checklist lines will be changed to Cancelled
To view the scores done on the Qualification checklists: On the Action pane, in the Scores group, click on the View scores button and select Qualification scores form the dropdown list
If you are not sure whether all Qualification checklists have been scored, click on the Validate button. If one or more checklists have not been scored, a pink line will pop up with a message that all checklists have not been completed.
In the Button strip, click on the Disqualify button
On the Disqualify dialog, select the relevant Date
In the Evaluation disqualified field, select the relevant value from the dropdown list
Enter a Reason code
Click OK
Scroll to the right to see the Comply/Disqualify entries
When the status of a vendor under the Vendor Fast tab is Accepted or Rejected, the following buttons in the button strip will be disabled for that vendor:
Comply
Disqualify
The Create qualification checklist option under the Vendor options button
Bid analysis involves examining bids after the tender submission deadline. It helps identify the most suitable offer that meets the requesting organisation’s needs.
The process normaly includes a qualification step. The organisation’s team will evaluate each bid during this preliminary stage. They will check if the bid is signed, has the necessary security, and contains no omissions or errors. Additionally, they will assess if the documents meet all legal and tax requirements. Bids that do not meet these conditions will not advance to the next step.
Normally a formal bid envelope opening step is involved.
The second step is to assess whether the bid meets the technical requirements for the project. This includes the material quality, delivery timeline, scope of works, warranties, and the bidder’s experience. The technical specifications vary depending on the project.
The final step is what is known as a commercial evaluation. Here the main evaluation points considered are costs and their influencing factors, such as unit pricing, labor rates, labor hours, overheads and profits, price lock (the duration price is guaranteed), material costs, quantities, and quality.
Assuming some bidders were disqualified via the above process; buyers can now move to the evaluation of responses based on a technical and commercial type of analysis.
Please note: If the Technical job plan or Commercial job plan is changed on the Solicitation type after checklists have been created on the RFQ, the checklists will disappear from the RFQ
The opening of bid envelopes is part of the bid evaluation process.
Technical and Commercial teams are selected on the Solicitation type. It is also determined who can open the envelopes. The default is that only team leaders can open their envelopes.
On the Procurement plan header, under the Planning and approvals Fast tab, users can determine how and when envelopes will be opened by selecting the relevant value in the Bid opening field.
The Open envelopes button on the RFQ will only be available if the logged in user is a member in the committee/team selected on the Solicitation type, and on the date specified on the Procurement plan. Only members of the technical and commercial teams can open their respective envelopes for an RFQ, as long as the envelope's opening date is not earlier than the current date.
Go to: GRC > Governance > Tender management > All requests for quotations
Select the relevant RFQ
On the RFQ, in the Action pane, in the Process group, click on the Open envelope button
On the Open envelope confirmation dialog:
Select which envelope you want to open in the Technical or commercial field
Indicate whether you want to open the envelope for all qualifying suppliers/vendors. If you select No, then:
Select the supplier/vendor that you want to open the envelope for, from the dropdown list
Select the relevant Signature type from the dropdown list
If the envelope is to be opened by an external consultant, select the relevant consultant from the dropdown list
Enter the name of the Contractor employee
Click on OK
A record with these details will be added on the RFQ header under the Sign off Fast tab
It is assumed that the Purchaser has already updated the commercial values on the RFQ manage replies form, or alternatively, the Vendor used the Self-service portal functionality.
If users want to have a step-by-step to-do-list of tasks to be performed in the evaluation, a formal to-do-list with tasks can be created. A default list of tasks is created using the HRM checklist and linked to the Solicitation type.
To create tasks from the Manage replies from:
On the Action pane, in the Functions group, click on the Create task button
A blue line will appear at the top of the screen notifying the user of the number of tasks that have been created
On the Action pane, in the Functions group, click on the Show tasks button
Only tasks assigned to the logged in user will be displayed on the Task maintenance form
The user can do the following by clicking on the buttons in the Action pane:
View details of the task
Chanage status of the task
Reassign the task
The tasks will also be on the Home page under the logged in user's To-do-list
On the Action pane, in the Scores group, click on the View scores button and select Technical scores form the dropdown list
On the Job plan, under the General Fast tab, in the Checklist option field, the selected value has to be Default, and the Pass threshold for the job plan entered.
A Technical job plan and a Technical evaluation team must be selected on the Solicitation type that was selected when the RFQ was created.
If you are not sure whether all Technical checklists have been scored, click on the Validate button. If one or more checklists have not been scored, a pink line will pop up with a message that all checklists have not been completed.
Soon to be added:
Once all the checklists have been scored, click on the Auto disqualify button. All vendors that have a score lower than the Pass threshold specified on the job plan, will be disqualified.
On the Action pane, in the Scores group, click on the View scores button and select Commercial scores form the dropdown list
On the Job plan, under the General Fast tab, in the Checklist option field, the selected value has to be Default, and the Pass threshold for the job plan entered.
A Commercial job plan and a Commercial evaluation team must be selected on the Solicitation type that was selected when the RFQ was created
If you are not sure whether all commercial checklists have been scored, click on the Validate button. If one or more checklists have not been scored, a pink line will pop up with a message that all checklists have not been completed.
Soon to be added
Once all the checklists have been scored, click on the Auto disqualify button. All vendors that have a score lower than the Pass threshold specified on the job plan, will be disqualified.
Evaluation will give users a summary view of all suppliers, their responses and their certification level. The system will apply the 80/20 or 90/10 rules from the procurement plan.
Go to: GRC > Governance > Tender management > All requests for quotations
Select the relevant RFQ
On the RFQ, on the Action pane, open the Quotation tab
On the Action pane in the Process group, click on the Evaluation button
Click OK
If all the Vendors’ replies have been received and all the bids are greater than the maximum value of bid as specified on the Solicitation type, a message will pop up, giving the user the option to cancel the RFQ.
If Yes is selected, the Cancel RFQ wizard will open to guide the user through all the required steps:
The following confirmation messages will be displayed on the RFQ:
Go to: GRC > Governance > Tender management > All requests for quotations
Select the relevant RFQ
On the Action pane, under the Quotation tab, in the Process button group, click on the Recommend button
On the Recommendation dialog, enter the following:
Move the Recommended slider to Yes
In the Vendor field, select the vendor that is being recommended from the dropdown list
In the Recommended by field, select the relevant worker from the dropdown list
Enter the Recommendation date
In the Seconded by field, select the relevant worker from the dropdown list
Enter the Seconded date
Select the relevant Signature type from the dropdown list (If required)
Select the relevant Letter of intent from the dropdown list
Type an Explanation for the recommendation in the box provided
Click on OK
The Letter of intent is created under the Other documents menu item. The document type must be Other, and the record has to be marked as a Baseline document. The Baseline record must be Approved.
The Recommend button will only be available when the status of at least one vendor = Received/Recieved
On the RFQ header, under the Vendor Fast tab, the Recommended tick will be on for the recommended vendor
Expand the Governance Fast tab
Open the Recommendation Index tab to view the information entered on the Recommendation dialog
Post-Tender Negotiation is a separate exercise from Tender evaluation and clarification. It is contact between the procurement officer and the bidder(s) to refine and improve the bid(s) received in order to ensure that prices, delivery or associated terms of the contract are competitive.
Negotiation is conducted after the receipt of formal tenders by the procurement officer, and before the award of any contract. It is not used in all procurements, and when it is used, an audit trail will be kept by the procurement officer so that it can be seen that Negotiation was conducted in a fair manner.
Users can keep track of negotiations with vendors
Requests for negotiations can be done on header or line level
Request for negotiation on header level
Go to: GRC > Governance > Tender management > All requests for quotations
Select the relevant RFQ
On the Request for quotation Header:
Expand the Governance Fast tab
Open the Negotiations Index tab
In the Button strip, click on the Add button
Enter the date on which the negotiations were requested
Select the worker who did the requesting
Select the Type of request from the dropdown list
Enter a brief Description
Enter the number of the Round of negotiations
Enter the date on which the response is expected
Select the relevant Vendor from the dropdown list
The vendor status has to be Recieved
Request for negotiation on line level
In the Action pane, in the Replies group, click on the Manage replies button
On the mange replies Lines, select the Vendor that you want to send the negotioation request to
Expand the Purchase quotation lines Fast tab
Select the line that you want to negotiate on and click on the Negotiation button
On the Negotiation dialog:
Select the relevant Type from the dropdown list
Enter a Description for the negotiation
Enter the Round number
Enter the Expected date
Click on OK
A record will be added on the RFQ header, under the Governance Fast tab, Negotiation Index tab
Click on the Bid line attachments button to view attachments supplied by the vendor
The bidder's response to the negotiation request is shown in the Vendor portal Wiki page
Go to: GRC > Governance > Tender management > All requests for quotations
On the All requests for quotations list page, select the relevant RFQ
On the Action pane, in the Replies group, click on the Manage replies button
A warning will come up if a baseline contract does not exist on the selected solicitation type.
Select the Vendor who’s RFQ needs to be edited
On the Action pane, click on the Edit button
Select Edit RFQ reply from the list and edit the relevant Purchase quotation lines
After editing the RFQ reply, click on the Submit button on the Action pane
The sum of the Net amount column under the Purchase quotation lines Fast tab, will be displayed in the Net price field under the Header view, Quotation Fast tab
Line types on the RFQ can be Item or Category. Additionally, a Category line type can be marked as a Statement of work.
When the Accept button is clicked for an RFQ with SOW lines, the following warning will pop up:
The RFQ lines marked as SOW will be displayed on the Purchase agreement Header under the Contract administration Fast tab, and the RFQ lines that are not marked as SOW will be displayed in the Purchase agreement Lines
Purchase agreement hold days
On Awarding of the bid, the RFQ will create the purchase agreement with an effective date of Today + “10”.
The same number of days will be added to the purchase agreement expiration date.
The Sign off fast tab is primarily used to log which users did what when. It can also be used to manually add additional signing activities onto the RFQ.
On the RFQ Header view, expand the Sign off Fast tab
In the Button strip, click on the Add button
Select the relevant Signature type from the dropdown list
Select the relevant Worker or Vendor from the dropdown list
Enter the Date on which the person signed
Indicate whether Activities have been completed
A record will be added when the status of the RFQ is changed to Approved
A record will be added when an Envelope was opened, either Technical or Commercial
A record will be added if one of the scoring checklists was Frozen
A record will be added when a vendor is Recommended
A record will be added when the Tender evaluation report was printed
A record will be added when the TER status is changed
A record will be added when the status of the RFQ is changed to Closed
The Tender evaluation report status can be changed by clicking on the TER status button, and selecting the relevant status from the dropdown list
On the RFQ header, under the General Fast tab, move the Allow due date extension slider to Yes to enable due date extension.
In the Action pane, click on the Save button
In the Action pane, click on the Extend due date button
On the Request due date extension dialog, enter the New due date
Enter the Reasons for the request
Click on the OK button
A request for due date extension cannot be done after the Expiration date of the RFQ
Only users that belong to the Approver committee will be allowed to approve the due date extension, if the Lock amendments slider on the Solicitation type is moved to Yes.
The original Expiration date under the General Fast tab will be replaced with the New due date selected on the dialog, and be displayed under the Amendments Fast tab.
For audit trail purposes, a record of the user that extended the due date, will be created under the Amendments Fast tab.
¶ Step 24.2: View the overall tender process on the RFQ
Under the Governance Fast tab, select the relevant Process from the dropdown list
On the Action pane, in the View group, click on the Overall process button
The Activities dialog will open, displaying the list of activities as set up for the selected Process
The user can use the Show filter to either view All activities, or only those assigned to him/her self
Activities can be added or removed by clicking on the Add or Remove buttons
Click on the Start button to indicate that an activity has been started
Click on the Complete button when an activity has been completed
Click on the OK button
If the Process was selected on the Solicitation type, the Process field will be populated with the value selected on the Solicitation type. This can be edited.
The Start date and Completed date will be entered by the system when the Start and Complete buttons are clicked
