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CIPS Exam L4M4 Topic 1 Question 36 Discussion

Actual exam question for CIPS's L4M4 exam
Question #: 36
Topic #: 1
[All L4M4 Questions]

A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was 1m but one supplier has submitted a price of 200,000, which the procurement manager has identified as being 'an abnormally low tender'. What should be the procurement manager's course of action?

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Suggested Answer: C

You should investigate automatically low tenders by clarifying the bid with the supplier. It could be they have misunderstood the requirement. Or the bid could be genuine and they can really provide best value for money. But without enquiring, you just don't know.


Contribute your Thoughts:

Tashia
28 days ago
As a former procurement manager myself, I can tell you that 'abnormally low tenders' are always a red flag. The procurement manager should investigate thoroughly to make sure there's no funny business going on.
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Shaunna
1 months ago
I can't believe someone actually put in a bid that's 80% lower than the average. That's either a genius move or they've made a huge mistake. Either way, the procurement manager should definitely look into it.
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Kanisha
10 days ago
I agree, it could be a mistake or maybe they're cutting corners somewhere.
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Selma
16 days ago
That bid seems too good to be true. They should definitely investigate it.
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Melita
1 months ago
Awarding the contract to the low bid without investigating it first would be a risky move. The procurement manager needs to ensure the supplier can actually deliver the contract at that price.
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Claribel
1 months ago
I think it's important to ensure fairness and transparency in the procurement process, so investigating the low bid is the right course of action.
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Breana
2 months ago
Even if it's better value, there could be risks associated with such a low price.
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Kris
2 months ago
But what if the low bid is actually offering better value for money?
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Ira
2 months ago
I think the procurement manager should definitely investigate the low bid. There could be a perfectly valid reason for the low price, and dismissing it outright would be a mistake.
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King
12 days ago
User 2: I agree, there could be a valid reason for the low price.
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Viola
16 days ago
User 1: The procurement manager should definitely investigate the low bid.
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Claribel
2 months ago
I agree with Breana, an abnormally low tender could indicate potential issues.
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Breana
2 months ago
I think the procurement manager should investigate the low bid.
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