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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?
Suggested Answer: C
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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.
27 comments · newest first
OL
Olive
11 months ago
Awarding it could save money, but is it worth the risk?
BE
Bethanie
11 months ago
I think they should just dismiss it. Too risky!
DO
Donette
11 months ago
I agree, investigating is the best move here!
CY
Cyril
11 months ago
200k? That seems way too low for a serious bid.
PO
Portia
11 months ago
Definitely investigate the low bid first.
DE
Derrick
12 months ago
I’m a bit confused about whether to just dismiss the bid or investigate it. I guess it depends on the context of the tender, right?
VI
Virgina
12 months ago
This question reminds me of a similar practice one we did. I think the procurement manager should definitely look into the low bid to ensure it meets all requirements.
YU
Yun
1 year ago
I'm not entirely sure, but I feel like automatically dismissing the low bid might not be fair. There could be valid reasons for the low price.
SO
Solange
1 year ago
I remember discussing abnormally low tenders in class, and I think the right approach is to investigate the low bid before making any decisions.
IS
Isreal
1 year ago
This is a tricky one. I know we're supposed to look out for abnormally low tenders, but I'm not sure if automatically dismissing the bid is the right call. Might be worth exploring option C and investigating further.
KR
Krissy
1 year ago
Okay, I think the key here is to investigate the low bid further before making a decision. The procurement manager shouldn't just automatically dismiss it, as it could represent genuine value for money. Time to review the options carefully.
VE
Venita
1 year ago
Hmm, I'm a bit unsure about this one. The question mentions "abnormally low tender" but doesn't give much detail on what that means or how to handle it. I'll need to think this through carefully.
MI
Mitsue
1 year ago
This seems like a straightforward question about how to handle an abnormally low tender. I'm pretty confident I know the right approach here.
TA
Tashia
1 year 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.
SH
Shaunna
1 year 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.
ED
Edmond
1 year ago
The procurement manager needs to make sure everything is above board before making a decision.
KA
Kanisha
1 year ago
I agree, it could be a mistake or maybe they're cutting corners somewhere.
SE
Selma
1 year ago
That bid seems too good to be true. They should definitely investigate it.
ME
Melita
1 year 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.
CL
Claribel
1 year 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.
BR
Breana
1 year ago
Even if it's better value, there could be risks associated with such a low price.
KR
Kris
1 year ago
But what if the low bid is actually offering better value for money?
IR
Ira
1 year 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.
KI
King
1 year ago
User 2: I agree, there could be a valid reason for the low price.
VI
Viola
1 year ago
User 1: The procurement manager should definitely investigate the low bid.
CL
Claribel
1 year ago
I agree with Breana, an abnormally low tender could indicate potential issues.
BR
Breana
1 year ago
I think the procurement manager should investigate the low bid.