Case Study

After advertising in the industry newsletter and national papers, three tender bids were received by Kevin's Finance Company for the upgrade of its administrative system. The work was all encompassing. It included completely new software design, new hardware throughout the building, a training component and an ongoing maintenance contract. From a financial perspective, the three bids were all within 15 per cent of each other. The managers decided to evaluate the three options based on value and possible long-term synergy with the organisation.

The criteria they developed included:

• Cultural alignment (the developer's and Kevin' Finance Company's staff)
• Schedule flexibility
• Evidence of past performance.

ABC system developer Synch Design eventually won the contract due to its willingness to accommodate Kevin' Finance Company's new assessment criteria. All tender bids were of similar quality with respect to specifications, cost, time and resources, yet the tacit qualities of cultural cohesion and accommodation helped Kevin's Finance Company make the final decision.

QUESTION:

What will be your strategies for evaluation of quotes to comply with the organisational policies and procedures?