What should be the procurement manager’s course of action?

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?
A . automatically dismiss the low bid
B . award the contract to the low bid as this represents better value for money
C . investigate the low bid
D . award the bid a 0 for price

View Answer

Answer: C

Explanation:

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.