Would this be the best course of action?

A procurement manager has been asked to procure 1,000 pens. He suggests to his manager that to obtain the best value for money, they should undertake a competitive bidding process.

Would this be the best course of action?
A . Yes, as all procurement processes should go through competitive bidding to achieve the best value for money
B . Yes, the process will be opened up to many suppliers and therefore will result in a cheaper price for the pens
C . No, competitive bidding should only be used when the value justifies the time spent on the process
D . No, competitive bidding should only be used in public sector organisations

View Answer

Answer: C

Explanation:

Competitive bidding is generally recommended for high-value or complex purchases where the cost and time required for the bidding process are justified. For low-value, routine items like pens, the time and resources required for competitive bidding may outweigh the potential cost savings, as noted in CIPS best practices. Hence, Option C is the best answer.