Effectiveness in Tendering Process

4077 Words Mar 13th, 2012 17 Pages
CHAPTER ONE: INTRODUCTION

* Background Of The Study
Tendering is a procurement Procedure whereby potential suppliers are invited to make a firm and unequivocal offer on the price and terms on which they will supply specified goods and/or services, which on acceptance shall be the basis of a subsequent contract. (Lysons and Farrington, 2006). Tendering is based on the principles of competition, fairness and accessibility, transparency, openness and probity.
Generally, Public entities the world over are subjected to open tendering by law so as to prevent fraud, waste corruption or local protectionism. (Global trade negotiations, 18th December 2006). The law guiding Kenyan public entities choice of procurement procedures is the Public
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1.2 Purpose Of The Study
The purpose of the study, in relation to the above and other problems (Refer to sec 1.1), brought about by the price clause during evaluation of tenders was to come up with alternative ways of evaluating tenders and in the choice of public procurement procedures so as to take into account the interest of all stakeholders’, to enable better strategic procurement management, supplier motivation, local protectionism, among other public procurement objectives. 1.3 Objectives of the study 1.4.1 General Objective
The general objective of the study is to determine whether price should be used as the evaluation tool during tendering in public entities. 1.4.2 Specific Research Objectives a) To find out why open tendering is the choice of procurement procedure for public entities. b) To determine the justifications for using the lowest evaluated price as the most important tool in evaluation of tenders. c) To find out the limitations of using the lowest evaluated price as the most important tool during the evaluation of tenders. d) To make Specific recommendations on alternative choice of evaluating tenders in public entity procurement. 1.4 Research Questions
This research was guided by the…