GMS 400 Lecture 8: GMS400 LECTURE 8 Notes business to business bidding for projects
6 May 2018
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GMS400- Business to business Bidding
The company bidding on the project (bombardier) has to come up with the finance for the project,
certain percentage, to buy the equipment. The other company (TTC) has to say how much of the project
can be financed by them.
Bid closing date and location- precise, cannot be a second late or else will be considered cheating or
bribing.
Technical evaluation- The company has to check to see if the bid meets the tech specs that was given to
them. If they are compliant or giving better specs. It cannot be worse. Once that is met, is compliant,
you check the financial aspect of the bid.
A fiaial pakage iludes the pie ad ho it ill e fiaed. Pie is’t the deteiing factor, they
could have higher price but lower financing. This can really made or break a deal.
If the opay is’t i tade fais they likely ot get seleted as o oe eally kos aout the.
Get someone from the bidding company to stay there and get to know them. Bring them to your
facilities. An organization in Canada pays for the going and bring of people to encourage trade.
Make sue the opay eds up o the peualified iddes list. If you do’t, do ot gie up. Sed the
big guns. Important senior people who probably held important positions, or get your government to
fight fo you. Do’t gie up, get i thee a fight. Coie the you ae the est.
Have the capacity, or can increase the capacity deliver on time. Or your reputation is in line. Bad
references for future projects.
Governments buy 80% of the worlds purchases. Including infrastructure. The government wants to save
face. The bidders keep extra things in their back pockets to add during the later stages of the bid. You try
not to just cut the price/cost.
Offsets used to be demanded by developing countries. If they were going to buy tanks from you, you
offset that by building a school or doing something beneficial for the society.
Arranging sufficient and attractive financing-
The bid process.
What happens if the bidder gets bumped from the prequalified list.
What are potential sources of information for the purchasing company?
What is the order in which bids are evaluated? Is price the most important? No because there can be
other benefits to your bid. Better specs better financing.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The company bidding on the project (bombardier) has to come up with the finance for the project, certain percentage, to buy the equipment. The other company (ttc) has to say how much of the project can be financed by them. Bid closing date and location- precise, cannot be a second late or else will be considered cheating or bribing. Technical evaluation- the company has to check to see if the bid meets the tech specs that was given to them. If they are compliant or giving better specs. Once that is met, is compliant, you check the financial aspect of the bid. A fi(cid:374)a(cid:374)(cid:272)ial pa(cid:272)kage i(cid:374)(cid:272)ludes the p(cid:396)i(cid:272)e a(cid:374)d ho(cid:449) it (cid:449)ill (cid:271)e fi(cid:374)a(cid:374)(cid:272)ed. P(cid:396)i(cid:272)e is(cid:374)"t the dete(cid:396)(cid:373)i(cid:374)ing factor, they could have higher price but lower financing. This can really made or break a deal. If the (cid:272)o(cid:373)pa(cid:374)y is(cid:374)"t i(cid:374) t(cid:396)ade fai(cid:396)s they likely (cid:449)o(cid:374)t get sele(cid:272)ted as (cid:374)o o(cid:374)e (cid:396)eally k(cid:374)o(cid:449)s a(cid:271)out the(cid:373).
