ACE Group RFP Policy Report

Topics: Procurement, Request for proposal, Evaluation Pages: 14 (2062 words) Published: October 2, 2014
ACE Group RFP Policy Report

Competitive Bidding, Contract Preparation and Contract Management Seminar

Introduction

ACE Group, founded in 1995, is a large Chinese corporation which specializes in corporate logo image design, advertising banner production and installation. It is a design, production, installation, engineering, and trade integration, an international brand and domestic famous enterprise comprehensive match Ad ID provider. As the leader of logo image industry, ACE not only has an area of more than forty thousand-square-meter production base, but also unites a number of highly qualified teams of professionals in more than 20-province network of services for the projects throughout China mainland, Hong Kong, Macau and the Philippines and other regions. The Procurement Department is responsible for all company’s procurement or purchasing. The main items of procurement concerned fall into three categories: office utilities (including stationary and office equipments); production tools and equipments; construction and engineering service. Up to 65% of the group annual purchasing would select suppliers through competitive bidding (RFP). ACE Group has a RFP policy which outlines the general information of using RFP and provides a simple guideline throughout the RFP process, from initiating, issuing, developing, evaluating, and awarding the contract to the successful supplier. As ACE was developed from a small family-owned business almost two decades ago, many business activities have been conducted in an arbitrary or subjective way, without formal rules or procedures to follow. In this policy, there exists obvious lack of some important information about RFP management, such as the main parts that should be included in an RFP and RFP documents, explanation of general evaluation criteria, assessment from review with or visit the vendors, change management and dispute resolve procedure, etc. In this policy report, these topics will be analyzed and a rough plan of action will be suggested at the end.

Statement of ACE’s RFP Policy

1. General Information
1.1Purpose of this policy
This policy is issued to establish effective guidelines for the creating, issuing, evaluating, awarding and maintaining of Request for Proposals (RFP) at ACE Group. 1.2 Who Needs to Know This Policy

Employees who are staffed in Procurement Department or any department representatives involved in procuring products and services should know this policy. 1.3 When should an RFP be used?
ACE policy requires RFPs for all purchases valued at RMB50,000 or more. There are still other situations in which the RFP process would be used no matter the value is over RMB50,000 or not: a) procuring a construction or engineering service; b) a department wishes to consider factors other than price in selection of a contractor or the requirement is complex; c)a program is new and it is not sure of the best solution. Departments requesting goods or services where price is the main or only factor in selecting a successful vendor shall use the quote purchasing process, which is guided in “ACE RPQ POLICY”. For goods or services valued range between RMB 5,001 and RMB50,000, the requesting department must obtain a formal quote in writing. Goods and Services valued between RMB 0 and RMB 5000 do not require a formal quote or bid. 2. Request for Proposal Process

2.1 RFP Process Overview
Each RFP will be unique. However, there are some common phases and decision points that are followed when moving from an identified need to the delivery of the required goods or services. These phases are as follows: a) Initiation

b) Issuing
c) Developing
d) Evaluating
e) Awarding
2.2 Initiating
a) The requiring department identifies a need.
b) The requiring department may consult Procurement Department to assist with identifying and assessing procurement options. c) Once the need is fully...
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