Reverse Auction Process

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What is the main objective of the reverse auction?

Limiting the number of suppliers for each auction

Creating a complex bidding process to confuse suppliers

Ensuring maximum profit for the sellers

Quick comparison of products and services to decide the best amongst all (correct)

When is the use of reverse auctions allowed by NNPC Limited?

For non-competitive procurements

For procurements with fixed prices

In a three-round competitive bidding process for procurements where price is a material determinant (correct)

Only when there is a single supplier available

What influences the choice of using reverse auctions for procurement?

Nature of the supplier relationship, numbers of suppliers, supply risk management, operational response, cost, and time savings in a transparent and objective manner (correct)

Random selection process

Buyer's preference only

Supplier's geographical location

In what scenarios does NNPC Limited allow the use of reverse auctions?

When price is a material determinant or when it would increase procurement efficiency Signup and view all the answers

What type of items does the reverse auction benefit according to NNPC Limited?

Non-critical standardized items with many suppliers/vendors Signup and view all the answers

What does NNPC Limited aim to achieve through reverse auctions?

Cost savings by procuring quality goods and services at lowest possible prices Signup and view all the answers

What does NNPC Limited seek to ensure through reverse auctions?

Full transparency and no corruption in the process Signup and view all the answers

What is one of the objectives of using reverse auctions?

Time saving in researching the market and gathering bids from suppliers Signup and view all the answers

How do sellers participate in reverse auctions?

By submitting a single bid or multiple bids that decrease in price Signup and view all the answers

What does NNPC Limited aim to determine through reverse auctions?

The real price of products or services, without extra charges Signup and view all the answers

What is the primary purpose of a reverse auction as described in the text?

To allow sellers to underbid each other to provide goods to NNPC Limited Signup and view all the answers

What is the role of SCM (N-5/6) in the reverse auction process?

Conduct an Expenditure Analysis of current Indirect Procurement Spend Signup and view all the answers

What is the purpose of creating a detailed specification documentation in the reverse auction process?

To outline product or service requirements for the auction format Signup and view all the answers

What is the responsibility of IT (N-3/4) in the reverse auction process?

Use an auction software that is cloud hosted and easy to use Signup and view all the answers

Who reviews e-Auction bids and approves the award decision?

Relevant Tenders Committee Signup and view all the answers

What is a key performance measure related to the reverse auction process?

Timeliness of the Reverse Auction Process Signup and view all the answers

What should be included in the detailed specification documentation for the reverse auction process?

Drawings, spend value, spend patterns, quality and delivery requirements, supplier capability requirements, etc. Signup and view all the answers

What type of software should be used for conducting a reverse auction?

Cloud hosted and easy to use auction software Signup and view all the answers

Who communicates award timelines to participating suppliers after the e-Auction is over?

SCM (N-2/3) Signup and view all the answers

What document should be prepared and transmitted by Tenders Committee Secretary after reviewing e-Auction bids?

Meeting extracts and approval decision to SCM(N-2/3) Signup and view all the answers

What document serves as input for SCM (N-4/5) when creating detailed specification documentation?

Spend Analysis Report Signup and view all the answers