Supplier Selection Methods Quiz
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Questions and Answers

What does the term 'goods' encompass in the context of procurement?

  • Machinery and IT equipment
  • Materials, furniture, fixtures, raw material, spares, machinery, equipment, office supplies and IT equipment (correct)
  • Only materials and machinery
  • Furniture and office supplies
  • What falls under the category of 'works' in procurement?

  • Engineering and related works including construction, renovations, extensions, and repairs (correct)
  • Civil works only
  • Renovations and repairs
  • Only new construction of structures
  • What are the objectives of the Determine Procurement Method process?

  • Ensure fair, unbiased, consistent procurement delivering value and compliance with regulations (correct)
  • Ignore compliance with regulations for faster procurement
  • Speed up the procurement process without considering fairness
  • Maximize profits and reduce costs
  • Who proposes the mode of procurement based on estimated value and type of procurement need?

    <p>Business Department with validation from Supply Chain Management</p> Signup and view all the answers

    What happens if both unit heads do not align on the mode of procurement proposed?

    <p>It shall be escalated to the relevant reporting line for a decision</p> Signup and view all the answers

    5

    <p>5.0 Determine Procurement Method</p> Signup and view all the answers

    What is one objective of Determine Procurement Method?

    <p>Ensure compliance with Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010</p> Signup and view all the answers

    In which scenario can repeat procurement be applied?

    <p>When the goods or services have been competitively tendered and satisfactorily executed/received within two years</p> Signup and view all the answers

    Under what circumstances may NNPC Limited engage in emergency procurement?

    <p>When the country is seriously threatened by a disaster, war, or act of God</p> Signup and view all the answers

    For which type of procurement approach would a reverse auction be beneficial?

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

    When should NNPC Limited introduce the use of Purchasing Cards (P-Cards)?

    <p>For non-critical and low-value procurement needs</p> Signup and view all the answers

    5.1

    <p>$100m for competitive tendering and $8m for single source tendering</p> Signup and view all the answers

    Under what conditions can NNPC Limited engage in repeat procurement?

    <p>When the goods have been competitively tendered and satisfactorily executed/received within two years from the original tender date.</p> Signup and view all the answers

    In which scenario should NNPC Limited use reverse auctions?

    <p>Non-critical standardized items with multiple suppliers/vendors.</p> Signup and view all the answers

    Under what circumstances should NNPC Limited introduce Purchasing Cards (P-Cards)?

    <p>For non-critical and low-value procurement needs.</p> Signup and view all the answers

    In what scenario can NNPC Limited engage in emergency procurement?

    <p>When the country is seriously threatened by a disaster, war, insurrection, or act of God.</p> Signup and view all the answers

    Under what conditions can NNPC Limited engage in repeat procurement?

    <p>When the goods have been competitively tendered and satisfactorily executed/received within two years from the original tender date.</p> Signup and view all the answers

    What is the procurement category for price-based competition?

    <p>Reverse Auction</p> Signup and view all the answers

    When is Competitive procurement preferred?

    <p>For value-driven purchases</p> Signup and view all the answers

    What is the process for inviting only high-quality bids from pre-qualified vendors?

    <p>Restricted Tendering</p> Signup and view all the answers

    What are P-cards used for?

    <p>Unplanned and urgent small-item expenditures</p> Signup and view all the answers

    When does NNPC Limited use open competitive bidding?

    <p>For procurement of goods and works, prioritizing local industries and companies</p> Signup and view all the answers

    Which mode of procurement applies to urgent or specialized procurement?

    <p>Competitive procurement</p> Signup and view all the answers

    In which situation can Non-discriminatory supplier selection be used?

    <p>Emergency situations</p> Signup and view all the answers

    When is Selective Bidding (Request for Quotations) used?

    <p>For small contracts</p> Signup and view all the answers

    What takes place at the first stage of Two-Stage Bidding?

    <p>Evaluation of technical proposals</p> Signup and view all the answers

    When is Sole/Single-Source Procurement (Direct Contracting) allowed?

    <p>Due to urgency or specialized nature of goods/services</p> Signup and view all the answers

    What must be documented and communicated when justifying sole sourcing?

    <p>Justification for sole sourcing</p> Signup and view all the answers

    Study Notes

    • Suppliers are selected through various methods for contracts with limited qualified suppliers or exceptional reasons.
    • Non-discriminatory supplier selection can be used for small numbers of vehicles or machine tools, emergency situations, pharmaceuticals, highly specialized construction equipment, and as an exception rather than the norm.
    • In using Restricted Tender, NNPC Limited prepares a list of potential suppliers, ensuring a broad enough selection for competitive pricing.
    • Selective Bidding (Request for Quotations) is used for small contracts, requiring written/electronic quotations from at least three reputable domestic or international suppliers.
    • Technical proposals are evaluated and discussed with bidders at the first stage of Two-Stage Bidding.
    • After the evaluation of technical proposals, bidders are invited to submit price proposals and revised technical proposals in compliance with the acceptable technical standard.
    • Contract is awarded to the bidder with the lowest evaluated price in the second stage of Two-Stage Bidding.
    • Sole/Single-Source Procurement (Direct Contracting) allows purchasing goods from a single source due to urgency or specialized nature of goods/services.
    • Justification for sole sourcing must be documented and communicated to the appropriate authority.
    • Reasons for sole sourcing include availability of goods/services only from a particular supplier or contractor, urgency, standardization, or extension of existing contracts.

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    Description

    Test your knowledge about the non-discriminatory methods of selecting suppliers and contractors for limited procurement situations. Explore the criteria and reasons for using specific supplier selection processes.

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