Vendor Negotiation Policy
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Questions and Answers

What is the main objective of negotiating with selected vendors?

  • Minimize the involvement of SCM representatives in negotiations
  • Expedite the process of awarding contracts
  • Reduce costs for the organization
  • Provide clarity with respect to negotiable and non-negotiable contract terms (correct)

    • When is negotiation with a contractor deemed necessary?

  • Whenever there is a need for a new single source contract
  • When there is unanimous agreement among JV partners
  • If the original approving authority provides written approval
  • When best value needs to be achieved on any of the terms/components of the contract (correct)

    • Who should attend all negotiations with contractors?

  • The JV partners exclusively
  • A representative of SCM and at least two NNPC Limited personnel (correct)
  • Only the original approving authority
  • The relevant authority's designee

    • What is the role of JV partners in specific negotiations?

    <p>To provide approval where necessary (A)</p> Signup and view all the answers

    What is the specific requirement for negotiation with a new single source contract?

    <p>Specific approval of the original approving authority or written approval of the relevant authority (D)</p> Signup and view all the answers

    What is the responsibility of a representative of SCM during negotiations?

    <p>Ensuring that NNPC Limited’s commercial interests are fully protected (B)</p> Signup and view all the answers

    What is the responsibility of the SCM focal point during negotiations?

    <p>Ensure that the staff attending is really needed to conclude the discussions (B)</p> Signup and view all the answers

    When are minutes of negotiation meetings required to be signed?

    <p>By the most senior tenderer’s personnel present, SCM representative, and JV Partners representative (D)</p> Signup and view all the answers

    What should be added to the minutes of negotiation meetings when prices, rates, and costs have been agreed?

    <p>'Take further notice that this meeting minutes shall therefore not constitute a contract or an intention to award a contract and no such liability shall arise there from.' (A)</p> Signup and view all the answers

    Who should present the negotiation report to Tenders Committee?

    <p>Negotiation committee (D)</p> Signup and view all the answers

    What document should be provided to the bidder after documenting tender negotiation minutes?

    <p>A copy of the signed-off minutes (B)</p> Signup and view all the answers

    6

    <p>Word (C)</p> Signup and view all the answers

    Who is responsible for setting up tender negotiation meeting with bidder?

    <p>SCM N-4/5 (B)</p> Signup and view all the answers

    What is required prior to commencement of negotiations?

    <p>List of representatives with their designation from tenderers organization (C)</p> Signup and view all the answers

    Who should represent the contractor during negotiations?

    <p>Management level personnel vested with authority to make commitments on the contractors’ behalf (C)</p> Signup and view all the answers

    When is attendance of NNPC Limited’s personnel other than SCM representative subject to prior agreement?

    <p>When prices, rates and costs have been agreed. (C)</p> Signup and view all the answers

    What is the specific requirement for negotiation with a new single source contract?

    <p>Approval of the original approving authority (A)</p> Signup and view all the answers

    What is the responsibility of a representative of SCM during negotiations?

    <p>Ensuring NNPC Limited’s commercial interests are fully protected (D)</p> Signup and view all the answers

    When is negotiation with a contractor deemed necessary?

    <p>To achieve best value on any terms/components of the contract (D)</p> Signup and view all the answers

    What is the role of JV partners in specific negotiations?

    <p>They should be invited to attend specific negotiations requiring their approval (B)</p> Signup and view all the answers

    Who should attend all negotiations with contractors?

    <p>No less than two NNPC Limited personnel and a representative of SCM (A)</p> Signup and view all the answers

    What is the main objective of negotiating with selected vendors?

    <p>Agree on a fair and reasonable price (B)</p> Signup and view all the answers

    What is the minimum number of NNPC Limited personnel required to be present during any negotiation?

    <p>Two (A)</p> Signup and view all the answers

    When can negotiation take place without specific approval?

    <p>When there is no relevant authority (B)</p> Signup and view all the answers

    What is the role of additional staff in negotiations?

    <p>To provide support in particularly sensitive negotiations (C)</p> Signup and view all the answers

    What is the purpose of inviting JV partners to specific negotiations?

    <p>To obtain their approval where necessary (A)</p> Signup and view all the answers

    What is the purpose of ensuring clarity with respect to negotiable and non-negotiable contract terms?

    <p>To avoid confusion and disputes during negotiations (D)</p> Signup and view all the answers

    What is the primary objective of the Stock Write-Off & Disposal process?

    <p>To ensure all identified moribund materials are written-off for disposal (B)</p> Signup and view all the answers

    What does the Stock Write-off and Disposal Policy mandate before disposing of inventory items?

    <p>Confirmation from the primary user department about further use (C)</p> Signup and view all the answers

    What transaction type is used to conclude the disposal process of goods in compliance with NNPC Asset Write-off and Disposal procedures?

    <p>Transaction type 551 (withdrawal for scrapping) (B)</p> Signup and view all the answers

    Who must approve the removal of non-moving items based on risk analysis before disposal?

    <p>Primary user department (B)</p> Signup and view all the answers

    What is the purpose of treating excess, obsolete, or damaged stock as disposal stock?

    <p>To avoid wastage and improve warehouse efficiency (D)</p> Signup and view all the answers

    What is mandatory before disposing any item from inventory?

    <p>Confirmation from the primary user department about further use (D)</p> Signup and view all the answers

    What should be added to the minutes of negotiation meetings when prices, rates, and costs have been agreed?

    <p>An addendum detailing agreed terms (C)</p> Signup and view all the answers

    What should conclude the disposal process of goods in compliance with NNPC Asset Write-off and Disposal procedures?

    <p>Transaction type 551 (withdrawal for scrapping) (B)</p> Signup and view all the answers

    What is required prior to commencement of negotiations?

    <p>Clear understanding of negotiable and non-negotiable terms (A)</p> Signup and view all the answers

    When are minutes of negotiation meetings required to be signed?

    <p>After management review and approval (B)</p> Signup and view all the answers

    Who must confirm that there is no further use for an item before it can be disposed from inventory?

    <p>Primary user department (D)</p> Signup and view all the answers

    What is the purpose of the Disposal Request Form (DRF)?

    <p>To initiate a disposal process and track its progression (B)</p> Signup and view all the answers

    Who is responsible for identifying materials to be written off and disposed of for stock items?

    <p>Asset Holder (D)</p> Signup and view all the answers

    What action does the SCM MRP Controller take if materials can be used elsewhere in NNPC?

    <p>Transfers the materials to other departments in NNPC (A)</p> Signup and view all the answers

    When are materials proposed for disposal considered suitable for return to inventory?

    <p>When they have been approved by the asset owner (A)</p> Signup and view all the answers

    What is the responsibility of the SCM MRP Controller regarding potential hazards identified in the DRF?

    <p>Make appropriate recommendations based on the review (A)</p> Signup and view all the answers

    What is one of the methods of disposal mentioned in the text?

    <p>Incineration (A)</p> Signup and view all the answers

    Study Notes

    • Upon completion of a project, the Project Manager and Supply Chain Manager review any surplus materials.
    • Materials can be returned to inventory or disposed of based on guidelines.
    • Materials proposed for disposal should be no longer fit for use, in excess of requirements, obsolete, or damaged.
    • All disposal requests must be executed in a controlled, detailed, and transparent manner.
    • The Disposal Request Form (DRF) is used to initiate a disposal process and track its progression.
    • For stock items, the asset holder identifies materials to be written off and disposed of, obtains approval from the asset owner, and forwards the approved DRF to the SCM MRP Controller.
    • For stock items, the SCM MRP Controller registers the DRF details, circulates it to other departments, arranges for the transfer of materials if they can be used elsewhere in NNPC, and forwards the DRF and all documentation to Finance & Accounts for financial adjustments.
    • For assets that cannot be used elsewhere in NNPC, the SCM MRP Controller forwards the DRF and all backing documentation to Finance & Accounts for the insertion of the book value and removal from the asset register.
    • The SCM MRP Controller reviews the DRF to ascertain if a potential hazard exists and makes appropriate recommendations based on the review.
    • Methods of disposal include sales to third party (open bidding), sales by auction, and destruction.
    • The approved DRF with all relevant documents is forwarded to the Assets Disposal Committee to commence the disposal process.

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    Description

    Learn about the procedures involved in negotiating with selected vendors, including negotiable and non-negotiable contract terms, fair and reasonable pricing, timely contract performance, and control over the manner of performance.

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