While every Request For Proposal is different, your suppliers who submit a bid need to answer the following four questions. When I write Request For Proposals and Invitation To Tenders, I add a section called Supplier Information and request that they provide specific mandatory information as I need to assess their business status and financial integrity. Failure to do so results in immediate elimination from the procurement process.
Supplier Information for Each Business Proposal
Suppliers are required to provide the following information:
- Bid Team – Suppliers are required to identify each member of the bidding group, indicating the role to be carried out by each member.
- Company Structure – Details of the supplier’s company structure or each member of the group where relevant. If the bidding entity is a subsidiary, details of the parent company must be submitted where the parent company is to be relied upon as part of this project.
- Relationship – The nature of the relationship between the parent and subsidiary companies must be set out especially in terms of financial or contractual guarantees between the parent and subsidiary.
- Legal Requirements – Suppliers must confirm, with respect to each member of the candidate group, that there are no legal impediments or restrictions that the issuer should be made aware of, for example, bankruptcy proceedings.
Next Steps
Write your Request For Proposal so that you are protected from suppliers who may be economical with the truth and avoid sharing information.
While most bidders will have no difficulty in responding to these requests for confirmation, make sure you cover all bases and observe any bidders reluctant to share information or whose behavior makes you suspicious of their behavior.