Tender Management
During 2002, a review was performed into the multi-million Euro maintenance activities of a major European telecommunications supplier.
A decision was taken to outsource the maintenance activities, and a tendering process commenced.
A detailed scope of works was created, tender documentation prepared, and fourteen suppliers selected to participate in the tender process, leading to a short listing of just three. These were evaluated in depth, services examined, and final negotiations performed. Eventually a successful supplier was identified and contracted at a base fee level over 60% lower than the initial expenditure.
The contractual terms also allowed for the consolidation of other services into the scope, incorporated a bonus and penalty schedule to reflect performance and failure, and a rebate scheme to encourage and reward sales expansion.
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