The request for tender is a formal invitation by an entity to potential bidders to submit their bids for the provision of cleaning services for our offices. The cleaning services offered to the most suitable bidder or contractor will play a significant role in ensuring that the company acquires adequate cleaning services that will assist in increasing the level of efficiency in the departmental offices of the institution.
Tasks suppliers should perform and ask for a proposal
The suppliers should request for the organization qualifications. The task performed will enable the supplier to understand the terms and conditions that the buyer wants to be met when the supplier delivers goods and services (Garrett, 2014). The supplier will also be able to adjust their contract to meet the qualifications of the buyer. The supplier will understand the required procedure that the buyer plans on utilizing when supplying the goods and services.
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The suppliers should acquire the adequate information about the product and the company. The supplier will get to understand the goods and services that the organization is planning on outsourcing in their company (Garrett, 2014). The information suppliers will play a significant role in guiding the supplier into drafting a more suitable bid that will enable his company to secure the tender.
The supplier needs to request for the quotation of the services and products that the company is planning to outsource (Garrett, 2014). The quotation will offer the prices that the contracting company is planning to acquire from the potential suppliers. The quote will play a significant role in ensuring that the supplier can determine the profitability rates that the company will receive from the cleaning services tender. Furthermore, the quotation will enable the supplier to adjust their prices to be relatively fair for the contracting company to award the bid.
The criteria that will be used to determine the tasks are completed satisfactorily
The organization needs to prepare its procurement department to ensure that the tendering process is successful. The organization needs to familiarize itself with the tendering process of the institution. The company needs to incorporate a platform that the tendering process will be conducted by potential suppliers which in this case will be conducted on an online platform. The company will also include a technique that will enable an appropriate selection and award process of the supplier on the cleaning services contract.
Types of contract
Fixed Price Contract
Fixed Price Contract is a form of agreement that the supplier is allowed to offer the services or products by setting the prices of their products. The set prices are independent of the material, labor costs, and equipment that results from manufacturing the product or rendering the service (Garrett, 2014). In this contract, the supplier will bear extra costs that will be incurred in supplying the products and services. The contract tends to expose the supplier at a higher risk compared to the buyer. The arrangement is more appropriate to use when the buyer is not ready to spend on any additional costs that the supplier will incur in supplying the products. The contact is also used when selecting the most suitable supplier in the market to provide the cleaning services to the organization.
The cost-reimbursable
The cost-reimbursable contract is also known as a cost-plus agreement. The agreement usually subjects the buyer to pay the supplier the full amount of the value of the tender plus additional cost or expenses that the supplier will incur in supplying the cleaning services to the buyer (Calfa and Grossmann, 2015). The primary aim of this contract is to allow the supplier to acquire profit from the agreement (Kim and Brown, 2017). The cost-reimbursed agreement is usually used when the nature of the tender is of higher risk.
Time and materials contract
Time and materials contract is a form of an agreement where the buyer pays a supplier on the terms of the real cost of direct labor depending on the duration in hours, real prices of machinery and equipment usage, and other additional expenses to cover the suppliers' revenue and overheads (Calfa and Grossmann, 2015). Time and material agreement are usually used by the buyer to set the maximum charges that the supplier will inquire about supplying the cleaning services.
Reference
Calfa, B. A., & Grossmann, I. E. (2015). Optimal procurement contract selection with price optimization under uncertainty for process networks. Computers & Chemical Engineering , 82 , 330-343.
Garrett, D. F. (2014). Robustness of simple menus of contracts in cost-based procurement. Games and Economic Behavior , 87 , 631-641.
Kim, Y. W., & Brown, T. (2017). Autonomy versus control in procurement and contracting: the use of cost-reimbursement contracts in three US federal departments. International Review of Administrative Sciences , 83 (1_suppl), 41-58.
