L3M1 practice question 10 of 10

'Open tendering may impose a substantial administrative burden on the procurement function.' True or false?

Full set: 90 questions
Answer options
A: True
B: False
Correct Answer:
T; R; U; E
Explanation

Open tendering allows any interested supplier to submit a bid in response to an advertised tender notice. Because there is no pre-qualification or shortlisting stage to restrict the number of applicants, procurement teams often receive a large volume of submissions. Processing, logging, evaluating, and providing feedback for numerous bids creates a substantial administrative burden on the procurement function.

Why Incorrect

"False" is incorrect because open tendering inherently lacks entry barriers for bidders, which frequently leads to high application volumes and high administrative workloads compared to selective or restricted tendering methods.

References

1. CIPS Level 3 Module L3M1: Procurement and Supply Environments Study Guide, Chapter on Procurement Tendering and Contracting Processes.

2. Baily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2015). Procurement Principles and Management (11th ed.). Pearson. (Section on Tendering Procedures).

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