L4M3 practice question 22 of 25
Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:
Full set: 258 questionsAn Invitation to Tender (ITT) is a formal, structured procurement process. Its rigorous nature compels an organisation to meticulously define its needs, specifications, and evaluation criteria upfront, thereby embedding a culture of detailed forward planning. This structured approach ensures a transparent, fair, and auditable competition. By creating a clear, documented trail from specification to contract award, the ITT process significantly minimises the opportunities for favouritism, collusion, and other forms of bribery and corruption, ensuring decisions are based on objective criteria.
A. The formal, multi-stage nature of an ITT is inherently time-consuming, involving lengthy preparation, response, and evaluation periods, which is the opposite of a short turnaround.
B. The ITT process itself is lengthy, which delays the contract award and, consequently, the start of the implementation phase compared to more agile procurement methods.
D. The creation of detailed tender documents, managing the formal communication process, and conducting a thorough evaluation of bids all contribute to high, not lower, administration costs.
1. Chartered Institute of Procurement & Supply (CIPS). (2019). Commercial Contracting (L4M3) Study Guide. Profex Publishing. Page 78
Section 5.2
discusses how formal tendering processes provide "accountability and transparency
" which is a key mechanism for preventing corruption. Page 76 notes the process requires "a clear and unambiguous specification
" which necessitates and drives forward planning.
2. Lysons
K.
& Farrington
B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. Chapter 11
pp. 308-309
outlines the advantages of competitive bidding
including "The system is open
fair and transparent
" which directly relates to reducing corruption risks (E). The chapter also details the extensive preparatory work required
which supports the development of a planning culture (C)
while also noting the process is "slow and costly to operate" (refuting A
B
D).
3. Baily
P.
Farmer
D.
Crocker
B.
Jessop
D.
& Jones
D. (2015). Procurement
Principles & Management (11th ed.). Pearson. Chapter 8
p. 198
highlights that a key advantage of formal competitive tendering is that it "reduces the risk of favouritism and corruption." It also describes the process as "costly and time-consuming
" directly contradicting options A
B
and D.
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