Procurement and Contracting

Procurement and Contracting

So what is value for money?

by Michael Young on Sunday, August 07, 2016 with 0 comments

RSS

Many people mistakenly think of value for money as just a tender evaluation criterion aimed at determining which supplier is offering the best price for the goods and services being sought. (Trying to get best value for the pot of money spent). However, value for money is actually a principle aimed at the outcome of the entire procurement process. (Defined by supplier’s competence, ability  to deliver on budget, or additional on costs of the outcome, eg. the price of ongoing service and parts for equipment such as printers.).

It’s not only about price. The technical elements should be also reviewed and the price treated separately. It’s not always about choosing cheap options, if you go for price it could result in minimal service and quality.

Value for money should be analysed versus set criterion. It is not always clear cut. Value comparisons between suppliers can become somewhat confusing when suppliers offer two very different solutions, but both provide a similar value proposition. For example, a 2 day procurement course for $2000 might be the same value as ½ day procurement course for $500 - all things being equal.

A lack of competent procurement officers and contract manager's increases risk to your organisation, which results in you paying more than you probably need to and also may result in potential legal issues.

Comments
Post has no comments.
Post a Comment



Captcha Image


Take our self assessment survey

Are you interested in finding out if you have options for Recognition of Prior Learning (RPL) for a qualification?
 
Do you have some work experience or have been in the workforce for a number of years but not sure how you can apply your existing knowledge to achieving a qualification?
 
Our self assessment survey will give you more information for what your self paced learning pathway looks like based onyour work and life experience – ie do you have options for Recognition of PriorLearning (RPL) or is a distance package best for you – or a blend of both.
 
The survey is free and it takes just 10 mins to complete and within 24 hours you will have a response from a Transformed team member with your recommended learning pathway as well as the fee to complete and the next steps should you wish to enrol. We have payment plans to suit all budgets. 
 
It’s that easy – click on the green button to take a survey for the qualification you are interested in NOW.

Take Survey Now
Testimonials

We askedWhat is the best part of the course?

"Ease of delivery, completing from work”

Simone, Qld Health