Course Project Part III

Contract and Procurement Management, PM598,

Course Project Part III

Ruhling Manufacturing Company

Why might negotiation be favored over competitive bidding in certain procurement situations?

In competitive bidding, the buyer has to create a proposal that is specific in design and technical specifications in order to solicit bids from potential sellers. This process can take months to accomplish. The buyer runs the risk of not finding a seller that meets their specifications. Additionally, if a bid comes in late that suit the buyer's specifications, the buyer cannot give the bid special consideration. In a negotiation situation, the buyer can solicit a specific seller for the contract. The buyer does not have to wait a specified period for bids,...