NU12#3 Anthony G. Parungao

NU12 # 3 – ARIBA PROCUREMENT SOLUTIONS

by Anthony G. Parungao

SPentrep S10     

As a general contractor,  one of the obstacles that will always be encountered are difficulties in engaging into bidding whenever we are invited for a particular project in private companies.  The manner the facilitation of bids are conducted are patterned against the way government bids are done.   The integrity of the bidding is always somehow questionable since the manner of selection is done subjectively or depending on the personal preference/relation of the facilitator with the contractors.  This is one way of getting small to big favors from the contractors depending on the project  that will be awarded to the winning bidder.

Most government and private corporations still conduct bidding in this old fashioned way which is prone to fixed bidding.   There is no strict internal control that will ensure a clean and honest bidding.

After so many years of manual facilitation of bids, Bank of the Philippine Islands introduced a new procurement software – ARIBA  e-Tender Reverse Auction.  The software is so effective that it eliminated some basic leg works such as:

1. Securing bid plans from their Makati head office – plans are now digitally attached in the electronic invitation for free, this saves you transportation expenses.
2. No need to attend the pre-bid conference – this also saves you transportation expenses and meal expenses that you have to incur after the meeting wherein you treat employees for a snack.
3. Optional choice to visit actual site before actual auction/bidding process – another substantial savings on transport and food allowance.

Invitation to bid is sent via e-mail to all accredited and pre-qualified contractors/bidders one week before the actual auction, this will provide them enough time to accept or decline invitation.  If number of bidders falls within minimum, day and time of auction BPI administrator will send via e-mail confirmation of the scheduled day & time of the auction.

On the exact day and time of the scheduled auction/bidding, bidders will be given one hour to fill-out specific line items of the bidding documents that will comprise the total amount of the bid.  After entering per trade bid (General reqts, Civil works, electrical, mechanical, plumbing, etc.) a total amount will register and a ranking (1,2,3,4 etc) will appear on your screen to determine if your bid is competitive.  The advantage of the electronic bidding process is while you do not see the bids of the competitors, you are given a hint and a chance to change your bids in the span of 1 hour until you finally give up on your lowest bid.

The ARIBA Procurement Solution is a fast and efficient way to conduct public or private bidding without compromising the integrity of the process.  This is a fair and honest process that should be done by other companies who engages in procurement and bidding.  Technology is available, its just a matter of integrating the system in their respective workplace.

thanks Is this your idea or that of BPI?

By Anthony G. Parungao

SP Entrep S10