Telecom Vendor Evaluation Criteria Example:

The fixed and mobile telecom estate enables business communications, collaboration and
transactions. As enablement demand grows, focus on establishing total control over the
technical, operational and financial elements of telecom leads organizations to refine telecom
management strategy and to partner with vendors that possess established track records for
delivering value and predictable performance.
Identifying and evaluating vendors is not a simple task, as the market is filled with vendors
that are introducing new offers and innovating new technology to consume. Measuring
performance after selection can be equally complex. Standardizing performance evaluation
criteria for all vendors allows organizations to level the field and drive desired business
outcomes. Two essential criteria that support this objective are business analytics and
business value.

Services, service configurations, usage data and charges comprise hundreds of thousands, if
not millions, of unique data points. Business users communicate using the telecom
environment to transact business, and those transactions include as many, if not more, data
points than the telecom environment alone. Business analytics evaluate the entirety of the
data sets to identify trends, uncover opportunities and monitor performance. To this end,
vendors that provide data through reporting and dashboards that either contribute to business
analytics execution, or vendors that analyze data and translate it into meaningful business
information is valuable to every organization.

Receiving a positive ROI from a vendor relationship is essential. The telecom environment
enables communications and acquiring products and services that establish communications
enablement goals offer a technical ROI. Products and services that improve operational
efficiency and deliver new or enhanced capabilities offer an operational ROI. Products and
services delivered for a more cost effective rate or that improve the service-to-cost ratio
provide a financial ROI. Business value can also be gained through business analytics
information that improves decision-making and empowers business results to be achieved.

Bid evaluation

Meaning of procurement :

The process of obtaining supplies, especially for Government or an organization

ETHICS IN PROCUREMENT

1.4.1.Confidentiality 1.4.2.Corruption 1.4.3.Conflict of Interest 1.4.4.No gifts or inducement to be

accepted

Objectives of Procurement

Value for Money

Elements of VFM

* Economy – Minimizing Cost of Resources

* Efficiency - Maximum output against minimum input

* Effectiveness - Relationship between intended results and actual results

Public Procurement Involves

* SUPPLIES

* CONSTRUCTIONS

* SERVICES (Over 80% Public Expenditure Goes Through Public Procurement) Procurement in
Supplies should ensure

* RIGHT QUALITY

* RIGHT QUANTITY

* RIIGHT TIME * RIGHT PRICE * RIGHT PLACE

Transparency Accountability  Fairness  Efficiency  Equal Opportunity  Development of Local

Business  Achievement of National Development Objectives

Important elements of the Procurement Process

 Procurement Planning
 Preparation of Bidding Document
 Invitation to bid Closing
 Bid Opening
 Bid Evaluation
 Award of Contract
General
- Scope of Bid
- Source of Funds
- Ethic, Fraud and Corruption
- Eligible Bidders
- Eligible Goods & related services
Contents of Bidding Documents
- Sections of Bidding Documents
- Clarification of Bidding Documents
- Amendment of Bidding Documents
Preparation of Bids
- Cost of Bidding
- Language of Bidding Document
- Comprising the Bid
- Bid Submission Forms and Price Schedule
- Alternative Bids - Bid Prices and Discounts
- Currencies of Bids
- Documents Establishing the Eligibility of the bidder
- Documents Establishing the conformity of the goods and related services
- Documents Establishing the qualifications of the Bidder
- Period of Validity of Bids - Bid Security
- Format and Signing of Bids
Submission & Opening of Bids
- Submission, Sealing and Marking of Bids
- Deadline for submission of Bids - Late Bids
 - Withdrawals and modification of Bids
- Bid Opening
Evaluation and Comparison of Bids
- Examination of Terms & conditions: Technical Evaluation
- Conversion to Single Currency
- Domestic Preference
- Evaluation of Bids
- Comparison of Bids
- Post Qualification of the Bidder
- Purchaser’s Right Accept any Bid, and to reject any or all Bids
Award of Contract
- Award Criteria
- Purchaser's right to vary Quantities at time of award
- Notification of Award
- Signing of Contract
- Performance Security

RISKS:

1. Producer’s Risk

 Sometimes it happen that inspite of good quality, the sample taken may show
defective units as such the lot will be rejected.

 Inspite of good quality the lot is rejected, such a type of risk of rejection is known
as producer’s risk.

 In other words,the probability of rejecting a lot which has actually been satisfactory
by the producer according to acceptable quality level is known as producer’s risk.

 Thus, the risk of rejecting a lot of good items is known as producer’s risk.

 Producer's risk: the probability that a lot containing the acceptable quality level
will be rejected.

Consumer’s Risk

 Sometimes it may happen that the quality of the lot is not good but the sample
results show good quality units as such the consumer has to accept a defective lot.
Such a risk is known as consumer’s risk.

 In other words, the probability of accepting a lot which has actually been
satisfactory by the consumer according to a predetermined standard is known as
consumer’s risk.

 Consumer's risk: the probability that a lot contained defectives exceeding the
LTPD will be accepted
The consumer and producer both decide the acceptance standard of the lot.This is known
as Acceptance Quality Level (AQL) or Lot Tolerance Percentage Defective(LTPD).

Single sampling plans: One sample of items is selected at random from a lot and the disposition of
the lot is determined from the resulting information. These plans are usually denoted as (n,c) plans
for a sample size n,where the lot is rejected if there are more than cdefectives. These are the most
common (and easiest) plans to use although not the most efficient in terms of average number of
samples needed.

Double sampling plans:

After the first sample is tested, there are three possibilities:

Accept the lot

Reject the lot

No decision

If the outcome is (3), and a second sample is taken, the procedure is to combine the results of both
samples and make a final decision based on that information.

Multiple sampling plans:

This is an extension of the double sampling plans where more than two samples are needed to reach
a conclusion. The advantage of multiple sampling is smaller sample sizes.

Sequential sampling plans:

This is the ultimate extension of multiple sampling where items are selected from a lot one at a time
and after inspection of each item a decision is made to accept or reject the lot or select another unit.

Skip lot sampling plans: Skip lot sampling means that only a fraction of the submitted lots are
inspected.

ABC analysis

ABC analysis is an inventory categorization method which consists in dividing items into three
categories (A, B, C):

 A being the most valuable items,

 C being the least valuable ones.

This method aims to draw managers’ attention on the critical few (A-items) not on the trivial many
(C-items)

The ABC approach states that a company should rate items from A to C, basing its ratings on the
following rules:

 A-items are goods which annual consumption value is the highest; the top 70-80% of the
annual consumption value of the company typically accounts for only 10- 20% of total
inventory items
 B-items are the interclass items, with a medium consumption value; those 15-25% of annual
consumption value typically accounts for 30% of total inventory items
  C-items are, on the contrary, items with the lowest consumption value; the lower 5% of the
annual consumption value typically accounts for 50% of total inventory items.

Steps for the classification of items: 1. Find out the unit cost and and the usage of each material
over a given period; 2. Multiply the unit cost by the estimated annual usage to obtain the net value;
3. List out all the items and arrange them in the descending value (Annual Value); 4. Accumulate
value and add up number of items and calculate percentage on total inventory in value and in
number; 5. Draw a curve of percentage items and percentage value; 6. Mark off from the curve the
rational limits of A, B and C categories

Procurement process

SOP – STANDARD OPERATING PROCEDURE

This template is designed to help you create a standardized collection of project management
processes for your organization. Consult Info-Tech’s blueprint, Tailor Project Management Processes
to Fit Your Projects, for each section in the template.

This document contains the following sections

Project Level Selection. Describe the criteria for classifying projects into levels by duration, budget,
etc. that will determine the amount of rigor applied for managing the projects.

Project Level 1 Standard Operating Procedure. Simplified, “lite” procedure for the smallest project
size that will minimize project management overhead costs and effort while still addressing all facets
of project management.

Project Levels 2 & 3 Standard Operating Procedure. Procedure for medium and large projects and
initiatives. It is subdivided into the project lifecycle (initiation, planning, execution, and closing) and
each process addresses the level of detail that level 2 and level 3 projects require.

The template features a Task-at-a-Glance table for each task to summarize the goals, inputs,
outputs, roles, and responsibilities.