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Purchasing Services is partnering with
Iasta, a software and global
service provider of cost effective online competitive bidding technology. The Iasta
tool will be used by Purchasing Services as a centralized repository for sourcing
projects with an integrated document library and bidding templates that can be used
by the campus community. We will also use the tool for other functions such as
managing the insurance certificate renewal process for our approved caterers.
Online competitive bidding technology is a very effective sourcing tool that has many
advantages over a traditional competitive bidding process. It saves significant time,
reduces the purchase price of most products and services, and creates competitive
pricing pressure that could not be replicated using a traditional request for
quotation/proposal process.
Using Iasta's technology, Purchasing Services is able to quickly and easily
communicate Penn's business requirements to all suppliers participating in the online
competitive bidding event. All participating suppliers receive the same information
at the same time in the same format. Suppliers are given the same opportunity to
ask questions about the Request for Quotation/Proposal and view all questions asked
and answered.
Purchasing Services sets the online competitive bidding duration based on complexity
of products or services in the event. For complex purchases, Purchasing Services
allows more time for suppliers to bid, or provide advanced notice as to what is needed
and when the event will run. Once the online competitive bidding has ended,
Purchasing Services has the opportunity to talk with the lowest bidder(s) to confirm
all the details before awarding a formal contract.
When to Use Online Competitive Bidding Technology?
Purchasing Services has identified the following criteria for determining an
appropriate use of online competitive bidding technology:
- Does the commodity lend itself to negotiations?
- Can the Request for Proposal/Quotation specifications and business requirements be clearly defined for the potential bidders?
- Are there enough suppliers interested in the business opportunity to participate in a competitive bidding event?
Purchasing Services has used online competitive bidding services for Penn specific
requirements as well as collaborative initiatives with the
Philadelphia Area Collegiate Cooperative (PACC) and
the University Health System.
Please direct all questions regarding online competitive bidding technology to
Vira Homick in Purchasing Services.
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