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Published: May 14, 2015

Writing for in one of their most read columns this year, Bill Freear, Group Managing Director of Pilgrims Group Limited, discusses value and procurement.
Bill writes: When procuring contracts, in particular the supply of a security service involving engagement with visitors and the need for a high level of customer care, is the cheapest price always the best option or do you pay for that decision with an unfulfilled or failed service, subsequently asking yourself if this was true value for money?

Over the last few years, price has become a principle factor in the evaluation of tender submissions and, whilst technical capability clearly has an important part to play in most end users’ minds and is often expressed as such in tender assessment criteria, the truth of this is not quite so simple to establish.

Taking the cost element out of the tendering process and looking at evaluation based on other criteria, such as quality of service delivery, operational management proactivity, company support structures and company accreditations, many buyers find it difficult to see the differentials between competing bidders and therefore buy on price...