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What is Procurement Procedure? Definition

What is Procurement Procedure? Definition

The procurement procedure is the process that an organization uses to purchase goods and services. The process usually begins with a needs assessment, followed by sourcing, negotiation, and contracting. Organizations use different procurement procedures depending on the type of good or service being purchased. Some organizations have formal procedures that must be followed for all purchases, while others have more flexible procedures that can be adapted to each individual situation. The procurement procedure is an important part of an organization’s operations, as it can have a significant impact on the cost and quality of the goods and services purchased.

What is Procurement Procedure?

The procurement procedure is the process that an organization uses to purchase goods or services. The process usually involves creating a request for proposal (RFP), issuing the RFP to potential vendors, evaluating the proposals, and selecting a vendor.

The procurement procedure can vary from organization to organization, but there are some common steps that are typically followed. First, the organization creates an RFP that outlines what goods or services are needed and what criteria will be used to evaluate proposals. The RFP is then issued to potential vendors.

Vendors submit their proposals, which are evaluated by the organization. The evaluation process may involve reviewing the proposal itself, talking to references provided by the vendor, and/or visiting the vendor’s facility. Based on the evaluation, a vendor is selected and awarded the contract.

Once a contract is in place, the organization works with the vendor to ensure that the goods or services are delivered as specified in the contract. The procurement process may end at this point, or it may continue on to include post-delivery support from the vendor (such as warranty service).

The Different Types of Procurement Procedures

There are several types of procurement procedures, which vary depending on the country and the organization. The most common type of procurement procedure is the open tender, in which any supplier can submit a bid to supply the goods or services. Other types of procurement procedures include the closed tender, in which only pre-selected suppliers can bid; the selective tendering, in which a limited number of suppliers are invited to bid; and the negotiated procedure, in which the buyer and seller negotiate directly.

Pros and Cons of a Procurement Procedure

When it comes to procurement, there are pros and cons to consider before making a decision. Here are some of the key points to keep in mind:


-A procurement procedure can help simplify and streamline the purchasing process.
-It can help ensure that all potential suppliers are considered fairly.
-It can help create a more transparent and efficient process overall.


-A procurement procedure can be time-consuming and complex.
-It can create additional paperwork and documentation requirements.

What is the best type of Procurement Procedure?

There are many different types of procurement procedures, and the best one for your organization will depend on a variety of factors. Some common procurement procedures include sealed bidding, competitive negotiation, and Request for Proposal (RFP).

Sealed bidding is typically used for large projects where there is a lot of interest from potential vendors. In this type of procurement, vendors submit sealed bids to the procuring organization, and the organization awards the contract to the lowest bidder.

Competitive negotiation is often used when there are few qualified vendors or when the procuring organization wants more flexibility in negotiating terms and conditions. In this type of procurement, the procuring organization requests proposals from a group of qualified vendors and then selects the vendor that provides the best value based on a variety of criteria.

Request for Proposal (RFP) is usually used when the procuring organization wants vendors to compete on more than just price. RFPs typically request detailed information about a vendor’s qualifications, experience, and ability to meet the specific needs of the project. The procuring organization then selects the vendor that provides the best overall value.

How to choose a Procurement Procedure

When it comes to choosing a procurement procedure, there are a few things you need to take into account. The first is the type of procurement: is it for goods, services, or construction? The second is the value of the procurement: is it over the micro-purchase threshold, the simplified acquisition threshold, or the competitive bidding threshold? Lastly, you need to consider your organization’s internal procedures and regulations.

Once you’ve taken all of these factors into account, you can start to narrow down your options. For example, if you’re procuring goods that are over the micro-purchase threshold, you’ll likely need to use a competitive bidding process. On the other hand, if you’re procuring services that are under the simplified acquisition threshold, you may be able to use a request for proposal (RFP) process.

The best way to choose a procurement procedure is to consult with an experienced Procurement Professional. They can help you assess your needs and identify the best option for your situation.


In conclusion, procurement procedures are an important part of any business. By understanding what they are and how they work, you can ensure that your company is getting the best possible products and services at the best possible prices. With the right procurement procedure in place, you can streamline your operations and save money in the long run. Do you have a procurement procedure in place? If not, now might be the time to start implementing one.

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