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 "Global Percentage" Bidding

Use

The "global percentage" bidding procedure is used in the procurement of external services.

The aim of this approach is to considerably simplify the maintenance of service specifications. Since the service descriptions in the quotations submitted by the various bidders do not usually vary, the buyer states the prices of the services in advance, and the bidders merely indicate a percentage addition to or deduction from these prices in their quotations, Purchasing is faced with a minimal maintenance effort even if a large number of individual RFQs are issued.

Integration

"Global percentage" bidding is only available for the procurement of services. It is not available for the procurement of materials.

Prerequisites

A special document type for RFQs must have been defined in Customizing for Purchasing. In the standard system, document type AB is available for this purpose.

The standard system includes the condition schema MS0002 and the condition types KR01 (header discount) and KZ01 (header surcharge). Both are to be found in Customizing for External Services Management.

Process Flow

  1. In the case of "global percentage" bidding, Purchasing indicates prices for the individual services in addition to providing descriptions of them.

  2. If you wish to conduct a competitive bidding procedure using "global percentage" bids, you must create an RFQ with the document type AB . This allows you to specify a price per service when maintaining the service lines.

  3. The "global percentage" bidding document is transmitted to the bidders. Purchasing then expects a quotation from each bidder.

  4. In these quotations (or "global percentage" bids), the service providers do not quote a price for each individual service. Instead, they indicate a percentage addition to or deduction from the prices specified by Purchasing, thus intimating whether they are prepared to do the work for more or less than the figure envisaged by Purchasing.

    These additions or deductions are shown either per outline level or for the uppermost outline level (i.e. for the entire set of service specifications).

    The additions/deductions handled by means of the condition technique. The type of condition involved is a header condition. The system adopts the specified condition in all service lines belonging to the outline level and in any subordinate outline levels.

  5. The bidders submit their quotations to Purchasing.