At Principal® it is policy to engage in competitive buying and formalized bidding practices which include request for information (RFI), request for proposal (RFP), auctions and contract negotiations. We also require you agree to conduct business by our standards.
When we do and don't solicit bids
When a need arises, we solicit bids from suppliers.
- We don't solicit a set number of bids for every purchase.
- We select the suppliers we believe can meet our needs the best.
- New suppliers are encouraged to register with Principal for potential inclusion in a sourcing evaluation.
We do not solicit bids for standardized items for which we have established contracts. However, we review these contracts occasionally and you may have opportunities to bid at those times.
How we evaluate bids
Submitted proposals should contain the Supplier's most favorable terms and conditions, since the selection and award may be made without discussion or negotiation with any Supplier. Proposals are evaluated by a team consisting of representatives from the requesting business area, Sourcing, IT and/or Information Security (when applicable).
- All proposals will be kept confidential.
- Once received, proposals are considered final and suppliers are expected to honor them.
- Substitutes may or may not be accepted for certain items.
Criteria used to evaluate and compare proposals
- Experience and number of years the Supplier has been in the business of providing the required types of products/services, and financial stability of the Supplier's organization
- Responsiveness to the requirements of the project as set forth in the RFP
- Demonstrated understanding of the goals and objectives of the project and a logical plan for providing products/services within the required time frames
- Agreement to our standard contract terms
- References from the Supplier's clients
Standards of ethics and fairness
Principal® conducts business to the highest standards of ethics and fairness:
- We do not accept gifts of any nature. Please refrain from offering gifts.
- Social events as part of the agenda at conferences and seminars is considered acceptable business practice.
- We do not accept invitations for trips or events with the primary purpose of entertainment (for example, golf outings, sporting events, theater tickets, dinners, etc.).
- A visit to a supplier or product installation site may be beneficial to the selection/acquisition process. In these instances, Principal should incur the travel and lodging expenses, or reciprocate to keep the relationship in balance.