At The 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.
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 The 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.
The Principal will use the following criteria in evaluating and comparing 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