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Online Bidding (OLB)
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This is a method of collecting price information using an Internet auction tool. All other aspects of a traditional tender process are the same. In the online auction pre-qualified and invited suppliers have an opportunity to submit their price.
Online bidding evaluates offers in exactly the same way as sealed bids; therefore for any given set of tendered prices, the resultant award decision for an online bid would be the same as for a sealed bid. OLB determines overall best value proposition – not just price.
Some Benefits of OLB
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OLB promotes transparency and highlights integrity in the tendering process,
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OLB reveals market information and true market prices; it provides bidders with the chance to improve on their offers in response to competition,
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OLB improves tender results through upfront preparation (more accurate specifications and more disciplined internal assessment of value offering of suppliers).
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Last but not least, OLB consistently delivers substantial savings in competitive markets.
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