A Single Quotation procedure can be defined as a process whereby one written quotation is collected which is deemed competitive for the material or service being procured.
Quotations must always be received in writing either on suppliers headed paper or on organizational Request for Quotation (RFQ) form. An RFQ form should be used in circumstances when suppliers cannot or are unwilling to provide written quotations. The quantity and description of the material or service required by the organization should be completed before the RFQ form is delivered to the potential supplier who should in turn completes the cost section of the form. When delivering an RFQ to a supplier, the closing date and time for receipt of the completed form should be clearly stated. Suppliers must sign and stamp all RFQ forms. Forms that are not either signed or stamped should not be accepted by either purchaser or purchase committee.
Under a ‘Single Quotation’ threshold, it is essential that a quotation is sought, as it is not permissible to purchase supplies without first receiving a quotation. It may be prudent to still obtain three quotations for purchases within this threshold particularly in situations where it is not clear what is considered a fair market price for the items required.
When to Use Single Quotations:
Apart from financial threshold considerations, there are other situations where a single quotation may be sufficient. They are when:
- Prices or rates are fixed pursuant to national legislation or by regulatory bodies e.g. fuel
- Standardisation of supplies, equipment or spare parts render competition impractical.
- The proposed contract relates to procurement from a sole source of supply or service provider e.g. Electricity Supply.
- Whenever all efforts to obtain multiple quotations through either a ‘Request for Quotation Procedure’ or ‘Invitation to Tender’ have resulted in the availability of only a single quote.
Where an existing contract exists to which repetition or extension of supply or service is required due to previously unforeseen circumstances. In such a scenario, the terms of the initial contract must not be significantly altered and the following rules adhered to;
- The contract should not be extended to more than 15% of the original contract value.
- Where relevant donor considerations exist, these must be respected.
- The contract extension must be appropriately authorised.
A Cash Float System is advised to be introduced for the procurement of items of low value within the Petty Cash purchasing threshold. In such cases cash can be taken directly from the Finance department for the procurement of small items such as food for a field trip etc. Float holding rules established by Finance should be respected. Supplies Requests are not necessary for purchases to which the cash float system applies.