Procurement Jeopardy – October

Welcome to Procurement Jeopardy: The Procurement game where every answer is competitively sourced.

Procurement Jeopardy is a fun and engaging way to build procurement knowledge. Participants can test their understanding of purchasing policies, best practices, risk management, and procurement principles through short jeopardy style questions and answers delivered on a regular basis. The program is designed to promote awareness, encourage learning, and help members make informed purchasing decisions in an interactive and enjoyable format.

Last Month’s Category: Procurement MythBusters 

As a reminder, last month’s question was:

Which of Myth or Fact? To get the best price, organizations should obtain three quotations every time they purchase goods or services, regardless of value, complexity, risk, or whether a competitively established contract already exists.

The correct answer was:

1. What is Myth?

For many years, obtaining three quotes was considered the gold standard of purchasing. While competitive quotations remain an important procurement tool, the belief that every purchase requires exactly three quotes is an outdated practice and a common procurement myth.

Modern procurement focuses on value, risk, efficiency, competition, and compliance, not simply the number of quotes obtained.

A procurement professional may determine that a different approach is more appropriate depending on the circumstances, such as:

• Using an existing competitively established contract.
• Leveraging a cooperative purchasing agreement or vendor of record arrangement.
• Conducting a formal RFP or tender process.
• Utilizing a justified sole source or single source procurement.
• Making a low-value purchase where administrative effort exceeds any potential savings.

A Practical Example

A department requires office supplies. An outdated approach would be to seek three additional quotes every time supplies are needed. A modern procurement approach might be to instead utilize an existing contract or standing offer, which has already undergone a competitive procurement process and includes pre-negotiated pricing, terms and conditions, and an established catalogue of approved products. By leveraging these arrangements, organizations can reduce administrative effort, promote consistency, and benefit from pricing and value that has already been secured on behalf of the organization.

Pro Tip

Before starting a new procurement, confirm whether suitable goods or services are already available through an existing contract, standing offer, or cooperative purchasing arrangement. Leveraging these agreements can reduce duplication of effort, improve efficiency, and help maximize value for money.

This Month’s Category: Conference Corner

Don’t forget to check next month’s issue for the correct answer!