10 Nov The full life-cycle of a procurement of a good or
The full life-cycle of a procurement of a good or service is typically comprised of five stages:Stage 1. An attempt is made to identify possible suppliers of goods and services. This is often done by means of a request for proposal (RFP) or an invitation for bid (IFB). An RFP is a written document that defines the work or products desired and is distributed among possible bidders. At the heart of the RFP is the statement of work (SOW), a narrative document describing the goods and services that will be contracted. Potential contractors write proposals describing how they will supply the desired goods and services (see below). Once the proposals have been submitted, the buyer and potential supplier may negotiate terms.
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