This week's Wiki-Wednesday topic is: SELECTION IN PLANNING. The following is an excerpt from the Wikipedia page on this topic. Click here to be connected to the full page.
Selection in Planning
Selection in Planning also known as SIP is a method of selection used to identify suitable vendors and contractors and is an alternative to selection through Tendering.
SIP has gained momentum in those environments where a customer's requirements are subject to ongoing changes or where the development of a project or procurement exercise is expected to be implemented gradually. In such circumstances customers may choose to employ the SIP process rather than issuing a formal tender.
The advantages of SIP are that changes to a customer's requirements or specifications do not require that this information be re-issued as would normally be the case with a tender (with the exception of minor modifications). Instead a customer, during the planning process of a project or procurement requirement, solicits ongoing information and feedback from prospective vendors and contractors making an assessment of their capability, skills, financial competitiveness and overall suitability during the communications process.
The SIP process is sometimes considered by critics to be a less formal procedure in which the qualification of vendors and contractors is not addressed with the same scrutiny as would be the case in a tender. This belief is however erreneous as the quality of the SIP process, just as with tendering, is at the discretion of the selector. Those customers bound by statutory procurement procedures or corporate policies governing the same, apply these requirements to the SIP process by means of ongoing dialogue and solicitation of information from vendors and contractors.
Additional advantages of the SIP process are that significant changes to project and procurement requirements can be made with relative ease. The lack of a formal deadline by which vendors and contractors must submit often detailed information usually results in the customer receiving more accurate information as a benefit of the reduced pressure on respondants. The generally longer lead times for responses may also result in a customer securing equipment and services at better prices as vendors and contractors who are faced with limited time responses for large scale projects and procurement exercises are often forced to build in cost margins catering for contingencies from having failed to arrive at finalised and detailed costings within prescribed tender timeframes.
For these reasons and among specific industries, such as construction, as well as in certain economic environments, the SIP process is considered to be a viable alternative to traditional tendering and which has resulted in the rapid growth of this process in recent years.