Understanding Event Awards
Once you have analyzed bids and selected the best bid, PeopleSoft Strategic Sourcing enables you to award the winning bid. This diagram illustrates the process flow for a buy event from determining the winner to creating a purchase order or contract:
Process flow for a buy event, from determining the winner to creating a purchase order or contract
To award buy events:
The buyer determines the winner and finalizes the award.
The buyer determines whether the award results in a contract or a purchase order if awarding a buy event.
The system creates a purchase order or a contract.
The system informs the winning and outbid bidders.
You can split awards among bidders in two ways:
Split by percentage.
The percentage must be based on the line quantity and cannot exceed 100 percent. For example, suppose that you award one bidder 75 percent and another bidder 25 percent. In this case, the award is 75 percent of each line item based on the price bid by the first bidder and 25 percent of each line item based on the price bid by the second bidder.
Split by quantity.
The quantity awarded cannot exceed the quantity bid. For example, if the event involves buying 100 items, but the bidder submits a bid to sell you 75 items, you can award the a purchase order for no more than 75 items.
Note: If any of the lines on the event are amount-only, then you cannot split the award between bidders.
Award Splitting Rules
There are several rules impacting award splitting:
If a line is marked as quantity does not apply, you can split the award across multiple bidders.
The award quantity is therefore be a decimal (.4) instead of a whole number. The total awarded quantity for a line marked quantity not applicable cannot exceed 1. This means that you can split an award across 3 bidders: Bidder 1 (.5), Bidder 2 (.4), and Bidder 3 (.1). If the award is made to a purchase order, the purchase order line is marked as amount-only; therefore, the line quantity on the awarded purchase order is automatically set to 1.
If a sourcing line is an item by description and is not marked quantity not applicable, you can award a decimal quantity.
This means that if the sourcing line had a quantity of 2, the user can award the following: Bidder 1 (1.25) and Bidder 2 (.75). When the purchase orders are created, they are created for the same quantity as designated on the award (1.25 and .75)
If a sourcing line is an item from the item master table, then the system checks the unit of measure setting on the item setup to determine whether a decimal is allowed.
This is based on whether the unit of measure for the item as a Quantity Precision setting of decimal or whole number. If decimal, the user may award the quantity using a decimal. Otherwise, the awarded quantity must be a whole number.
As soon as you post a new version of an event, the old version is no longer available for bidding. Therefore, the current version is always the version analyzed. If bid factors were added to a version, the system shows all the bids, but only the bids received on the most recent version include responses to the new bid factor.
Multiround events are usually used for RFx events, when an event creator wants to start with a large pool of bidders and create another round with the most desirable bidders to continue negotiations. You counter entire bids or bid lines to create a new round. Optionally, you can reject bids that won't be carried forward to the next round and select a reason for the rejection.
When an RFI event ends, its status is Pending RFI Review. The event owner can then review the RFI responses. For RFI events, the system displays only the Analyze RFI page with header information because there is no line information. Once the event owner has reviewed all of the RFI responses, the event owner sets the status to RFI Reviewed. This is the equivalent of the Awarded event status for buy and sell events.
If the system consolidates an event from requisitions across multiple PeopleSoft Purchasing business units, upon award, the system creates one purchase order for each Purchasing business unit associated with the consolidated requisitions. You can view the entire history of this event, from requisition through event creation and purchase order creation, using the Auction Document Status page.
If a line is marked as quantity optional, bidders are not required to enter the quantity for that bid. Quantity optional bids are awarded by percentage, and the system updates the purchase order or contract to indicate the item is amount-only. When you award a quantity optional line, the award quantity is automatically set to one.
Collaborators can be invited to collaborate on the analysis of received bids once an event has ended. If collaborators participated in event creation collaboration, they are included on the collaborator list for bid analysis collaboration. Collaborators can enter scores to hidden bid factors, change bid factor weightings (if a non-auction event), manually score text based responses, and enter costs for text bid factors and bid factors that are marked as having user-defined costs. The system calculates an average score and cost based on the input of all the collaborators.