Multiround Events

Use multiround events for RFx events to negotiate with bidders after initial bids are received. This is useful when you make either substantive changes to the event (requiring additional input from the bidders) or when you evaluate and narrow bids to a select group for further negotiation.

You can select to counter one or more bidders for the overall event or for individual lines using the Analyze Total and Analyze line pages. The system creates the new round by copying the previous round/version. Countered bidders are the invited bidders for the new round. Only countered lines are included in the new round. You can add additional bidders if necessary.

The system provides the best bid factor responses for the countered responses from the previous round as the new default worst values for the new round. For example, warranty is a bid factor with 1 as the worst and 5 as best. Bidder A bids 2 years and Bidder B bids 3 years for the warranty. Both bidders are countered. Round 2 now has warranty with a default worst response of 3 years and best response of 5 years. You can override the new defaulted worst responses on the new round.

If a line was partially awarded and also countered, only the remaining quantity (original line quantity minus the awarded quantity) appears on the new round. So if a line originally had a quantity of 100, and you awarded a quantity of 40 in round 1, round 2 has 60 as the line quantity.

The new round is posted out to the invited bidders. The bidders receive a new invitation along with a new counter PDF version of the event. When a bidder bids on the new round, the bidder can view his or her initial bid and the countered offer.

Bidders can either withdraw, accept, or counter the counter offer either at the event level or for each line. If the bidder accepts, the system automatically creates a new bid response with the best response for each bid factor. If they counter, the new bid response is copied from the best response, but the bidder can override the values. If a bidder withdrawals, the bidder can't bid on any portion of the event from that point forward.

If Award to Previous Round is not selected on the Sourcing business unit page, the previous round/version is inactivated. The analyzer has the option to reject bids as part of a multiround process—either the entire bid or individual lines.

Once the bids are received on the counter, the analyzer can review the bids and choose to accept (award), reject, or counter. This process can continue indefinitely until the event is awarded or manually closed.

See Defining Strategic Sourcing Business Units.

Price Components

When a new round is created, the best bids for each price component should become the new worst values for each price component. This means that if the original start price for materials was $60 and Bidder A bid $50 for materials, Bidder B bid $60, and Bidder C bid $55, then when a new round is created, the new start price for materials would be $50.

Line Groupings in Multiround Events

If a new round is created, then the system sets the worst values for the line group bid factors on the new round using the best responses from the bidders on the previous round. If a line group was partially awarded, the system sets the requested quantity on the new round to the previous rounds requested quantity minus the awarded quantity for the previous round.

Bidder Participation in Multiround Events

The Event Bid History page shows the event participation by round and not by version. Therefore, if the following bid situation occurred:

• Bidder A accepted on version 1 and posted a bid on version 2.

• Bidder B accepted on version 2 but never posted a bid.

• Bidder C declined on version 3 for round 1.

• Bidder D never responded to any of the event notifications.

The system displays the following on the Event Participation page for round 1:

• Total Event Invitations: 4

• Accepted Invitations: 2

• Declined Invitations: 1

• No Response: 1