How You Award Negotiations
You can break down your award decisions several ways, depending on the responses you receive and the needs of your negotiation.
When the negotiation includes multiple rounds, it's important to have access to the past scoring information throughout the entire process.
For example, in a 2-stage negotiation, suppliers are typically evaluated for technical and commercial requirements and then shortlisted for a new pricing only commercial round to provide a best and final offer. It's important for evaluators, and approvers to have access to scores from the prior round when finalizing the award.
You can view the previous round's requirement scores of the suppliers during award analysis and approval and make an informed award decision based on scores and new round pricing.
You can award the negotiation and choose to not create a purchase order; however, any backing requisitions not allocated to purchase order lines are returned to the requisition pool.
You can now pass descriptive flexfield (DFF) values from the negotiation to the purchasing documents during an award. The DFF values on the negotiation header are passed to the purchasing document header and from the negotiation line to the purchasing document line.
To view the values for the DFFs that can be passed from the negotiation to the outcome purchase order, or purchase agreement, see How You Use Descriptive Flexfields for Negotiations.
Consider these when you pass DFF values from a negotiation to a purchasing document:
- This isn’t supported for negotiations with backing requisitions. For such negotiations, no DFF values are copied to purchasing documents.
- The DFF values are passed from the awarded negotiation to the purchasing document only if the negotiation DFF structure is identical to the DFF structure of the outcome purchase order, or the purchase agreement.
When you award a prospective supplier with a missing bank account or an inactive bank account, an error is displayed to prevent you from proceeding with the award.
As a user who is assigned a configured job role with the required privileges, you can take the necessary action to complete the supplier's profile for spend authorization promotion and avoid downstream impacts in the purchase order lifecycle.
Award a Negotiation to a Single Supplier
You can easily award all the lines of a negotiation to a single supplier. Awarding at the negotiation level enables you to quickly enter your award specifications since you don't have to enter an explicit award decision for each negotiation line. All the lines on which the supplier quoted or bid are awarded to that supplier. Any lines the supplier didn't quote or bid on aren't awarded.
Award an Individual Line to a Single Supplier
You can award all the business for a single negotiation line to single supplier. If the supplier offered only a partial response, the supplier is awarded as many units as were quoted or bid on. The remaining units remain not awarded. If there were backing requisitions for the units, they're returned to the requisition pool. If a supplier has submitted alternate lines, you can award business to the alternate lines just like you would to a regular line.
Dividing a Negotiation Line Among Multiple Suppliers
If necessary, you can split a line between multiple suppliers. This happens often when none of the responses to a particular line offers to sell the entire quote or bid quantity asked for. For example, if you're looking to buy 100 monitors, and supplier A offers to sell 75 monitors for $300 each, but supplier B offers to sell 60 monitors for $250 each, you might want to award supplier B the first 60 monitors and award the remaining 40 to supplier A. Note that if you have alternate line responses from the same supplier, you can award the alternate lines just like regular lines. You can therefore split a negotiation line between two different line responses from the same supplier.