Effect of Quality of Scope on Bidding Activities (Published)

Article Author: James Adu Peprah , David Asante and Frank Obeng

Procurement is rapidly becoming prominent as a preference function that offers high-impact prospects for convalescing the bottom line. The effectiveness of procurement results depend much on the inviolability of the processes involved. One of such processes is scope of work. In the process of procuring the services, goods and works, a scope has to be prepared which is also used in the preparation of the bidding documents. This study, then sought to investigate the effect of scope on bidding activities with a case of Golden Star (Bogoso/Prestea) Limited (GSBPL). Both primary and secondary data were used for the study. From the study of the processes involved in the scoping of bid documents at GSBPL, it was revealed that the user departments initiate the process for the procurement of goods and services and prepare the initial scope for this process. But the contract department is involved in guiding and reviewing the process to make sure it is adequate. The study also established that most scope in the bid documents were not adequate and therefore did not meet quality standards. On identifying the causes of inadequate scoping, the study showed that lack of communication between two or more user departments, ambiguity of scope, lack of proper planning among others negatively affect the quality of the scope and the bidding process. With the quality of scope on bidding activities, it was disclosed that a good quality of scope will result in bidders meeting submission deadlines and submitting very competitive bids which are easy to evaluate, less bidder questions, and therefore has a positive impact on the bidding process. Poor quality scope on the other hand, will result in extension to bid submission dates, make evaluation of bids very difficult and may result in rebidding with a revised scope. This may delay projects of the company and challenge to the proposal evaluation and source selection is almost traceable to an uninformative or ambiguous scope of work. The study as a result recommended among others, for more collaboration between the contracts departments and the user department in the scoping of bid documents, user department must have a proper plan of their requirements for bidding activities, training of staff of contracts and user department on the scoping of bid documents and the preparation of a lessons learned report to document all the processes that were followed from initiation of the scope to the provision of the services, goods or works.