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Supplying Principles and Practices > USPS Supplying Practices Process Step 2: Evaluate Sources > Hold Discussions
Discussions are communications between the Purchase/SCM Team and
suppliers. Negotiations are held with a supplier or multiple suppliers after the
Purchase/SCM Team has determined that their offers have the best chance
of providing the Postal Service the best value. Additional information on
negotiations can be found in the Negotiate With Suppliers topic of the
Perform Pre-Award Activities task of Process Step 2: Evaluate Sources.
Discussions are held when the Purchase/SCM Team needs to generate
further information and facts regarding proposed terms and conditions, and
clarify any possible misunderstandings with a supplier. The Contracting
Officer is responsible for leading discussions. Discussions during the
implementation of the proposal evaluation strategy are held to:
• Allow for the clarification of matters contained in a proposal that
raise questions regarding acceptability or proposal evaluation
score
• Address suspected mistakes or questionable assumptions
During the evaluation process, including during oral presentations,
discussions may be held with any supplier to clear up misunderstandings or
uncertainties or to gain a better understanding of the supplier's proposal
(including price) in order to obtain a more informed comparison of the relative
value of individual proposals.
After proposal comparisons have been made, further discussions may be
held to address any outstanding matters. Suppliers whose offers are the
subject of discussion at any stage must be given sufficient time to revise their
proposals in light of those discussions.
By this point in the Evaluate Proposals task of Process Step 2: Evaluate
Sources, the Proposal Evaluation Team has determined and eliminated from
consideration those suppliers that have submitted proposals with risks that
cannot be mitigated and/or do not have the necessary technical and financial
capabilities.
Before entering into discussions, the Purchase/SCM Team must:
• Have comprehensive knowledge of the Supplier
• Have thorough knowledge of the goods or services to be supplied
• Understand the Client's need and requirements
• Understand the Supplier's capabilities
• Analyze involved costs and prices
After proposal evaluation, the Proposal Evaluation Team informs the
Contracting Officer and Purchase/SCM Team of the ranking of the proposals,
potential points of conflict, and suggests with which suppliers discussions
should be held. The Contracting Officer then leads the Purchase/SCM Team
in conducting discussions.
Potential points of conflict are areas where the Postal Service would benefit
from different contract terms and conditions than those proposed by the
Supplier, or matters requiring clarification. Points of conflict can impede the
Postal Service from receiving best value, and usually are centered around
past performance, on-time delivery, product enhancements, product
engineering, product quality, and, especially, price. The cost and price data
and past performance considerations generated by consulting the results of
the Implement Proposal Evaluation Strategy topic of the Perform
Solicitation-Related Activities task of Process Step 2: Evaluate Sources are
useful for generating the relevant information.
In the rare instance when a proposal has no points of conflict, pricing is at or
below market price, and the proposal obviously offers the best value, neither
discussions nor negotiations are necessary. However, Purchase/SCM Teams
should always remember (1) that holding discussions for reasons of
clarification is always prudent and (2) that negotiations normally should be
held in order to improve the value received by the Postal Service. In cases
where neither discussions nor negotiations are necessary, the Purchase/SCM
Team begins the activities associated with the Ensure Supplier Diversity
Objectives are Considered topic of the Perform Pre-Award Activities task of
Process Step 2: Evaluate Sources.
Conduct Market Research and Benchmarking Analysis topic, Decide on
Make vs. Buy task, Process Step 1: Identify Needs
Implement Proposal Evaluation Strategy topic, Perform Solicitation-Related
Activities task, Process Step 2: Evaluate Sources
Perform Risk Analysis on Supplier Proposals topic, Evaluate Proposals task,
Process Step 2: Evaluate Sources
Conduct Price Analysis topic, Evaluate Proposals task, Process Step 2:
Evaluate Sources
Conduct Supplier Capability (Technical and Financial) Analysis topic,
Evaluate Proposals task, Process Step 2: Evaluate Sources
Negotiate with Perspective Suppliers topic, Perform Pre-Award Activities
task, Process Step 2: Evaluate Sources
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