Abstract

In pursuit of the topic competitive bidding in public procurement and service delivery management, this chapter brings fotth the introduction to the research paper as it tackles the background of the study, the statement of the problem, purpose of the study, study objectives. research questions, the scope of the study in terms of geography, content/variables and time, and eventually the significance of the study. 1.1 Background of the study The background has four dimensions or perspectives which include historical, conceptual. theoretical, and contextual Globally, competitive bidding is most often used by government agencies that are required by law to periodically open all contracts to bid and must award business to the lowest bidder. This is intended to ensure impartiality in buying decisions. However, it also makes it more difficult for the supplier to communicate value or quality advantages that may justify a higher price. The supplier must attempt to predict how competitors will bid in order to be priced competitively. The supplier may bid relatively low if excess capacity is available to be filled, or it may bid relatively high if it has a significant competitive advantage. Competitive bids sometimes have a mandatory deadline and may require a deposit to establish the financial stability of the bidder. Johan, N. (2006). Increasing global competition means that organizations in both the public and private sectors need to concentrate on what they do best. Effective procurement strategies and well managed supply chains enable organizations to do just that: focus on developing and delivering products and services that exceed customer expectations. We have been contributing to organizations across the public and private sectors to develop effectiveness in the management of costs and services, raising the recognition of procurement as a driver of efficiency and change.