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Debriefing unsuccessful bidders
Valuable process puts transparency in action
By Denis Chamberland
The practice of debriefing unsuccessful proponents is not commonplace in the world of competitive purchasing. It’s a best practice that isn’t universally shared, not even in the public sector where the trade agreements entitle unsuccessful proponents to an opportunity to be informed by the purchaser of the reasons for their loss.
The rationale for ignoring debriefings is often antiquated, as the following anecdote illustrates. A purchasing manager drafting a request for proposals (RFP) document insisted on removing from the draft RFP the provision entitling unsuccessful bidders to a debriefing.
His general thinking about the purchasing process was that the less information bidders have about the process, the more flexibility his organization will have in selecting a proponent. By the same token, the less information given to proponents at the end of the purchasing cycle, he reasoned, the better his organization will be protected from challenges. “Keep ‘em in the dark,” he said to me.
Against this background are the laws on competitive bidding, which require a fair and open competition, including a process to respond to an unsuccessful supplier’s questions and concerns after contract award. There are, of course, limits to the amount and type of information that should be communicated to an unsuccessful bidder.
What can be shared?
Not all information related to the particular purchasing process should be shared with an unsuccessful proponent. There are restrictions because of the competing rights involved. Care must be taken to ensure the successful proponent’s right to privacy is not breached during the debriefing process. This includes confidential information of a commercial nature, which relates to the winner’s pricing formula, for example.
On the other hand, material that can be shared includes the name of the successful supplier, and the unsuccessful supplier’s relative strengths and weaknesses related to the evaluation criteria. Those, of course, should have been disclosed in the tender document.
The purchasing organization
There are good reasons why the buyer organization should debrief suppliers who request such an opportunity. For a start, conducting a debriefing reinforces the principle of transparency, a cornerstone of the modern competitive bidding framework. Secondly, debriefing a supplier provides an opportunity for the purchasing organization to hear the views of the supplier on the procurement process. That way, buyers can collect useful information that can then contribute to making improvements to future buying activities.
Thirdly, and perhaps a bit cynically, it gives the buyer a chance to find out which bidder is deeply dissatisfied with the result of the competition, giving it a chance to diffuse a potential claim or lawsuit. Finally, there is the principle of fairness at the core of the procurement process, a principle that applies equally to private as much as to public sector procurement. Because each bidder will have spent time, effort and sometimes, significant amounts of money preparing a proposal, it’s fair that proponents who request a debriefing should be given the opportunity.
The proponent
From the perspective of an unsuccessful proponent, a debriefing is a unique opportunity. Here’s how the Office of Government Commerce in the UK describes it in a short paper entitled Supplier Debriefing: “Positive and constructive feedback to competing providers on the reasons for their selection or non-selection at any evaluation stage of a competitive procurement project… allows the provider the opportunity to improve [its] performance in future procurements.” It’s free advice from the buyer, in effect. As surprising as it may seem, relatively few unsuccessful proponents take advantage of the opportunity available for a debriefing.
A supplier can use the debriefing process as a relationship-building opportunity, looking for information about the buying organization and its business, and building a personal rapport with select individuals. The debriefing can also be used as a tool to convey a powerful message to the buying organization that the supplier is a serious competitor that is set on ‘getting its share of the pie’.
As is often the case, particularly in areas where there are numerous proponents, being known to the buying organization is critical. Finally, if the unsuccessful proponent is considering challenging the buyer’s decision, before proceeding, it should hear directly from the buyer on the reasons for selecting another proponent.
Supplier debriefing is a best practice that deserves to be universally embraced by all buyers–whether in the private or public sector. Conducting a good debriefing session, however, is not always as straightforward as it sounds. Different formats and approaches are available. Some work is involved, which may help explain why at least some purchasing managers prefer to ‘keep ‘em in the dark’. b2b
Denis Chamberland is vice-president of procurement and IT consulting firm, ABTS Global LP, and a partner with the law firm Aird & Berlis LLP. He may be reached at dchamberland@abtsglobal.com or at (416) 865-3078.
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