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Diligence Due

Posted 11/21/2022

The sourcing of services can be similar to the processes applied to the hiring of key personnel. Confirming that the resources actually have 

the experience and capabilities that they say they have is essential, yet based on recent news reports it appears that confirmations are not always sought or considered before the contract is signed. As procurement professionals it is our responsibility to check a supplier’s qualifications as a component part of the evaluation process. Consider these best practices when drafting and evaluating an RFx:

·        Ask for references, both for the firm and key personnel
·        Similarly ask for related experiences, and industry certifications
·        Get implicit and/or explicit permission to make any enquiries to confirm
·        State the process to do your due diligence; check all respondents, check a short list, or check only those of the leading respondent
·        When checking multiple respondents, employ a script to ensure the same questions are asked of each
·        State what you will do and do what you state
·        Keep a written record of the completed evaluation process.

You will add considerable value to the procurement through the application of due diligence before commitment to the contract. It is time well spent on the principle of doing it once and doing it right.