Purpose of the Bids and Awards Committee

1) To purchase goods of acceptable quality at fair and reasonable prices from qualified
and capable contractors/suppliers, with on time delivery and satisfactory compliance of
all contract terms and conditions;

2) To assure fair and equitable treatment of contractors/suppliers including

arrangements for prompt payments;

3) To maintain records refinement of procurement policies and procedures based on

previous procurements executed;

4) To standardize the procurement process, consequently preventing confusion;

5) To uphold transparency and accountability in the procurement process;

6) To provide uniformity among the various Facilities and to ensure that bids are
properly received.

Importance of Rules and Procedures (Pt. 1):

1) They Provide Guidelines

Rules and procedures define guidelines for all people to follow. These guidelines help
them understand their duties and responsibilities, as well as help them deal with how to
respond to issues that might arise during the course of any undertaking.

2) They Promote Consistency

Rules and procedures serve guidelines for consistent behavior and actions. These
guidelines ensure that whenever events occur, they are handled in the same way.
These also provide the means for disciplinary action that must take place for violation of
these guidelines.

3) They Guide Disciplinary Action

Rules and procedures define the overall approach to disciplinary actions and the
systematic procedures that must be followed to ensure compliance with law.

4) They Help with Adherence to Law

Policies and procedures must comply with the local and national laws.
Importance of Rules and Procedures (Pt. 2):
Policies & Procedures Improve Compliance

Complying with laws and regulations should be the most basic function of an
organization. Even the smallest of organizations must comply with tax laws and with
state and local regulations (i.e. zoning, licensing), while some organization must cope
with a myriad of federal and state laws and regulations. Other compliance issues may
deal with quality standards like ISO 9001, ISO 22000, or UL.

While procedures themselves may not demonstrate compliance, well-defined and

documented processes (i.e. procedures, training materials) along with records that
demonstrate process capability can make evident an effective internal control system
and compliance to regulations and standards.

Let’s face it; if your organization is having trouble in performing the rudimentary function
of obeying laws and regulations, then it is likely struggling even more at being effective
and successful in fulfilling its core missions. If compliance is an issue in your
organization, then creating well-defined processes documented by procedures in order
to meet your legal and regulatory requirements should be a high priority.

Operational Needs Are Met through Policies and Procedures

What is really important in your business? What is fundamental for its success? Are
practices associated with them being steered by top management? How much visibility
and transparency is there into the effectiveness of these key processes?

This brings us to the next important role of procedures; to ensure processes

fundamental to the organization’s success are properly guided by management, are
performed in a consistent way that meets the organizations needs, and that important
related information and data are captured and communicated.

For example, if regularly introducing new and improved products is essential to the
success of your business, shouldn’t you be in control of your sales and marketing cycle
that captures customer requirements and desires so they can be translated into your
product design? Shouldn’t there be well-documented design review and product launch
processes?

Drive Improvement and Internal Control

Reviewing data for process effectiveness is one form of internal control and should be
an integral part of any business process. Are your objectives being achieved? Are the
objectives meaningful and reflect the processes’ importance and risk? Using internal
controls, the necessary corrections can be identified and implemented as a result of the
review. Your procedures describe your process and its internal controls.
Your Policies and Procedures help your organization by providing employees with a
handy reference to daily business operations, common company activities, or routine
organizational tasks. New personnel will find your operations manual useful for getting
trained and up to speed, fast on such things as internal controls. After all, with standard
operating procedures in place, training is faster and interruptions are reduced.

Improvement occurs when we compare the prior condition to the current condition.
Improvement is always a question of “as compared to what?”• By documenting your
business processes with procedures, you will have a foundation for improvement. A
record of the standard work that was performed at a point in time.

What is more important than control, training and improvement? Procedures are
important for controlling processes, documenting the standard work that was performed
at a point in time. And training workers on the business process.