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10511 Choosing the Item to be Purchased

Purchase Requisitions directly reflect the quality, performance and cost of the item being purchased. Specifications are the most detailed aspect of the requirement. The resulting requisition will outline the specifications to the buyer who will in turn communicate to prospective suppliers and establish a standard to which performance will be measured against. The best quality is one which can be purchased at the lowest overall cost (life cycle, total cost of ownership, etc.) to fulfill the need or satisfy the intended function.

A. While the decision to purchase is in the hands of the user, the following factors must be considered;
For small non-critical procurements, brand name best describes requirements.
The use of brand names can be a description of the level of quality desired. For example, you may site a specific brand name/model for which you will accept any quality equal to or better than that specified.
Identification of an item that is easily obtainable on the open market allows for competition to meet cost and time requirements.
A review should be performed internally to determine if the item can be obtained via internal resources.
If brand names or samples are inappropriate, some type of specification will be required that is not restrictive and allows for competition.
B. The following specification standards can be addressed when one is defining the required items:
Commercial standards: A complete description of the item standardized, which includes quality of materials and workmanship, dimensions, chemical composition, test procedures, and control issues.
Design Specifications: Specifications prepared by the user detailing how the product is to be manufactured.
Performance Specifications: Specifications delineating what the item is required is to do.
Function and Fit Specification: A variation of performance. This specification is used to describe how an item will work within a system.
Brand or Trade Name: A combination of performance and design which has become the industry standard. This is the most popular method and allows the user to utilize brand names that indicate quality and outcome.

 
 
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