What describes Competitive Quotations in procurement?

Competitive quotations in procurement refer to the method of obtaining price proposals for goods or services, particularly when the threshold for formal bidding is not met. The correct choice emphasizes that competitive quotations are typically used for transactions that fall below a specific monetary threshold, represented here as under 15% of the bid threshold. This allows procurement professionals to quickly gather pricing information without engaging in the more formal and lengthy bidding process required for higher-cost procurements.

This approach fosters competition among suppliers, ensuring that the purchasing entity can receive quality goods or services at a reasonable cost while maintaining a fair purchasing process. It reflects an efficient use of resources and time, operating under the premise that smaller purchases can be managed effectively through competitive quotes instead of formal bids.

Understanding that competitive quotations are streamlined processes for lower-value purchases helps clarify how procurement regulations promote efficiency and responsiveness in acquiring essential goods and services.