Creating Bid Factors

To set up bid factors, use the Bid Factor Setup (BID_FACTOR_COMP) component.

Use the Dependent Clauses page (BID_FCTR_CLSDEP) to view any dependent clauses for the bid factor.

Navigation:

Click the View Dependent Clause button on the Assign Contract Clauses page.

Page Name

Definition Name

Usage

Bid Factor Setup Page

BID_FACTOR_PNL

Specify the attributes of the bid factor. Use this page to assign total cost modeling to overall bid factors.

Assign Business Units and Departments to Bid Factor Page

BID_FCTR_BUDEPT

Assign bid factors to business units or departments to facilitate searching.

Assign Defaulting Rules to Bid Factor Page

BID_FACTOR_LINE

Assign a default rule based on item ID, item category, price, or quantity to the bid factor.

Assign Response Query to Bid Factor Page

BID_FCTR_QRY

Associate queries with bid factors to automatically populate bid factor responses based on the query results.

Assign Contract Clauses Page

BID_FCTR_CLAUSE

(Optional) Associate clauses with bid factors.

You must have PeopleSoft Supplier Contract Management installed to use this feature.

Select a Clause Page

CS_CONTENTS_SEARCH

Search for clauses to be associated with bid factors.

You must have PeopleSoft Supplier Contract Management installed to use this feature.

Assign Contract Clauses Page

Search for All Content Instances Page

CS_CONTENTS_XREF

View where the particular clause has been used.

Assign Contract Clauses Page

Dependent Clauses Page

BID_FCTR_CLSDEP

View any dependent clauses for the bid factor.

This button is available only if dependent clauses exist.

Dependent clauses do not appear on contracts.

Assign Contract Clauses Page

Assign Contract Agreements Page

BID_FCTR_AGRMNT

Assign contract agreements to bid factors.

You must have PeopleSoft Supplier Contract Management installed to use this feature.

Field or Control

Description

Type

Determines what bid factor fields appear on the page.

Values are:

  • Attachment: A file attachment is required in the response. If a response is required in the bid factor, then the bidder must supply an attachment. This option follows the same rules as Text bid factor type when it comes to scoring; bid factor is weighted zero for auction events.

  • Date: A range of calendar dates.

  • List: A list of attributes, such as color or size. For list bid factors, you can designate whether multiple selections are allowed. For example, you can have a list bid factor asking what colors are available for an item, with list items of black, red, blue, yellow, and white. Bidders select one or more of the available list items. If you do not allow multiple selections for a list bid factor, the bidder can select only one list item.

  • Monetary: A range of costs that are related to the bid factor.

  • Numeric: A range of figures, such as length of service contract.

  • Separator: A header bid factor that is not weighted and does not require a response from bidders.

  • Text: A question requiring a text answer. In auction events, this type of bid factor is automatically weighted zero.

  • Yes/No: A text question requiring a yes or no answer.

Question

Unlimited length field in which you can ask the bidder a question.

Display Bid Factor

Click to display the bid factor to bidders. If this option is not selected, the event creator or any collaborators add their input to bid factors that are hidden to bidders.

Bid Factor Response Required

Click to indicate that a response is required for this bid factor.

Ideal Response Required

Click to indicate that a bidder must respond with the best or ideal response for the bid to be considered. If the bidder doesn't provide the best or ideal response for one or more bid factors, the bid is disqualified and unavailable for award.

Use the Bid Factor Setup page (BID_FACTOR_PNL) to specify the attributes of the bid factor.

Assign total cost modeling to overall bid factors.

Navigation:

Sourcing > Create Events > Bid Factor Setup

This example illustrates the fields and controls on the Bid Factor Setup page (using a Monetary bid factor type). You can find definitions for the fields and controls later on this page.

 Bid Factor Setup page (using a Monetary bid factor type)

The bid factors that you create on the Bid Factor Setup page become available to be used in any sourcing event.

You can also create ad hoc bid factors—specific to an event—when you create the event. An ad hoc bid factor is valid only for the event in which you create it and is never available for other events.

Field or Control

Description

Price Bid Factor

Indicates that this bid factor is used as the line bid price factor on events. Only one bid factor per SetID can be a price bid factor. Selection enables you to enter price components. This check box becomes available only for bid factor types of Monetary.

Note: You must have a price bid factor for auction and RFx events.

Bid Factor Types and Available Fields

This table lists the fields that are available depending upon which bid factor type is selected:

Bid Factor Type

Available Fields

Cost Option (Factor Cost Based on Field)

Attachment: If a bid factory response is required, then the bidder must provide an attachment in the response.

Bid Price: Based on per unit

Bid Quantity: Based on per unit

NA

User Defined: Based on total cost

Date: All calculations are based on the number of days between the best, worst, and bidder's response.

Currency: Required if you are assigning a cost contribution

Best (date)

Worst (date)

Bid Price: Based on unit cost

Bid Quantity: Based on per unit

Cost Range: Based on per unit or total cost

NA (not applicable)

User Defined: Based on total cost

List: All calculations are based on the cost associated with the selected list response. If multiple selections are allowed, the cost is the sum of the costs associated with selected list responses.

In the List Items group box:

  • List Items

  • Weighting

  • Unit/Flat Cost: Appears if you selected to factor in costs.

Currency: Required if you are assigning a cost contribution.

Ideal: (Optional) Indicate the ideal response in this free-form field.

Allow Multiple Selections: You can allow bidders to select multiple list items.

Bid Price: Based on per unit

Bid Quantity: Based on per unit

Fixed Cost: Based on total cost

NA

Monetary: Calculation is based on the bidder's response to the monetary bid factor. The system applies monetary costs per unit or total cost.

Currency: Required if you are assigning a cost contribution

Best

Worst

NA: Based on per unit or total cost

Numeric: All calculations are based on the difference between the best, worst, and bidder's response.

Currency: Required if you are assigning a cost contribution

Best

Worst

UOM (unit of measure)

Bid Price: Based on per unit

Bid Quantity: Based on per unit

Cost Range: Based on per unit or total cost

NA

User Defined: Based on total cost

Text: Calculation is based on the cost specified by the user during bid analysis.

Ideal

Bid Price: Based on per unit

Bid Quantity: Based on per unit

NA

User Defined: Based on total cost

Yes/No: Calculation is based on what the Ideal response should be. If the ideal response should be Yes, and the bidder responds Yes, then the cost is based on the Best Cost value. If the bidder responds No, then the cost is based on the Worst Cost value.

Ideal group box:

  • Yes

  • No (default value)

Ideal

Currency: Required if you are assigning a cost contribution

Bid Price: Based on per unit

Bid Quantity: Based on per unit

Fixed Cost: Based on total cost

NA

Use the Bid Factor Setup page (BID_FACTOR_PNL) to specify the attributes of the bid factor.

Assign total cost modeling to overall bid factors.

Navigation:

Sourcing > Create Events > Bid Factor Setup

Cost Contribution

Field or Control

Description

Factor Cost Based on

Select a value to use as a basis to factor the cost.

  • Bid Quantity: The system calculates the cost based on the bidder's bid factor response and maximum bid quantity using the following formulas:

    For Numeric and Date bid factors: ((Absolute Value of (Bidder's response − Best Response) × Cost Contribution × Maximum Bid Quantity) = Total Cost

    For Text ID factors: Unit cost entered during analysis × Maximum Bid Quantity

    For List bid factors: Selected list items Unit Cost x× Maximum Bid Quantity

    For Yes/No bid factors: Bid Factor Response Unit Cost x Maximum Bid Quantity

  • Cost Range: The system calculates the cost based on the bidder's bid factor response for numeric or date bid factors using this formula:

    (((Bidder's Response − Best Response) x ((Worst Cost − Best Cost) / (Worst Response − Best Response)) + Best Cost))) = Total Cost

    If the cost is applied per unit, the total cost will be multiplied by the maximum bid quantity.

  • Bid Price: The system calculates the cost based on the bidder's bid factor response, maximum bid quantity, and unit bid price using the following formulas:

    For Numeric and Date bid factors: ((Absolute Value of (Bidder's response − Best Response) × Cost Contribution × Unit Bid Price × Maximum Bid Quantity) = Total Cost

    For Text bid factors: Cost Contribution x Bidder's Unit Bid Price x Maximum Bid Quantity

    For List bid factors: Selected list items Unit Cost x Bidder's Unit Bid Price x Maximum Bid Quantity

    For Yes/No bid factors:Bid Factor Response Unit Cost x Bidder's Unit Bid Price x Maximum Bid Quantity

  • Fixed Cost: The system calculates the cost based on the bidder's bid factor responses using the following formulas:

    For List bid factors: Sum of the flat costs associated with the selected list items

    For Yes/No bid factors: If the bidder responds with the Ideal response, then the best cost is used. If the bidder does not respond with the Ideal response, the worst cost is used.

  • N/A: A cost contributor does not apply for this bid factor.

    This is the default value.

  • User Defined: The user enters a cost during analysis.

Apply Cost

Select Per Unit or Total Cost. This field is available only with Cost Range. For Per Unit, the system calculates the cost by multiplying the bidder's response by the maximum bid quantity to determine a total cost.

Note: You can designate a cost as a credit by entering a - (hyphen) in front of the cost value. For example, if you want to give a bidder a $5,000 credit if the bidder is ISO-certified, you can enter a value of -5,000 in the Best Cost field for that bid factor. If the bidder responds Yes to the question, the bidder will receive a $5,000 credit, which will lower the bidder's total cost.

Access the Bid Factor Setup page using the price bid factor.

Field or Control

Description

Price Bid Factor

Indicates that this bid factor is used as the line bid price factor on events. Only one bid factor per SetID can have this indicator set to yes. When this option is selected, it enables entering price components.

Component

Enter a price component such as material, labor, tax, or profit. Enter price components only if you want bidders to specify the components for their bids. You can assign an unlimited number of components to the price.

UOM (unit of measure)

(Optional) Enter a UOM for each price component.

Weighting

Assign the weighting for this component. This can be used during analysis to determine the importance of each component on bids. The sum of the weighting for all price components must total 100 percent.

Use the Assign Business Units and Departments to Bid Factor page (BID_FCTR_BUDEPT) to assign bid factors to business units or departments to facilitate searching.

Navigation:

Click the Assign Business Units and Departments link on the Bid Factor Setup page.

This example illustrates the fields and controls on the Assign Business Units and Departments to Bid Factor page. You can find definitions for the fields and controls later on this page.

 Assign Business Units and Departments to Bid Factor page

Select the business units and departments to which you want to assign bid factors.

Use the Assign Defaulting Rules to Bid Factor page (BID_FACTOR_LINE) to assign a default rule based on item ID, item category, price, or quantity to the bid factor.

Navigation:

Click the Assign Additional Defaults and Rules link on the Bid Factor Setup page.

This example illustrates the fields and controls on the Assign Defaulting Rules to Bid Factor page. You can find definitions for the fields and controls later on this page.

 Assign Defaulting Rules to Bid Factor page

You can assign default bid factors based on item categories, item IDs, line quantity, line start price, line extended price, or any combination of defaults. The system provides bid factor as a default when an event line meets any of the criteria that you set here.

You can assign default bid factors to the event header or to the applicable line.

You can set unique weightings at the rule level that differ from the weightings that you set at the overall bid factor level. These weightings override the weighting that you enter at the overall bid factor level.

You can also add total costing to bid factors by using the Cost Contribution group box on this page.

Cost Contribution

Use this group box to assign total cost modeling to the specific bid factor rule.

See Bid Factor Setup Page.

Example

Consider a bid factor for warranty. At the overall bid factor level, you set a best to worst range of two to five years. You then create two separate rules and assign the bid factor to two categories:

  • Hardware category, for which you set a best to worst range of two to six years.

  • Equipment category, for which you set a range of five to ten years.

After bid factors are assigned to categories, you create an event with an item from the hardware category:

  • All bid factors that are associated with the hardware category are automatically added to the event.

    You can delete any that are not relevant to the new event, or add more that are.

  • These bid factors display the ranges that are related to that category; for this example, the range is two to six years for the warranty bid factor.

Use the Assign Response Query to Bid Factor page (BID_FCTR_QRY) to associate queries with bid factors to automatically populate bid factor responses based on the query results.

Navigation:

Click the Assign Response Query link on the Bid Factor Setup page.

This example illustrates the fields and controls on the Assign Response Query to Bid Factor page. You can find definitions for the fields and controls later on this page.

 Assign Response Query to Bid Factor page

After creating a query by using PeopleSoft query and associating it with a bid factor, you can test the query to ensure that it runs properly within the bid response application.

The Bidder Setid, Bidder ID, Bidder Type, and Bidder Location fields are used as query bind variables. The system uses the Query Result field to display test query help and query results.

Field or Control

Description

Bidder Type

Select a value to be used for the query:

  • Bidder

  • Customer

  • Public

  • Supplier

Test

Click to test the query against the query bind variables.

Use the Assign Contract Clauses page (BID_FCTR_CLAUSE) to (Optional) Associate clauses with bid factors.

Navigation:

Click the Assign Clauses link on the Bid Factor Setup page.

This example illustrates the fields and controls on the Assign Contract Clauses page. You can find definitions for the fields and controls later on this page.

 Assign Contract Clauses page

Bid Factor Clauses

Contract clauses are defined on the Clause Definition page (Supplier Contracts > Manage Contract Library > Clause Definition

See Understanding Contract Agreements.

Field or Control

Description

Clause ID

Select a clause to add to the bid factor.

Look up Clause ID icon (Look up Clause ID icon)

Click the Look up Clause ID icon to display a list of valid clauses. This display lists the clause ID, description, and title of the clause.

Search

Leave the Clause ID field blank and click this button to retrieve all valid clauses. This search provides you with more details associated with the contract clause such as SetID, approval status, or date ranges. This more complex search is discussed in the Searching for Contract Clauses or Viewing Where-Used Information section subsequently.

Full Text

The system displays the text associated with the contract clause to the sourcing bidders.

By Reference

The system displays only the reference text associated with the clause to the sourcing bidders.

View Dependent Clauses

Click to view any dependent clauses.

Note: Dependent clauses cannot be transferred onto awarded contracts.

Searching for Contract Clauses or Viewing Where-Used Information

Use the Select a Clause page (CS_CONTENTS_SEARCH) to search for clauses to be associated with bid factors.

Navigation:

Select By Reference Text and then click the Search button on the Assign Contract Clauses page.

This example illustrates the fields and controls on the Select a Clause page. You can find definitions for the fields and controls later on this page.

 Select a Clause page

Field or Control

Description

Clause Attributes

Enter or select fields to narrow the search criteria such as clause ID, approval status, or created by.

Search

Click to retrieve clauses that meet the selected criteria.

Where Used Search

Click to view where clauses have been used.

Select

Click this button to select the contract clause that you want to associate with the bid factor.

OK

Click to return to the Bid Factor Setup page.

Use the Assign Contract Agreements page (BID_FCTR_AGRMNT) to assign contract agreements to bid factors.

Navigation:

Click the Assign Response Query link on the Bid Factor Setup page.

This example illustrates the fields and controls on the Assign Contract Agreements page. You can find definitions for the fields and controls later on this page.

 Assign Contract Agreements page

Note: Contract agreements are defined on the Contract Agreement Definition page (Supplier Contracts > Monitor and Update Agreements > Set Up Agreements > Contract Agreements).

See Understanding Contract Agreements.

Field or Control

Description

Agreement Code

Select the agreement code to assign to the bid factor. Click OK to add the agreement to the bid factor and to return to the Bid Factor Setup page.

Note: Only those agreement codes with the same type as the bid factor are retrieved. For example, a date bid factor returns only those agreement codes that have a date type.