The request for quotation procedure and the market survey are therefore not merely administrative obligations. Proper documentation may be a fundamental condition for ensuring that the procurement cost is eligible for reimbursement under the project.
Document every step
The request for quotation procedure must remain transparent and traceable even after it has been completed. It is therefore not sufficient to retain only the quotation submitted by the selected supplier: the entire process must be documented.
Depending on the requirements of the relevant funding scheme, an inspection may require, among other documents:
- the requests for quotation;
- emails confirming that the requests were sent;
- the quotations received, which must be technically and professionally comparable;
- correspondence confirming receipt of the quotations;
- a document containing the evaluation or summary of the quotations;
- a detailed justification for the selection;
- and evidence that the bidders were notified of the outcome.
The documents must also be consistent with one another. The technical content, quantities and prices set out in the request for quotation, the quotations, the evaluation, the purchase order and the contract must not differ without proper justification.
Quotations or a market survey?
The method used to demonstrate that the price reflects market conditions may vary from one funding scheme to another. Some calls require quotations from several independent suppliers, while in other cases the planned cost may also be supported by a detailed market survey.
Quotations are usually subject to both formal and substantive requirements. Compliance can be facilitated by using a pre-prepared request for quotation and quotation template containing all necessary information and technical specifications.
In the case of a market survey, it is not sufficient merely to state that the beneficiary examined several potential suppliers. The actual steps of the survey must be presented, including, for example, the manufacturers’ and distributors’ websites reviewed, online references, catalogues, professional publications or the method of direct contact. The decision in favour of the selected supplier or product must also be justified in detail.
Ensure that the quotations are comparable
One of the most common difficulties is that applicants are unable to obtain quotations with completely identical technical content. In the case of specialised machinery, customised developments or complex IT systems, it may indeed happen that several solutions with exactly the same specifications are not available on the market.
However, the quotations must at least be comparable from a technical and professional perspective. This means that they must perform the same or a closely similar function and must be suitable for achieving the same project objective.
Where the technical content of the quotations differs, the differences must be clearly presented during the evaluation. It is advisable to compare separately, for example performance and capacity; accessories and additional services; delivery and commissioning conditions; warranty terms and service support.
The selection must also be justified
The documentation must also clearly show the criteria on the basis of which the beneficiary selected the winning quotation.
Where the lowest-priced quotation is selected, it must be verified that its technical content genuinely meets the project requirements. Where the selected quotation is not the lowest-priced one, it is particularly important to explain in detail why the higher price is justified.
Acceptable considerations may include more favourable technical specifications, a longer warranty period, a shorter delivery deadline, compatibility with existing systems, suitable service support or lower operating costs. The justification must, however, always be specific and linked to the professional needs of the project.
Even where there is an exclusive manufacturer or distributor, it should not automatically be assumed that no further supporting evidence is required. The treatment of such cases and the range of acceptable documents must also be checked against the requirements of the relevant funding scheme.
Survey and document the market
Demonstrating that the price reflects market conditions is not optional; it is one of the fundamental requirements for the proper use of grant funding. However, the exact method of justification may vary from project to project, and documentation used in a previous funding application should therefore not be reused automatically.
A sound procedure is based on the beneficiary checking the applicable requirements before starting the procurement, documenting every step in a timely manner, and being able to support the selection decision from technical, professional and economic perspectives.
An incomplete or inadequately documented procedure may jeopardise the eligibility of the related cost and may also result in an irregularity investigation. Instead of attempting to replace missing documents retrospectively or reconstruct earlier decisions, the request for quotation procedure should therefore be structured transparently and consistently from the outset.
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