|In general, any Solicitation document, no matter the procedure, will contain:|
|What is Required|
|Instruction to suppliers|
|The applicable Terms and Conditions|
Contracts with suppliers - Material specifications included in contracts will legally hold vendors to the standards set by their bids. The material specifications in contracts should match the specifications provided in the bid process.
Instructions to third-party inspection companies - Once a vendor is selected, and a contract agreed upon, third-party inspection companies can be used to test products against the contracted material specifications. Inspection companies may use visual inspection or laboratory testing to confirm all material specifications are met. Many agencies prefer to receive prototype samples of items prior to the final order, and conducting inspection at multiple points throughout the entire process. Purchasers may also chose to withhold payment until the final inspection is complete.
- Visual Inspection – If a vendor supplies prototype sample prior to final delivery, organisations or specialists may wish to visually inspect and test the product, either at the vendor premise or at another off-site location.
- Laboratory Testing – In addition to visual inspection, agencies may wish to employ third-party laboratory testing. Lab testing may include testing for chemical composition (for durable construction materials or for pharmaceuticals), may test against pre-defined ISO standards (such as flame retardancy of NFIs) or even the quality of food stuffs.
- Third-Party Inspection – Many agencies wish to employ third-party inspection companies to carry out quality assurance. Third-party inspection companies will generally conduct lab and visual product testing, but may also visit suppliers' warehouses and production facilities throughout the production process to ensure full compliance. Organisations that utilize third-party inspection services may want to include the obligation of suppliers to allow third-party inspection companies into production sites without advanced notice to enhance the randomness of the process.
- Provision of Certification – Simpler than conducting independent laboratory testing, suppliers may be asked to produce certificates indicating conformity or quality. Typically, this pushes the cost and complexity of laboratory testing onto the vendor, but may also lead to forgery or fraud as the inspection process is out of the hands of the procuring agency.
- Fraud is defined as any intentional act or omission, designed to harm others, with the result that the victim suffers loss or damage and / or the perpetrator makes a profit.
- Corruption is the misuse of a power entrusted by delegation, for private purposes, such as personal enrichment or that of a third-party, a friend, a family member. It consists of refraining from doing, facilitating something, or taking advantage of its function in exchange for a promise, a gift, a sum of money, or advantages of various kinds.
- Misappropriation consists of the theft or misuse by any means of a resource or material owned by a third-party.
We can place these three at the same level - they are all improper conduct. This guide will refer to fraud and anti-fraud policies when referring to all three of the aforementioned categories. To deal with fraud, it is necessary to for organisations establish an anti-fraud policy document. Likewise, the entity must periodically assess the exposure to the risk of fraud.