Usage Guidelines
THE FOLLOWING WEB SITE USAGE GUIDELINES apply to you and any authorized person of your company who has a user account for Procuri.com. These Guidelines and the User Agreement apply to both Buyers and Suppliers who intend to use the Procuri.com web site. These Usage Guidelines apply each time that you use the Procuri.com web site. When a User completes a User Registration on behalf of his or her company, the company accepts and agrees to be bound by these Usage Guidelines. These Usage Guidelines may be changed at any time without notice to individual Users. Consequently, it is the responsibility of each user to read the Usage Guidelines on a regular basis to review and accept any changes to these Guidelines. Failure to comply with these Usage Guidelines will result in the company or their representative users or both losing the privilege to use the Procuri.com web site.
The Procuri.com web site accommodates two different auction formats. The first is the Standard Reverse Auction format. If the Buyer elects to utilize this format, Suppliers bid progressively lower prices to supply a pre-defined quantity of goods or services. The second format available on the Procuri.com web site is the Standard Bid/Ask Auction format. In this format, Suppliers can bid higher or lower prices based on market conditions and update or cancel there bid at any time. Buyers will identify which of these two formats they have selected in the RFQ which will be communicated to the invited and approved Suppliers. In “Accepting” the User Agreement on the Procuri.com web site which incorporates these Usage Guidelines by reference, Users (both Buyers and Sellers) are agreeing to the Guidelines relevant to the format chosen and identified by the Buyer in the RFQ for a specific procurement contract.
1. Company Registration
Procuri.com is reserved for use by companies. Access to the web site by a company is permitted after Procuri receives and approves the company's registration information. Individuals or consumers are free to visit the public portions of the web site. However, only registered companies will be allowed to use and engage the services of the Procuri.com web site.
2. Company Master User
Assuming the company registration is approved, Procuri will create a master user account for the company. The newly registered company must then designate an individual representative to be given the master user login credentials. The master user is responsible for establishing and maintaining user accounts on behalf of the company.
3. Company Users
The master user for each company establishes individual user accounts. Each user must have his/her own login ID and password to access Procuri.com. The company as well as each individual user are responsible for ensuring that no user has access to the user ID and password of another user within the company. Only persons or organizations that purchase or supply goods and services for corporate use may register as a user of Procuri.com. Each authorized user that is established by the company to transact business on Procuri.com accepts and agrees to be bound by these Usage Guidelines as well as the User Agreement found elsewhere on the web site. It is the responsibility of the company to make each of its users aware of these Usage Guidelines and the User Agreement to which they are all bound. It is the company's responsibility to monitor usage of the web site by its authorized users to verify that these Usage Guidelines and the provisions of the User Agreement are followed. If the company identifies an infraction by one of its users the company is responsible for disabling the user's account immediately and for notifying Procuri.
4. Authority to Bind
The individual who submits the registration on behalf of the company represents that he or she has the authority to bind the company to these Usage Guidelines and the User Agreement. The individual who operates the master user account shall also have the authority to bind the company for the purpose of entering into agreements with Procuri.com and with other Users of the web site. The master user maintains privileges for users allowing them to create Requests For Quotations (RFQs) and submit bids. The master user shall only provide these privileges to those users who have the authority to bind the organization to purchase or sale transactions. Other users authorized to use the system but not conduct transactions may be given viewing privileges.
5. Item Specifications
Item specifications may be used once or reused for multiple RFQs. Master items may be stored on the web site which include attached documents (i.e. MS Word or Excel). In addition, certain descriptive fields may be used to store item information. The Buyer is responsible for completely and accurately describing the item(s) that form the subject of the RFQ.
6. Approved Suppliers
Buying companies invite their approved suppliers to submit bids for RFQs. Only invited suppliers are provided access to view RFQs or submit bids. Buyers are responsible for approving their invited suppliers. Buyers are able to register suppliers on Procuri.com by completing an online form containing the supplier's name, contact name, email address, mailing address and telephone number. The supplier is contacted automatically via email and notified that they have been invited to participate in online RFQ bidding. The supplier is required to complete their online registration and must accept Procuri's User Agreement, Usage Guidelines and Privacy Policy. Once the registration is complete, the supplier is given a User ID and Password to access the web site.
7. RFQs
Buyers will place Request for Quotations (RFQs) with attached item specifications. (See Item Specifications) The RFQ constitutes an invitation to submit a bid and is accessed online by the Suppliers who have been invited to take part in a particular RFQ (See Approved Suppliers). Only invited suppliers are able to bid or view RFQ data. There are two types of RFQ’s: Standard Reverse Auction and Standing Bid/Ask. The operation of these are described below.
7a. Standard Reverse Auction RFQ
Within the Standard Reverse Auction RFQ, the Buyer establishes the parameters of the bidding process. These parameters include, but are not limited to: (1) RFQ post time; (2) open bid time; (3) close bid time; (4) extended bidding period and (5) whether proxy bids will be accepted. A bid by a Supplier is considered to be an offer to enter into a contract for the subject goods or services. If a bid is received which is below the reserve price, then upon the close of the bid period, it is considered that there has been an offer and acceptance and a legal contract for the purchase and sale of the goods or services is created. If the Buyer elects not to set a reserve price, then the Buyer is obligated to select a winner (or a winner is automatically selected under the automatic close option) at the close of the open bid time. At that time, a binding contract is created between the Buyer and the winning Supplier.
7b. Standing Bid/Ask Auction RFQ
Within the Standing Bid/Ask Auction RFQ, the Buyer establishes the parameters of the bidding process. These parameters include, but are not limited to: (1) RFQ post time; (2) open bid time; and (3) close bid time. The extended bidding period is not applicable for this format. Proxy bids are also not accepted for this format. The buyer places a standing offer to purchase that includes the specifications goods or services. Invited suppliers are able to submit bids to supply the subject goods or services. A bid by a Supplier is considered to be an offer to enter into a contract for the subject goods or services. At any time after the bid is placed, the buyer has the right to accept or reject the suppliers offer. The buyer is under no time restrictions to either accept or reject a bid. The Supplier has the right to withdraw their bid from consideration at any time prior to the Buyer’s acceptance of the bid. If the Buyer elects to accept the bid price it is considered that there has been an offer and acceptance and a legal contract for the purchase and sale of the goods or services is created. At that time, a binding contract is created between the Buyer and the winning Supplier. Shipment terms are decided upon by the Buyer and the winning Supplier.
8. RFQ Post Time
The Post Time is when the RFQ is posted to the web site and it is available for viewing by invited suppliers.
9. Open Bid Time
The Open Bid Time is the period during which invited suppliers are able to submit bids.
10. Close Bid Time
The Close Bid Time is when the bidding period is scheduled to close. The actual close time will depend upon whether the Buyer has established in the RFQ that the Close Bid Time is subject to any extensions due to bidding activity. (Also see Extended Bidding Period.) Only bids made prior to the Close Bid Time will be considered. No consideration will be given to bids submitted after the RFQ bidding period closes.
11. Reserve Price (Standard Reverse Auction Format Only)
The reserve price is only applicable to the Standard Reverse Auction RFQ described above. In a Standard Reverse Auction RFQ, the reserve price represents the maximum price the Buyer will agree to pay. If the Buyer has elected to set a Reserve Price, but no bid is received during the Open Bid Time which is below the Reserve Price, the Buyer is entitled to declare the RFQ closed with no winner and there is no contract for the sale of goods or services consummated.
12. Extended Bidding Period (Standard Reverse Auction Format Only)
When the Buyer creates an RFQ, they may specify that the Open Bid Time is extended automatically if bids are received too close to the Close Bid Time. This establishes a requirement of a "Quiet Period." The Quiet Period is defined as the time between the last bid received and the Close Bid Time. The buyer specifies the length of the quiet period, the amount of time by which the Open Bid Time may be extended and the maximum number of extensions that may be granted. When a bid is received during the quiet period, the bidding period is extended from the time the last bid was received by the amount of the extension.
13. Proxy Bid (Standard Reverse Auction Format Only)
When the Buyer creates an RFQ, they indicate whether Proxy Bids will be accepted. The Proxy Bid is an individual Supplier's lowest bid they intend to make. When Proxy Bids are accepted, the Supplier submits their lowest possible bid to the web site and the web site bids for them. The system will submit the highest bid that also retains a winning position. Each time the Supplier is outbid, a lower bid is submitted on their behalf until the Proxy Bid is reached. The value of a Supplier's Proxy Bid is not disclosed to Buyers.
14. Bid Increment
The Buyer sets the bid increment.
15. Events
Buyers and Suppliers are able to receive Event notifications via email. Users subscribe to receive Event notifications in their user profile. Suppliers are able to receive notifications when they (1) have been invited to an RFQ; (2) when another Supplier has outbid them; (3) when they have won an RFQ and (4)when they have lost an RFQ. Buyers are able to receive notifications (1) when bids are received and (2) when an RFQ has closed and after the winner is chosen.
16. Currency
All bids must be in the legal currency of the United States of America.
17. Withdrawing Bids
In a Standard Reverse Auction RFQ, no bid may be withdrawn after it is made. In a Standing Bid/Ask RFQ, suppliers may withdraw their bid at any time up until the time it is accepted by the Buyer.
18. Withdrawing RFQs
RFQs may be rescinded up until the point when the bidding period begins.
19. Winner Selection
Winners are chosen automatically by the system or manually by the Buyer. When the Buyer creates an RFQ, they indicate how the winner will be chosen. When automatic selection is used, winners are chosen based on the lowest bid price. If the lowest bidder does not bid for the full RFQ quantity, the balance is automatically assigned to the next highest bidder. Assignments are made to successively higher bidders until the full RFQ quantity is allocated. When winners are chosen manually, buyers select winners according to their own evaluation criteria. Buyers may choose multiple winners and assign a unique quantity to each.
19a. Winner Selection in a Standard Reverse Auction RFQ
Winners are chosen automatically by the system or manually by the Buyer. When the Buyer creates an RFQ, they indicate how the winner will be chosen. When automatic selection is used, winners are chosen based on the lowest bid price. If the lowest bidder does not bid for the full RFQ quantity, the balance is automatically assigned to the next highest bidder. Assignments are made to successively higher bidders until the full RFQ quantity is allocated. When winners are chosen manually, buyers select winners according to their own evaluation criteria. Buyers may choose multiple winners and assign a unique quantity to each.
19b. Winner Selection in a Standing Bid/Ask RFQ
Buyers are able to accept or reject any and all bids. Buyers are able to select winners according to their own evaluation criteria. Buyers may choose multiple winners and assign a unique quantity to each. Buyers are also entitled to accept a bid for less than the full quantity bid by a prospective Supplier.
20. Offer in Good Faith
Users may use Procuri.com only if they intend, in good faith, to conclude transactions through the Procuri.com web site. Should Procuri determine that a User is using the web site in a manner inconsistent with this requirement, we reserve the right to revoke that user's registration.
21. Accuracy of Information
Procuri.com is a conduit for passing information between Buyers and potential Suppliers. Procuri does not assist in the creation or review of information that is passed between parties.. Therefore, Procuri does not warrant the accuracy of information obtained on the web site. Each party is responsible for providing accurate and complete information. It is the responsibility of the parties to resolve disputes regarding information exchanged among one another.
22. Price Manipulation
Buyers and/or Suppliers may not artificially manipulate the price of a transaction by any means. It is unacceptable to place bad faith bids, to use shills in the RFQ bidding process or to collude between a Buyer and any Supplier or Suppliers with the intent or effect of hampering the competitive bidding process. This is not intended to be an exhaustive list. Rather, Procuri retains the right to determine whether inappropriate bidding activity has taken place. |
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