Aggregation refers to an approach to procurement where the procuring party looks to aggregate goods and services (perhaps collaborating with other parties) so as to seek a better price given the ensuing economies of scale.
A step by step mathematical process.
John McCarthy of Stanford answered this in detail and we provide a summary of questions and answers that help define what is meant by artificial intelligence. Q. What is artificial intelligence? A. It is the science and engineering of making intelligent machines, especially intelligent computer programs. It is related to the similar task of using computers to understand human intelligence, … Read More
An auction is a process for buying goods and services where bids are required.
On the completion of a successful tender an award is made to the winning supplier.
A bid is a price offered by a participant in an auction.
It is a fraudulent form of bidding where a number of parties collude by agreeing on a winner (rather than letting the market determine the winner). Other parties may enter bids in an attempt to create the illusion of a competitive bid when it is anything but.
Entering prices and discounts into a system.
Individual contracts can be awarded within the context of a framework agreement.
It is an explicit agreement amongst firms that would otherwise be in competition. It typically occurs in market structures where duopolies or oligopolies are prevalent.