How we procure contracts
We work with top Japanese firms to procure a quality supply chain – and help local businesses flourish.
The Asia Pacific region is increasingly becoming one of Saudi Aramco’s major procurement regions – over 1500 suppliers and contractors do business with Aramco in the region, and we have more than 800 in Japan alone.
We’re always keen to forge new relationships with local companies – they help keep our supply chain competitive and innovative.
Over the years we’ve developed an efficient way to approve new suppliers, an 8 step procurement process.
- Step 1 – We issue a Solicitation of Interest (SOI)
- Step 2 – We evaluate skills
- Step 3 – We assess financial capability
- Step 4 – We issue an invitation for Proposal and invite you to a job explanation meeting
- Step 5 – You submit your bid and we evaluate
- Step 6 – We evaluate and clarify your bid
- Step 7 – We award the contract
- Step 8 – We monitor contract performance
Step 1 – We issue a Solicitation of Interest (SOI)
In the SOI, contractors are informed of ARAMCO ASIA's interest in contracting for particular work and ARAMCO ASIA's request for contractors to express their interest in such work or decline with reasons. This is applicable for competitive bidding only.
For sole source procurements, a SOI is not necessary and contractor should expect to receive the Invitation for Proposal package (step 4).
Step 2 – We evaluate skills
After you express interest in a bid, we’ll evaluate your capabilities using the information you provided, including any performance reports from other contracts.
We may also ask for additional pre-qualification or technical proposal information unique to the contract.
Step 3 – We assess financial capability
We run a financial check on your business to ensure you meet our requirements as a partner. Based on our scope requirement, we may request you to submit your latest audited financial statement to us. Rest assured that all financial information is kept strictly confidential.
Step 4 – We issue an Invitation for Proposal and invite you to a job explanation meeting
This is where we meet you to explain the contract, describe the scope of work and answer any questions. If possible, we’ll give you the complete bid package before the meeting, which will give you all the details you’ll need. If appropriate, you’ll be invited to the relevant work site to provide context for the work requirements. Any questions you ask that we don’t have an immediate answer for, or that you ask after the meeting will be answered in writing and communicated to all bidders.
For sole source procurements, a job explanation meeting is not necessary.
Step 5 – You submit your bid and we check it
The bid instructions will clearly specify a bid closing date and time, and tell you how they should be labelled. All bids should be submitted in duplicate. In many cases, we may ask you to submit separate technical and commercial proposals. The information in your bids is kept completely confidential.
Step 6 – We assess and clarify your bid
Once we have gone through the detail of your brief, we may have questions. In that case we’ll ask you to come to a clarification meeting, to ensure that we are both clear that we have a shared understanding of the proposed work and terms and conditions of the contract.
Step 7 – We award the contract and feed back
After careful evaluation, our Bid Review Team makes a recommendation to the appropriate management group for approval. After we have signed the contract, two original copies are presented to the selected bidder for signature. Once a contract has been awarded, all unsuccessful bidders are notified by e-mail. Depending on the project, we may also run a debriefing session for the unsuccessful bidders. If that doesn’t happen you can make a written request within one month to have a meeting to discuss your bid. We recommend you do – it could make all the difference to your next proposals.
Step 8 – We monitor contract performance
The day-to-day delivery of the contract, and ensuring the work complies with all the relevant laws and regulations, is the contractor’s responsibility.
Our contracts provide for the fair and equitable resolution of disputes that may arise. There’s a transparent process for this, including an appeal and, usually also, an arbitration process, which will be highlighted in the contract.