Does anyone have some good arguments on why low price is not always the best deal when trying to win a maintenance contract with local government. We currently do the work for them, but it will be coming up for bid. Thanks
Much of it depends on your local government, but in some places, governmental agencies are required by law to go with the low bid that meets specs. It is not the cheapest propsal on the table, but the cheapest that meets all requirements.
Good Luck
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To get the most from your Tek-Tips experience, please read FAQ181-2886 As a circle of light increases so does the circumference of darkness around it. - Albert Einstein
Knowledge and understanding of organization and business process.
That "price is only an issue in the absence of value."
Specialized knowledge means that work is re-done less often, performed quicker/better the first time, and is more closely aligned with true - value-added objectives.
Having helped a company develop their government consulting approach and client base, I understand the dillemma.
Check with the government office that's issuing the bid. They probably publish the selection criteria which should include definitions or at least narrative descriptions. My experience is that the low bid can still lose if the government believes that the low bidder won't be able to complete the contract, e.g., the vendor isn't credible based on past performance, the vendor hasn't provided enough comfort that it will meet the specifications or time frames, or simply fear by the government that the vendor won't be in business long enough to perform the full contract. Good luck.
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