Don’t Bid Too Low for a Contract.

Low bidding is is the oldest tricks in the procurement book. Many firms believe that the lowest bid will be the most attractive, even in a best-value proposal. However, that lowest-of-the-low bid is a red flag to government officials. They know immediately when a low bid is unrealistic and that the company is expecting to cover its costs later in the process with supplemental billings—or worse, that a company does not realize that its bid is so low that it cannot possibly deliver the contracted goods or services for that amount of money. Either way, the absurdly low bid has no value in a best-value contract. #RGFCCTrainingUp courses  will help ensure that all costs are covered to avoid a loss on a low bid effort.

Bidding too high for a contract. Again, the government must apply the best-value criterion to a contract that is to be awarded on that basis. So, a bid that tops the dollar list may offer a lot for the money, but it may be more than what the government is seeking. Companies should not gold plate a Harley-Davidson when the government is looking for a simple bicycle. “RGFCCTraining up” will help flush out the government’s intentions and allow a reasonable price to be generated.   

Bid exactly on the budgeted amount.  Government officials are not fooled when a company’s bid matches the amount that is budgeted for the RFP item. An unrealistic bid stands out under scrutiny, especially when a company is pricing at a budget line for a technical capability that will cost more than that existing line amount. This is another form of lowballing; only the bidder is hoping to get its foot in the door by using the government’s own figures. So, the government officials will know when a budget figure is not a realistic amount for a contract, and a company that incorporates that same figure in its bid is putting its offer in the same category—unrealistic.

Given all these pitfalls, a good bid is one that can be defined clearly and is shown to be realistic and a good value. “RGFCCTraining up”” will address this issue head-on. 

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