Issue link: http://psai.uberflip.com/i/1029836
W EEKLY EDITION SEPTEMBER 19, 2018 The Art of Bidding: Understanding the Process KOS CONTINUED FROM PAGE 7 • An advertisement, or solicitation, for bids is published • Qualified contractors — i n this case, portable sanitation companies — receive and review the procurement documents (sometimes requiring payment of a deposit or non - refundable fee) • If interested, prospective bidders attend a meeting and tour the construction or event site • If necess ary, potential contractors solicit bids from subcontractors and suppliers • After estimating costs, contractors submit sealed bids • Bids are announced and/or read privately at a specified time • Winning bids are chosen, typically based on the lowest " responsibl e" bid What is a "r esponsible b id?" A responsible bid is one in which all of the factors involved in the project are adequately accounted for. In other words, the lowest bid will not win the contract if it is unrealistically low and either compromises the project or eventually will cost much more. Some government entities are required to accept the lowest bid, however unrealistic or irresponsible, and if that is the case you may feel it isn't worthwhile to bid for the job. If you do bid and really want the contract, bid at a level that is low but sustainable for your business. Then if you lose the contract, it is probably just as well. You couldn't have afforded to win it anyway. One way to demonstrate what a "responsible" bid looks like is to include or quot e from the PSAI's literature in your materials. While you cannot make it appear that the PSAI endorses your company, you can leverage your membership to show your company's commitment to quality by attaching or quoting from the Code of Excellence. You can also demonstrate how the number of units and frequency of service you are suggesting are supported by independent data. Be aware that som etimes the company or government entity can and will choose a competitor's "responsible" bid that is so low you KNOW the competit or is losing money. There is nothing illegal about bidding under cost, though it is certainly not a sustainable business strategy. If your competitor chooses to do that, and the organization or government entity deems it is a "responsible" bid, your compet itor will get the business at least in the short run. The best thing you can do at that point is keep an eye on the situation and, when quality and service begin to be a problem, be ready for next time. It's also wise to build relationships with the decis ion - makers and decision - influencers so that they are better informed about our industry and its cost - drivers before they make a future decision. By then they will know you and your company, improving your chance of success on the next go round. -- kk P AGE 9