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Note: This is a fairly long article, but well worth the read.
We recommend you take the time to review this artcile before beginning
your selection process.
Like Qualification-Based
Selection, bidding takes a variety of forms. One of the most common
methods of choosing a design professional is to select one out of
the yellow pages.
While GeoDatum, Inc. advertises in the
Yellow Pages, this is by far the riskiest and least effective means
of obtaining any professional service; the yellow pages alone will
not give the client any means of establishing a firm's qualifications
or past history. Additionally, there are typically too many firms
presented to make it reasonable to call them all and request a bid
and qualifications. Our goal in the yellow pages is to get you to
our website where you can learn more about our company, services
and qualifications. We recommend that you look for others that make
the same information available to you as you begin your search for
a consultant.
Some clients
merely prepare a one- or two- page description of what they think
they need and ask firms to submit bids without a technical proposal.
These clients assume that, since all those submitting bids are licensed
professionals, they all will all produce acceptable results. The
resulting surveys will all meet State mandated minimum technical
requirements, but different consults will not all produce the same
end product. Also, some types of work require specialized experience
that not all firms can be assumed to have. GeoDatum, Inc. will not
be well suited for every project either, that is why we present
our background and qualifications for you here to review before
contacting us.
A bid system
is fraught with problems. While far from exhaustive, the following
list outlines the major problems with a bid only system:
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Bidding
eliminates in-depth client/consultant discussion before the proposed
scope of service is developed. The typical problem with a straight
bid vs. a qualification/fee proposal process is that firm representatives
are not encouraged to point out hidden flaws or innovative approaches
because doing so could cause them to lose a competitive advantage.
As a result the firms are not bidding on the same thing and the
results can be misleading. If a client has overlooked some task
or the consultant assumes that the client doesn't want something,
the bidder can lower his fee and enhance his firm's competitive
position while covering his assumptions in the contract language.
Bidders may not ask questions about such issues, because doing
so could alert their competitors to the oversight and cost them
the edge in completing the work cheaply. This aspect of bidding
encourages professional firms to work against their clients from
the outset of a project. QBS encourages the opposite behavior:
with QBS, firms gain advantage by demonstrating competence, attention
to detail and the ability to provide sound guidance.
-
Bidding
de-emphasizes personal qualities and client/consultant relationships.
Bidding rewards the firm offering the best combination of technical
merit (based on the technical proposal) and fee. Face-to-face
or phone discussions are seldom used and have little or no influence
on the outcome.
-
Bids proposals
are each based on a scope of service developed unilaterally by
a client with input from the consultant, or unilaterally by a
consultant without input from the client. Each such scope unavoidably
must incorporate a variety of assumptions about the client's or
consultant's goals, needs, preferences and risk tolerances, among
other vital concerns. Assumptions give rise to misunderstandings
and unrealistic expectations, problems that can quickly lead to
deteriorated relationships, delays, change orders, cost over-runs
and disputes.
-
Bidding
can encourage the most qualified firms to offer a cheap service.
These firms assume that, when similar competitors are bidding,
all will receive evaluators' maximum credit for past experience,
current capabilities, and other elements of their technical proposals.
As such, the only variable will be fee. The smaller the fee, the
better; and the cheaper the proposed service, the smaller the
proposed fee can be. Eventually, the most qualified and capable
firms will decline opportunities to bid projects and will look
for other work rather than provide a service for a fee not comensurate
with their level of service.
-
Some clients
are particularly hard-nosed and insist that a given service be
provided at no extra cost even if that service was not included
in the bid. Situations such as these undermine relationships and
can encourage weak-willed firms to take quality-eroding shortcuts
in order to reduce their short-term losses. The problem is far
more common when bidding is used, because bidding encourages firms
to exclude as many services as they can to lower their bids. Bidding
also tends to amplify the impact of the problem, because bidders
often propose a comparatively cheap approach to begin with. Removing
what little quality control cushion was contemplated at the outset
can lead to serious pain for all parties later.
-
Few clients
(other than peer technical professionals) are really in a position
to perform in-depth evaluations of technical proposals and their
impact on life-cycle costs. In addition, even the most detailed
technical proposals - including those developed through QBS -
are subject to interpretation. They cannot possibly include everything,
which is why trust is such an important ingredient in effective
client-consultant relationships. Trust and bidding do not mix.
-
Bidding
discourages technical excellence because the cost of providing
it can make a bid too high. Firms that consistently win projects
by bidding often focus on performing their services quickly, because
less time translates directly into more profit. Going "above and
beyond" in order to please a client is pointless; it merely adds
to costs without improving the firm's chances of obtaining the
client's next project, because that project will be awarded by
bid, too.
-
Bidding
encourages "you-get-what-you-pay-for" attitudes for non-technical
services: responding to inquiries, providing unscheduled progress
reports, dealing with unanticipated situations, and so on. Providing
top-quality customer service is inconsistent with providing bargain
basement prices, like trying to get Nordstrom quality service
at Wal-Mart. While unfortunate, such attitudes are understandable:
no matter how well a consultant serves a client that procures
services by bid, the firm will receive that client's next assignment
only if its bid is low... so why try?
We hope that
this information has been helpful to you. There are many qualified
firms in this area. We want you to find the consultant that meets
your needs, even if it is not GeoDatum, Inc.. If you have any comments
or suggestions, please let us know.
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