3 ms·
> In contrast, the govt has to use a lengthy fair and open bid process and if they want to select a bid that isn't the lowest, it's a painstaking process to ju
by michaelt 4y ago
> In contrast, the govt has to use a lengthy fair and open bid process and if they want to select a bid that isn't the lowest, it's a painstaking process to justify that selection.
Isn't that a recipe for cost over-runs?
I mean, it sounds like if building a tunnel costs $100M and one company bids $100M (planning to deliver on budget), a second company bids $50M (planning 100% cost overruns) and a third company bids $25M (planning on 300% cost overruns) it's mandatory to select the third company?
- bumby 4y agoWithin reason, yes. Engineers will still evaluate the proposals and if there’s a huge discrepancy like you described, they can be thrown out. But often part of the game seems to be first underbid (within reason) to get the contract and then make up the difference on change orders to be profitable.
- lmm 4y agoYes. Unfortunately it's still the law.