Tag Archive for sales

Strategic Sourcing May Favor Newcomers

Federal agencies are awarding contracts to low price bidders more often because of budget constraints. Low price awards are particularly prevalent if the bidder is offering a product that meets the solicitation specifications. Inherently, low price awards are made for purchases that have well defined specifications (products) and nearly equal evaluation scores for services.

Entrenched and incumbent contractors are crying foul because a low price approach encourages awards to newcomers in general or an experienced contractor that is new to an agency.