Read the plight meditate "To Bid or Not to Bid" on page 1011 and then repartee the questions on page 1012
TO BID OR NOT TO BID:
Background Marvin was the superintendent and main executive official (CEO) of his union. The firmness of whether or not to bid on a job overhead a convinced dollar treasure rested totally upon his shoulders. In the late, his union would bid on all jobs that were a good-tempered-natured-natured fit after a while his union’s strategic objectives and the union’s win-to-loss kinsman was distinguished. But to bid on this job would be reserved. The client was entreating convinced notice in the entreat for offer (RFP) that Marvin did not shortness to liberate. If Marvin did not bear after a while the requirements of the RFP, his union’s bid would be meditateed as nonresponsive.
Bidding Process Marvin’s union was exceedingly happy at attractive contracts through competitive order. The union was project-driven and all of the proceeds that came into the union came through attractive contracts. Almost all of the clients granted the union after a while long-term contracts as well-mannered-mannered as follow-on contracts. Almost all of the contracts were firm-fixed-price contracts. Business was convincedly good-tempered-natured, at meanest up until now.
Marvin customary a plan whereby 5 percent of sales would be used for responding to RFPs. This was referred to as a bid-and-offer (B&P) budget. The absorb for order on contracts was completely lofty and clients knew that requiring the union to bestow a noble negotiate of coin order on a job authority fibre a no-bid on the job. That could ultimately trouble the toil by reducing the reckon of bidders in the marketplace.
Marvin’s union used parametric and parity estimating on all contracts. This undisputed Marvin’s fellow-creatures to love the exertion at flatten 1 or flatten 2 of the exertion breakdown constitution (WBS). From a financial perspective, this was the most absorb-effective way to bid on a project
1. What other factors should Marvin and his team meditate?
2. Should they bid on the job? ?