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Thursday, December 22, 2011
Contractor Wins Bid Even Though They Were 16% Higher
The Veterans Affairs Department wired an RFP to favor an incumbent information security contractor. The IG said requirements for a support services proposal gave weight to Booz Allen Hamilton's prior knowledge of VA's practices and procedures. But it failed to include that weighting in the requirements documents. NextGov reports, VA went on to award Booz Allen a $133 million follow-on contract for cyber services. Booz Allen's bid was 16 percent more than the next highest bid. Glenn Haggstrom is executive director of VA's Office of Acquisition, Logistics and Construction. He says the price premium was justified by Booz Allen's rating of outstanding on its technical proposal.
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2 comments:
It's not uncommon for a bid to be written for specific equipment, or to favor a particular bidder.
It's also not uncommon for the government to step over a dollar to save a dime.
The low bidder isn't always the best choice. What should matter is that the vendor does a good job meeting the needs of the government, and that the vendor's price is competitive.
I don't see this as a big deal.
The lowest bid does not always finish as the lowest cost.
Just ask the Town of Delmar. They go with lowest bid on everything only to end up spending even more than the highest original bid, in some cases, because of things not included in the original bid or other reasons.
To boot, in some cases, they've gotten pretty shoddy work as well.
It isn't always best to go with the lowest bid!
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