This is a very controversial topic. Do you tell your bidders your budget or do you keep it secret?
I thought I would find an expert on the subject and see what they said. Arizona State University is a leader when it comes to supply chain research. I would highly encourage you to read the article and determine the pros and cons.
I have always wondered why an organization would use an RFP if the scope of work has been completely outlined. To me, this is a tender. Here are my specifications and give me my price.
The best example I give when asked about budgets is one that I saw while working with GameTime. Your organization needs a playground. You know where you want it and you have some ideas of the function which you then outline in the RFP. You allow all the bidders to ask a series of questions so they can determine the best options for the submissions.
You tell them the budget which is realistic so they know which options to include or exclude. There is a big difference between a playground for $50k versus one that is $250k. Yet you might be able to describe both of them in the same way.
No longer does the supplier have to guess or build in contingencies. They can simply provide your organization with options to pick. Now it is no longer about the lowest price. It is about value for the money and getting what you want and need.
QCsolver Inc. prefers knowing how much you would like to spend so we can determine how much work we can do for the funds allocated. Our focus isn’t on maximizing profits. It is all about value for the money and extending your funds as much as we can.
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