What other factors should Marvin and his team consider? To bid or not to bid on a job is a strategic decision for Marvin’s organization. The factors which Marvin has taken into consideration so far before bidding are – 1. It is a long term project from one of their important clients. If they get this contract, then it would be the largest contract Marvin’s organization has had.
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The new RFP is released by the client and the contract is cost-reimbursable. Earlier projects were Firm Fixed Price (FFP). WBS mentioned on clients RFP has a breakdown of 5 levels. Factors which they should consider apart from the ones mentioned above are: They have talked about how long the contract is, but they haven’t talked about the type of project that they are going to get. Knowing about the project helps us to put in the organizations experience and resources promptly. There are also some objective considerations like – what will the bid cost (time/money)? What is the probability of winning the bid? Is the contract profit potential? Subject considerations like – who is the competitor? Should I win the bid just to maintain the insider edge with the client or should the competitor win?
Should they bid on the job? Being a project driven company and winning many competitive bids. I personally feel Marvin and his team should bid on the job.
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Reason being, 1. This contract is from one of their important client, hence it might give an edge over other competitors. The reason why they are hesitating is they do not want to expose the cost structure of the organization to the client. True, but then again they earn more profit in the long run and will maintain good relationship with the client. References: Passer, R. (n.d.). Factors that affect bidding decisions/behaviour of construction companies and a description of 2 contemporary bidding models.
