The Nuts and Bolts of Government Contracts
Traditional procurement methods have failed to solve the quality, timeliness and cost (good, fast and cheap) dilemma of being able to provide a product or service for a low cost while delivering top quality work on-time.
One of the three is always sacrificed—until now.
With new procurement technology, buyers can create a unique competitive bidding environment—one that breaks the quality, timeliness, cost "iron triangle."
Here is how:
First, the buyer qualifies vendors that it wants in its database with the ideal goal of having 14 to 24 vendors in the pool. All must be thoroughly vetted to ensure that, regardless of pricing, each will deliver quality work on time. Next, the buyer enters detailed job specifications into the computer. The computer, empowered with AVS Technology, is then instructed to automatically select from the vendor database—only those vendors capable of doing the job. This patented automated vendor selection procedure matches the buyer's job specifications with vendor qualifications and selects only those vendors best qualified to get the job done.
Each selected vendor knows three things:
1. Others against which it is competing are likewise qualified.
2. Quality and on-time delivery requirements are clearly specified and must be met.
3. Low bid wins since quality and service are a given.
In order to compete, each vendor must identify its own otherwise idle production capacity. To fill that open capacity, each vendor must offer deep discounts of 25 percent to 50 percent or more from normal pricing. Low pricing varies from vendor to vendor, depending on which vendors have downtime available for any given project to be produced at any given time. Because each vendor has been pre-qualified and each project has been appropriately specified, the buyer does not have to worry about compromising quality or on-time delivery, even though the job is being produced at a deeply discounted price.