Sealed Bidding (IFB) Process vs.

Sealed Bidding (IFB) Process vs. Negotiated (RFP) Process

The negotiated process is the better alternative within this particular situation. The company possesses a competitive advantage that is not easily duplicated by competitors. For one, the company has an outstanding reputation and exceptional problem solving skills. Competitors entering the market don't have a reputation for success as this company does. As a result, the negotiated process allows for the company's advantages to be utilized effectively in a manner that can benefit both the company and its constituents. The goal of the negotiated process is to select the best available candidate within the overall pool of applicants. The potential candidate should demonstrate the ability to meet scheduled demand while providing a quality product that meets customer specifications. The most effectively method to determine this is through historic performance. Since this company retains a superior reputation within the market it has the best historic performance measurements. This provides a marginal benefit over competitors bidding for the same contract.

Within the construction industry, quality service far outweighs cheaper production. Customers don't want low quality providers who provide subpar service. Although cheaper, this service will ultimately lead to more expenses born on the part of the customer. The majority of these expenses come in the form of extra labor costs and redesigns to fix recurring problems due to low quality.