1. What other factorsshould Marvin and his team consider?To bid or not to bid on a job is astrategic decision for Marvin’s organization. The factors which Marvin has taken into consideration so far beforebidding are – 1.
It is a long term project from one of their importantclients. If they get this contract, thenit would be the largest contract Marvin’s organization has had. 2. The new RFP is released by the client andthe contract is cost-reimbursable. Earlier projects were Firm Fixed Price (FFP). WBS mentioned on clients RFP has a breakdownof 5 levels. Factors which they should consider apart from the ones mentionedabove are:They have talked about how long thecontract is, but they haven’t talked about the type of project that they aregoing to get.
Knowing about the project helps us to put in the organizationsexperience and resources promptly. There are also some objective considerationslike – 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 thecompetitor? Should I win the bid just to maintain the insider edge with theclient or should the competitor win? 2. Should they bid on the job?Being a project driven company andwinning many competitive bids. I personally feel Marvin and his team should bidon the job. Reason being, 1. Thiscontract is from one of their important client, hence it might give an edgeover other competitors.
The reason whythey are hesitating is they do not want to expose the cost structure of theorganization to the client. True, butthen again they earn more profit in the long run and will maintain goodrelationship with the client. References:Passer,R. (n.d.
). Factors that affect bidding decisions/behaviour of constructioncompanies and a description of 2 contemporary bidding models. RetrievedNovember 01, 2016, from http://www.academia.edu/1084098/Factors_that_affect_bidding_decisions_behaviour_of_construction_companies_and_a_description_of_2_contemporary_bidding_models TO BID OR NOT TO BID, THAT IS THE QUESTION…7FACTORS TO …
(n.d.). Retrieved November 1, 2016, fromhttps://www.linkedin.com/pulse/20140814164605-38605958-to-bid-or-not-to-bid-that-is-the-question-7-factors-to-consider