Procurement Question
Submitted by chullan88 on Sat, 06/21/2014 - 15:55
As part of the procurement process, the procuring organization elected to have an estimate of costs prepared by an outside professional estimator. The estimator came up with an estimate of $ 500,000. However, the cost estimates prepared by prospective sellers were in the range of $ 200,000. How can this be best interpreted?
The procurement statement of work was deficient and ambiguous.
The professional estimator has inflated the estimate of costs.
The prospective sellers do not have the required skills to do the project.
Prospective sellers are trying to underbid and win the project.
The answer is A
But my doubt is they are trying to underbid because the estimator who is external has go a higher amount
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Sun, 06/22/2014 - 17:42
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The concept here is ,
The concept here is , whenever there is huge difference in estimates from a professional estimator VS what your vendors are giving you , the problem is with Ambiguous or deficient SoW.
If its only 1 seller you can say they are under-quoting, but here the question says prospective sellers are all around $200K. Which means that they have not understood the project scope well due to Deficiencies in SoW.