The Low Bid Paradox

The Scenario: You want to create a plan to win a contract, you know the buyer will always select low bidder. The low bid will not be enough to complete the project. This approach was developed to deal with the US government who would always select the low bidder regardless of other factors. The ethics of this is questionable

2 plans are created, one that will meet your low bid criteria and one that will complete the project

The scope section of the proposal is done in such extensive detail that any change is for an additional cost (I have seen printed specifications that you need a hand truck to move)

The difference between the 2 schedules are expressed as Change Request Hops, each change (no matter how small) increases the income by 1 hop

• If the buyer asks for fewer changes than you predicted, you lose money
• If they ask for the changes you predict, you make money
• If they ask for more, you make even more money

Low Bid Plan

Real Plan

Change Request 1

Change Request 2

Change Request 3

Change Request 4