Question

Infer the main reasons for the high number of government contracting invitations extended for the purpose of obtaining certified cost or pricing data. Speculate on why the invitation is the last item in the gathering of cost and pricing process. Justify your response. Provide two to three (2-3) examples of other strategies to use to obtain cost or pricing data in a more accurate fashion. Predict the manner in which these examples could be utilized to also save the government funds. Provide a rationale for your response.

Answer 1

As we know that government invites quotations from various parties for obtaining certified cost or pricing data because it will help in receiving most accurate cost & pricing data.

We are aware that parties do various types of practical research for sending most accurate cost data so that these parties can receive contract. These parties collect past data for costs incurred and also makes good estimates so that most accuarate cost estimations can be prepared. Hence we can say that high number of invitations serve the purpose of obtaining certified cost or pricing data.

Possible contract receivers will give best cost or price with the help of followings;

(1) Interested parties will use all relevant facts to arrive to the proposed price & costs.

(2) Interested parties will use most up to date and accurate information while quoting cost or price for receiving contract from the government.

Thus we can say that as the number of invitations will be higher then there will be higher chances for getting accurate costs.

Let’s see some example;

1. When government invites application for constructing roads then as the number of applications will be higher then government will receive best idea about the cost & price for constructing roads.

2. Normally we see that government invites application for rendering some essential services for the welfare of whole society. So whenever government receives higher number of applications from possible service providers then government will receive best idea about the cost & price.