Course Content
The Low Bid Process and its Impact on Infrastructure Quality
In this video, we discuss the low bid process in procurement and how it can negatively impact the quality of infrastructure projects
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The Low Bid Process
About Lesson

Transcript:

hey what’s up everybody hope you’re

having a great week wanted to talk about

the low bid process my experience with a

low bid process goes like this I was

working with a government buyer we were

negotiating back and forth on a product

to fix a manhole for example or a sewer

pipe I would let them know that we use a

product that’s a geopolymer or we use a

concrete or we use an epoxy or you know

whatever uh to fix infrastructure right

we have a product

our product’s the best everybody’s

products the best right so anyway you’re

talking to the government buyer you’re

working with the engineering department

potentially or the engineering firm

that’s putting together a capital

project to fix let’s say 100 manholes uh

within the city so now you’re putting

together the spec everyone’s working

together we cohesively want to do a

procurement opportunity with this

material and the spec it’s designed it

gets created the engineer posts the

procurement opportunity to fix 100

manholes and yours basically in the spec

with your product now usually the

language in these construction specs are

alternative products or alternatives

that’s where it starts to get sticky

other competitive companies will see

that procurement opportunity and then

they’ll start calling that engineer or

engineering department or Public Works

superintendent or whoever put out the

bid and they’ll try to convince them

that their product is better so now you

have all these other companies coming

into a procurement opportunity that was

created by the first sales person or

account manager right that they had the

best product all these other companies

come in they start to invade that spec

and try to get their products in that

spec so they convinced maybe an engineer

they’re like hey I have a better product

it’s an alternative it’s equal here’s

all the lab testing results okay now the

engineer’s like okay now I got to put on

an addendum and announce that we’ll

accept this product or that product

it becomes a mess so then when the low

bid comes out someone a little bit

someone’s going to be the lowest bidder

and let’s say they put in their product

and it was a lower quality product well

now that engineer is potentially going

to be stuck with that lower quality

product so hence you’ll start to see how

the competitive bidding low bid process

starts to degrade the quality of the the

actual infrastructure because you’re

getting lower quality products because

of a low bid process where you

originally had this great Superior

product that everyone agreed on that has

now become okay well we’re not going to

use that as an alternative it has the

same lab testing results whatever no

one’s going to challenge that anyway no

one’s going to run off to a lab test

unless the city really wants that

product of what they originally put out

for spec

then they’d have to fight it and protect

it but sometimes they don’t want to do

that and they don’t want to deal with

the hassle so they just give it and

award it to the lowest bidder and there

you go

 

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