ACHTUNG: This is not a “fair and balanced” story. It is an editorial by the editor.
Every village council, city council, township board and school board seriously should consider setting a very specific policy on seeking and awarding bids. Every municipality should identify just what percentage of difference is permissible between the lowest bid for a service and the one that is awarded.
The impetus for this suggestion comes from the action last Thursday evening by the Leighton Township Board in deciding which company will do dust control this year on local gravel roads. Leighton awarded the bid of $37,000 from Southwest Michigan Dust Control, despite the fact a rival bidder, SWB Enterprises, submitted a bid of $27,945, or more than $9,000 less.
Township officials explained that SW Michigan has done a good job with dust control over the years, so they were reluctant to make a change. One official said she didn’t know if the two bids were for the same services or if it was a matter of comparing apples to oranges.
One thing is certain — both bids covered three applications.
Other explanations indicated the township may not get the quality of service it’s been getting from SW Michigan. Yet it was pointed out that SWB has done dust control for neighboring Dorr Township, which has been well satisfied.
It is understandable for a municipality to stick with a quality vendor if possible. However, when its bid is about one-third higher than another, some critical examination is necessary to determine why there is such a large discrepancy in cost and if it is justified.
Village councils, city councils, township boards and school boards would do well to set a limit in percentage of difference between two bids. For example, if they are well satisfied with the services they are getting, they could insist a another bid must be at least, say, 10% lower in order to prompt a switch.
Otherwise, what is the point of bidding out services at all, except to get the best price for public services for the taxpayers? Municipalities should be held accountable for being good stewards of the public’s money.
Watson Township last week accepted a higher bid from its current provider for lawn mowing services, higher than that submitted by Property Revolution. But at least the difference between the bids was less than 10%.
Continuing to do business with a quality vendor is laudable, but if somebody else can get the job done just as well for a much lower cost, the municipality should give the cheaper vendor a try, especially if a check with another municipality verifies the quality.
As they so often like to say in the marketplace, “It’s nothing personal, It’s just a business decision.”
EDITOR”S REMINDER: I report on what I see and hear. And sometimes I comment on it.
Sounds good on the surface, much lower bid would save a bundle of money. But that is not always or even often true. Once the work begins the lower bidder finds they can’t get the job done and make any money on it. So what happens then? Shoddy workmanship to cut cost? Job only half done or with poor material used? $9,000+ dollars is a big difference, there has to be a reason. Maybe the higher bidder is bidding to high but that is doubtful as they want to get the job but make money doing so while being competitive. I bided on many city tree trimming contracts and was beat sometimes by a much lower bidder. Most of the time I got the contract back the following year because the job they had done was poor. Re-trimmed many of the trees the had so called “trimmed” the year before. Kudos to Leighton Twp board for recognizing low bid is not always the best route.
I dont know anyone in Dorr that is even a little satisfied with the dust control. Last year was pathetic.
They sure doused my Dorr Township road with enough salt water to rust my vehicles. I feel last year was no worse or better than previous years.