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Procurement Question

Posted: Fri Sep 05, 2014 5:29 am
by taterarpit
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?

A. The procurement statement of work was deficient and ambiguous.
B. The professional estimator has inflated the estimate of costs.
C. The prospective sellers do not have the required skills to do the project.
D. Prospective sellers are trying to underbid and win the project.


In these type of question, what is the best approach? Do i need to assume that since there is a gap in what the independent estimator has estimated and what sellers have done so most probably the reason is PSOW is ambiguous ?

Re: Procurement Question

Posted: Fri Sep 05, 2014 7:30 am
by signor_rk
That's right. I would like to choose the Option # A. There is every possibility of the procurement statement of work being incomplete/deficient or ambiguous. This leads to the wrong estimates for the different parties involved.
Thanks

Re: Procurement Question

Posted: Fri Sep 05, 2014 7:33 am
by taterarpit
Thanks Buddy :-)