Compulsory competitive tendering
Kenneth Muir
Abstract
Compulsory Competitive Tendering (CCT) is a very risky business to be in and a process fraught with problems if you are a contractor.
On the other hand it seems that if you want a service provided and you want to test the market place and discover who is willing to provide a service and what sort of service they will provide - then go to tender. In going through the tender process you discover who wants to provide the service, what they are willing to provide and for how much. You can gather all the ideas, without any obligation - usually with no guarantee that the party asking for tenders will even go to tender.
Many times you can go to a great amount of trouble, time and effort to prepare a tender only to find that the intention was to get ideas on how to improve their own animal control department or to keep their current operator honest. I guess that is a business risk if you tender for work.
Tender documents for animal control work, especially in the cities, are now thick documents that need very careful evaluation. It goes without saying that it is vitally important to thoroughly read and understand all the components in the tender document so that you can respond adequately in each area.
The advantages of compulsory competitive tendering is that councils get to see who is in the market place, what is available in the way of services and what difference there is in costs.
The problem with compulsory competitive tendering is that the price is constantly driven downwards and that means that to be competitive contractors constantly strive to cut corners and reduce service to stay within the budget.
About the author
Kenneth J Muir
Governing Director
Animal Control Services Ltd
PO Box 130
Albany, Auckland
New Zealand
Phone (09) 379 9735
Fax (09) 379 7230
Email: acs@animal-control.co.nz
I have been involved in animal control work since 1974 when I formed Animal Control Services (ACS) to offer a professional service to councils. ACS currently services a number of councils in NZ including Auckland City and Wellington City. ACS continues to be an innovative animal control agency, ISO 9001 certified, for the design, development and provision of animal control services.
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