Managed Services RFP
Managed Services RFP Harm Suppliers and Buyers AlikeAs a seller of IT managed services, you may spend hundreds of hours on a quote only to find that you really had no chance because the game was rigged. It can be obvious and heavy handed:
- The RFP ignores your strengths, but itemizes your competitor’s advantages;
- You’re given a week whereas others are given a month to respond;
- Any small error is grounds for disqualification rather than a clarification request.
Rigged RFP Perpetrators and VictimsThere are three audiences we’ve encountered in this situation:
- As a seller, if you suspect that you’re not given a fair shake, it’s hard to escalate or circumvent the process because you’re viewed as biased. So the most common response is to just sandbag the quote process or even no-bid
- As a CFO or CIO, you may suspect your staff is avoiding change that may materially benefit the company but have no way of verifying it
- As a perpetrator of bid rigging, you might want an external authority to rubberstamp the practice for one of two reasons:
- It can seem perfectly ethical and legitimate to rig a bid if you believe the “powers that be” are uninformed and misguided.
- Less appropriate is being part of what economists call the “agency problem” and we informally call “hockey ticket procurement” — using personal favors rather than benefit to the company as the selection criteria