Question

The Great White Hall: Flatland Views city council has advertised for proposals to build a new community center, a library and a theatre but the city council cannot agree on how to evaluate the submitted proposals. The request for proposal (RFP) specified that respondents had to meet certain basic needs, although optional items could be included. The RFP also asked that each respondent calculate a benefit/cost (B/C) ratio using a discount rate of 12%. What are the options for analyzing and making decisions on this public funding proposal? What are the opportunities for negotiation? How do you arrive at the best combination from submitted proposals?

Answer 1

The city council has initiated a useful step for the public purpose of a new community center, a library, and a theatre. The respondents give their proposals after seeing the advertisement with a low benefit of their profit. In this process, the RFP(Request for Proposal) mentioned their requirements and it is for a social cause they have asked discount of their profit for 12% and submit their proposal. The RFP needs to evaluate all the proposals and analyze the respondents worth, once they received from respondents. The RFP took a keen observer of proposals due to they are organizing the public fund and also check the background work of respondent in related to his/her previous works. Because the respondent is unfit for these works then the public fund will misuse so the city council needs to evaluate each and everything related to the respondent.

The city council will receive different quotes of proposals but they have a rough estimation before offering to the respondent. Suppose the respondent had a genuine but he/she quoted a huge amount so the negotiation will definitely need to place in both of the respondent and the city council. There is a limit for the city council to utilize the money for a new community center, a library, and a theatre so they have chosen the respondents who meet their criteria. The city council organization also monitor their work of respondents when the work is going on in the land. So, in this way, they will choose the fair respondent and fulfill the things for a public purpose.