In: Transparency
23 Feb 2010
Government purchasing is usually simple: Ask businesses to provide quotes (bids) for goods or services, compare the prices, and pick the lowest one. Last night, the Plymouth Board of Works followed this typical path and may end up spending more tax dollars in the long-term as a result.
How is this possible? The Board of Works failed to appreciate the cost of ownership.
Oliver Ford Lincoln-Mercury and County Auto submitted competitive bids for two new patrol cars to be used by the Plymouth Police Department. Crown Victorias from Oliver Ford were quoted at $36,372. Dodge Chargers from County Auto were quoted at $35,894.
The $478 difference would usually make County Auto the clear choice. However, Plymouth Police Chief Jim Cox pointed out that a Dodge vehicle currently used by the police department is significantly more expensive to service than the Crown Victorias. The Dodge does not fit on the lift at the city garage and therefore must be serviced by the dealership.
Board Member Mark Neidig stated that the board should look at the total cost of ownership before making a decision between the two quotes. However, the board disagreed and accepted the bid from County Auto by a vote of 3-2. Mark Neidig and Mayor Mark Senter voted against accepting the bid. Board Members Mike Delp, Wayne Smith, and Don Gardner voted for acceptance of the bid.
When explaining their votes, Delp, Gardner, and Smith all agreed that the lowest bid should always be accepted. Unfortunately, this is a short-sighted decision that could cost the city more than the $478 saved during the bidding process. In my opinion, it was worth tabling for two weeks to determine the cost of ownership as Board Member Neidig suggested.
For more information check out the links below:
WTCA – Plymouth City Board Approves Vehicle Purchases
Pilot News – Board of Works Talks Bids and Water Policy
I believe in transparency and openness. County Council meetings should take place in the evening and not the morning when most people cannot attend. We should have full visibility to Council spending. I firmly believe that the tax payers deserve to know if their money is well spent, or simply wasted.
2 Responses to Lowest Price is Not Always the Lowest Cost
Socrates Gray
March 27th, 2010 at 2:13 pm
thats the blind leading the blind, come on the bid should be held until the city can make a educated decision, such as cost of ownership and expected life of the vehicle. Im sure that the bid could get narrowed by either dealer but the fact remains that one of these vehilce’s will last longer by years. So quit tripping over pennies to lose millions this is very short sided and narrow thinking.
chansa ngonga
June 26th, 2010 at 7:02 am
total cost of ownership is the way forward