The impacts of the Last Look
SimplySeal • March 31, 2023
The “last look” in a competitive bidding process refers to the practice of giving one party the opportunity to review and potentially match or outbid a competing offer before the final decision is made. The last look often leads to negative outcomes, including:
1- Unfair advantage:
The vendor given the last look may have an unfair advantage over other bidders because they have the opportunity to adjust their offer based on the other bids. This can result in an uneven playing field, leading to a less competitive and less transparent bidding process.
2- Delayed decision-making:
Providing a last look can significantly delay the decision-making process, as the other bidders may have to wait for the final decision. This can lead to frustration, uncertainty, and even the withdrawal of offers from other bidders.
3- Reduced trust:
Giving one party a last look can reduce trust in the bidding process, as other bidders may perceive it as favoritism or manipulation. This can damage relationships and make it more difficult to conduct future business.
4- Lower bids:
If you gain access to your competitors bids and undercut their pricing you are ultimately hurting yourself in the long run because you lowering the price of market rates. Often choosing the low bidder comes with strings attached downstream. Usually in the form of upsells or change orders. Knowing that a last look will be given can lead to lower initial bids from other parties, as they may assume that the party given the last look will simply match their offer. This can result in a lower overall price for the product or service being bid on.
Overall, the last look can sometimes be beneficial but, it should be used with caution to avoid the negative impacts on fairness, transparency, and trust in the bidding process.
SimplySeal provides a win-win-win solution for HOAs, Management, and Vendors by improving the overall quality of projects and contracts. Our intention is to simplify the bidding process, increase trust and certainty in hiring the right company the first time.
For more information, go to
SimplySeal.com
Share with others
In March of 2006, a technology called Hawkeye was introduced into professional tennis to determine whether or not the ball lands in or out of bounds. In 2008, instant replay was introduced into the MLB to bring more accuracy to play calling. In 2018, VAR debuted at the Fifa World Cup, a video assistant referee that corrects missed calls. Nowadays, almost every professional sport has implemented technology to add an additional layer of accountability and accuracy to play calling. As a result, spectators have a better experience and the field is leveled. A level playing field creates a competitive environment that fans enjoy because teams are pushed to their peak performance, offering an exciting and “well-worth it” experience. If sports can implement technology that improves play calling then why can’t the business world? Similar to sports, there is a lot on the line during business transactions that warrant a fair and accountable process for all parties involved (property owners, managers, and vendors). Within the process of bidding for work, there are very few layers of accountability in place, which creates an uneven playing field for those trying to win new contracts. With price information not secured properly it can sway the outcome of the bid entirely, which usually doesn’t end well for the paying customer. SimplySeal’s technology is focused on eliminating these inaccuracies and improve the process of procuring, bidding, and awarding work, specifically for any type of project, contract, or service within the HOA Marketplace. Here are 3 Ways that SimplySeal creates a win-win-win for decision-makers, bid facilitators, and bid participants: Step 1: Scope Q&A We bring bid participants, decision-makers, and bid facilitators to a single place where EVERYONE is aligned with a customer's expectations. Bid participants can anonymously engage with the customer and bid facilitator to clarify details of the scope. All parties can see the questions and answers which helps reduce back-and-forth emails between multiple bid participants with similar questions. This helps create an apples-to-apples bidding environment and aims to reduce change orders after a bid is awarded. Upon completion, the Scope Q&A can be attached as an addendum to the contract as an extra layer of accountability for the paying customer and a stronger bid for a participant. Step 2: Submit bids to a secure and sealed platform Our system digitally seals bids until all bids are submitted or a deadline expires. This ensures that all bid participants have a fair shot at winning work knowing pricing information is secure from bidder to bidder. Digitally sealed bidding is designed to protect a bid participant’s information during the bidding process. Step 3: Review and Award bids When all bids have been submitted or a deadline expires the system automatically unseals the submitted bids. We make it easy for decision makers to engage and review bids side-by-side while providing them with the peace of mind that their expectations are going to be met. When ready, award the bid with the click of a button and all participants will be automatically updated whether they win or lose. SimplySeal is the Hawkeye, VAR, and Instant Replay for the bid process… SimplySeal saves time, puts the customers’ interests first, and creates a competitive environment for everyone. A simple solution that provides its participants with utmost confidence while bringing accountability and accuracy to all aspects of the process of bidding for work. SimplySeal provides a win-win-win solution for HOAs, Management, and Vendors by improving the overall quality of projects and contracts. Our intention is to simplify the bidding process, increase trust and certainty in hiring the right company the first time. For more information, go to SimplySeal.com
As a management company, facilitating a fair bidding process is critical for building trust with both service providers and HOA boards. A transparent and impartial process can help ensure that the HOA gets the best value for its money while also establishing a reputation for fairness and integrity. Here are 5 tips for facilitating a fair bidding process: 1 - Develop clear bid specifications Work with an industry expert to create a well-defined scope of work and develop clear and concise bid specifications for your project. These specifications should outline important details related to the project, such as the timeline, budget, and specific requirements for the job. 2 - Invite vendors to bid The industry standard is to invite a minimum of 3 bidders to participate in the bidding process. Use an online tool to find licensed and verified vendors who are willing to participate in a streamlined and ethical bidding process. 3 - Communicate with bidders Once you have invited bidders to participate in the bid process, all parties should engage in a scope question and answer. A scope question and answer is where all bidders are anonymously able to ask clarifying questions about the scope of work and everyone can see the questions and answers. This is an important step in facilitating a fair bidding process as it allows expectations to be clearly defined upfront, eliminating downstream change orders. 4 - Digitally seal bids Digitally sealing bids until all bids are submitted or a deadline expires is crucial to ensure fairness and avoid potential bias in the bid selection process. By sealing bids, bidders can feel confident that their information will not be shared or used to advantage other bidders who may come in lower in order to win the work. 5 - Award the bid Once all bids have been received and evaluated, select the winning bidder and notify all bidders of the decision. If possible, provide feedback to unsuccessful bidders to help them improve their bids in the future. By following these tips, you can facilitate a fair bidding process that saves you the headaches and time, while building trust with both service providers and HOA boards. Remember, a transparent and impartial process can lead to better pricing, higher quality work, and a reputation for the highest level of ethics in bidding. SimplySeal provides a win-win-win solution for HOAs, Management, and Vendors by improving the overall quality of projects and contracts. Our intention is to simplify the bidding process, increase trust and certainty in hiring the right company the first time. For more information, go to SimplySeal.com
Bidding is a popular method used for narrowing down the decision-making process in the pursuit of finding the best quality product/service at the best price. Bidding is used in a variety of industries to stimulate a higher level of competition amongst the companies involved. Blindly positioning bidders against one another sets the expectation that everyone will present their most competitive rates. Having a spread of highly competitive prices gives the customer confidence they are choosing the best option for the best price. An effective bid process must be blind The effectiveness of the bid process is lost when bids are left unsealed during the submission phase. If pricing is undisclosed amongst bidders, it creates pressure to present the best rates possible to be considered as an option by the customer. It’s crucial, then, that everyone's information remains confidential until the proper time when all bids are presented to the board. A bid process that overlooks this important aspect can lose its value to the customer and lead to bottlenecks in the bidding process. An effective bid process presents all participants blindly to the decision maker so that each bidder has an equal opportunity to win the work. How are bids sealed in today’s market? Final bids are usually sent via PDF to an individual facilitating the process on behalf of an HOA. The process is built on the trustworthiness of each bid participant and facilitator. This means customers are fully reliant on trust in order to ensure that all information remains sealed and confidential until a submission deadline. With some contracts or projects costing hundreds of thousands if not more, it’s essential that customers are seeing bids for the first time without any modifications made prior. How does technology provide more security in the bid process? With technology at our fingertips, it becomes possible to eliminate some of the human errors found within the bid process. A modern bid process provides an extra layer of digital security for the paying customer. The approach of digitally sealing bids – until all bids are submitted or a deadline expires – provides true security and confidence to all bid participants. A digital deadline makes it possible for a decision-maker to see and compare all bids simultaneously. Bidders have the assurance that both themselves and their competitors are given a fair opportunity to win the work. SimplySeal provides a win-win-win solution for HOAs, Management, and Vendors by improving the overall quality of projects and contracts. Our intention is to simplify the bidding process, increase trust and certainty in hiring the right company the first time. For more information, go to SimplySeal.com
