Monday "mini-case study" - Contract Negotiation Surprise!

In this scenario, you've already conducted a Request for Proposals process for a Transition Housing Project (ie to provide mental health program support and monitoring of up to 12 clients involving a gradual, structured discharge process in which clients are reintegrated back into the community over time.)

The RFP closed a month ago, you didn't receive any questions from the vendor community during the RFP process (although your RFP did state "All enquiries related to this Request for Proposal are to be directed, in writing, to the following person who will respond if time permits. Information obtained from any other source is not official and should not be relied upon."). You received 2 proposals from two local non-profit societies. The evaluation committee (consisting of 3 facility staff members) have completed their evaluations and a single vendor has been selected. Notifications have been sent out via faxed letter to both the successful and unsuccessful vendors. You are now having a first meeting with the successful vendor to discuss the contract.

During discussions, the vendor tells the group that the Executive Director said they would not be responsible for janitorial supplies. You point out that the RFP stated all supplies for the program/house would be provided by the vendor, other than food and personal care items to be purchased by the clients themselves. The vendor also points out the ED said the existing facility's contracted janitorial service could do the laundry for them. Again, you point out the RFP said linens and laundry were part of the 'program' - ie to teach the clients to be responsible for laundry, cleaning, etc. and costs of linens were part of program (vendor) costs. The existing facility's contracted janitorial service would not be extended to include the transition housing program provided by the vendor.

After the vendor leaves, you question the evaluators as to what contact this vendor had after the announcement...strangely enough, you find out the vendor, before the RFP closed, called the executive director with questions and he arranged a meeting and tour for them. The Executive Director retired before the RFP evaluation committee convened, so is not reachable for comment.

You have not yet heard from the unsuccessful vendor as to timing for a debriefing meeting to discuss their proposal strengths and areas for improvement.

NOTE: The jurisdiction is Canada - therefore Canadian RFP/contract law applies.

What are your risks (if any) in proceeding with this contract?

What are your risks (if any) in NOT proceeding with this contract?

Answer on Friday!