Tuesday, December 19, 2006

How Government Bidding Works

Three contractors are bidding to fix the White House fence. One from New Jersey, another from Tennessee and the third, Florida. They go with a White House official to examine the fence.

The Florida contractor takes out a tape measure and does some measuring, then works some figures with a pencil. "Well," he says, "I figure the job will run about $900: $400 for materials, $400 for my crew and $100 profit for me."

The Tennessee contractor also does some measuring and figuring, then says, "I can do this job for $700: $300 for materials, $300 for my crew and $100 profit for me."

The New Jersey contractor doesn't measure or figure, but leans over to the White House official and whispers, "$2,700." The official, incredulous, says, "You didn't even measure like the other guys! How did you come up with such a high figure?"

$1,000 for me and $1,000 for you and we hire the guy from Tennessee."

"Done."

No comments: