Bid Award Question

Good Morning, KCDC recently received bids for a service type solicitation. The low bidder had a previous award with KCDC. During the term of that contract, the supplier failed to invoice for services and/or sent incorrect invoices. They are currently (several years later) seeking payment for those services totaling several thousand dollars. Litigation hasn't been initiated, but the case has escalated recently. Has anyone faced such an issue? If so, what was the decision and outcome? If not, would you award to the low bidder? The 2nd and only other bid received, was much higher.

Hazel Gibson,MBA
Procurement Analyst & Advisor
Knoxville's Community Development Corporation

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  1. David Griffin

    Nov. 15, 2018

    PBA has had this happen before but maybe not to the degree. If we can verify the service was done and non-payment, we have made payment when found. This normally is before 6-12 months. Conversely, if we find money owed to PBA we will seek refunds. The real problem for govt. entities like us is from a budget/audit standpoint. We are supposed to pay for products and services received/rendered in the same fiscal year. This really sends our Finance folks into a frenzy. From a Budget point of view, the larger the amount the harder for a budget to absorb "unplanned" costs. In regard to firms who have poor administration departments we take this into consideration because processing is also a real cost. Tracking incorrect billing can eat into any savings you may see operationally. For this reason, we use RFPs where possible to establish "best value". Un-resolvable or long term issues here may only lead to a matter of time before other operational issue surface. We try and evaluate the whole firm to limit our exposure but sometimes it bites us all regardless of our efforts. Good luck.


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