Penn State Purchasing received proposals from 3 bidders to re-surface the roof at Smeal. The proposal includes the insta
Posted: Thu May 05, 2022 9:19 am
Penn State Purchasing received proposals from 3 bidders to
re-surface the roof at Smeal. The proposal includes the
installation of a new roof membrane followed by three years of
follow-up coating and treatment. The coating materials and
labor varied greatly so a total cost of ownership (TCO) was
calculated for each: Bidder A = $815K. Bidder B =
$1.1million. Bidder C = $920k. Before a bidder was chosen,
Bidder B notified Penn State that it discovered an innovative way
for installation and could reduce its install costs by $300k.
Penn State chose the lowest TCO option which was (Consider a
borrowing rate of 5%)
Group of answer choices
Not enough information was provided to do analysis
Bidder A
Bidder B
Bidder C
re-surface the roof at Smeal. The proposal includes the
installation of a new roof membrane followed by three years of
follow-up coating and treatment. The coating materials and
labor varied greatly so a total cost of ownership (TCO) was
calculated for each: Bidder A = $815K. Bidder B =
$1.1million. Bidder C = $920k. Before a bidder was chosen,
Bidder B notified Penn State that it discovered an innovative way
for installation and could reduce its install costs by $300k.
Penn State chose the lowest TCO option which was (Consider a
borrowing rate of 5%)
Group of answer choices
Not enough information was provided to do analysis
Bidder A
Bidder B
Bidder C