Three contractors participated in a bid to fix some minor damage to the White House fence; one contractor was from Helena, Montana; one from Memphis, Tennessee; and one from Chicago, Illinois.
In order to come up with a fair price, the Montana contractor took measurements and made calculations on the cost of labor and material. His bid came to a total of $900, which was broken down as follows: $200 for materials and $700 for labor.
The Tennessee contractor, likewise, took measurements and made calculations on the cost of labor and material. His bid came to $700: $150 for materials and $550 for labor.
The Chicago contractor neither measured or calculated. Instead, he just leaned over to the White House official and whispered, "I'll do it for $2,700!"
Flummoxed, the White House official remarked incredulously, "You didn't measure or make calculations like the other guys. So, how did you come up with your figure?"
The Chicago contractor whispered back, "Quite simple really. $1000 for you, $1000 for me, and we hire the guy from Tennessee to fix the fence!"
"That sounds great to me!" replied the White House official.
And that, my friends, is how many (if not all) government contracts are negotiated and awarded! -Source: Contributed by Ralph/Author Unknown
In order to come up with a fair price, the Montana contractor took measurements and made calculations on the cost of labor and material. His bid came to a total of $900, which was broken down as follows: $200 for materials and $700 for labor.
The Tennessee contractor, likewise, took measurements and made calculations on the cost of labor and material. His bid came to $700: $150 for materials and $550 for labor.
The Chicago contractor neither measured or calculated. Instead, he just leaned over to the White House official and whispered, "I'll do it for $2,700!"
Flummoxed, the White House official remarked incredulously, "You didn't measure or make calculations like the other guys. So, how did you come up with your figure?"
The Chicago contractor whispered back, "Quite simple really. $1000 for you, $1000 for me, and we hire the guy from Tennessee to fix the fence!"
"That sounds great to me!" replied the White House official.
And that, my friends, is how many (if not all) government contracts are negotiated and awarded! -Source: Contributed by Ralph/Author Unknown
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