What the lowest vegetation management bid actually costs you over 36 months

One Texas municipality held the same vegetation management contract for eight years. Consistent service, no issues. At renewal, they selected a vendor $200,000/year cheaper. Within six months, the new vendor was failing. The transition cost exceeded the annual savings before the contract was half done.

This keeps happening because procurement evaluates what a vendor charges, not what a vendor costs. The bid sheet shows one number: the vendor invoice. The actual cost of a vegetation management contract has six. Here they are, with the math.