A vendor quote that shifts rather than removes cost
An employer is replacing a benefits administration platform. Vendor A offers a lower recurring fee, but its proposal excludes data conversion, appeal support, and several interfaces that the employer needs. Vendor B includes those tasks in a higher quoted fee. The selection team has compared only the first-year invoice and has not estimated internal workload or future maintenance. The current vendor holds essential participant history, and the new contract does not explain export formats or exit assistance. Employees at remote sites need a nonportal support channel. Leadership wants a quick recommendation, but no acceptance test, service measure, or cross-functional implementation owner has been assigned. The organization can obtain detailed written proposals before deciding.
1. What should the financial and scope comparison include?
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Define the common required scope and time horizon, then include vendor fees, excluded work, internal resources, transition, and ongoing obligations. A lower invoice can shift cost or risk rather than eliminate it.
2. What should be resolved before approving implementation?
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Assign accountable owners and dependencies, establish accessible service channels and measurable commitments, reconcile and test transferred data, and define continuity and exit terms. Approval should rest on evidence of feasible delivery rather than price alone.