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Monday, July 12, 2010

A UK Sock Crisis Stemming from Reverse Auctions?: A £5 million quandary due to a lack of upfront preparation and education



Interesting tidbit coming from the Leicestershire Mercury about what, in essence, is a bid protest stemming from a UK Ministry of Defence (MoD) contract for socks ( a big one). The incumbent (who has had the contract for decades) is upset that it lost the business over a few pence - well, times a few pence for each of 2.5 million pairs to be supplied over the next four years! Read about it here:

A defence minister has agreed to meet David Tredinnick MP to discuss problems with a Government computer system that he claims led to a Leicestershire firm losing a £5 million contract – and cost workers their jobs.

The lesson to takeaway from this "sock crisis" - wherever you are located in the world, make sure your reverse auction provider can deliver on the due diligence and vendor training/support end of things. If the provider had done their work on the front-end here with the incumbent firm, then all we'd have is a case of "sour grapes" and not a potential legal issue!

We'll keep you posted here at the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/) if anything develops out of this "sock crisis"! In the meantime, keep your feet dry for foot health!

David



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