The City Issued a Request for Bids for the Construction

question 136

Multiple Choice

The City issued a request for bids for the construction of an events centre; the terms stated that the closing would be June 30 at 4:00 p.m.of the current year.At 4:15 p.m.on June 30,a representative of Joe's Construction arrived at the City offices to submit a bid.There was discussion about the fact that the stated deadline had passed,but the person from Joe's Construction said that the submission was being made on June 30 while the City offices were still open,and the only reason there had been a delay was a problem locating the company managers who needed to sign the bid.Which of the following statements is true?

• A)If Joe's Construction's bid is the most competitive bid,the City will be obligated to accept it and award the contact to Joe's Construction.
• B)The City must still consider the bid from Joe's Construction as it is required to treat all parties equally and in good faith.
• C)If Joe's Construction has worked for the City previously and this is the first time there has been a problem with a late submission,the City should consider the bid in good faith.
• D)The bid from Joe's Construction cannot be considered,as it does not comply with the terms of the tender.
• E)The City should confirm that there was a problem getting the signatures and,if so,consider the bid from Joe's Construction as having been submitted on time.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or sales, such as materials and labor.

Sales Price

The amount of money a buyer pays to purchase a good or service from a seller.

Economic Order Quantity

The ideal order size that minimizes the total costs associated with ordering and holding inventory.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs.