Sometimes accept Manx quotes even if not the lowest

At present some government quotes go to the lowest quote. If this is from a UK company, rather than a Manx company, the government may get a better price, but will miss out on the income tax and NI contributions from Manx employees. 

I know of a Manx company that lost a government quote to a UK company and had to make people redundant as a result. Therefore the government may have got a better price, but ended up losing income tax and NI, and had to pay out unemployment benefit. Hence in the bigger picture, the better price was a worse option to take.

Why the contribution is important

Looking at the bigger picture can save money. Saving a few pounds here by using an overseas company, may actually cost more in the long run, if Manx jobs are lost.

by PaulC on May 04, 2017 at 09:25PM

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Comments

  • Posted by ManxVoter May 05, 2017 at 10:22

    Yes it may well be better at time for govt to enter into talks with a local company if their quote isnt quite low enough - it is better for our money to be invested in local industry, for the most part

    We really ought to be buying overseas for expertise that isn't available here

    'Office For Budget Responsibility' could perhaps arbitrate in these situations
  • Posted by Manneen May 05, 2017 at 10:30

    Quality has to come into the equation too, also the cost of change and there is a cost.

    Island based companies should not be complacent, and neither should off island companies be viewed with rose tinted spectacles. They do not have all the answers look at Dependability - and what they cost in appeals tribunals, wrong assessment, reinstatement , management time. Yes they won the contract but cut their costs by using untrained staff and the government found out by chance because the contract was not closely monitored.

    Take the Steam Packet Company - people moan but look at all they put back into the island in sponsorship and support to the community. Pokerstar , Microgaming, Celton Manx etc etc.

    I would agree that a broader perspective needs to be taken and consider all socio economic factors.
    By the way - not sure what Currys /PC world and Pets at Home give to the community and the other shed boys that are trying to get into the IOM.
  • Posted by Buster May 06, 2017 at 22:15

    It's sounds simple but it's not on a few occassions our QS would report that the tender only covered materials. We had the contractor and he was adamant he could do it for that price.
    At the end, he told me had made 5k and had kept his men busy until the next contract.
    I know Scotland has a different tender process and it may well be worth looking at
  • Posted by mike_c_b May 10, 2017 at 17:07

    Yes, procurement need to look at the bigger picture.
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