Price Vs. Cost Consideration - When Selecting Contractors for Vegetation Management Services

With most service related purchases, price analysis alone will not be sufficient in the procurement process.

Some form of “Price vs. Cost” analysis must be performed to ensure you are purchasing a quality service at the lowest total cost of ownership for your company and that there are no surprise costs that will surface after the purchase is made.

A few factors to consider when evaluating vegetation management contractors for service on Railroads include:

  • Does the contractor have a solid plan/schedule and adequate resources to provide timely service that will not impact your ability to move trains and inspect your track?
  • How long will it take the contractor to provide services? Don’t forget the longer it takes to get across your property the more internal costs you will incur.
  • Does the contractor have a quality chemical program developed to address your specific challenges (weed pressures) with the least amount of service visits required to maintain your property? Again, keep in mind the more time you have an obligation to escort the contractor across your property, the higher your internal costs will be.
  • Does the contractor have a proven performance record (references) to provide confidence that their service will deliver quality results?

So always remember, a proper “Cost Analysis” not only includes pricing, but the element-by-element examination of the actual cost of contracted services beyond the price provided by the contractor.

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