The-Budget-To-Share-or-Not-to-Share Simplar.pdf

The document discusses the importance of sharing project budgets with vendors during the procurement process. It highlights that sharing the actual budget helps vendors understand the client's constraints and resources, leading to more valuable proposals and productive interviews. By sharing the budget, high-performing vendors can provide cost-saving ideas and innovative alternatives, minimizing budget risks. The document emphasizes that withholding the budget can disadvantage high performers and lead to inefficiencies like inappropriate scope shaving and aggressive negotiating. It also addresses common fears such as vendors raising prices to match the budget, stating that it is largely imaginary and that honest vendors can keep price gouging in check. Overall, the document recommends always sharing project budgets and using the XPD approach for faster procurements, increased competition, higher performance, and better project outcomes.