Five projects, two bids each
Procurement teams sometimes ask for proof that an open-line dealer comes in below a single-brand dealer on the same scope. Here are five projects from the past 18 months where the client got both bids on the same brief.
Project A: 75-person Boston tech fit-out. Single-brand bid $487,000. COI open-line bid $312,000. Spread 36 percent.
Project B: 40-person Manchester financial services. Single-brand bid $284,000. COI open-line bid $198,000. Spread 30 percent.
Project C: 120-person Portsmouth professional services. Single-brand bid $612,000. COI open-line bid $425,000. Spread 31 percent.
Project D: 25-person Nashua law firm. Single-brand bid $176,000. COI open-line bid $118,000. Spread 33 percent.
Project E: 60-person Worcester healthcare admin. Single-brand bid $398,000. COI open-line bid $265,000. Spread 33 percent.
Average spread across the five: 32.6 percent. Range 30 to 36 percent. These were the same scopes, the same finish standards, and the same warranty requirements.
Where the gap comes from
Three structural factors account for most of the spread.
Workstations. On every project above, the single-brand bid specified the contracted manufacturer's panel system at premium list. The open-line bid moved workstations to Artopex or a similar Canadian-built equivalent. Build quality is comparable, warranty is comparable, finish range covers the brief. Price difference runs 35 to 45 percent on workstations alone, which is the largest line item on most office projects.
Casegoods and tables. Same pattern. Wood and laminate casegoods built by mid-market manufacturers meet the same commercial spec as premium-brand equivalents. Price difference runs 25 to 40 percent.
Task seating. This is where the open-line bid does not always win. Specific premium chairs like the Aeron or the Leap require their respective dealers. On most of these projects, we specified a Humanscale, SitOnIt, or 9to5 chair that met the ergonomic brief at 20 to 30 percent below the premium equivalent. On one project, the client specifically wanted Aeron, so that line item went through the Steelcase dealer separately.
What the spread does not capture
The 32 percent average is the line-item number. Two other costs hide outside the bid.
Lead time impact. On Project A, the single-brand bid had a 14-week lead time on workstations. The open-line bid shipped in 4 weeks with Artopex. The client was paying $48,000 a month on a vacant new lease. The 10-week lead time differential alone was worth $120,000 in carry cost.
Coordination overhead. Single-brand bids sometimes carry implied coordination work that the dealer assumes the client will manage. On Project C, the open-line bid included building coordination, COI management, and freight elevator booking. The single-brand bid did not.
Add those two factors and the effective spread on most of these projects runs closer to 40 percent.
How to use this in your next RFP
The simplest move is to require both bids on every meaningful project.
Force the bidders to line-item every product. Manufacturer, model, list price, warranty, lead time. Lump-sum bids hide the gaps.
Specify the brief, not the brand. If the architect's drawings name a specific Steelcase or MillerKnoll product, that line is locked. Everything else should be open competition.
Compare like for like on warranty and lead time, not just list price. A 4-week lead time on a comparable warranty is worth real money on a tight project schedule.
We will run an open-line counter-bid on any active project. Free, no obligation, finished in 5 business days.
