Meanwhile, requests for proposals were sent out to 12 suppliers. Mr.Travis received eight responsive quote, of which three were in the range from 29.78 Dollar to 33 Dollar per unit, and three range from 35.60 Dollar to 42 Dollar.
The last two bids were 22.14 Dollar and 24.68 Dollar.
Mr.Travis evaluated each supplier's cost breakdown with the others and compared each cost with his estimated costs.
Mr.Travis was impressed with the quality of the two proposals that came in below his estimate, and was surprised that both firms had each supplied similar housings during the past year.
Both companies were well-established component engineering companies with good reputations for satisfactory performance on previous contracts. The cost breakdowns for the two low proposals are reduced in Table C9.2