Is the Bid "Too Good to be True?"

The highest price for materials may not always be the best bid. Generators can evaluate the companies based on their:

* previous experience;

* length of time in business;

* financial condition;

* understanding of and response to the bid; and

* transportation costs.

If a bidder provides a price that is way out of line with other bids, the bid price may be the result of an error or misunderstanding, may be due to inexperience or may be a speculative market. A bid that is "too good to be true" may result in the processor backing out of the bid at a later date, leaving the generator the responsibility of finding a new processor.