When a company bids on a project, it is based on best guesses, not concrete estimates. When the bidding is competitive, the chance of winning a bid is fairly low. Therefore, the effort spent on developing the bid is small. The result is companies not spending the necessary time to research the cost, time, and scope of the project.

Huge variances in scheduling, budgeting, and features will often bring unsatisfying results. The bottom line: If you like the adrenaline rush of working on a project that has more twists than a roller coaster, go with the competitive bid option. If you would like predictable, consistent results, build a long-term client/vendor relationship that will benefit you both.