Vendor Contract Rebidding Calculator

Competitive RFPs typically reduce vendor costs 8-20% on expired contracts.

Current annual cost

Expected reduction %

RFP admin cost

Contract years

Net savings

$46,000

Annual savings

$18,000

Gross savings

$54,000

How the math works

Annual savings = cost × reduction. Gross = annual × term. Net = gross − RFP cost.

$150k × 12% = $18k/yr × 3 = $54k gross − $8k RFP = $46k net savings.

How to Use

Enter current annual vendor cost.
Enter expected rebid reduction %.
Enter RFP administrative cost.
Enter contract term years.
Read net savings.

Frequently Asked Questions

Typical rebid savings?

Expired/stale contracts: 8-20% reduction. Entrenched vendors: 5-12%. Well-managed contracts already at market: 0-5%. RFP discipline matters: 3+ bidders, structured scope, reference check. Poor RFP process: negligible savings.

When to rebid?

Standard: every 2-3 years for janitorial, landscaping, trash. Every 5 years for fire safety, elevator maintenance. Every year for spot repair vendors. Rebid when costs rise >5% annually without documented justification.

RFP best practices?

Minimum 3 qualified bidders. Written scope of work. Reference checks (3+ references, recent deals). Site visits to current clients. Performance metrics in contract. Termination-for-cause clauses. Annual performance review.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.