Cool Biz but not cool enough by Tony Green

Image of Japanese worker 

One of the latest attempts by the Japanese government to save energy has been to the increase temperatures on Tokyo’s trains and office buildings with the intention of lowering their energy input.

One method the government had elected to persuade the generation to adapt to warmer trains during Tokyo’s notoriously hot summers is allow business people to forgo the typical suit and tie and go with a shirt sleeve shirt common referred to as “cool biz”. The Japanese Ministry of the Environment (MOE) began advocating the “Cool Biz” campaign in summer 2005 as a means to help reduce electric consumption by limiting the use of air conditioning.

The Cool Biz dress code advises workers to starch collars so they stand up and to wear trousers made from materials that breathe and absorb moisture.

As a show of support all of the government leaders practiced Cool Biz. Former Prime Minister Koizumi was frequently interviewed without a tie or jacket, and this produced a significant advertising effect.

Yet many still wear suits and ties for business reason as old customs are difficult to change. Even those who favored the idea of dressing more casually became self-conscious during their commutes when they were surrounded by other commuters who were all wearing standard business suits. In addition, many government employees stated they felt it was impolite not to wear a tie when meeting counterparts from the private sector.

Another method implemented by the government is designating one of the cars as a "weak" car which is maintained at a higher temperature with the intention of reducing energy consumption. During a summer rush many commuter choose not to sit in this car.

Which brings me to the question of whether minimizing our energy footprint energy ever provide sufficient motivation to modify the way we live our lives? Is a little inconvenience enough reason to warrant to change the method we are accustomed to conserving our energy?

As a measure the impact, in 2006 the MOE estimated that the campaign resulted in a 460,000-ton reduction in CO2 emission which is the equivalent volume of CO2 emitted by about 1 million households for one month.

I guess business will never be cool enough yet the concept where only executives and old school salesman wear suits and ties for the reason they are unnecessary has worked brilliantly in Silicon Valley for more than the 10 years I since I moved there. 

Thank goodness we are not in a Depression by Tony Green

At least we are not in a depression.....

Is the current recession in fact a depression and no one in the media wants to say so? We are all clear on the end result; the economy is crippled, families are shattered, and lives have been altered.

A recession is defined as two consecutive quarters of negative growth in the gross domestic product (GDP) which is the total value of goods and services produced. investorwords.com states a recession is, in general, accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. A recession is, by and large, considered less harsh than a depression, however, if a recession continues long enough the occurrence is classified as a depression.

The definition of a depression is not so clear - a severe and prolonged recession characterized by inefficient economic productivity, high unemployment and falling price levels. A depression is defined by its length; it’s usually large increases in unemployment; and falls in the availability of credit, often due to some kind of banking or financial crisis.  Price deflation and bank failures are also common elements of a depression which are not normally a part of a recession.

I think people, in general, want to think the Great Depression was a one- time occurrence assuming it could never occur again. Didn’t the depression happen once before?  In 1929, a perfect storm of events combined to cause the stock market to crash. Is the current scenario any different from where multiple separate occurrences all converge to wreak havoc on the world’s economy?

During the Great Depression the GDP of the United States decreased by 33% and the rate of unemployment increased to 25%. When compared to the current recession according to bea.gov the revised estimates show for the period of contraction from 2007 to 2009 the economy contracted at an average annual rate of 3.5% while the unemployment rate reached 10%. To get an appreciation on how this compares to the economic environment in December 2007, prior to the recession, the unemployment rate hovered at 5.0% while by June 2009; the rate had jumped to 9.5%. In the months, the unemployment rate peaked at 10.0 percent.

After reviewing the numbers I feel better our nation’s economy has not reached depression levels. (Yet) But with the turmoil and the fact it will take us years as a country and a planet to fully recover, in actuality, what is the difference to people other than economists in what this challenging economic period is called?

The end of the investment of home ownership by Tony Green

People purchased homes before the housing market crash not only with intention of having a place to live but with the goal of making an investment in their future.  The reality of renting an apartment versus owning a home meant the payment being spent on rent on a monthly basis went down the tube never to be seen again.  In the past, a symbol of success was burning the title of your home, which you now owned after the last payment had been deposited by the mortgage company.

Fast forward to today and the situation is drastically different. In a time of high unemployment and limited access to credit with the lowering of property values to the point where the amount on the loan is in excess of its value has turned the monthly mortgage payment into a financial black hole.

Image of beautiful  home

In the event you are unemployed the result is you are between a rock and a hard place since if a person cannot show a regular salary coming it is not possible to qualify for a modification on your loan. More ever if a short sale was attempted to avoid foreclosure and the house sold at a amount less than the value of the property the capital gains tax would transfer you mortgage debt to the IRS assuming the tax break for underwater properties would not be reinstated at the end of the year in the same fashion as the Bush era tax cuts.

The prospects of improvement sooner than later are slim which has caused me to consider moving back to an apartment. This will ensure I understand what payment I will owe and which won’t adjust arbitrarily dependent on some obscure formula for the interest rate. At least, you know what your rent money goes away for and there would be no need to think about the other painful occurrences such as foreclosures, short selling, and re-modifications, etc. Just like an apartment.  How’s that for full circle?

It is about the value I getting after all by Tony Green

Is this the value I am getting?

Recently my family decided to take the plunge and get rid of our land line since all of us had mobile phones and, normally, the only calls we received were telemarketing calls. I hoped all of the annoying calls you received when you were busy offering services/products you are not interested in buying would go away. I soon learned how unaware I was about the lengths people would go to in attempts to get a little bit more of my money.

One Friday evening a few months ago I had just cleared the dishes from the dinner table and I heard a knock on the door. For some unexplained reason, I answered instead of delivering my customary message of “Not interested” through my locked front door. My visitor happened to be a representative of Comcast who wanted to speak with me. I politely informed her I was already a Comcast customer. She explained that was the reason for her visit; my current coverage needed to be discussed so I might get the maximum value for my account. All the while she referred to this clip board with paper attached as if forms would make this intrusion on my evening more official.

I found the idea annoying that someone who I did business with would show up on my front doorstep unannounced after dinner on Friday evening.  I am aware, as a technical sales person, folks in general are becoming less and less tolerant of interruptive sales techniques.  Is it prudent to risk affecting the customer relationship to gain a slight increase in their revenue stream?  Perhaps Comcast believes there are not any other choices of vendors for all of these services and if they continued to pound, prod and otherwise interrupt its customer base they will be successful in milking incrementally more money out of their accounts.

Maybe I would have preferred to have received the call and simply hung up. Then again, I reminded myself showing up on my door step is all about the value I could be receiving. If they wanted to add value why no add additional channels to my cable offering without increasing my rates.

Once I calmed down I thought about the offer I get from AT&T to bundle my HDTV, High Speed Internet and phone service under one bill. If this is how Comcast is going to treat its customers should I take them up on their offer?

Yes this republican would get my vote by Tony Green

Image of flooded car in aftermath of SuperStorm Sandy

I am sure you are aware of New Jersey Governor Chris Christie praising of President Obama’s response to the plight of those New Jersey residents who lost their homes in the aftermath of Super Storm/Hurricane Sandy. This resulted in the governor receiving criticism from his republican colleagues for saying something positive about an incumbent Democratic president who, at the time, was in the midst of a tightly contested re-election battle.  

Aside from ensuring their party’s leader is living in the White House as our president, controlling of the House or Senate, and catering to wealthy special interest groups the spectacle made me wonder what the point of having publically elected officials at all? 

Here’s a thought, how about looking after the constituents who selected him to look out for their well-being times of crisis?

Can any reader reading this posting find a legitimate issue with Governor Christie being more worried about the communities’ plight then toting the party line prior to an election? I think he should be commended for having the guts to stand on what he believed and on being man enough to express it. Finally, all of us need to remember what politics I should be about. It is not and “politics” and “power” but “people”.  

I do not have anything in common with Governor Christie other than being a fellow alumna of the University of Delaware. My party affiliation has been Democratic since childhood and although Governor Christie is a Republican I would consider voting for him if I had the opportunity. My thinking is if some calamity occurred where large scale government assistance was required I would want my elected officials supporting me regardless of what his or my party choices are.

Shochu the drink of a new generation by Tony Green

Image in Shochu Bottles 

A few months back I was reading the in-flight magazine during my flight to Japan. One of the articles mentioned a drink called Shochu which of late was growing in popularity outside of Japan. I found this interesting since I have never heard of the beverage. I have been to Japan many times and believed myself to be rather knowledgeable with things regarding Japan. Oh, well, I guess no one knows everything.  

While I was in Japan and I went out to dinner at Ikiyaka restaurant in Yutenji and I made sure to try to see what the story was.

It turned out my mother-in-law happened to be a regular Shochu drinker. I thought most Japanese people preferred sake as their non-beer beverage of choice.  I discovered after a little Internet research, for starters, Shochu is Japanese traditional hard liquor distilled from grains and vegetables. The most common base ingredients are sweet potato, barley, rice, buckwheat and sugar cane. Most readers are more familiar with sake which is a general term for alcohol beverages in Japan. Interestingly, Nihonshu is commonly referred as “sake” in America while both Nihonshu and Shochu are both traditional Japanese alcoholic beverages. Nihonshu (sake) is categorized as fermented liquor placing the drink in the same category as wine while Shochu is a type of distilled liquor, similar to brandy and vodka. Rice can be fermented to make Nihonshu, or distilled to make rice Shochu.

In the end, if you find yourself in Japan or any place which offers drinks made of Shochu be certain to give a try. If the reader would allow me to make a recommendation, try the sweet version as I found it especially tasty. Trust me, in the end you will thank yourself for trying.

Image Courtesy of http://www.sfgate.com/wine/spirits/article/Move-over-sake-here-s-shochu-2702332.php

Odd things that help get me a job offer by Tony Green

Author 's Note: This article was intentionally intended to be posted in an article website. Since I have not decided what would be the most appropriate site for now I will post it here on my blog.

Image of frogs - who will stand out 

I was thinking back over the years when I have been in between positions looking for employment.  I am sure you know, there are typical ways in which unemployed people find work. Among them are using the Internet job boards and plain old fashioned face to face networking. However, on occasions I have used other methods than these to land myself job offers.

I was interviewing for employment with a software company who worked in the defense space. Normally when I conduct research ahead of a job interview I pound the Internet to see what I can find out. Most people search the first few pages of search engine results. In this case, I checked the results all the way to Page 30. Interestingly enough some M.B.A. students at the Monterrey Naval post graduate school had written a business plan on the company as part of their requirements to receive their degrees. I printed out 120 page document and crammed as much as my memory would allow beforehand.

The interview unfolded and from the puzzled looks of the interviewers clearly, I knew some details I should not have since some of what I read on line happed to be confidential. I finally confessed to where I had obtained the information. Sometimes, digging a little deeper than the normal person does have its benefits.  For the record, I did receive an offer for the job; however, I did not take since I chose not to relocate to where the position was eventually offered.

I recall another instance where I had finished my second interview for a position I had applied for and another candidate and I were the last two in the running. Our prospective employer was planning to offer the job to one of us.

I maintain a personal blog on the Internet in my spare time and I try to complete postings a few times a month. My blog is designed to document my thoughts and feelings in my own words. The people who had interviewed me came across the blog and after reading a few entries walked away with a favorable impression.

If you get to choose what is out on the public domain why not make sure your postings reflects you in the most positive light possible? In the end, I accepted this position as soon as it was offered.

I recall one browsing the various presentations one evening on slideshare.org. On occasion, PowerPoints are available which are useful in preparing for job interviews. I stumbled across a presentation a woman looking got a marketing job had submitted as part of her application. The document described her professional and personal life in way that, at least for me, allowed a much better feel of her background more than a resume or VC would allow. I decided to use it as a model for a template detailing my career and the knowledge which had been obtained as its various stops with snippets of my personality mixed in. After the second interview I sent the presentation to my employer as I understood he would be making his choice and anything I could do to influence his decision was fair game. I did receive the offer. To be honest, I am not sure if what I sent swayed him or not. The professional presentation about your career is still is useful tool to keep in your professional toolbox to be ready if ever needed in the future.

        In closing, I cannot guarantee any of these tactics will work for you in regards to seeking employment, however, but it never hurts to try.

We do not forget but we still do not know why by Tony Green

I spent much of the evening on the 11th anniversary of 9/11 watching the History Channel’s programming about the people of New York City who witnessed the worst terrorist attack in American history up close and personal.

I remember vividly listening to a voice message left by my mother who at the time lived close enough to the Pentagon to smell the smoke from the fire caused by United Airlines Flight 77. I will always be able to recall the sound of fear in her voice.

Image of Manhattan Skyline

I do not think any of us will forget what they were doing or where they were at the moment we found out the Twin Towers had collapsed. I was at the Alameda County courthouse in Oakland attending jury duty. After some reflection I wish I had a better understanding of why the hijackings took place. From most biographical accounts the hijackers were educated and articulate young men who instead of living their days and nights to the fullest chose to sacrifice their lives along with many innocent bystanders.

The best idea I can think is I know radical Islams are upset at U.S. foreign policy in the Middle East, particularly Palestine, and its support of Israel.  In short, the aggressive policy has placed the interests of the U.S. government and its allies ahead of the well-being of the people residing in the Middle East. This, in turn, resulted in many Palestinians living very difficult existences to which these radicals blame the United States.

In light of the successful mission by the Obama administration and Seal Team 6 in particular to kill Osama Bin Laden and the military’s effort to dismantle Al Quida as a terrorist organization I still wonder, as many American might be asking themselves, when are the next group of young men are going to concoct a plan designed at injure and kill as many Americans as possible?

Until a definitive answer as to why the attacks were planned and its corresponding solution it will only be a matter of time before this happens again.  Eight years have passed between the bombing on the World Trade Center in 1993 and the 9/11 attacks. Since that fateful September day 11 years ago I cannot help but to wonder are there people making plans for additional attacks as we speak?

Cold cash is not what it used to be by Tony Green

Image of a twenty dollar bill

On this particular Sunday afternoon I took with my son to see a movie and while as we waited in the ticket line the women ahead of me mentioned she had sent her daughter home to get cash since the machine which processed debit/ credit cards was not working.

I thought to myself, “Are you kidding me?”

A few moments before I reached the booth to purchase our tickets the machine came back up. The incident made me think how cashless our society is nowadays. In my case, there are months where I go without using any cash as all.

How can this be? With the use of debit cards, and even using written checks has been reduced a large amount with the implementation of online payment of bills. Will we as a society ever become 100% cashless?

My initial thought would be, as with any electronics based technology, the possibility of a problem with either losing you electronic method of payment or a glitch in technology which would preclude your access to your money. Wouldn’t cash be nice to be able to use in that situation?

Time will tell but if we were to ever get rid of all printed money, what would the mint do with all of the cash?  Another issue which might arise is what happened if a bank was not readily accessible?

As a youngster growing up in Philly before you could open a checking account you needed to take your paycheck to a check cashing place which after a slight deduction for the service of cashing your check you had your wages represented in a pocket full of cold cash.

The future of printed money might be academic. People have bartered and exchanged goods with each other since the beginning of civilization.  The value of these commodities later became what we know today as cash. Since hand- to-hand transactions will probably not disappear it would be hard to imagine an electronic based method of commerce.

With that in mind cash might never fall out of use permanently but still is not what is used to be.

The use of a Home Owners Association by Tony Green

Image of townhomes

My homeowner’s dues went up again last month. Why? In my case, my fees have increased 100 dollars in the eight years since I purchased the home I currently live in. My question is, “what is the point?” It seems single unit homes are maintained in decent condition without working with Home Owners Associations.

Without doubt, I will concur the streets within the complex receive fresh paving and the grass is cut on occasion but in the case of an regular home the street department are taking care of that from the taxes we already pay.

I recall an issue with the color of the paint on my house. The person we bought the house from had installed a wire to run a phone line to the bedroom. (Do not ask me why this was not done when the home was originally built almost 40 years ago). It seemed they drilled a hole through the wall from the terminal in next to the storage area. In any case, I received a complaint from management because the wire was mismatched to the color of the house. In the end, I had find the exact color of paint at Home Depot and bought a one quart can to paint over around four inches of wire. 

I recall another instance where my wife was attempting to organize a garage sale. Later I received a letter we had not been granted permission from the homeowners Association in order to conduct a garage sale. Why is it I need to ask person to put on a garage sale on a property I purchased? Isn’t that one of the good things about being a homeowner?

Finally, I reviewed the financial statements sent by the managements of the Home Owners Association and even with after noting how methodical the details are laid out of how every penny has been sent and how the budgets are determined I still wonder, “Where is all of my hard earned money going?” 

If you manage a HOA and can tell me I would be very happy to hear what your feelings are on the matter.

Producing children for pay? by Tony Green

Older Asian Couple

The Chinese government supports a policy of prohibiting their urban citizens to limit child production to no more than one child. Parents with multiple children are not given the same benefits as parents of one child. Moreover, in some cases, wealthy families pay a fee to the government in order to have a second child or more. The policy is designed to tackle the problems which result from uncontrolled population growth like epidemics, slums, overwhelmed social services namely health, education, and law enforcement.

This is a strike contrast to the Japanese government.  During my recent trip to Japan, I realized many Japanese are aging but due to population trends resources to support this aging populace may become scarce. For example, my wife’s parents had three children from which they had two grandchildren. Over time if most families bear fewer grandchildren than children then in the long-term the population will decrease. Another example is my wife’s elementary school will be closing after being open since after the Second World War as a result of decreased enrollment of student in her area.

It was even mentioned at some point in the future Japan may cease to exist as result of this birth rate decline. This to me seems extreme; however, it is clear in the long-term something needs to done. How the Japanese government incentivizing its young people to create offspring in the same way that the Chinese in a roundabout way pays its residents to limit births?

I have a hard time believing I am typing this on a blog that anyone can read via the Internet. The concept of getting a stipend to grow families is not quite the “normal” idea of childrearing. Most people given the correct circumstances would happily produce offspring.   

Typically the younger generation looks after the older one. With the risk of there not being enough younger folks to address the needs of the older age group what is the alternative?   Should the Japanese at least consider finding some way to incentivize their populace to produce children?

We are Penn State,We are Done by Tony Green

Penn State logo

I was watching the live press conference of the penalties imposed on the Penn State football program in light of the sex crimes scandal and the university’s decision at its highest leadership to not contact the proper authorities in order to maintain the integrity of the program.   

I find it difficult to believe I am writing a blog on this topic. Having grown up the in Philadelphia, a few short hours from Happy Valley, I fondly remember watching Gregg Garrity’s diving touchdown catch in the 1983 Sugar Bowl against Georgia securing Penn State’s first national title and who could forget Pete Giftopoulos’ interception of Vinnie Testaverde in the final seconds of the 1987 Fiesta Bowl to hold off the heavily favored Miami hurricane to bring home its second and final national championship.

It is not easy to fathom that winning a national Championship, even winning a bowl game may not occur for Penn State for the duration of my lifetime. Of course, more pressing concerns include the welfare of the children, now young adults, whose lives have been changed irreparably as a result of this ordeal.

The penalties to the football program handed down a few days ago ranging from the loss of scholarships to being barred from post season play for four years are, in many cases, worse than the often talked about “death penalty”. The death penalty results the program is shutdown from operation for a specified period of time. The NCAA decided not to go this option after much deliberation. Whatever the true reason for their decision the end result whether intended or not will be everyone involved with Penn State and the world will be able to watch the football program flounder from heights from which the program will never return.

The parties who are being held accountable have done it to themselves, from the deviant who perpetrated the crimes to those in power who allowed the endangering of innocent children to continue. I just wish they had not done this to everyone with any affiliation to Penn State football.

Now every time I see any tweet with the hashtag #wearepennstate I think a more appropriate description the future of Penn State football should be #wearedone. 

 Image Courtesy of 

http://klownsportsdotnet.files.wordpress.com/2011/11/penn-state-football-schedule-college-game-day-begins1.jpg

Has it been 25 years since I graduated high school?

“Just a gentle reminder that our Central 246 reunion is coming up soon, on Saturday, June 16^th”

I read the email and for a moment thought it might had been a mistake but deep down I realized it was not. My 25 year reunion from high school was approaching quickly.

Thoughts upon graduation

For me, a lot noteworthy events have happened once I left high school specifically attending college, joining the Navy, getting the chance to operate a nuclear reactor, meeting someone who went to high to school 4,000 miles away from me and marrying her, having two kids, going back to school and earning another degree, receiving multiple certifications. In that time, I interviewed for positions, transitioned careers, began to grow gray hair all the while continuing to try and push forward and become the best person I can be.

Looking back at my high school days I enjoyed my time. For certain I wished I knew as much about life then as I do not but overall I cannot complain, I had the opportunity to attend a world renowned high school which I would be proud to send my children had I not moved across the country.

Over the years the one thing which has changed is the acceptance of the good and the bad which comes with everyday life as a result of my life experiences. On the other hand what hasn’t changed is my personality. I am still the same person I was but now I can lean on a plethora of life experiences to look back upon and shape my viewpoints.  Ultimately, no one can take away your experiences and in many cases these experiences influence your psyche irreparably for better or for worse.

As my high school classmates gathered 25 years since we graduated from the Academy of Music on Broad Street in Philly I wonder  where we will all be in another 25 years?

Time changes for no one by Tony Green

Time waits for no one

I found myself in Orlando, Florida for the IEEE PES trade show last week. This visit was my first time in Orlando since I completed Navy Nuclear Power School 15 years earlier. I remember enjoying being stationed in Orlando and wish I had more free time for fun and frolicking in the sun.

I  vividly recall memories of climbing off the bus at the Recruit Training Command in March 1994 to begin my transition from my previous life as a civilian into a seaman in the worlds finest Navy.

I questioned what happened to the old Naval Training Center after I left. During boot camp and began the first part of my Nuclear training the Navy the process of shutting down the Naval Training Center. The base closure resulted from cutbacks in the DOD budget in the aftermath of the Cold War. Now all the new recruits would complete basic training at Great Lakes near Chicago. 

In the years I since I left the area had been converted to houses, shopping centers, and schools. In the end I …….. to tell a base had ever existed at all.

Upon heading downtown the landscape looked different than I had imagined. The landmarks proved to be unchanged such as the TD Waterhouse Center and the Disney Resort but the feel of the people was not how I remembered. When I thought about the matter perhaps my perception of Orlando has changed over the years since I am a much different person now.    

What did I expect? Indeed time waits for no one, why should I have expected Orlando in 2012 to be the same city it was in the mid-nineties? 

What would you do to live in California? by Tony Green

Bridge over Donner Pass

Recently I went on a business trip to Reno, Nevada. I live in the San Francisco Bay area so my driving route would require the use of Interstate 80 East over the Sierra Mountains.

I had never made the drive but knew during winter chains were required on any automobile making the trip which is part of the reason why I postponed my overdue face-to-face reconnection with my client base.

 I started my drive on a sunny 75 degree day in Pleasanton and passed through Sacramento rather unceremoniously. The temperature began drop as the sun dropped below that horizon and the elevation rose to over 7,000 feet at the summit of Donner Pass.  I glanced as the snow covered peaks and the rugged terrain of densely packed forests with nothing around. This would be not a good place not to break down.

Sure enough as I drove further towards the Nevada border I noticed a Greyhound bus which had broken down off to the side of the road.   The vehicle seemed to be DOA as the passengers stood in the parking area watching the process of offloading its contents take place. 

I thought to myself, "There isn’t a damn thing out here, and with the mountains my chances might be even odds your mobile phone would work. What a lousy place to get stuck.....

This made me remember when my daughter mentioned the Donner party in 1848 that became stranded in these very mountains without food and shelter trying to immigrate to California and happened to be unlucky to get caught in unprecedented snowfalls.

As history recalled the parties decided to make the trip by wagon and at many places had to cut their way through trees to make way for their wagons.

As I looked I thought how could this occur? I am not sure it would be possible make the crossing with a proper gear and training on my own, nonetheless with wagon and children and in many ways not knowing where you are. 

Many of the people happened to be wealthy and had productive lives on the East Coast where they began their journey. At initial glance the arduous journey seemed like a lot to go thorough just to get to California.

The premise was to settle to California which its mild climate and abundant resources. Wait a minute, where had I heard that before?

In recent times the weather, culture, and high standard of living make California an ideal place to live and raise a family. Why should this not have been the case 150 years ago?

About bidding by Tony Green

The bid process in the utility industry

Every new position and industry supports new processes which differ from those used in the past. My entry into the utility industry would be no different.   The type of selling I have experienced involved an item or service being quoted and the prospect had the option to accept the proposal after negotiating the terms.

The bid process, in contrast to what I had grown accustomed to, where the interested parties submit bids for an item and the utility chooses which party is awarded the work based on their bid. The winner is usually the party with the lowest price for the service. American utilities use this process, as it was described to me, reasoning the public must get service at the cheapest possible price. This is well and good but why there must be multiple bidders, when just one will win? In many situations, where a lot of bids are submitted for a certain items which the bid process is very involved; a large waste of time and effort is expended for the losing parties.

So I could not help but to be surprised on one bid once I reviewed the paper work and read a clause stating the winner was not mandated to be the bidder with the most expensive price. This implied the practice of not awarding to the lowest bidder was the exception and not the norm.

Typically, a utility sends specifications to producers of the equipment, who design their product to meet the specifications, estimate the cost, and submit a bid. Bids, by and large, cover not only the equipment, but also services such as transportation and installation, as well as warranties.

Although price is a significant factor, utilities’ purchasing decisions may also be affected by a number of other considerations, such as efficiency rating, the manufacturer’s failure rate, its on-time delivery rate, other aspects of its past performance, lead time, freight costs, and warranty.

Purchasers usually conduct one round of bidding. In general, utilities evaluate competing bids on the basis of their “total ownership cost” or “evaluation cost.” In most cases, buyers do not discuss the bids of opposing firms with the manufacturers. 

Bearing in mind the goal of getting the best price, a few months ago a Korean manufacturer of power transformers were cited by the Fair Trade Commission for “price dumping” power transformers in the American market. This occurred after many of the large American based transformer manufacturers submitted an official compliant. Ultimately, a tax will be implemented on their products for the amount that they were judged to be deliberately under pricing their product lower than fair market value. 

Why should this be a surprise to anyone in the American utility industry? Did the Koreans play their own game better than they did?