Assignment task:
Please reply to my classmate assignments and say that I agree with her shorter "DQ2 After reading "Curing the Final RFP Pricing Problem", one aspect that stood out to me was the utilization of an escalator when drafting a proposal. While I do not personally participate in the proposal process for my organization, I do tend to utilize escalator clauses when drafting multiyear agreements with my suppliers. I use an escalator clause more post-Covid than I did pre-Covid due to the extreme inflation that occurred between 2020 and 2021. I typically look at the Consumer Price Index and also utilize an inflation calculator when determining if an escalator clause that has been proposed by a supplier is fair and reasonable based on historic trends. This allows for my suppliers to still increase their margins year-over-year but also provides a protection for my team as we saw with Covid when inflation rates unexpectedly sky rocket, yet we are still locked into the agreed upon contracted rates and escalation percentages. Escalations can protect both the supplier and the buyer in my opinion. Another aspect of the article that stood out to me was the professional development of the pricing team.