Photo source: Parker and Associates
What is due diligence?
Due Diligence is the measure of prudence and responsibility expected from, and ordinarily exercised by, a reasonable person under the circumstances. In practical terms, it means doing your research and homework before you pursue an opportunity so that you avoid doing any harm to you or someone else and limit the risk associated with whatever transaction or relationship you are considering.
When I worked for an engineering firm out of high school we used this term heavily when sourcing places to advertise our Request for Proposals (RFPs). It was critical that when we advertised work, we didn't just send it to the same 10 construction companies, but that we performed "due diligence" in our advertising so it would bring us a diverse response.
When it comes to sourcing proposals for local government expenditures, we need to do the same thing. Whether it's community development block grants, other federal funds, job openings, or requests for proposals for outside companies to bid on, we need to be perform due diligence to make as many people aware of the opportunity as possible.
We can't progress if we keep circling back to the same set of actors. Due diligence brings us fresh perspective and gives new entities an opportunity to compete.
How does your local government advertise possible expenditures? Keep an eye out and let me know.