An IT project manager has been referred to a new, highly rated vendor that provides...

When a project manager encounters a situation where a vendor’s rates do not fit into the project budget, it’s important to engage the project stakeholders1. This is because stakeholders have a vested interest in the project and can provide valuable input on how to proceed. They may be able to suggest alternative vendors, provide additional funding, or help negotiate a better rate with the vendor. Engaging stakeholders in this decision also ensures transparency and buy-in, which are key to successful project management2. References: 

https://www.brainscape.com/flashcards/pmp-test-11-10971072/packs/19294018

https://relevant.software/blog/it-vendor-management-guide/