This is a good question and an important one.
Competitive bids are key to any business for two reasons. First, potential vendors or companies charge different rates for their services and products. Without having these bids, you won't know what they charge and so what is a good price. Second, vendors and companies offer different services and products. Hence, without getting bids you would not know what they offer. Also when you coordinate these two points, you are in better position to compare prices. A cheaper company may not offer certain things you need.
Another key point to bear in mind is that geography matters. Some services or products are cheaper based on geography. So, getting bids from different places can make a significant difference. The savings can be enormous in the long run.
In conclusion, competitive bids save money, and you are able to get the best product or service at the best price. It is the responsible thing to do.