Request for requote with new parameters, but I don't want to do the new version of the project
I have been freelancing in my semi-niche field for 12 years now and have built up a good business/very solid income.
A lot of my clients are large to very large institutions, which means that different parts of the organisation can operate independently of each other from a budget perspective. I am currently doing a long project (12 months duration) for one such organisation, and another department in the same organisation got in touch to ask for a proposal for a project in their area.
I provided them with a proposal, with pricing adjusted (discounted) on the basis that I have already learned the organisational environment and norms, so I would have a head start. Nonetheless, they declined, stating the proposal was above their budget. Fair enough, that happens!
My dilemma is that they have come back with a different scope and asked me to requote on that basis, but I don't really want to. In the time since doing their first proposal (the one they rejected), I have had another substantial proposal accepted by another client, and timing will be an issue. Moreover, I'm just not excited by the new brief / scope - it's not hitting the things I most enjoy about my work and has added in things I don't usually do (think - if my usual offering is creating flower arrangements, they are now asking for watering plants instead). I also get a strong read that they are looking for a price below my floor of what I usually take on (I have had bad experiences with low price jobs pretty consistently, and now heavily preference longer higher-value projects).
Normally this would be easy - I would just say thank you but no, and move on - but I'm wondering if anyone has encountered the particular trickiness of turning down work for one part of an organisation while still working for another. I can't afford to create awkwardness or bad blood with my long-term project.