Accession Number : AD0475779

Title :   SOLE SOURCE SPARE PARTS PRICING.

Corporate Author : LOGISTICS MANAGEMENT INST BETHESDA MD

Report Date : MAY 1964

Pagination or Media Count : 59

Abstract : Delay in the pricing of spare parts occurs in non-competitive procurement of both initial support spares and replenishment spares. In the procurement of spare parts for initial support, the opportunity to interject meaningful cost reduction incentives is controlled almost entirely by the pricing and contractual coverage negotiated for the end equipment. A major portion of the non-competitive procurements of replenishment spare parts (expressed in dollar value) are concentrated among a relatively few large prime contractors. Delayed pricing of replenishment spare parts is confined largely to non-competitive procurements under open-type contracts. The delay in pricing under open contracts normally results from the need to fill an urgent requirement and thus to permit the contractor to proceed with production prior to agreement on price. (Author)

Descriptors :   *SPARE PARTS, COSTS, SOURCES, MILITARY PROCUREMENT, MILITARY SUPPLIES, MILITARY BUDGETS, PREPARATION, MILITARY REQUIREMENTS, INVENTORY CONTROL, PROCUREMENT, LOGISTICS, SELECTION.

Subject Categories : Machinery and Tools

Distribution Statement : APPROVED FOR PUBLIC RELEASE