Accession Number : ADA309788
Title : Literature Review on Competition Versus Sole Source Procurements.
Descriptive Note : Technical rept.,
Corporate Author : ARMY COMMUNICATIONS-ELECTRONICS COMMAND FORT MONMOUTH NJ
Personal Author(s) : Washington, William N.
PDF Url : ADA309788
Report Date : MAY 1996
Pagination or Media Count : 20
Abstract : After a review of the literature on the topic of competition versus sole source procurements, several points emerge. First, there is probably some rationale for supporting competitive over sole source procurements, but it should be recognized that not all competitive procurements produce savings; and the savings associated with going competitive are probably far less than the old 25 percent savings number used by Defense Secretary McNamara. Next, there are several factors that should be considered prior to a decision to go competitive, such as production quantity, complexity of the item, capacity utilization of the industry involved, special skills, and sufficient data on the item. In addition, a cost benefit analysis should probably be performed to determine the possible savings as a result of competition. Further, low dollar value spare parts, required in considerable quantity, or component parts/systems that are jointly used extensively by private industry, would seem to be the best places to implement competitive procurements.
Descriptors : *COMPETITION, *PROCUREMENT, *SAVINGS, SOURCES, INDUSTRIES, PRODUCTION, COST EFFECTIVENESS, SKILLS, COST ANALYSIS, CAPACITY(QUANTITY), LITERATURE SURVEYS, QUANTITY, PARTS, UTILIZATION, SPARE PARTS.
Subject Categories : Economics and Cost Analysis
Logistics, Military Facilities and Supplies
Distribution Statement : APPROVED FOR PUBLIC RELEASE