Analysis of the Multiple Award Contracting Strategy on U.S. Government Husbanding Service Provider (HSP) Prices
Abstract
In 2016, the U.S. Navy transitioned from Single Award Contract (SAC) to Multiple-Award Contract (MAC) Indefinite-DeliveryIndefinite-Quantity (IDIQ) husbanding service contracts. Recent port services pricing data suggests that some services or ports may cost more under a MAC compared to a SAC. The objective of this study is to identify whether there is a statistically significant difference in price for U.S. Navy husbanding port services and to estimate the relationship of price between these two competitive husbanding service provider (HSP) contracting strategies. A price comparison between the contract types was performed using three fixed-effects regression models. The results of the models showed a statistically significant difference in price between SAC and MAC. The model estimated that for a given port and given ship type, the average price for HSP services was less for a MAC than for a SAC. Additionally, the effect of the MAC on price changes based on the port and service category. However, the effect of contract strategy on price could be marginally under- or overstated based on the immeasurable effects of nonmonetary qualitative factors. Further research will be required to understand the true costbenefit of MACs and the overall best value to the government.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2020
- Accession Number
- AD1114623
Entities
People
- Callan T. Walsh
- Christy F. Fieger
- Jesse Y. Kiengsiri
Organizations
- Naval Postgraduate School