Price Competition in the DoD
Abstract
In analyzing many disparate products and services, we find no discernible relationship between their physical and functional characteristics and feasibility of price competition. Rather, two fundamental conditions are essential for price competition. They are: The product or service can be described with enough precision so that potential suppliers will understand exactly what the buyer wants. More than one independent supplier with available know-how and facilities is willing to compete. It is immaterial whether the procurement is for a spare part, shoes, electronic component, or a major weapon system; if these conditions are satisfied, competition is possible and likely to be beneficial. If either condition is absent, price competition can be effected only if the Government takes action to satisfy it. Whether such action is warranted depends on whether its cost is likely to be offset by the benefits of competition. Numerous methods to satisfy these conditions are employed by the DoD.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1982
- Accession Number
- ADA121594
Entities
People
- Harry M. Tayloe
- Myron G. Myers
- Paul R. Mcclenon
Organizations
- LMI