Cost of a Preaward Survey
Abstract
A preaward survey is one tool used by a contracting officer to deter mine contractor responsibility. The purpose of this study was to quantify the costs incurred by the Defense Logistics Agency in performing a preaward survey, in an attempt to incorporate this cost into the bid evaluation process when tha apparent low bidder has a questionable performance history. The cost would more closely reflect the true cost of doing business with the apparent low bidder. This analysis was divided into two parts. The first part of the analysis examined the direct costs of a preaward survey. These costs were primarily the expenditure of labor to perform and track a preaward survey. The second part of this analysis involved quantification of the costs associated with the delay in awarding the contract due to the preaward survey. The costs were identified in the increased safety levels resulting from increased lead times. All costs provided are FY 88 dollars. The costs of a preaward survey were found to be significantly different depending on whether a formal or an informal preaward survey was accomplished. Keywords: Preaward survey, Contracting, Bid evaluation, Contract administration, Cost estimates. (sdw)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1988
- Accession Number
- ADA211907
Entities
People
- Michael Ryan
Organizations
- Defense Logistics Agency