Finding Best Value in Two-Step Sealed Bidding

Abstract

Two-step sealed bidding is a viable procurement method for expanding the role of best value and nondevelopmental item (NDI) acquisitions. The objective of this research was to determine the feasibility of using the two-step method for obtaining best value in NDI acquisitions. The author began by conducting a review of regulations, policy guidance, and previously published materials. He then conducted interviews with procurement officials in the Defense Department and in industry. The research provides a comprehensive look at NDI acquisitions, two-step sealed bidding, and best-value contracting. The author analyzed the following major issues: defining best value, increasing the effectiveness of NDI acquisitions, and finding best value in a two-step method. The study resulted in the development of a two-step model for getting the best value in NDI acquisitions. The author concludes that the concept of best value can be applied to a two-step method, much ambiguity exists with regard to the true meaning of "nondevelopmental," and regulatory impediments keep the two-step process from implementing a conventional best-value approach. Major recommendations are as follows: a two-step model should be used for obtaining best value in NDI acquisitions, and two potential modifications should be made to strengthen this model by allowing supplier prequalification and fixed-price-award-fee contracts.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1992
Accession Number
ADA261759

Entities

People

  • Kirk F. Vollmecke

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Human Systems

DTIC Thesaurus Topics

  • Acceptability
  • Air Force
  • Commerce
  • Commercial Equipment
  • Contractors
  • Contracts
  • Government Procurement
  • Governments
  • Maintenance
  • Military Acquisition
  • Military Requirements
  • Risk Analysis
  • Standards
  • Systems Management
  • Test And Evaluation
  • United States
  • War Colleges

Readers

  • Government Contracting/Procurement.
  • Hydrologic Risk Analysis and Mitigation.
  • Software Engineering