Analysis of Delivery Evaluation Factor Application.
Abstract
During the last couple of years three Defense Logistics Agency (DLA) supply centers have developed Delivery Evaluation Factor (DEF) procedures whereby competitive contracts are awarded to other than low bidders in return for early deliveries. The three programs differ in several major respects, including methods of calculating evaluation adjustments, types of buys covered, and implementation procedures. Concerns have been raised regarding both the overall value of the program and the relative merits of the individual programs at each center. This study provides an analysis of the technical merits, costs, and benefits of the various DEF programs. Much of the analysis is based upon a review of the contract files for Defense Industrial Supply Center (DISC) for the period, January 1992 through June 1994. Experience with the DEF program at the other supply centers is too limited for meaningful analysis. The study also compares the evaluation adjustment procedures used by the various supply centers. Average Production Lead Times (PLTs) declined during the period analyzed. The DEF program, as well as a number of other programs, probably contributed to this decline. DEF buys displayed especially large reductions in both average PLTs and percentages of late deliveries. Unfortunately, these reductions were not completely sustained in subsequent nonDEF buys. This is disturbing since the theoretical justification for paying incentives for lower PLTs depends upon their being sustained in subsequent nonDEF buys. The analysis did not show that DEF buys cause increases in average unit prices.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1995
- Accession Number
- ADA296657
Entities
People
- Burnham Gould Jr.
- Cathy Arebalo
- Paul Grover
Organizations
- Defense Logistics Agency