Literature Review on Competition Versus Sole Source Procurements.
Abstract
After a review of the literature on the topic of competition versus sole source procurements, several points emerge. First, there is probably some rationale for supporting competitive over sole source procurements, but it should be recognized that not all competitive procurements produce savings; and the savings associated with going competitive are probably far less than the old 25 percent savings number used by Defense Secretary McNamara. Next, there are several factors that should be considered prior to a decision to go competitive, such as production quantity, complexity of the item, capacity utilization of the industry involved, special skills, and sufficient data on the item. In addition, a cost benefit analysis should probably be performed to determine the possible savings as a result of competition. Further, low dollar value spare parts, required in considerable quantity, or component parts/systems that are jointly used extensively by private industry, would seem to be the best places to implement competitive procurements.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1996
- Accession Number
- ADA309788
Entities
People
- William N. Washington
Organizations
- United States Army Communications-Electronics Command