Bidding Behavior in DoD's Commercial Activities Competitions

Abstract

In a previous study, CNA analysts used data from past DoD A-76 competitions to construct a model of savings and projected the potential savings from additional DoD Commercial Activities (CA) competitions. In this paper, we use an alternative approach for estimating savings from future DoD CA competitions. We estimate two separate bidding equations - one for the in-house team bid and another for the minimum contractor bids, along with an equation for baseline cost. Based on these estimated equations, one could then indirectly project future savings in the A-76 inventory as the difference between predicted baseline cost and the predicted winning bid. Using the new approach, we project an annual savings of $6 billion if the entire 1995 DoD CA inventory were competed under A-76 rules.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1998
Accession Number
ADA362386

Entities

People

  • Christopher M Snyder
  • R. D. Trunkey
  • Robert P. Trost

Organizations

  • Center for Naval Analyses

Tags

Communities of Interest

  • Biomedical
  • Ground and Sea Platforms
  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Air Force
  • Business Administration
  • Competition
  • Contractors
  • Contracts
  • Data Processing
  • Department Of Defense
  • Descriptive Analytics
  • Equations
  • Governments
  • Health Services
  • Information Science
  • Inventory
  • Probability
  • Simulations
  • Standards
  • Statistics

Readers

  • Government Contracting/Procurement.
  • Life Cycle Cost Analysis