Defense Contracting Buyer-Seller Relationships: Theoretical Approaches

Abstract

This article examines the applicability of three theoretical approaches to defining defense buyer-seller relationships. Economic Free-Market Theory explains the relative economic power of the participants but ignores the legal, political, and socioeconomic aspects so pervasive in defense acquisitions. Transaction Cost Economics provides a framework for determining the most cost-effective type of contract governance for each transaction. Systems theory explores the degree of interdependence between the buyers' and sellers' systems. Each theory contributes unique insights into defense buyer-seller relationships that can be used to judge the appropriateness of contracting laws, regulations, policies, and management approaches for specific acquisition environments.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1994
Accession Number
ADA487945

Entities

People

  • Carl R. Temple

Organizations

  • Air Force Institute of Technology

Tags

DTIC Thesaurus Topics

  • Abstracts
  • Acquisition
  • Air Force
  • Contracts
  • Economics
  • Information Operations
  • Law
  • Market Economy
  • Military Acquisition
  • Standards
  • Supply Chain Management

Readers

  • Government Contracting/Procurement.
  • Theoretical Analysis.