Questioning the Costeffectiveness of the R D Procurement Process

Cover Questioning the Costeffectiveness of the R D Procurement Process
Questioning the Costeffectiveness of the R D Procurement Process
Edward Baer Roberts
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The second DOD center examined is committed to the practice of first qualifying proposals for technical acceptability and then examin- ing the cost proposals of only those firms that are technically acceptable. The same people who do the technical evaluation determine technical accept- ability, of course. The chart of Figure 2 demonstrates that in 16 cases of the 49 awards investigated only one company was regarded as technically accept- able. After each such determination, the award was evlden...t--lt either went to that "acceptable" company or the job might be cancelled by the Procure- ment Office. Contract award, however, was a precondition for inclusion in the sample. Therefore, Figure 2 is indicating that in 16 out of 49 cases, the only influence on the award was the technical assessment. Going further, there are 19 cases in which two companies survived the technical assessment and were regarded as technically acceptable. This now gives 35 awards out of 49, about 70 per cent of the awards, in which the procurement officer might have considered no more than one or two companies.

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