SNYDER, Christopher M
Bidding behavior in the Deparment of Defense`s comercial activities competitions - 2001
From 1978 to 1994, the Department of Defense conducted more than 2.000 competitions in which private contractors and the government`s in-house team bid to provide a service performed in-house before the competition. A three-equation model is contructed, which is used to estimate the in-house bid, the minimum contractor bid, and the in-house team`s baseline cost. The model accounts for the fact that the in-house bid is constrained not to exceed its baseline cost. The estimates are used in simulations of the savings from the completed competitions ($1.55 billion annually, 35 percent of the baseline cost) as well as the savings from various alternative policies, including competitively tendering all the functions on the Department of Defense`s list of potential candidates($7.58 billion annually)
Bidding behavior in the Deparment of Defense`s comercial activities competitions - 2001
From 1978 to 1994, the Department of Defense conducted more than 2.000 competitions in which private contractors and the government`s in-house team bid to provide a service performed in-house before the competition. A three-equation model is contructed, which is used to estimate the in-house bid, the minimum contractor bid, and the in-house team`s baseline cost. The model accounts for the fact that the in-house bid is constrained not to exceed its baseline cost. The estimates are used in simulations of the savings from the completed competitions ($1.55 billion annually, 35 percent of the baseline cost) as well as the savings from various alternative policies, including competitively tendering all the functions on the Department of Defense`s list of potential candidates($7.58 billion annually)
