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BEST VALUE PROCUREMENT

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BEST VALUE PROCUREMENT

Post by DefCon on Wed Feb 18, 2009 12:01 pm

Best Value Procurement should be the main focus of the GPPB. Essentially, Best value does not limit the evaluation only to the LOWEST price submitted by a bidder.

While this premise considers defense contracts primarily, its application to procurement of complex defense equipment is evident. An equipment priced very low, while satisfying minimum requirements, DOES NOT GUARANTEE a low TOTAL OWNERSHIP COST, which consists of both OPERATING and MAINTENANCE cost DURING the LIFETIME of the Equipment. Funds that will be used for the O&M costs also come from government coffers, so in the end, government suffers NOT ONLY IF THE CHOSEN EQUIPMENT IS NOT THE LCB, but also IF THE O&M DURING ITS LIFETIME, turned out to be very high.

RECOMMENDATION:
Please propose other alternative modes of evaluating bids -- for defense equipment, at least, that would address the above issue. I suggest you take a look at the internationally accepted LIFE CYCLE COST ANALYSIS for evaluating bids.

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Re: BEST VALUE PROCUREMENT

Post by engrjhez® on Thu Feb 19, 2009 12:37 am

What you are requiring is actually a job for the Procuring Agency concerned. Procurements must be very specific and this calls on a very good declaration of "minimum specifications" included on the bidding documents and determined to be most advantageous to the government as studied by the (consultants of the) agency.

This sounds like the government will look reliably on the O&M Analyses rather than establishing one. To me, this need not be introduced as another mode of procurement or another technical requirement but an undertaking and responsibility of the agency which will be complied by bidders.

My opinion only. Smile
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