000 02675cam a2200397 i 4500
001 rnd000000000047791
003 RAND
008 920212s1990 caua b 000 0 eng d
010 _a 91126826
020 _a0833010972
027 _aRAND/R-3996-RC
035 _a(Sirsi) a189014
037 _c$25.00
040 _aCstmoR
_cCstmoR
043 _an-us---
050 0 0 _aUC263
_b.B57 1990
100 1 _aBirkler, J. L.,
_d1944-
_eauthor.
245 1 0 _aIssues associated with second-source procurement decisions /
_cJ.L. Birkler, E. Dews, J.P. Large.
264 1 _aSanta Monica, CA :
_bRAND,
_c1990.
300 _axv, 67 pages :
_billustrations ;
_c23 cm
336 _atext
_btxt
_2rdacontent
337 _acomputer
_bc
_2rdamedia
337 _aunmediated
_bn
_2rdamedia
338 _aonline resource
_bcr
_2rdacarrier
338 _avolume
_bnc
_2rdacarrier
500 _a"December 1990."
504 _aIncludes bibliographical references.
520 _aThe basic argument for competition in Department of Defense (DoD) procurement is that it is believed to reduce the government's cost of purchasing goods and services. Nonetheless, in some cases it may be actually less costly for the government to forgo competition and rely on a single supplier. The DoD's program manager must determine whether competition is likely to result in savings or losses for the government; if competition is indicated, he must then decide on what specific form it should take. This report focuses on one of the DOD's strategies for establishing competitive production sources--"second-source" procurement, in which two firms produce a single design. Such an arrangement does not meet the requirements of traditional economic theory for the forces of competition to operate with full effectiveness. Only one buyer and only two sellers exist; demand is inelastic but uncertain. The authors describe five methods of estimating single-source cost, analyze the effect of competition, and discuss the breakeven method, which deduces the magnitude of pure savings needed to compensate for the cost to the government of introducing a second source. Finally, they analyze the Tomahawk project as an example of second-source procurement, and consider the quality of the resulting product.
530 _aAlso available on the internet via WWW in PDF format.
588 _aDescription based on print version record.
651 0 _aUnited States
_xArmed Forces
_xProcurement.
651 0 _aUnited States
_xArmed Forces
_xWeapons systems.
700 1 _aDews, Edmund,
_d1921-
_eauthor.
700 1 _aLarge, Joseph P.
_eauthor.
710 2 _aRand Corporation.
856 4 1 _yOnline Access
_uhttp://www.rand.org/pubs/reports/R3996/
999 _c598654
_d598654