Price Analysis on Defense Logistics Agency (DLA) Contracts
Loading...
Authors
Maddox, Janie
Gera, Ralucca
Subjects
Advisors
Date of Issue
2017-03
Date
2017-03
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
Over the last decade, the federal acquisition workforce has had to adapt to the need for new skill sets. Procurement reforms in the late 1990s required contracting specialists to have a greater knowledge of market conditions, industry trends, and market prices. Using market forces to determine reasonable prices has required an increase in both market research and price analysis methods. Most contracts pricing of acquisitions required cost analysis before these reforms became part of contracting regulations. These new regulations dictate a skill set for conducting price analysis that is largely missing from both the workplace and Defense Acquisitions University (DAU) existing curriculum. Since 2001, the Department of Defense Inspector General (DoDIG) and the Government Accountability Office (GAO) have issued several reviews of selected agencies discussing concerns about commercial and noncommercial prices of spare parts and services. Most of these reports have identified situations in which contracting officers failed to obtain adequate pricing information for justifying price reasonableness. In conclusion, both the DoDIG and the GAO have found that the contracting officers need improved expertise in both understanding and conducting price/cost analysis. The current gap in knowledge contributes to agencies missing cost saving opportunities as well as ventures to improve acquisition outcomes. Exercising appropriate price analysis methods that come from adequate price analysis guidance and training would address this gap.
Type
Report
Description
Series/Report No
Department
Organization
Acquisition Research Program (ARP)
Identifiers
NPS Report Number
SYM-AM-17-053
Sponsors
Naval Postgraduate School Acquisition Research Program
Funding
Format
Citation
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.