Second price sealed bidding in government contracting
Loading...
Authors
Hertig, Donald L.
Subjects
NA
Advisors
Terasawa, Katsuaki L.
Stone, Mark W.
Date of Issue
1994-12
Date
December 1994
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
This study analyzes the use of second price theory as it pertains to competitive Government contracting. Second price theory, which was originally introduced by William Vickery in 1961, entails awarding the lowest responsible and responsive bidder in a sealed bid competition a Firm-Fixed Price (FFP) type contract, where the award price is set at the second lowest bidder's bid price. This study first defines the Second Price Sealed Bid (SPSB) method, a variant of second pricing, and provides the theoretical advantages for its applications in Government contracting. Following this, the thesis presents two sets of experimentation which identify bidding behavior when the SPSB method is applied in Government contracting. The study then discusses and analyzes survey responses received from both Government and private industry contracting professionals concerning the applicability of the SPSB method in Government contracting.
Type
Thesis
Description
Series/Report No
Department
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funding
Format
111 p.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
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.