Rethinking Government Supplier Decisions: The Economic Evaluation of Alternatives (EEoA)
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Authors
Melese, Francois
Fan, James
Subjects
Defense acquisition
decision analysis
multiattribute auction
decision analysis
multiattribute auction
Advisors
Date of Issue
2022
Date
Publisher
Taylor & Francis
Language
Abstract
This paper offers an economic model to assist public procurement officials to rank competing vendors when benefits cannot be monetized. An important defense application is ‘source selection’ – choosing the most cost-effective vendor to supply military equipment, facilities, services or supplies. The problem of ranking public investment alternatives when benefits cannot be monetized has spawned an extensive literature that underpins widely applied decision tools. The bulk of the literature, and most government-mandated decision tools, focus on the demand side of a public procurement. The ‘Economic Evaluation of Alternatives’ (EEoA) extends the analysis to the supply side. A unique feature of EEoA is to model vendor decisions in response to government funding projections. Given a parsimonious set of continuously differentiable evaluation criteria, EEoA provides a new tool to rank vendors. In other cases, it offers a valuable consistency check to guide government supplier decisions.
Type
Article
Description
17 USC 105 interim-entered record; under review.
The article of record as published may be found at https://doi.org/10.1080/10242694.2020.1808939
The article of record as published may be found at https://doi.org/10.1080/10242694.2020.1808939
Series/Report No
Department
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
U.S. Government affiliation is unstated in article text.
Format
Citation
Francois Melese & James Fan (2022) Rethinking Government Supplier Decisions: The Economic Evaluation of Alternatives (EEoA), Defence and Peace Economics, 33:2, 239-257, DOI: 10.1080/10242694.2020.1808939
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.