Finding best value in two-step sealed bidding.

Abstract

Two-step sealed bidding is a viable procurement method for expanding the role of best value and nondevelopmental item (NDI) acquisitions. The objective of this research was to determine the feasibility of using two-step for obtaining best value in NDI acquisitions. The research was conducted by a review of regulations, policy guidance, and previously published materials. An important aspect of the research was the interview process conducted with procurement officials in the Defense Department and industry. The research provides a comprehensive look at NDI acquisitions, two-step sealed bidding, and best-value contracting. This study analyzed the following major issues: defining best value, increasing the effectiveness of NDI acquisitions, and finding best value in a two-step method. The research developed a two-step model for getting best value in NDI acquisitions. Major conclusions are: the concept of best value can be applied to a two-step method, much ambiguity exists in regards to the true meaning of "nondevelopmental," and regulatory impediments keep two-step from implementing a conventional best-value approach. Major recommendations are: a two-step model should be used for obtaining best value in NDI acquisitions, and two potential modifications should be made to strengthen this model by allowing supplier prequalification and fixed-price-award-fee contract type.