ANALYSIS OF THE MULTIPLE AWARD CONTRACTING STRATEGY ON U.S. GOVERNMENT HUSBANDING SERVICE PROVIDER (HSP) PRICES
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Authors
Kiengsiri, Jesse Y.
Walsh, Callan T.
Rieger, Christy F.
Subjects
husbanding service provider
contracting
Multiple Award Contract
MAC
Single Award Contract
SAC
Navy
Port Services Contracts
fixed effects linear regression model
global MAC
global competition for husbanding services
contracting
Multiple Award Contract
MAC
Single Award Contract
SAC
Navy
Port Services Contracts
fixed effects linear regression model
global MAC
global competition for husbanding services
Advisors
Arkes, Jeremy A.
Mortlock, Robert F.
Date of Issue
2020-06
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
In 2016, the U.S. Navy transitioned from Single Award Contract (SAC) to Multiple-Award Contract (MAC) Indefinite-Delivery–Indefinite-Quantity (IDIQ) husbanding service contracts. Recent port services pricing data suggests that some services or ports may cost more under a MAC compared to a SAC. The objective of this study is to identify whether there is a statistically significant difference in price for U.S. Navy husbanding port services and to estimate the relationship of price between these two competitive husbanding service provider (HSP) contracting strategies. A price comparison between the contract types was performed using three fixed-effects regression models. The results of the models showed a statistically significant difference in price between SAC and MAC. The model estimated that for a given port and given ship type, the average price for HSP services was less for a MAC than for a SAC. Additionally, the effect of the MAC on price changes based on the port and service category. However, the effect of contract strategy on price could be marginally under- or overstated based on the immeasurable effects of nonmonetary qualitative factors. Further research will be required to understand the true cost–benefit of MACs and the overall best value to the government.
Type
Thesis
Description
Series/Report No
Department
Graduate School of Defense Management (GSDM)
Graduate School of Defense Management (GSDM)
Graduate School of Defense Management (GSDM)
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NPS Report Number
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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.