Publication:
The application of cost-benefit analysis in raising the noncompetitve small purchase threshold.

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Authors
Howard, Robert Leo III.
Subjects
small purchase noncompetitive threshold
increase to
Advisors
Carrick, Paul M.
Date of Issue
1987-09
Date
September 1987
Publisher
Language
en_US
Abstract
The purpose of this thesis is to determine the economic impact of a proposed acquisition policy change. As an interim measure, a class deviation to the Federal Acquisition Regulation was issued 4 June 1987. The change increases the small purchase noncompetitive threshold from $1,000 to $2,500 for a test period of one year. This deviation was issued after the research commenced but before this report was issued. The primary reason for this change is to reduce the administrative cost associated with obtaining competition. Consequently, the government should be prepared to make a trade-off between the administrative cost of competing and any savings realized from competition. Using the data collected from two field activities, NAS Point Mugu and NWC China Lake, an analysis was conducted to determine the costs and benefits associated with increasing this threshold. This research will focus on administrative order costs, shortage costs, procurement administrative lead time, and productivity of acquisition personnel. This thesis will conclude with observations about the noncompetitive threshold and make recommendations concerning a policy change.
Type
Thesis
Description
Series/Report No
Department
Administrative Sciences
Other Units
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
53 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.
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