Relationship of source selection methods to contract outcomes: an analysis of Air Force source selection

Abstract

Budgetary concerns over the last decade have put increased pressure on federal agencies to improve efficiency and create cost savings. Accordingly, the Government Accountability Office (GAO) and other watchdog groups have increasingly scrutinized government source selections; GAO reports and procurement experts alike indicate opportunities for improvement in this area. To aid in this improvement initiative, our research focuses on the contract management process, with special emphasis on the source selection methods of tradeoff and lowest price technically acceptable (LPTA). Specifically, our data analysis explores the relationship of source selection methods to the contract outcomes of procurement administrative lead times (PALT) and contractor performance assessment reporting system (CPARS) ratings. The results of our analysis showed no statistically significant relationship between source selection method and contract outcomes. However, other variables, namely the number of evaluation factors and number of offers received, were shown to have a significant effect on PALT. At the conclusion of this MBA Professional Report, we present suggestions for further research to build upon these findings.