Do the Baby and the Bathwater Deserve the Same Fate? An Exploratory Study of Collaborative Pricing in the US Department of Defense

Abstract

Alpha contracting is a collaborative effort between a buyer and supplier during contract formation to maximize efficiency and effectiveness. Collaborative efforts between the United States Department of Defense and its suppliers have recently been scrutinized. Although several benefits of Alpha contracting are identified within the literature, the phenomenon is not ubiquitous nor is it well understood. Using the case study methodology, this research explores Alpha Contracting to define success and to identify its contributing factors. Additionally, this research identifies antecedents for and consequences of use, variations of the processes employed, and some misuse. The study culminates in the development of a conceptual model of collaborative pricing, and provides five recommendations for enhanced use.