Rethinking Government Supplier Decisions: The Economic Evaluation of Alternatives (EEoA)
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Authors
Melese, Francois
Fan, James
Subjects
Advisors
Date of Issue
2019-04-30
Date
Publisher
Monterey, California. Naval Postgraduate School
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Abstract
This paper offers an economic model to assist public procurement officials to rank competing vendors when benefits cannot be monetized. An important defense application is “source selection”—choosing the most cost-effective vendor to supply military equipment, facilities, services, or supplies. The problem of ranking public investment alternatives when benefits cannot be monetized has spawned an extensive literature that underpins widely applied decision tools. The bulk of the literature, and most government-mandated decision tools, focus on the demand side of a public procurement. The Economic Evaluation of Alternatives (EEoA) extends the analysis to the supply side. A unique feature of EEoA is to model vendor decisions in response to government funding projections. Given a parsimonious set of continuously differentiable evaluation criteria, EEoA provides a new tool to rank vendors. In other cases, it offers a valuable consistency check to guide government supplier decisions.
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Report
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Identifiers
NPS Report Number
SYM-AM-19-066
Sponsors
Naval Postgraduate School Acquisition Research Program
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Citation
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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.