Marginal Cost of Soliciting Automated Data Processing Equipment
DEFENSE LOGISTICS AGENCY ALEXANDRIA VA
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The Defense Logistics Agency Automated Data Processing ADP contracting Office DLA-DACO is responsible for procuring ADP equipment which can be acquired in two ways 1 through the General Services Administration GSA ADP schedule or 2 off-schedule through normal solicitation channels by way of a request for proposal RFP. ADP equipment ordered via RFP has an administrative cost added for comparison purposes to the vendors quote that includes the additional quantifiable costs of going off-schedule. This is permitted under the Federal Information Resources Management Regulation and provides for a more realistic comparison between an off-schedule bid and the GSA schedule price. In December 1985, DACO estimated this marginal cost to be 40, 000 and has been adding this cost to vendors bids for comparison purposes. On 16 February 1990 the GSA Board of Contract Appeals judged the 40,000 amount to be excessive. This study was conducted to determine the marginal cost which accurately reflects the additional cost of soliciting via and RFP instead of ordering from the GSA ADP schedule. Keywords Procurements, Automated data processing, Cost, Data processing, Economics, Acquisitions.
- Administration and Management
- Economics and Cost Analysis
- Computer Hardware
- Logistics, Military Facilities and Supplies