Finding Best Value in Two-Step Sealed Bidding
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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Two-step sealed bidding is a viable procurement method for expanding the role of best value and nondevelopmental item NDI acquisitions. The objective of this research was to determine the feasibility of using the two-step method for obtaining best value in NDI acquisitions. The author began by conducting a review of regulations, policy guidance, and previously published materials. He then conducted interviews with procurement officials in the Defense Department and in industry. The research provides a comprehensive look at NDI acquisitions, two-step sealed bidding, and best-value contracting. The author analyzed the following major issues defining best value, increasing the effectiveness of NDI acquisitions, and finding best value in a two-step method. The study resulted in the development of a two-step model for getting the best value in NDI acquisitions. The author concludes that the concept of best value can be applied to a two-step method, much ambiguity exists with regard to the true meaning of nondevelopmental, and regulatory impediments keep the two-step process from implementing a conventional best-value approach. Major recommendations are as follows a two-step model should be used for obtaining best value in NDI acquisitions, and two potential modifications should be made to strengthen this model by allowing supplier prequalification and fixed-price-award-fee contracts.
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