Defense Logistics Agency Market Basket.

The primary objective of this study effort was to provide DLA management with the ability to evaluate DLA performance in controlling the material cost of items sold to the services. A series of indices, similar in concept to that used to calculate the Consumer Price Index, was developed that allowed comparison in DLA price and cost growth or decline relative to general market trends. Two separate general measures that distinguish between the price of goods sold and the cost of goods bought were created. In addition, index substratifications were examined to determine any differences in prices experienced by tha various services and to identify any advantages in cost control by various procurement instruments such as indefinite delivery contracts. Other facets of the indices were developed by restricting the items under consideration to those that generated consistent demand over the time periods or those that consistently had buys over the time period.