Reshaping the Philosophy of Spare Parts Acquisition: Project PACER PRICE

reportActive / Technical Report | Accession Number: ADP002791 | Open PDF

Abstract:

On June 1st, 1983, a new program called PACER PRICE began operation at the Oklahoma City Air Logistics Center. Staffed by an interdirectorate group of engineers, manufacturing planners, price analysts and packaging specialists, the program was designed as a thorough and comprehensive review process to determine optimum purchase method and price for every actively-purchased replenishment spare part managed at the Center. After three months of program operation, approximately 62 percent of the sole-source items have been recommended for competitive purchase, and the prices recommended for these items average about 35 percent below the latest contract prices adjusted for quantity and inflation. But beyond that, a new Philosophy of spare parts purchase has been formulated and effected as a procedural caveat All spares should be both purchased competitively and PRICED TO CONFORM WITH COMPETITIVE-MARKET PRICES. The paper focuses on this philosophy, detailing in particular the mathematical models used to simulate competitive prices, and offers suggestions for further research into the competitive market place.

Author(s):
Leininger, George
Author Organization(s):
OKLAHOMA CITY AIR LOGISTICS CENTER TINKER AFB OK
Supplementary Note:
This article is from 'Proceedings of the Federal Acquisition Research Symposium with Theme: Government, Industry, Academe: Synergism for Acquisition Improvement, held at Williamsburg, Virginia on 7-9 December 1983, ADA137700, p239-242.
Pagination:
0009

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release
Distribution Statement:
Approved For Public Release; Distribution Is Unlimited.

RECORD

Collection: TR
Identifying Numbers
Monitor Series:
OCALC
 Subject Terms
Joint Capability Areas:
JCA_5_Command and Control; JCA_4.2_Supply; JCA_4.2.1_Manage Supplies and Equipment; JCA_5.6.3_Assess Achievement of Objectives; JCA_5.6_Monitor; JCA_4.5_Operational Contract Support; JCA_5.3_Planning; JCA_4.5.1_Contract Support Integration; JCA_1_Force Support; JCA_1.2_Force Preparation; JCA_4.5.4_Requirements Definition; JCA_1.2.6_Concepts; JCA_5.4_Decide; JCA_4.2.4_Assess Global Requirements Resources Capabilities and Risks; JCA_4.2.3_Manage Global Supplier Networks; JCA_4.6_Engineering; JCA_4_Logistics
Communities of Interest:
Human Systems
Descriptor(s):
*CONTRACT ADMINISTRATION, *GOVERNMENT PROCUREMENT, *MANAGEMENT PLANNING AND CONTROL, *PLANNING PROGRAMMING BUDGETING, COST ANALYSIS, COST EFFECTIVENESS, OPTIMIZATION, PROCUREMENT, REGULATIONS, REQUIREMENTS, RESOURCES, SPARE PARTS, SYMPOSIA
Field(s)/Group(s):
Administration and Management, Logistics, Military Facilities and Supplies
Keyword(s):
COMPONENT REPORTS
Report Date:
1982 Jan 01