Volume 11, Number 2, Summer 2011

Collusive Drawbacks of Sequential Auctions ................................................................................................................................. 139
G. L. Albano and G. Spagnolo

The Root Causes of Contract Administration Problems ................................................................................................................ 171
R. J. Sebastian and B. Davison

Estimating the Final Cost of a DoD Acquisition Contract ............................................................................................................... 190
S. P. Tracy and E. D. White

Lean Thinking and Its Implications for Public Procurement: Moving forward with Assessment and Implementation .................... 206
J. J. Schiele and C. P. McCue

Do the Baby and the Bathwater Deserve the Same Fate? An Exploratory Study of Collaborative Pricing in the U.S. Defense ... 240
T. G. Hawkins and J. R. Cuskey

ABSTRACT. Alpha contracting is a collaborative effort between a buyer and supplier during contract formation to maximize efficiency and effectiveness. Collaborative efforts between the United States Department of Defense and its suppliers have recently been scrutinized. Although several benefits of Alpha contracting are identified within the literature, the phenomenon is not ubiquitous nor is it well understood. Using the case study methodology, this research explores Alpha Contracting to define success and to identify its contributing factors. Additionally, this research identifies antecedents forand consequences of use, variations of the processes employed, and some misuse. The study culminates in the development of a conceptual model of collaborative pricing, and provides five recommendations for enhanced use.

ABSTRACT. The most common technique to determine the predicted final cost of a Department of Defense (DoD) acquisition contract, or the Estimate at Completion (EAC), involves the use of performance indices to adjust the EAC. Other methods including simple linear regression and time series analysis have been developed to predict the final cost, but these methods are not widely publicized or have limited applicability. As a potential remedy, this research utilizes the historical contract data reported in the Defense Acquisition Executive Summary database and provides to the analyst a set of five working multiple regression models. Useful over the life of the contract, they accurately predict the final cost of the average major weapons system contract using contractor Cost Performance Report data.

ABSTRACT. Over the last several decades, lean thinking has been credited with several advancements in the practices of private sector organizations. Only recently have researchers begun to report on lean thinking as it applies to the public sector. For public procurement research, the concept remains largely unexamined. This research used the extant literature to identify preconditions that are required to successfully deploy lean thinking principles, tools, and techniques. Salient preconditions were organized into key categories. These categories provided the basis for a framework designed to assess public procurement’s ability to adopt lean thinking, and aid in its implementation within this public sector environment. Questions suggested to guide future research, along with an approach intended to facilitate this work, are also presented.

ABSTRACT: To help procurement professionals identify the root causes of contract administration problems, we present an organizational behavior problem solving conceptual framework which consists of a comprehensive exposition of potential personal (e.g., personality) and environmental (e.g., technology) causes of behavior. We then illustrate how the causal factors from the framework can be mapped to the procurement process and its problems. We expect that procurement professionals will be able to use the framework to identify root causes in post-mortem analyses of contracts or elsewhere in the procurement process to mitigate risks. We also expect that management will use the framework to address the organizational behavior root causes of problems, thereby improving the systems and processes it controls or influences and, in turn, minimizing or eliminating contract administration risks. Future research can evaluate the usefulness of the framework.

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