Table of Contents
Risks Associated with Performance Specifications in Highway Infrastructure Procurement ......................................... 482
S. S. Patil and K. R. Molenaar
Matching Supply-Side Costs with Demand-Side Value in Procurement Auctions …………............................................ 509
Services Supply Chain in the United States Navy: An Empirical Study of Current Management Practices .................. 538
A. Apte, U. M. Apte and R. G. Rendon
ABSTRACT. Services acquisition in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade with over $200 billion spent for services in 2008. In this empirical study, we conducted a web-based survey to collect primary data on management practices in services acquisition in the U. S. Navy and studied such areas as contract characteristics, management approaches, and program management issues. The paper presents summary results of our survey, implications of current management practices, and recommendations useful for improving services acquisition in the Navy.
ABSTRACT. Proper identification, allocation, and pricing of risks are critical to effective procurement and project delivery, particularly when contracts specify the intended performance instead of how the work is to be performed. This paper presents an overview of the sources of project risks when performance specifications are used for highway infrastructure procurement. The findings are based on a comprehensive literature review and interviews with subject-matter experts involved in developing performance specifications for highway infrastructure. The authors conclude that wider use of performance specifications in U.S. highway infrastructure construction requires a fundamental reassessment of risk allocation and pricing. Highway agencies and the contractors need to realign their respective organizational capabilities with the goal of using performance specifications as a facilitator of innovation, a goal that remains elusive after decades of applied research.
ABSTRACT. This paper presents a procurement auction format structured so as to reconcile supply-side costs with demand-side value through the alignment of bidder and bid-taker interests. The existence of a dominant bidding strategy ensures this alignment and, at the same time, discourages strategic bidding. The format also involves minimal revelation of bidder information, making it attractive to bidders who expect continued participation in the same market. Another major goal of this paper is to engage policymakers through a discussion of important issues, which were brought forth in the course of designing and analyzing the aforementioned auction, that relate generally to the successful execution of procurement auctions.
ABSTRACT. This article critically examines the policy objectives underlying Kenya’s public procurement system, as set out in the country’s Public Procurement and Disposal Act, 2005 (“the Procurement Act” or “the Act”). The drafters of the Act made subtle but significant deviations from the United Nations Commission on International Trade Law Model Law on Procurement of Goods, Construction and Services (“the Model Procurement Law”).2 Due to the deviations, there are many serious conflicts within the Act, and between the Act and other Kenyan laws. Accordingly, there is need for a comprehensive review of the Procurement Act.