Volume 4, Number 1, 2004

CONTENTS

Drivers of Compensation of Heads of Procurement Units, Supervisors, and Materials Managers in the Public Sector
M. G. Alkadry .................................................................................................................................................................................................... 1

Assessing Outsourcing Potential In A State Dot ............................................................................................................................................... 22
Wilmot, D. R. Deis and R. Xu

A Simulation Approach to In-House Versus Contracted Out Cost Comparisons .............................................................................................. 43
D. R. Deis, H. Schneider, C. G. Wilmot and C. H. Coates, Jr.

Is Contracting Out in New York City Tinkering or Reinventing Government?.................................................................................................... 67
R. W. Blendermann, R. Ormsby, J. Sharp and E. A. Zimmerman 

Government/Business Relationships: Insights Into Contract Implementation .................................................................................................
S. Wang and M. D. Bunn 


USEFUL REPRINTS

Emergency Procurement Flexibilities: A Framework for Responsive Contracting & Guidelines for Using Simplified Acquisition Procedures ... 116
Office of Federal Procurement Policy


BOOK REVIEW

World Class Contracting: How Winning Companies Build Successful Partnerships in the e-Business Age ...................................................... 133
M. M. (Dickens) Johnson

ABSTRACT. Public procurement activities have long been treated as a minor subset of industrial or business-to-business buying. Consequently, the literature reports sparse research on the nature of government buying or how commercial firms can successfully market to the government. While this lack of research may not have been critical with respect to traditional public buying, recent procurement reforms and new contracting arrangements suggest our knowledge of business-to-business buying is inadequate with respect to the new environment of public buying and government/business relationships. One important and unique issue is how to handle the relationship with business suppliers during the contract implementation process. This paper proposes a taxonomy of government/business relationships as an organizing framework for understanding the complexities of buyer-seller relationships in government contract implementation. Archival case studies provide illustrations and justification for the taxonomy.

ABSTRACT. The purpose of this project was to develop a systematic,objective procedure to evaluate the potential to outsource functions and activities currently performed by the Louisiana Department of Transportation and Development (LaDOTD). A computer-based model was developed which evaluates the qualitative and cost aspects of contracting out activities and functions. The model was applied to three activities in the LaDOTD; highway markers, highway striping, and maintenance of rest areas. The results were in line with the expectations of officials who have experienced actual outsourcing of these activities. The model was constructed so that the perspectives it considers and the criterion on which outsourcing is assessed may be altered by the user to allow its use in a variety of settings.

ABSTRACT. This article examines whether contracting out of government services in New York City has been tinkering or reinventing government, with a detailed examination of the layers of approval now required for awarding contracts to safeguard against possible corruption. The use of Compstat, by New York Police Department, is seen to be a reinvention of how crime is fought in the city.

ABSTRACT. This article examines the determinants of salaries of heads of public procurement units. Specifically, it investigates the effect of gender, budget size, supervisory responsibilities, experience, authority level, education, certification, age, cost of living and labor market competition on the compensation of purchasing supervisors and heads of purchasing units. The article uses multiple linear regression and analysis of variance to conclude that drivers of compensation of public procurement executives and managers in the public sector are different than those in the private sector or in other industries.

ABSTRACT. The purpose of this project was to compare the cost of transportation engineering design services provided by private contractors versus services provided by state transportation agency staff for the Louisiana Department of Transportation and Development (LaDOTD). Due to shrinking budgets, staff cuts, and a trend toward privatization, state transportation agencies now outsource the majority of the services they provide. The merits of doing so, however, have been difficult to discern for lack of “apples-to-apples” comparisons. For engineering design services, this problem is particularly acute due to the uniqueness of many projects (e.g., a bridge over the Mississippi river). A simulation approach was used in this study to make “apples-to-apples” comparisons for 39 design projects, 22 in-house projects and 17 consultant projects. For each in-house design project, the cost was estimated had the work been done by a consulting firm. Similarly, for each consultant design project, the cost was estimated had the work been done by in-house staff. The result of the study was that in-house design costs were cheaper by an average of 17 to 19 percent.

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