How AT&L Will Create More Defense ‘Value’ and Save Money

Posted: August 1, 2011 in Songs of Space and Nuclear War
Tags: , ,

From DoD Buzz, an article on how AT&L will get more value for the money it spends on services:

One major strategy will be to change the way the department contracts for this sort of work. [Shay] Assad [director of defense pricing] said that when DoD solicits contracts for a job, even if it includes opportunities for different vendors to compete, the Pentagon often ends up getting only one bid. Going forward, DoD must try to get better deals from vendors by forcing more of them to compete to drive down the price, he argued — yes, you have heard this before. This new policy means that DoD could re-solicit contracts if officials only get one bid but they believe they can get others to force a lower cost, Assad said.

AT&L wants to use the Wal-Mart model of squeezing vendors on cost.  It works for Wal-Mart, but they’re nimble, fast, and flexible and are dealing with items that are commodity-like.  Also, DoD generally buys services for things it needs meaning 1) DoD doesn’t want to provide that service itself or 2) DoD can’t do it itself/isn’t good at it. 

And while competition is good, another rule of thumb is you get what you pay for.  Does AT&L really think that a long re-do loop of re-solicitations is going to make things better?  All that will do is drag out every competition and keep money from being put on contract and expending (which for some of the work being solicited may be the real goal).


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