Showing papers on "Procurement published in 1976"

A portfolio approach to fossil fuel procurement in the electric utility industry

Abstract: study is to inject a novel approach to fossil fuel procurement, and to determine to what extent the utility industry has been an efficient utilizer of scarce resources. The implications of this study have relevance to the managers of the utility industry, to the public regulatory commissions and to students of the industry. Section I deals briefly with some of the characteristics of the industry and indicates the relationship of portfolio theory to fossil fuel mix. Section II reviews the methodology and data used in the study, while Section III contains the empirical results and an analysis of them. A theoretical extension is introduced in Section IV where the notion of the Capital Market Line as it applies to fuel diversification is interpreted. Section V contains a summary and implications of the paper.

An Interrupted Time-Series Test of the Distributive Theory of Military Policy-Making:

Abstract: IN RECENT years several researchers have reported negative findings regarding the hypothesis that constituencies represented on the standing military committees in Congress benefit disproportionately from the distribution of military procurement expenditures.l Their findings suggest that whether or not a constituency is represented on the congressional military committees makes no difference in the amount of military procurement awards it receives. Faced with negative findings, political scientists have two options. They can either accept the findings and revise their substantive theory, or they can question the validity of the findings and devise other tests. Both approaches are consistent with the goal of producing scientific generalizations about political processes. However, when the negative findings are based on fairly crude tests and the theory that is called into question is more plausible than the available alternatives, we think the second approach should take precedence over the first. Thus the present paper concerns an alternative test of the hypothesis that constituencies represented on the military committees benefit from the distribution of military procurement expenditures.

A priori error bounds for procurement commodity aggregation in logistics planning models

Abstract: : A complete logistical planning model of a firm or public system should include activities having to do with the procurement of supplies. Not infrequently, however, procurement aspects are difficult to model because of their relatively complex and evanescent nature. This raises the issue of how to build an overall logistics model in spite of such difficulties. This paper offers some suggestions toward this end which enable the procurement side of a model to be simplified via commodity aggregation in a 'controlled' way, that is, in such a manner that the modeler can know and control in advance of solving his model how much loss of accuracy will be incurred for the solutions to the (aggregated) overall model.

Optimizing the Procurement of Aviation Fuels

Abstract: Defense Department requirements for aviation fuels are met with purchases made in the usual competitive bidding environment. This large-scale contract bidding and selection problem is modeled as a mixed integer linear program with a special structure. The solution of this large optimization problem is approached via an algorithm employing decomposition and implicit enumeration techniques which exploit the special structure of the underlying formulation. Computational results and other considerations are discussed.

The Changing Role of Congress in Defense Policy-Making

Abstract: The role of Congress in defense policy-making has clearly been changing since 1968. The objective of this study is to describe and explain this change through the use of systemic indicators. A set of behavioral rules for the 1947–1967 period is developed by examining previous studies. Then empirical indicators are developed for the inputs, conversion processes, and outputs of the Congressional defense policy system. These indicators point to an increased role for Congress in the 1968–1974 period. Major factors explaining this change include the Vietnam War, decreased public perception of external threat, a rise in non-DOD defense policy alternatives, increased control of military procurement, a balanced Senate Armed Services Committee, continuing debate on national priorities, and the rise of a legitimate Congressional bloc critical of defense policy. Key variables in assessing the permanence of the change appear to be public perception of threat stemming from U.S.-Soviet relations and the conflict betwee...

Telecommunications and Industrial Development

Abstract: Given a demonstrable correlation between telecommunications and industrial development, an interesting underlying question is: How can a telecommunication system be planned to achieve overall industrial development goals? A response could focus on the technical capabilities of a network, on the telecommunication equipment supply arrangements, and on the tariff structure. High telephone density is a technical attribute of primary importance because telecommunications' value for industrial development is that it provides an infrastructure. This value is not realized until a "critical mass" of telephone density is achieved. Where demand for telecommunication service substantially exceeds supply, screening criteria can be used to give certain classes of users higher priority in concert with industrial development goals. A second area of importance is the selection of plant technology which involves decisions that will affect technical capabilities of the network for 15-20 years or more; for example, crossbar, and electronic switching systems each possess certain advantages which should be considered in the light of local conditions. A local telecommunication equipment manufacturer is a participant in national industrial development. Efficient production of equipment might be supported by continuous and substantial demand from trading partners within a block such as the Andean Common Market. To reduce a telecommunication company's equipment costs, competitive procurement and negotiated allocation of supply contracts are two methods that are feasible particularly with transmission equipment such as microwave radios and cable. Alternatively, where a favored supplier relationship exists, the telecommunication company could benefit from the support of a research, development and engineering group in assessing its product choices. Tariff structure is a major allocator of telecommunication resources that is controllable by telecommunication planners. Price rationing is a conservative response to unsatisfied demand but does not respond fully to the needs of industrial development. Seeking to achieve a "critical mass" of telephone density through subsidized rates would be more responsive. Other tariff structure issues include use of measured versus flat rate local services, selection of criteria for drawing of local calling area boundaries and utilizing local calling area size as a basis for discrimination in rates. In response to inflation, continual modification of tariff structure is more sensitive to the needs of industrial development than the indexing of the rates, although the latter option requires fewer analytical resources.

Concepts of Project Planning and Control

Abstract: Both improved methods and better application of existing principles are needed in the planning and control of engineering and construction projects. Using an analogy and a model, this paper explains the basic concepts in the information feedback-control process used on well-managed projects. The objective is to provide a broad perspective against which to reference specific subsystems such as planning and scheduling, cost engineering, materials procurement and tracking, quality control, and so forth. The paper then amplifies several key components of the feedback-control mode, including means for measuring and controlling progress; methods for information processing; requirements for effective reporting; and guidelines for taking corrective action.

Definition and measurement of meat texture in military development and procurement

Abstract: The need for improved texture evaluation methods in meat product development and procurement is discussed with emphasis on problems facing the Armed Forces. It is pointed out that inexpensive, reproducible, simple methods are needed similar to, for example, the rapid moisture analysis equipment now being used in chemical evaluation of foods.

A Discussion of some Applications of Human Capital Theory to Military Manpower Issues

Abstract: : Since its inception, human capital theory has found a natural subject in the military. Because of its substantial investments in training, its host of essentially nontransferable skills and its unique labor contracts, the military establishment has, indeed, been a conspicuous case for application of human capital principles for policy purposes. In his seminal work, Human Capital Theory, G. S. Becker summarized the military manpower situation from a human capital point of view, thusly, 'the military is a clear example of an organization which pays at least part of training costs and does not pay market wages to skilled personnel.' Implicit in this view is the prediction that the military will have an abundance of 'students' and heavy losses of 'graduates.' When Becker provided this insightful assessment, however, the draft and draft-induced enlistments ensured an essentially infinite supply of manpower at below comparable market wage rate and at constant cost. If one, then assumes a non-infinite marginal rate of substitution between first-term and career personnel, the policy problems of procurement, utilization, and retention could be conveniently consolidated into a single policy variable, namely, yearly draft requirements. With the advent of the all-volunteer force in 1972 and the increasing technological nature of military specialties in the mid-sixties, however, massive low cost labor supply and manageable marginal rates of substitution between first-timers and careerists for technical specialties no longer existed and, consequently, the policy issues of procurement, training, and retention could no longer be addressed by a single policy variable, and therefore, new policy requirements were generated.

A Historical Analysis of Total Package Procurement, Life Cycle Costing, and Design to Cost

Abstract: : This study is the result of an attempt to prepare a historical analysis of the three major Department of Defense efforts developed to control costs in the acquisition process. Some might argue that other concepts, such as Value Engineering, PIECOST, or Should Cost, should be included, however, it is believed that the ones presented here represent the approaches most relevant to individuals involved in program control. The concepts analyzed include Total Package Procurement, Life Cycle Costing, and Design to Cost. The study is directed toward the individual with little knowledge of the concepts. It is designed to provide the reader with a general knowledge of what each concept is, when it is used, what some major ground-rules governing the concept's use are, and what some of the significant strengths and weaknesses of the concept are.

Engine Life Cycle Cost Modeling in the Conceptual Phase

Abstract: The rising cost of weapon systems in a time of declining purchasing power of the defense budget has forced new procurement practices to tradeoff system and major component performance, with cost at the earliest moment. Major elements of weapon systems such as aircraft engines are prime candidates for such cost/performance evaluations during the conceptual phase of the procurement cycle. This paper deals with life cycle cost modeling techniques that use parametric data to derive information necessary for study by the Defense Acquisition Review Council for decision making. Typical examples of parametric cost/performance tradeoffs are highlighted.

'Offsets' for NATO Procurement of the Airborne Warning and Control System: Opportunities and Implications

Abstract: : From the standpoint of several of the participating NATO countries, the large expenditures associated with their potential procurement of the Airborne Warning and Control System (AWACS) warrant special measures by the United States to reduce or 'offset' the resulting outflow of dollars in order to make procurement politically, as well as economically, more acceptable to the Europeans This report summarizes a Rand study of ways of offsetting part of these large dollar costs connected with the planned NATO procurement of AWACS, assuming that the case for AWACS has been established on military grounds Alternative offset strategies evaluated include: 0S1, which concentrates on internal offsets; 0S2, on external military offsets; OS3, on external nonmilitary offsets; OS4, on financial transfers; and OS5, on a mixture of these several elements The study concludes that the preferred alternatives lie either in OS2, the external military offset strategy, or OS5, the mixed strategy

Automation--planning to implementation; the problems en route.

Abstract: Once the major decision to automate library processes is made, there are a variety of problems which may be encountered before the planned system becomes operational. These include problems of personnel, budget, procurement of adjunct services, institutional priorities, and manufacturing uncertainties. Actual and potential difficulties are discussed.

Differences Among Women in Perception of Their Jobs.

Abstract: Thirty-four women at two different hierarchical levels in a large procurement function were asked to describe characteristics of their own jobs. As expected, organizational level was associated wit...

Resource recovery plant implementation: guides for municipal officials, planning and overview

Abstract: This report replaces an earlier version entitled Resource Recovery Plant Implementation: Interim Report (SW-480) (PB-259139/4). The report will assist municipal offices in the planning and implementation of processing plants to recovery resources from mixed municipal solid waste. Contents include: Steps to resource recovery; Study (Resource recovery task force, Areas for study, Setting local goals, Outside planning/implementation assistance); Selection (Major decisions to be made, Technology - market, Financing, Operation, Procurement strategy); Procurement (Procuring a consulting engineer, Procuring a system contractor).

Lessons Learned in USAF Weapon System Acquisition Management: A Case Study Approach

Abstract: : This thesis presents 15 case studies that describe a number of the management problems that typically occur throughout weapon system acquisitions. Specifically, seven aspects of weapon system acquisition are addressed by the cases: procurement planning and selecting acquisition strategy, SPO personnel, managing program changes, support planning, managing total system integration, managing production an eliminating contract/hardware deficiencies, and transferring system responsibility. The cases are designed for classroom support use and contain introductory theoretical material, classroom procedure suggestions, and actual case, and instructor guidance.

A program for the design of procurement systems

Abstract: Computer technology has had a limited success in producing useful business applications. Management systems seldom meet users'' requirements, are often inappropriate to an application, and are frequently abandoned. But why? Business lacks expertise in the application of computers. Managers who are expert in solving business problems find it difficult to specify formal procedures for the solution of these problems. It is not surprising that programmers who work from poorly defined specifications produce poorly written software. The computer industry has provided only limited support in business applications. Application packages are seldom appropriate to a problem and are often misapplied. Misapplication is the principle reason for their failure in practice situations. Improvements are certainly possible. The manager could be supplied with a system that assists in the design of an application. This system could help the manager specify his requirements by providing him with a framework for thinking about issues relevant to the design of a particular application. The manager might then be better equipped to select a commercial package or to guide in the design of his implementation. This thesis describes a prototype version of such a system. PROCTOR is a program that assists in the design of a hierarchical planning and control system for a procurement firm. PROCTOR is implemented as an "unstructured" questionnaire. It guides the user in investigating various aspects of a problem while giving him complete freedom in deciding how and when to supply answers to questions. It allows him to change and skip answers whenever he desires. PROCTOR is implemented in OWL, a system for representing and processing conceptual knowledge. It uses the OWL data base to represent procedures for the questionnaire and to store data accumulated during the iteration. This representation makes possible the presentation of an English-like problem description, various evaluations and the reasons for the evaluations.

Case Study: Lockheed and the C-5A

Abstract: : A brief summary of the need for the C-5A aircraft by the United States and Lockheed Aircraft Corporation serves as an introduction to a discussion of the reasons behind the cost overrun involved in producing this massive aircraft. Government procurement practices are examined with emphasis placed on the Total Package Procurement Concept and the resulting C-5A contract. The causes of the cost overrun in the areas of contractual obligations, equipment problems, and management inefficiencies are presented along with a discussion of the alleged concealment of the mounting costs. Finally, the lessons learned from the C-5A experience are summarized.