Showing papers on "Procurement published in 1978"

Department of Defense Annual Report Fiscal Year 1979

Abstract: : Partial Table of Contents: International Trends and Defense; Defense Policy; Defense Programs -- Nuclear Forces, Conventional Forces, Security Assistance, Command, Control, Communications, and Intelligence, Research, Development and Systems Procurement, Logistics, Manpower, Management, and The Defense Budget.

An Appraisal of the Integrated Physical Distribution Management Concept

Abstract: The notion that a firm's total costs could be reduced, customer service improved, and interdepartmental conflicts substantially reduced if distribution activities were more closely co‐ordinated and centrally programmed, has emerged as an important concept in physical distribution and marketing. This concept has become known as “integrated physical distribution management” and has attracted the interest of practitioners and academicians alike. The National Council of Physical Distribution, an association of more than 2,000 distribution executives and educators, defines physical distribution management as: “Physical distribution management is the term describing the integration of two or more activities for the purpose of planning, implementing and controlling the efficient flow of raw materials, in‐process inventory and finished goods from point of origin to point of consumption. These activities may include, but are not limited to, customer service, demand forecasting, distribution communications, inventory control, material handling, order processing, parts and service support, plant and warehouse site selection, procurement, packaging, return goods handling, salvage and scrap disposal, traffic and transportation, and warehousing and storage.” NCPDM Revised Version—1976 This concept of tying together a number of distribution activities and viewing the result as a system represents an “integration” of the traditionally fragmented physical distribution management function.

Incentive versus cost-plus contracts in defense procurement*

Abstract: IN I966 Robert McNamara claimed that the introduction of incentives in defense contracts, especially with respect to cost variables, caused roughly a io% reduction in total weapons procurement costs relative to comparable outcomes using cost-plus contracts.1 This claim provoked considerable debate over the realism of such savings.2 The arguments that a cost incentive contract will lead to lower procurement costs boil down to the following. First, if there is a cost overrun under an incentive contract, the government will be obliged to pay only part of it. Second, since the firm will have to pay a portion of any cost overrun, it will undertake cost efficiencies to avoid a reduction in profit level. It is argued that the firm would not otherwise undertake to realize such efficiencies since there are no market pressures of competition to force it to do so. Third, it is an empirical fact, noted by many observers, that cost performance relative to target costs has improved as stronger incentive measures have been introduced.3 The validity of the theoretical and empirical claims of the proponents of incentive contracting have been attacked by the following counterargument. Although it is possible that production efficiency has increased, it does not follow automatically that the total cost to the government has been reduced relative to what it would have been under a simple cost-plus contract. There are three basic reasons for this. First, while it is true that costs have improved relative to target costs (under incentive contracts), it is possible that the target costs themselves have been inflated relative to what they would have been under a cost-plus contract.4 Second, incentive contracts offer higher 'going-in' profit rates (i.e. negotiated target profits) as well as higher 'comingout' profit rates (i.e. final profits).5 Thus, production efficiencies under the

The structure of the military‐industrial complex in the united states and its impact on industrial concentration

Abstract: SUMMARY It comes perhaps as no surprise that approximately 70% of all outlays for military procurement in the United States were accounted for by the 100 largest military contractors in each year during 1965–1974. This clear dominance can be primarily explained by the non-market character of the defense market where the bulk of contracts is negotiated rather than competitive in terms of sealed bids. Long-term procurement contracts as a steady and secure source of income may also serve as an incentive for conglomerates to acquire defense contractors in order to enter the defense market via toehold acquisitions. The penetration of the so-called ‘new conglomerates’ during the 1960s into the defense market is a case in point. It can be safely assumed that the procurement incentive was the prime motivation in the merger decision among these pure-conglomerate mergers. Furthermore, the majority of mergers benefited greatly from a generous implicit grant for mergers, viz. the provision of a tax-free reorganization according to Sec. 368 IRC.

Decision-making in the public sector

Abstract: A case study of the management and promotion processes involved in the manufacture of Swaraj tractors in India reveals the extremely complex nature of decision making related to publicly controlled enterprises. Changes in the central government resulted in a lack of high-level backing for domestic production, and the project was given to a state corporation. Financial and production impetus for the first tractors was supported. However, lack of faith on the part of IDBI in the financial solvency of the joint state/IDBI project resulted in the commissioning of an appraisal team that raised critical questions concerning farmers preferences, production designs and procurement, the possibility of a market glut, farm credit potential, and a tight construction schedule. Nevertheless, financing was approved by IDBI and plant construction began in 1972. The successful Swaraj model raises questions concerning the central government's unwillingness to sponsor the project, the state's willingness to sponsor it, and the ability of the cosponsors to adapt modern technology in a developing country. 31 references.

Determining and Forecasting Savings from Competing Previously Sole Source/Noncompetitive Contracts

Abstract: : The Department of Defense has had no firm basis for deciding when to introduce competition, or if competition should be introduced When the value of competition cannot be measured with a reasonable degree of confidence, defense of budgetary estimates and the development of a acquisition strategy is difficult, if not impossible The approach taken in this study included a thorough investigation of the procurement histories of sixteen items originally produced on a sole source basis and later competed; the identification and analysis of factors explaining savings due to competition, and the synthesis of these factors into workable methodologies for estimating net savings on historical systems and forecasting expected savings for future systems A data base is developed The authors conclude that the savings achieved by introducing competition into the production of weapons systems can be reasonably estimated Of the sixteen items analyzed, five showed a loss due to competition Savings for the sixteen items averaged 108% The forecasted savings methodology (FSM), which was developed from the analysis of the sixteen systems, is a useful tool which provides an estimate of the expected savings, or loss, from introducing competition as well as an analysis of the qualitative factors influencing competition

Locally generated transportation modes of the developing world

Abstract: The details are given of 3 public transportation cases in Asia, Africa and South America, and brief descriptions are given of 5 cases from other parts of the developing world. An attempt is also made to summarize these cases particularly highlighting the administrative, financial and regulatory features. The vehicles, ownership, procurement and use are described, as well as the operation and income of the motorized tricycle rickshaws of Karachi. Similar details are given of the public service transport of passengers on St. Lucia, West Indies, as well as the intercity taxis of Egypt. The Carros por puesto of Venezuela, the jeepneys of the Philippines, the kia-kias of Nigeria, the colectiros of Ecuador, and the Sherutin of Israel are also described. The key features of all these highly successful services are flexibility and responsiveness. They are all the projects of private enterprise. However, certain concerns which appear to be common to these systems are also listed.

Optimisation of selective competitive tendering system by the construction client

Abstract: The selective competitive tendering system is the most common method of contractor selection for capital works such as highways. By choosing the identity and number of contractors who shall tender, the client can control the competition to give the best value for money. For a client with a continuing programme of work this optimisation need not conflict with the objective of contractors to achieve a satisfactory and consistent return on their capital. The client can help to provide a framework in which contractors can do this by matching his demand for work to the available resources, assessing the effectiveness of the tendering competition, choosing only those contractors to tender who are truly competitive and encouraging contractors to improve the accuracy of their tendering. Methods are presented to assist in these tasks and it is concluded that the optimum number of contracts to invite to tender for highway schemes is that number which can usually be expected to be fully competitive under normal trading conditions. A statistical analysis of the bids submitted for highway schemes between 1970 and 1975 revealed how the system operated and that it behaved differently when demand for construction was high compared with the period of low demand. /Author/TRRL/

Procurement Information Systems: Design, Implementation and Control

Abstract: Since 1973–74, the beginning of the so‐called resources crunch, there has been an increased emphasis upon the role of the procurement function in strategic corporate planning and management. The role of procurement has begun significant change in a number of companies, yet remains in basically an operational mode in others. However, strategic management has often been “borne” out of situational crises imposed by changing environmental factors, rather than as a result of recognition of the strategic potential which management has. In essence, changes often come through reaction to problems, rather than through positive recognition and implementation of strategic management as an initiative itself. This has been particularly true of procurement.

Resource planning for multiple projects

Abstract: This paper is concerned with the estimation of the resource requirements to service multiple projects that use many types of resources. It reports on a systematic procedure to determine the low cost levels of these resources, focusing on the two following characteristics: (1) the comparative cost of standard time to overtime in the utilization of these resources for the economical completion of the projects, and (2) the impact of highly expensive equipment in the determination of the economic levels of the manpower resources that combine with the equipment to form a crew. A numerical example is also presented to illustrate the method. Resource planning is of particular interest in the area of multiproject scheduling, since most of the commonly utilized heuristic solution approaches focus on the allocation of a limited set of available resources. In the corporate strategic planning functions, resource planning is particularly important for capital investment, training and development, and procurement scheduling.

The administration of capital aid.

Abstract: International aid to developing countries often does not serve the intended purposes. Complicated procedures of accounting for the aid make administrative demands which developing countries cannot fulfill. Aid for capital investment encourages a project approach to development. Money spent in this way does not benefit the poorest and the rural sectors of the recipient population. Project aid leads to prestige projects which benefit the richest sectors. Administrative problems created by donors include constant visits by overseers. Only a move to program aid combined with less concern for details of the programs will solve this problem. Only Sweden and Norway have developed aid programs suitable for financing many small infrastructure or social service projects in rural areas. Their programs leave the choice of small projects up to receipient governments link technical with capital assistance avoid restrictive procurement rules and follow simple disbursement procedures. Donor agencies which have a minimum of political infighting in their own country are easier for recipients to deal with.

Assignment Procedures in the Air Force Procurement Management Information System.

Abstract: : This report presents an overview of the procedure for offering jobs in the Air Force Procurement Management Information System (PROMIS). The overview was presented at the 19th Annual Conference of the Military Testing Association, San Antonio, Texas, 19 October 1977. A general framework for viewing personnel assignment systems is presented first. Then the job offering approach is described. The procedure involves the estimation of the value to the Air Force of each possible person-job assignment. These pay-off values are derived through Policy Specifying-a variation of Policy Capturing. The pay-off generator includes consideration of the interaction between the person's aptitude and the job aptitude requirement, the predicted technical school success, the aptitude area preference, the rate of job fill, and the percentage of jobs filled by minorities. The Allocation Index used for ordering the opportunities list of jobs is based on a Decision Index which is described. Extension of the PROMIS assignmentsystem can provide a vehicle through which human resources research findings can affect and improve individual personnel assignments. (Author)

A risk programming analysis of cattle procurement by beef packers

Abstract: Producers and processors of many agricul- for the Snyder and Candler study, however, tural commodities can choose from among sev- agricultural processors' choices among alternaeral coordination arrangements including spot- tive arrangements for procurement of raw promarket exchange, contractual arrangements, ducts have received relatively little attention. and vertical integration. Firm decisions about Information about processor choices among coordination arrangements are important be- spot-market purchases, contract purchases, cause they affect the success or even the sur- and vertical integration is essential to an unvival of the firm and also cause broader derstanding of trends underway in the use of impacts. The choice of marketing arrange- alternative arrangements and factors that are ments will influence a firm's profitability likely to affect these trends. through prices received or paid, quality prem- This study is an examination of processor iums or discounts, marketing costs incurred, choices among raw-product procurement alterexposure to production or price risk, and per- natives. The objectives are to specify a decihaps capital requirements. These firm deci- sion model incorporating procurement alternasions may have repercussions throughout the tives for processors and to use the model to industry. For example, decisions by processing analyze beef-packer choices among selected firms to shift from spot purchases to contract fed-cattle procurement arrangements. The appurchases may effectively foreclose the oppor- proach used should be applicable to analyses of tunity for producers to make spot sales. Deci- processor procurement of several agricultural sions by processors to vertically integrate into commodities. Beef-packer procurement of fed production may force specialized producers out cattle was selected for study for several reaof business by limiting their marketing alter- sons. Cattle feeding and beef packing are both natives. Firm decision models focusing on large and important industries. Several differchoices among coordination arrangements ent types of marketing arrangements between should be helpful for prescribing and predict- feeders and packers are now in use, and are ing firm behavior, predicting trends in relative generating concern among cattle feeders and importance of alternative arrangements, and others about trends in the relative importance evaluating policies (e.g., laws prohibiting of alternative arrangements. For example, in processor ownership of production facilities) Iowa a law now prohibits packing firms from that are designed to influence these trends. owning and operating feedlots. The results of

THE PUBLIC GOOD, THE PRIVATE GOOD, AND THE EVALUATION OF SOCIAL PROGRAMS How Inept Government Requirements Increase Costs and Reduce Effectiveness

Abstract: Evaluation of the productivity of government-applied social research is considered from the aspects of the several major government and public constituencies concerned, in terms of "Whose benefits? Whose costs?" Public and government concepts of the public good in evaluation research are differentiated. Government-imposed constraints on the quality and quantity of evaluation research are outlined and their impacts considered. Constraints on research quality imposing unnecessary costs include misregulation of sponsored social research by rigid procurement regulations inappropriately modeled on military hardware procurement, rigid overspecification of research tasks, counter- productively cumbersome and costly OMB survey clearance procedures, and inefficient long-term investment. Some impacts on research community employment security, professional development, and R&D investment are considered. A need to disseminate more explicit standards of effective and effectively managed evaluation research is expressed.

Defense Manpower Policy: Presentations from the 1976 Rand Conference on Defense Manpower

Abstract: : Selected presentations are given from the 1976 Rand Conference on Defense Manpower, a DoD-wide effort to bring together researchers and policymakers to discuss important defense manpower policy problems The nineteen papers reproduced in this volume cover four broad policy areas: (1) the demand for manpower, including both numbers and types of personnel needed and how these requirements are affected by various factors; (2) military manpower procurement in a volunteer environment; (3) other aspects of the military manpower management problem, including training, promotion, and compensation; and (4) economic and social effects associated with defense manpower One of the primary purposes of the Conference was to exchange information and ideas and to begin to establish research priorities These papers, which highlight problem areas and suggest potential solutions, offer a useful first step in structuring the overall defense manpower policy problem

CAD/CAM data management needs, requirements and options

Abstract: The requirements for a data management system in support of technical or scientific applications and possible courses of action were reviewed. Specific requirements were evolved while working towards higher level integration impacting all phases of the current design process and through examination of commercially marketed systems and related data base research. Arguments are proposed for varied approaches in implementing data base systems ranging from no action necessary to immediate procurement of an existing data base management system.

Panel Discussion: Symposium On Bison Procurement and Utilization

Abstract: (1978). Panel Discussion: Symposium On Bison Procurement and Utilization. Plains Anthropologist: Vol. 23, No. 82, pp. 287-311.

A comparative history of alternative ship procurement policies

Abstract: : This study provides a survey of major trends in shipbuilding procurement since the early 1950s, noting the persistence of certain problems and analyzing the adequacy of explanations for such problems. Particular attention is given to the systems DDG-2 and DE-1052 and the types of procurement that they represented in the 1950s and 1960s, respectively. Formally advertised and negotiated approaches to procurement are evaluated in light of a quantitative study made on these systems. It is shown, for example, that formal advertisement at least for the DE-1052 did not result in unusually low profilt margins in builders' bids, as has been traditionally assumed. Finally, suggestions are offered about procurement regulations and Navy - industry relations and objectives. (Author)

Types of Weapon Programs and Their Implications for NATO Standardization or Interoperability

Abstract: : The degree of achievement of standardization or interoperability is directly linked to the types of programs used in the procurement of weapon systems by the NATO allies. In this paper we review the types of programs that can be used among nations in the development and procurement of weapon systems, discuss a number of considerations involved in program choice, and present a case study of the types of aircraft development and procurement programs used by our NATO allies since the 1949 establishment of NATO.