Sole-sourcing versus competitive bidding: US government agencies' procedural choices for mainframe computer procurement

Article Abstract:

The method by which US government agencies procure equipment is evaluated through a model that incorporates factors and determinants in the purchase of mainframe computers. These agencies have been observed to call for competitive bidding at times and buy from a single preferred manufacturer at other times. The determinants of procurement method are: the extent of vendor competition, the value of the intended purchase, the longevity in the relationship between the government entity and the seller and the entity's experience with IBM systems.

Analysis, Purchasing, Mainframe computers, Administrative agencies, Government agencies, Government purchasing

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On strategic quantity bidding in multiple unit auctions

Article Abstract:

The important role of bidders' quantity decisions is typically overlooked by standard studies of multiple unit auctions. By means of a simple equilibrium bidding model, bidders' incentives in choosing quantities in competitive and discriminatory auctions were analyzed. The main result showed that in competitive auctions, bidders had a stronger incentive to bid for fewer units. Because the bidder pays the lowest acceptable price for each unit, it is to the bidder's benefit if other lower-valuing bidders are allowed to win.

Models, Economic aspects, Auctions, Equilibrium (Economics)

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Does dual sourcing lower procurement costs?

Article Abstract:

The adoption of dual sourcing by business organizations to reduce procurement expenditure is evaluated by focusing the United States defense procurement.

United States, National Security, Defense Procurement, Methods, Evaluation, Military procurement, Cost control, Defence buying, Cost reduction

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