Articles tagged with : GAO Study

Can you afford to chase premium price? Maybe.

Analysis shows the risk is worth the reward

When the government awards a contract to other than the lowest priced offeror, it pays a price premium to make that award. How much price premium the government will pay is left to the judgment of the selecting official. This amount varies by type of service or product being procured, details of each solicitation, and experience of the source selection official. In 1999, the price premium in a GAO study averaged about 7%. In 2010, the price premium in another GAO study averaged about 5%. Today, in the middle of the sequestration battle, the price premium is probably less than that; however, it’s difficult to generalize because the price premium can be unique to individual procurements. Here’s what we learned from the GAO studies and how you can apply this to your capture strategy. GAO studies In October 2010, GAO published a report, Enhanced Training Could Strengthen DOD’s Best Value...

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