Tag Archives: supplier performance evaluation

#eVALUate: Monetizing Service Acquisition Trade-offs Using the Quality-Infused Price© Methodology

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Capt Daniel J. Finkenstadt, USAF, and Lt Col Timothy G. Hawkins, USAF (Ret.)

The federal government persistently fails to make service contracts a managed outcome. Consequently, the three objectives of public procurement (transparency, value for money, and meeting requirements) are jeopardized. This research identifies the culprits as methodologies that are incompatible with the characteristics of services. These methodologies involve best-value source selection and contractor performance-information collection and evaluation. A new method of best-value proposal evaluation is offered that enables the buying agency to validly measure service quality, then to trade off levels of service quality with price, resulting in a Quality-Infused Price (QIP)©. The concept is tested on a task order competition using a case study methodology. Findings suggest that service quality can be monetized and that the application of a QIP© methodology can result in a superior sourcing decision. Additionally, fewer and higher quality proposals will be received. Based on the findings, conclusions are drawn and suggestions for future research are offered.

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