Navy Saves $22 Million In Three Months With Competitive Bidding Plan

The Navy has identified $22 million in cost avoidance through opening previously sole source contracts to competition during the period April—June 1983.

Since the spring of 1982, the Navy has established Competition Advocates at all major contracting activities. These Competition Advocates examine all major noncompetitive contracts, single out candidates for competitive bidding, and help contracting officers find qualified competitors. The newly appointed Competition Advocate General of the Navy, Commodore Stuart F. Piatt, Supply Corps, USN, coordinates the efforts of Command Competition Advocates.

Typical examples are: When buying material for an ordnance alteration, the center developed a more complete technical description permitting more vendors than just the original supplier to compete.

A contract for 10 units was awarded for $700,000 (40 percent) less than the previous sole-source price. Another $2.3 million savings is projected on future buys.

A contractor, who had been the sole source for radiation measur- ing equipment, reduced his price by 22 percent to win a competitive contract for the equipment with savings of $54,000.

A final award for switches used in a missile system was $554,000 less than the previous sole-source price.

The Navy paid $1,686 in a competitive procurement for steam turbine washers which had been offered by the original source for $32,514.

Maritime Reporter Magazine, page 27,  Nov 1983

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First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.