THE ELEMENTS OF THE BUY RESPONSE VICE INVENTORY
PROGRAM
In establishing an inventory reduction program, the Government could follow
commercial procedures. This could prove difficult for DOD however. DOD's difficulty
stems from the Government's procurement requirements, some of which are based in
Federal laws that are intended to serve a variety of objectives, including supporting
social and economic programs, full and open competition, and purchasing items at the
lowest unit cost. The private sector places few, if any, restrictions on the sources a firm
may use. For example, a commercial firm is not required to conduct competitions for its
contracts and, ifitdoesso, it may use whatever process it deems appropriate. The
Government, on the other hand, must compete contracts unless restrictions on
competition have been justified. The Government must generally follow a formal,
complex, and time-consuming process with which commercial firms are not familiar.
[Ref. 20:p. 42]
Another complication in adopting the commercial approach is the perception that
supplier relationships are inconsistent with the tenet favoring arm's length Government contractor
relationships. Convincing those in authority that good supplier relationships
and an arm's length posture are compatible may be difficult.
THE ELEMENTS OF THE BUY RESPONSE VICE INVENTORY
PROGRAM
In establishing an inventory reduction program, the Government could follow
commercial procedures. This could prove difficult for DOD however. DOD's difficulty
stems from the Government's procurement requirements, some of which are based in
Federal laws that are intended to serve a variety of objectives, including supporting
social and economic programs, full and open competition, and purchasing items at the
lowest unit cost. The private sector places few, if any, restrictions on the sources a firm
may use. For example, a commercial firm is not required to conduct competitions for its
contracts and, ifitdoesso, it may use whatever process it deems appropriate. The
Government, on the other hand, must compete contracts unless restrictions on
competition have been justified. The Government must generally follow a formal,
complex, and time-consuming process with which commercial firms are not familiar.
[Ref. 20:p. 42]
Another complication in adopting the commercial approach is the perception that
supplier relationships are inconsistent with the tenet favoring arm's length Government contractor
relationships. Convincing those in authority that good supplier relationships
and an arm's length posture are compatible may be difficult.
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