Jaime Gracia replied to the topic In Government Contracting, Does Cost Trump Results? in the forum Acquisition, Contracting, Procurement 7 years, 1 month ago
The missing component here is the lack of leadership and accountability for successful outcomes. The government should not settle for mediocracy, and certainly industry providers do not set out to provide average services. However, the LPTA environment normally drives prices below the levels of what the innovative solutions demand. Because price reasonableness evaluations are poorly or rarely done, low price is king at the cost of performance, exacerbated with improper management, waste, and poor governance and oversight. Businesses can differentiate themselves by educating their customers on their innovative and affordable solutions, and pointing out that low price does not mean poor performance. Settling means waste, and lose-lose scenarios for the taxpayer. We have enough of that already.
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