Professor Ralph Nash, Professor Emeritus in Frederick J. Lees, E.K. Gubin Professor Emeritus of Government Contracts Law, The George Washington University Law School, provided testimony (at http://hsgac.senate.gov/public/index.cfm?FuseAction=Files.View&…) stating “In the 1990s Congress authorized two new forms of ‘assisted acquisition’ contracts – Government-Wide Acquisition Contracts (GWACs), 40 USC § 11302, and Franchise Fund contracts, § 403 of the Government Management Reform Act of 1994, Pub. L. No. 103-356. These types of contracts apparently were based on the theory that allowing a single agency to acquire certain types of products or services would allow the government to obtain better prices by taking advantage of economies of scale. They may also have been the result of a belief at the time that having competing contracting agencies would induce contracting offices to improve their acquisition practices. It is my view that neither of these theories have worked out in practice.” The issue at hand is whether services can be acquired at lower prices due to economy of scale as goods have been demonstrated to do – this goes to the heart of Dr. Kelman’s support of “the effort to achieve savings within federal agency operations and […] the power of strategic sourcing that leverages the Government’s enormous buying power to achieve significant savings on the services and products it buys.”
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