OFPP Lets DoD Deal With Pricing Complexities First
September 17, 2012
The Defense Department has many roles in government, but it's not often considered a guinea pig. But that is what's happening as the Office of Federal Procurement Policy looks to DOD's experience for guidance on the balance of price against value in contract awards.
"We’re talking with the Defense Procurement Acquisition Policy officials to figure out what they are seeing, how they’re going to do this, why, and all of that kind of stuff,” Joe Jordan, OFPP administrator, at a recent breakfast hosted by the Coalition for Government Procurement.
Policy officials are hard pressed to set policy beyond the case-by-case decision. Jordan’s recommendation during his speech: if it fits, use it. More broadly, agency officials have to make a judgment call on whether to take the lower price now and potentially pay more later on if problems should arise from minimal quality work.
“The bottom line is it’s just a tough area, because you’ve got tricky incentives,” Jordan said, during the speech on Sept. 11.