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Reinventing Federal Procurement : National Performance Review , September 14, , 1993

September 14, 1993

National Performance Review

From the executive summary: “What happens when a major corporation, headquartered in the Washington area, wants to buy supplies or other items? For a small purchase one under $25,000"it needs about four days to process the request with its purchasing office and select a vendor. For purchases of about $100,000, it needs from one to four weeks, with the average being two weeks.1 The company is not encumbered by myriad regulations with minute details on how it should proceed. What happens, though, when the area's biggest employer, the federal government, tries to buy something? Even for relatively small and simple items, the process is time-consuming. While small purchases require less than a month under simplified procedures, larger purchases need much more time. Even simple procurements under $100,000 require at least three months, and individual contracts often take much longer. Excessive bureaucracy and the inability to do smart buying result in high administrative costs that, in turn, adversely affect the timeliness, quality, and price of purchased items. Additional effects include stifled innovation, lower mission performance, and missed chances for lowering total life-cycle costs.”



National Performance Review

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