The Impact of Large, Multi-Function/Multi-Site Competitions

Abstract : Within the Department of Defense (DoD), large multi-function competitions1 are a popular competitive sourcing approach because it is believed that this approach generates larger savings and improved service quality, and is less expensive to implement. Moreover, it is a way to meet the President s competitive sourcing goals with fewer competitions. However, there is also the perception that large multifunction competitions limit small business opportunities, take an excessive amount of time, and cause excessive workforce disruption. To understand the role of large, multi-function competitions in DoD s strategy to meet the President s Management Agenda, CNA conducted a study of the costs, savings, and performance associated with 16 large (greater than 100 full-time equivalents (FTEs) at announcement), multi-function and multi-site competitions completed between 1996 and 2000. The purpose of the study is to assess the degree to which large-scale competitions completed have resulted in increased savings and service quality and decreased the costs and difficulty of conducting the competitions. Specifically, we attempted to identify the expected, observed, and effective savings; economies of scale; opportunities for small business; ease of implementation; and competition process. As a point of comparison, we also examined several multi-site, single-function competitions.