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Cost Effectiveness of Dual Sourcing for Production Price Competition Is Uncertain

机译:双重采购对生产价格竞争的成本效益是不确定的

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Dual sourcing is a competitive procurement technique wherein contract awards for a product are split between two or more sources, with the larger share usually going to the lower priced supplier. Although dual sourcing has been clearly authorized when justified by national defense or mobilization base needs, authority for dual sourcing solely to reduce costs had not been resolved under federal procurement statutes until recently. Public Law 98-369 authorizes the use of dual sourcing where it would increase or maintain competition and likely result in reduced costs, beginning April 1, 1985. None of the dual sourcing identified in GAO's study was undertaken solely or primarily for price competition and the cost effectiveness of this form of competition remains untested.

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