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091203 1 (1969-01-01)

handle is hein.gao/gaobacuep0001 and id is 1 raw text is: 0 Some Comments on Total Package Procurement By George D, Gearino The suthor discusses the philosophy of a total package procurement contract and sc0ne of the significant features encountered In the survey of the 5A aircraft program. In 1965 the Air Force contracted for the C-5A aircraft under a new procure. ment technique called the Total Pack. ago Procurement Concept. This con. cept, commonly referred to as TPPC, is an oulgrowth or attempts by the De. partnent of Defense to institute com* petition tuto the procurement of major weapons systents. Previously, these pro. curements had been largely sole source. The idea of TPPC has generally been credited to Assistant Secretary of the Air Force, Robert II. Charles. Al* though it Is still In the experimental btage and undergoing sone changes, TI1PC is behing used on other major procurements and appears to he the model for the future in major defense contracts. Introduction TPPC is intended to place as much development, production, and support as Is possible of a major weapons bys. ten under one competitive umbrella. This entire package will be subject to all the advantages of competition. Pre. viously, competitors tended to provide unrealistic price estimates and to over. state proposed performance because of qiwareness that follow-on production procurements would of necessity be tole source to the winning competitor. 'Tits is referred to as buy-in bidding and TPPC is designed to prevent this, TPPC is expected to motivate the winning competitor to emphasize simple design, economical production, easy maintenance, and high reliability. The buyer will benefit with an eco. nomical and reliable product. This tech. nique W also expected to encouragd the contractor to practice economies from the outltet with respect to suppliers and subcontractors. It will provide incen. live to the contractor to slabilize de.sign an1d keep' to a minimum the changes nornall , associated with a develop. ment program. To attain these objec* tives, the contractor will have to be en. couraged to assume much of the de. velopment'risk previously assumed by the Goveraniei and will have to be motivated to meet not only price but also performance commitimnts. The C-5A procurement included in the Request for Proposal (ItFP) and in the contract unique features not pre. Mr. Gerino Is a supervisory nuditor lit lte Attunto linglonai H e. He is a graduate tif the thiversity of Georgia an has hern whit the General Accounting Office ninee 1952. 32 LIM IX-2 1, 3,L (0

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