An example of these cost savings is when the DoD transitioned to use BPAs to fulfill information technology (IT) requirements. The BPAs eliminated the “need for new contracts and costly full-scale competition (which used to take three to four months)” each time IT equipment was purchased (Rhea, 1999). The administrative requirements are considerable less with the BPAs used by DoD to purchase IT equipment. Traditional IT contracts used to “run 50 pages…BPA contracts are about two pages long and allow for daily price changes” (Cahlink, 2001). Traditional contracting methods cost the DoD about “$18 million to draft and oversee…BPAs have reduced price negotiations to an average cost of $26,000” (Cahlink,
An example of these cost savings is when the DoD transitioned to use BPAs to fulfill information technology (IT) requirements. The BPAs eliminated the “need for new contracts and costly full-scale competition (which used to take three to four months)” each time IT equipment was purchased (Rhea, 1999). The administrative requirements are considerable less with the BPAs used by DoD to purchase IT equipment. Traditional IT contracts used to “run 50 pages…BPA contracts are about two pages long and allow for daily price changes” (Cahlink, 2001). Traditional contracting methods cost the DoD about “$18 million to draft and oversee…BPAs have reduced price negotiations to an average cost of $26,000” (Cahlink,