Careful buying keeps prices low
1983
Two procurement systems which employ critical path analysis are being tested in 4 Mississippi school districts. Critical path is a management technique that checks activities at various strategic points in order to eliminate bottlenecks. The 2 systems in this project utilize different approaches. The first method employs contracting for services from food distributors for a fixed rate during the contract period. The cost of the food can increase or decrease but not the cost of service. The second method contracts for goods during a specified time period, usually 60-90 days. No changes in price are acceptable during the contract period. Critical path analysis is helping to work out problems in both systems. So far the results have been more competitive prices on foods and services and managers are paying closer attention to quality. This has also impacted the delivery, storage and distribution of USDA-donated foods. In general, the costs for schools are down because of improved procurement, bidding and price-quoting procedures. (kbc)
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