Evaluation of cost plus fixed fee procurement methods in Indiana schools
1990
Hiemstra, S.J. | Stix, C.L.
The purpose of this article is to summarize an evaluation of the new Cost Plus Fixed Fee Procurement System relative to the traditional Bid System used in buying food and related products in school food service program. This new system was introduced into Indiana schools in 1987 and 1988 on a pilot basis. Results of the evaluation, conducted August to December 1988, showed that the food prices paid averaged 4.2% lower in the test group under the Cost Plus System than under the comparative Bid Systems used in the Control Group. At the same time, administrative costs were 14% less, the level of service was somewhat better, and the quality of products received was somewhat higher for schools using the Cost Plus System. This is the first known quantitative evaluation of this new purchasing system.
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