Original Date: 01/23/1995
Revision Date: 01/18/2007
Information : Two-Phase Supplier Selection
Sandia National Laboratories (SNL) went through a two-phase selection process to establish a supplier of the H-1616 Tritium Reservoir Shipping Container. This was an iterative process where approximately 10% of the total quantity was procured from two suppliers during the first phase. The second phase was to award the remaining 90% to one of the two suppliers identified during phase one. If both suppliers demonstrated the same quality of service, then phase two was awarded to the lowest bidder.
Sandia went out with a Request for Quotation with a Statement of Work defining the iterative process of awarding 10% of the 2500 shipping containers to two contractors to be referred to as phase one. The Statement of Work also stated that at the successful completion of phase one, the remainder of the 2500 units would be competed again, only this time, between the two identified sources. The lowest bidder would be awarded the contract.
There were some added expenses in establishing two suppliers. To ensure equality to both sources, pre-award costs and follow-on visits were necessary. This doubled travel costs. Because this two-phase process is a form of competition, SNL benefited through cost savings, no schedule changes, and an established second supplier.
Management felt there was a need to establish more than one source for the H-1616 and, because of an immediate need, decided to use this two-phase selection process. The traditional procurement process did not allow them to establish a second contractor with proven ability. Through two-phase competitions, Sandia National Laboratories has been able to identify both a primary and back-up supplier.
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