December 12, 2023
A Game-Theoretic Approach to Innovate Government Procurement: The Case for Non-Traditional Acquisitions – Part 2
The Power of Proposal Reduction with Combinatorial Clock Acquisitions
The first part of this series introduced an innovative approach to public sector procurement using the Vickrey model. While this method can reduce government contract costs, it does not minimize acquisition frequency. Embracing an approach that consolidates government bids would enhance procurement efficiency by reducing redundant acquisitions. The mechanism to achieve this is Combinatorial Clock Acquisitions (CCAs).
Key Benefits to Utilizing the CCA format:
- Efficiency: CCAs allow for the simultaneous auction of multiple items, saving time and resources for the government in reducing the number of bids for the same items.
- Price Discovery: The format helps the government discover the true market value of the items and item bundles through competitive bidding.
- Flexibility for Bidders: Bidders can express their preferences for combinations of items, leading to more satisfied winners and potentially lower per item costs for the government.
- Transparency: The process creates transparency for the government, reducing the risk of corruption and ensuring fair competition amongst bidders.
- Optimal Allocation: Items are more likely to be allocated to the bidders who can deliver the product at the best value to the government, leading to an efficient outcome.
A&M Director Ben Wilson explores the innovative use of Combinatorial Clock Acquisitions (CCAs), showcasing their unparalleled ability to streamline government procurement processes and amplify efficiency.
Read other parts of the series
