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The Contracting OrganizationA Strategic Guide to Outsourcing$
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Simon Domberger

Print publication date: 1998

Print ISBN-13: 9780198774570

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198774575.001.0001

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Value Capture

Value Capture

(p.93) 6 Value Capture
The Contracting Organization

Simon Domberger

Oxford University Press

This chapter, the previous one, and the next two consider the alternative means through which a contracting strategy is devised and implemented. Chapter 6 explores how added value can be captured by the contracting organization, either through a competitive or a negotiated process. The different parts of the chapter are as follows: Competitive tendering––bidding for contracts; Pre‐selection––calling for expressions of interest; Alternative sourcing methods; The contract price; Winners and losers (a discussion of the fact that a winner's bid price may be too high and eventually lose the firm money); and Value migration.

Keywords:   added value, bid prices, bidding, competitive tendering, contract price, contracting out, contracting strategies, outsourcing, pre‐selection, sourcing methods, value migration

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