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"COMPETE"
What
is the full cost of an activity?
What
is the unit cost?
What
does it cost the state agency to write a check?
How
is data generated to evaluate privatization proposals?
And…
Newest
decision-making tool - just key in the numbers…
Gives
up to five-years data
Virginia
is on the cutting-edge of privatization innovation with the
development of the Cost Comparison Program ("COMPETE"),
a fully automated, PC-operated decision-making tool. "COMPETE"
provides several key pieces of information for evaluating service
delivery alternatives, including:
- The fully allocated
cost of a state function or activity
- The activity
cost of service units of output in a state function
- A level playing
field cost comparison of operating a function in-house vs.
the private sector
For
purposes of developing the cost of a state function, "COMPETE"
is based on: personnel costs…materials and supply costs…fixed
assets and depreciation…other costs (rent, insurance, utilities,
travel, interagency charges, outside contractors)…overhead/indirect
costs…and much more, and compares the State cost to private
contract costs.
This
information allows an agency to accurately compare alternative
proposals, with an emphasis on the State's fully allocated costs,
and to set benchmarks for performing the service and measuring
the performance of a contract. Training is available.
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