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Once the Postal Service has produced an internal cost estimate and suppliers have shared their cost estimates in response to the RFI, the Postal Service is able to determine whether to make or buy the given requirement. This decision is reached by conducting a Make vs. Buy Decision Analysis. In some cases, specifically those involving contracting out services currently performed by Postal Service bargaining unit employees, the make vs. buy decision is made following the receipt and review of proposals. Such make vs. buy decisions require coordination between the client, Legal Counsel, Labor Relations, SM, and potentially the Strategic Initiatives Action Group (SIAG).
A make vs. buy decision analysis should cover both strategic and operating considerations. The strategic aspect is centered on protecting the Postal Service’s competitive advantage, while the operating aspect is concerned with tactical and cost-related issues. If the strategic decision conflicts with the tactical decision, the former takes precedence over the latter.
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