Research Projects

The Use of Stipends in Competitive Bids

Stipends are used in competitive bids to encourage bidders to submit their best ideas in a procurement. Better understanding of the use and value of stipends would be useful to airport management, boards and policymakers to determine if compensating losing bidders for their intellectual property would advance practice and improve design and project delivery.

Background (Describe the current situation or problem in the industry, and how your idea would address it.)

Today in competitive procurements of all kinds, bidders are often reluctant to put their best ideas "on the table" until they are identified as the winner or preferred bidder. The use of stipends allows firms to get compensated even if they lose the procurement and can eliminate legal challenges to procurements.

Objective (What is the desired product or result that will help the airport industry?)

Improved infrastructure with use of best practices and innovation in design and functionality.

Approach (Describe in general terms the steps you think are needed to achieve the objective.)

Collection of information on the use of stipends in the airport industry as well as other related procurements (e.g., social infrastructure and a variety of other PPPs); assessment through case studies of the value of stipends in encouraging the best submissions for competitive procurements and comparison with procurements where stipends were not used; survey of legal and procurement barriers to the use of stipends and understanding what concerns, if any, hold back their use.

Cost Estimate and Backup (Provide a cost estimate and support for how you arrived at the estimate.)

$250,000. Stipends are a relatively new development in the airport industry and an assessment of current practice, procurement and legal policies that impact their use (or non-use) and detailed case studies of where they have been used to assess their value in promoting innovation.

Related Research - List related ACRP and other industry research; describe gaps (see link to Research Roadmaps above), and describe how your idea would address these gaps. This is a critical element of a synthesis topic submission.

Related to PPP and privatization work as well as design-build and other procurement assessments.

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Idea No. 229