Benchmarking_Cost_Savings__and_Cost_Avoidance NASPO.pdf

The document provides a comprehensive guide on calculating cost avoidance and savings in procurement projects. It includes detailed steps for various scenarios like one-time purchases and term contracts, covering multiple awards and line items. The process involves determining bid totals, averages, awarded amounts, and cost avoidance based on actual or estimated units purchased. Emphasis is placed on evidence and traceability in savings calculations, highlighting both financial and non-financial benefits from procurement efforts. The document also offers insights on key concepts, methodology, data sources, and validation of savings to ensure accurate measurement and reporting following standardized procedures.