Managing the Services Supply Chain in the Department of Defense: Opportunities and Challenges
Abstract
The DoD's services acquisition volume has continued to increase in scope and dollars in the past decade. From FY 1999 to FY 2003, the DoD's spending on services increased by 66%, and in FY 2003, the DoD spent over $118 billion or approximately 57% of total DoD's procurement dollars on services. In recent years, the DoD has spent more on services than on supplies, equipment, and goods, even considering the high value of weapon systems and large military items. These services belong to a very broad set of activities ranging from grounds maintenance to space launch operations. The major categories include professional, administrative, and management support; construction, repair, and maintenance of facilities and equipment; information technology; research and development; and medical care. As the DoD's services acquisition volume continues to increase in scope and dollars, the agency must apply greater attention to proper acquisition planning, adequate requirements definition, sufficient price evaluation, and proper contractor oversight. In many ways, these are the same issues affecting the acquisition of physical supplies and weapon systems. However, the unique characteristics of services and the increasing importance of services acquisition offer a significant opportunity for conducting research in the management of the DoD service supply chain. The objectives of this exploratory research are as follows: (1) analyze the size, structure, and trends in the DoD's service supply chain; (2) understand the challenges faced by contracting officers, program managers, and end-users in services acquisition; (3) develop a conceptual framework for understanding and analyzing the supply chain in services; and (4) provide policy recommendations that can lead to more effective and efficient management of the DoD's spending on services.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 30, 2006
- Accession Number
- ADA498246
Entities
People
- Geraldo Ferrer
- Ira A. Lewis
- Rene G. Rendon
- Uday M. Apte
Organizations
- Naval Postgraduate School