DOD Competitive Sourcing: Analysis and Recommendations for Reform
Abstract
DOD can leverage the commercial sourcing process (outsourcing and privatization) as a tool to improve quality, reduce resource requirements, and focus management on core tasks. To successfully implement these programs, DOD must first improve its internal systems and processes. DOD managers are faced with two major dilemmas. First, budget authority will not support all readiness, investment, and modernization requirements. Second, internal and external stakeholders will no longer tolerate comparative inefficiencies noted between DOD and the private sector. In response, Defense managers are increasingly viewing competitive sourcing as a tool to meet these demands. Post Cold-War downsizing led to a disproportionate reduction of operational forces (tooth), as compared to infrastructure (tail), thus leaving the Defense infrastructure ripe for reform. Competitive sourcing is one tool to effect this reform. Private industry has proved that competitive sourcing can reduce costs, improve quality, focus management and resources on core functions, and share risks with suppliers. While there are great internal and external pressures moving DOD toward competitive sourcing, many strong impediments and risks remain. Most of these are legal and regulatory in nature, and marked by intense stakeholder passion.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2000
- Accession Number
- ADA526411
Entities
People
- Sean T. Hannah
Organizations
- Marine Corps University