Contracting Officer Workload and Contingency Contracting: Evidence from the Department of Defense
Abstract
In this paper, we investigate how changes in the workload of contracting officers relate to the equilibrium level of contractual completeness and the use of other procurement terms, including award type, pricing structure, the use of competition, the probability of renegotiation, and the final price paid. We take advantage of variation in the workload of Department of Defense (DoD) contracting officers to estimate the relationship between contractual incompleteness and procurement outcomes, such as the use of competitive acquisitions procedures and the risk of renegotiation. In a sample of 4.6 million contracts from 32 DoD procurement offices over six years, increases in the cost of writing complete contracts has led to decreased reliance on competitive acquisition procedures, increased reliance on firm-fixed-price contracts, increased risk of renegotiation, and increased total costs of procurement. Although the effect of limited acquisitions capacity on contingency contracts in Iraq and Afghanistan has generated a lot of concern recently, we find that, if anything, these contracts are a little less responsive to workload. The DoD's acquisitions manpower has not kept up with the exceptional growth in the level of acquisitions contracting over the past decade. This paper clarifies some of the potential economic consequences of the resulting increase in workload faced by DoD contracting officers. The presentation includes 31 briefing charts.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 30, 2012
- Accession Number
- ADA563632
Entities
People
- Nancy Huff
- Patrick Warren
Organizations
- Clemson University