Managing the Service Supply Chain in DoD: Implications for the Program Management Infrastructure

Abstract

The services acquisition volume in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade. In fact, 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 (Camm, Blickstein & Venzor, 2004). Between 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 procurement dollars) on services (GAO, 2005a). The acquired services presently cover a very broad set of service activities, including: professional, administrative, and management support; construction, repair, and maintenance of facilities and equipment; information technology; research and development, and medical care.