The Navy's Superior Supplier Incentives Program: Analysis of Supplier Proposed Benefits

Abstract

The Department of Defense (DOD) launched the Superior Supplier Incentive Program in 2013 to adopt industry best practices on supply and supplier management and to explore opportunities to provide the high-performing defense contractors with benefits or reliefs that would reduce administrative burdens and streamline processes. The Department of the Navy provided an opportunity for its 2014 Superior Suppliers to submit white papers suggesting possible reliefs or benefits that would improve efficiency. This paper analyzes the 55 proposed benefits using three frameworks Federal Acquisition Regulation (FAR) policy analysis, contract management process analysis, and risk-benefit analysis to identify patterns or consistencies. The research reveals that FAR Part 42, Contract Management and Audit Services, and the contract management phase represent the most frustration for the Superior Suppliers. The results of the analysis can be used as a surrogate measure to identify potential improvements in the DOD's current acquisition practices.