The Department of Defense's Management of Services Acquisition: An Empirical Analysis

Abstract

This study is designed to support one of three major focus areas in the Naval Supply Systems Command (NAVSUP) Worldwide Husbanding Improvement Process initiative. Existing contracting methodologies were analyzed using the following methods: characteristics of existing contract vehicles within forecasting and simulation frameworks; strengths, weaknesses, opportunities, threats (SWOT) analysis, and stakeholder analysis. Conclusions are drawn and recommendations are outlined for optimum methods of contracting for husbanding services as requested by the Worldwide Husbanding Process Improvement Action Team. Historical husbanding contract data were reviewed, including constraints and desired performance criteria. Implementation of a flat-rate, low-variability, well-defined and constant set of requirements minimizes risk and price fluctuations. Conversely, adoption of a cost-reimbursable contract type is both undesirable and infeasible. A contracting methodology that represents a best-value trade-off within constraints should be flexible and risk-based while offering performance-based incentives.