Managing the Services Supply Chain in the Department of Defense: Empirical Study of the Current Management Practices in the Army

Abstract

This paper presents the results of the fourth research project in our ongoing research on the management of services acquisition in the Department of Defense. In this empirical study, we developed and used a Web-based survey to collect data on the acquisition strategy, procurement methods, and contract types used at Army installations. Specifically, we studied the current management practices in such areas as lifecycle approach, project management, organization/management structure, and training provided to services acquisition personnel. We found that the majority of the services contracts awarded and administered conformed to our expectation. For example, most service contracts, except in the case of medical services, are competitively bid, fixed-priced awards with a minimal use of any type of contract incentives. The survey respondents also indicated that the number of authorized staff positions in the Army for services acquisition was inadequate and furthermore that the existing billets were inadequately filled. In this paper, we analyze the implications and impact of different approaches on the effectiveness of the contract management process and make recommendations for improving the management of services acquisition in the Army.