Exploring Drivers of Better Strategic Sourcing in the Air Force Using Analytics

Abstract

The purpose of this research is to analyze the price drivers for one of the DoD's most commonly procured installation-level service, integrated solid waste management (ISWM). Specifically, we focus on the procurement of ISWM services within the Air Force to identify the relationship between service-related price drivers, contract-related price drivers, price, and contractor performance. Our focus is to study the effect that price drivers (both service and contract) have on contract price and contractor performance. We test seven hypotheses to determine the effect that service and contracting variables have on price and contractor performance. Based on our research findings, we provide recommendations to the Air Force for strategically sourcing ISWM services that will result in increased efficiency, effectiveness, and a reduction in costs.