Department of Defense (DoD) Service Acquisition: Improved Use of Available Data Needed to Better Manage and Forecast Service Contract Requirements

Abstract

Over the last 5 years, the Department of Defense (DOD) consistently obligated more on services than products. These obligations are significant. For example, in 2014 alone, DOD obligated $85 billion on its three largest types of services knowledge-based, research and development, and facility-related services. This amount was more than double the amount DOD obligated for aircraft, land vehicles and ships, the three largest product categories DOD acquired. This report assesses (1) trends in DOD spending on contracted services, (2) DOD's insight into its requirements for contracted services, and (3) how DOD reports on contracted services in its budget requests to Congress. Congress should consider amending reporting requirements to include estimated spending on services beyond the budget year.