DoD is Not IBM: The Challenges of Implementing Strategic Sourcing in Defense Acquisition

Abstract

In this paper, we examine the initial efforts to instill a strategic purchasing mindset in defense organizations and to create commodity councils whereby strategic sourcing might be executed. Our analysis has determined that there are at least three primary barriers to successful implementation of strategic purchasing in DoD acquisition. First, products or services that may be easily commoditized by industry are subject to many more constraints which limit or obviate the ability for the Government to leverage its spend. Second, the additional regulations and statutes which the DoD must comply with (such as the Buy American Act, Davis-Bacon, and Small Business Rules) limit the opportunities to pursue leveraged buying. Third, there is no single voice responsible for the organization spend, or with the ability to dictate and enforce strategic acquisition programs. This paper offers potential solutions for each of these challenges.