Husbanding Service Provider (HSP) Price Analysis Factors

Abstract

Since 2015, the Navy acquisitions community has undergone significant changes to oversight policies and contracting methods for husbanding services. The changes were imposed because of one of the largest corruptions and scandals in U.S. Navy history. The rapid effects of these changes have not been thoroughly analyzed. In this thesis, there is data from the last five years totaling over 6,000 husbanding service contracts and port visits. They were analyzed to determine if the current process is having an adverse financial impact, including the financial impact of short-notice port visits, contractor competition, and the length of solicitation. A cross-tabulation methodology was used to determine if short-notice port visits request submissions have a financial impact on the cost of husbanding services. Cross-tabulation was also used to determine if the length of solicitation time makes a difference in the daily average cost. The authors used cost indexing to quantifiably determine if contractor competition affected the price of husbanding contracts. After a thorough quantitative analysis, the authors have determined that the current oversight policies and contracting methods do not have an adverse financial impact on the husbanding service process. Navy leadership must continue refining procedures to reduce processing time while increasing audit compliance.