Navy Global Multi Award Contract Effects of Competition on Pricing of Port Visits

Abstract

The Navy acquisition community has made significant strides in modernizing policies and contracting vehicles to better support U.S. warships and personnel with husbanding services both at home and abroad. Although much has been done to mitigate risks, reduce inefficiencies, and improve lag times in service provided, serious setbacks have occurred and continue to occur. This research investigates some potential shortfalls in the husbanding service provider process and provides recommendations for improvement and cost savings. The Husbanding Service Portal and the Global Multiple Award Contract strategy are two of the primary tools utilized to examine the correlation of pricing, competition, and performance in task order awards for overseas port visits across all platforms and port visit locations of U.S. Navy ships over the past 5 years. The authors have determined, based on the quantitative analysis, that it would be of great interest for Navy leadership to examine the data and findings within to better manage costs, improve audit compliance, and enhance warfighter operational readiness in the great power competition. The authors have concluded that the Global Multiple Award Contract has resulted in significant costs savings due to increased competition compared to the previous Multiple Award Contracts, with the exception of a small group of port locations outlined in this research paper.