Analyzing Contract Performance at Defense Logistics Agency

Abstract

The Department of Defense (DOD) has emphasized agility, the speed of learning, and operational readiness, based on the National Defense Strategy, with priority on deterring aggression from near-peer competition of China. The timely preparation of requirements, proper contracting methodology, enforcement of spare parts contracts, and contracted vendor performance are essential to ensuring stability of the DOD’s supply chain and maintaining warfighting readiness. The DOD faces challenges with on-time delivery rates, a direct impact to material readiness for operational requirements and DOD’s ability to remain relevant. This research explores potential relationships between Contract Value, Contract Quantity, and Awarding Office and their effects on the Delta in Delivery Date. Given Defense Logistics Agency’s (DLA) sphere of influence, managing 4.2 million spare parts, they were an ideal source of data to explore these potential relationships. The findings of our research suggest that there is no correlation between Contract Value and Contract Quantity and the Delta in Delivery Date. However, our research shows that there is a possible qualitative factor that was not measured, which is affecting intraoffice performance at DLA L&M and DLA Aviation. This research concludes with recommendations to improve upon the research in the area of on-time delivery at DLA.