The Cost of Delay Process Analysis of Navy Husbanding Service Provider Contracting

Abstract

Since implementation of Off-Ship Bill Pay and the Multiple Award Contract strategy in 2016, the Navy husbanding services process has operated under increased oversight and auditability requirements intended to improve transparency and fiscal control. While these reforms improved process control following the Glenn Defense Marine Asia scandal, questions remain regarding their effect on contracting efficiency and cost outcomes. This capstone research examines which contracting process intervals within the Husbanding Service Provider pre-port visit process most influence daily port visit cost from fiscal year (FY)16 through FY26. Using quantitative analysis of over 6,700 overseas Navy port visits extracted from HSPortal, the researchers evaluated five major contracting process intervals and their relationship to daily average port visit cost through descriptive statistics and multivariate regression modeling. The analysis found that longer durations during early requirement validation and task order award increased daily port visit costs in Fifth and Seventh Fleets, while Sixth Fleet showed that compressed contracting timelines were associated with higher cost. The contract award phase was the most consistently significant process interval across all fleets. The researchers conclude that targeted improvements in early coordination, proposal evaluation, and planning time may reduce costs while maintaining audit readiness and operational responsiveness.