Managing the Services Supply Chain in the Department of Defense: An Empirical Study of Current Management Practices

Abstract

This paper presents the results of our ongoing research on the management of services acquisition in the Department of Defense. In this empirical study, we developed and used a web-based survey to collect data on the acquisition strategy, procurement methods, and contract types used at Air Force and Navy installations. Specifically, we studied the current management practices in such areas as lifecycle approach, project management, organization/management structure, and training provided to services acquisition personnel. We found that the majority of the services contracts awarded and administered conformed to our expectation. For example, most service contracts are competitively bid, fixed-priced awards without any type of contract incentive. However, we found that the Air Force and Navy use different contracting approaches in the following areas: organizational level of acquisition offices (regional versus installation), the use of project teams, leaders of the acquisition effort (program personnel versus contracting officers), and managers of the services requirement (program personnel, contracting officers, and customer organizations). We analyzed the implications and impact of different approaches on the effectiveness of the contract management process and make recommendations for improving the management of services acquisition in the Department of Defense.