Contracting Out Government Procurement Functions: An Analysis

Abstract

The Deputy Assistant Secretary of the Navy for Research, Development & Acquisition (DASN (RDA) (Acquisition Management)), asked the Naval Postgraduate School (NPS) to analyze the contracting out of procurement functions currently being accomplished by Navy, Marine Corps, and other Department of Defense (DOD) Activities. The request specifically focused on assessing the degree of effectiveness and shortcomings of such contracting out efforts. This research sought to answer these questions: Which contracting functions are now being contracted out by Navy and other DOD organizations? How effectively have contractors performed on these contracts? What metrics are being used and could be used to assess the quality of contractor performance? Although the primary focus of this study is the effectiveness of contracts used to procure contracting services, several interrelated subjects have been explored. Aspects of inherently governmental functions, personal service relationships, conflicts of interest, and legal/ethical issues were included. Further, questions regarding the impact on the contracting system, the development of Contracting Officers, the participation of competing companies in the marketplace, training and experience qualifications, and agency procurement decision-making and policies were also examined.