Naval Postgraduate School

2018-06, Gamboa, Honorato B. III, Rendon, Rene G., Department of Defense Management (DDM), Graduate School of Business and Public Policy (GSBPP), Brien, Spencer T.

Procurement is the main method that the government uses to obtain goods and services. In 2017, the federal government awarded $508 billion in contracts for the purchase of goods and services. The largest share of government contracts is from the Department of Defense, which constituted 63 percent ($320 billion). The government contracts can be awarded to both small and large businesses through full and open competition. However, the government is obligated to offer 23 percent of the contracts to small businesses. This study sought to compare and analyze labor rates in small and large businesses, the effect of labor hours and place of performance on labor costs, and whether contracts to small businesses drive up costs to the government. The focus of the study was on small and large businesses classified as North American Industry Classification System (NAICS) code 541330 (Engineering Services). The study found that labor costs in similar NAICS code 541330 contracts awarded to small and large businesses differ. In technical jobs, small businesses’ average labor rates are lower than large businesses’ average labor rates, both at Headquarters/Program Executive Office (HQ/PEO) and Naval Air Warfare Center, Aircraft Division (NAWC AD). Place of performance affects the labor cost. This study found that, overall, small businesses have lower labor rates compared to large businesses.

2017-12, Cesarz, Zachary J., Gibson, David K., Jones, Raymond, Gibson, John, Department of Defense Management (DDM), Business & Public Policy (GSBPP), Seagren, Chad, Cook, Glenn

Currently, a disconnect exists between procurement speed and final delivery of capabilities that require IT/IS solutions. Schedules for delivering these capabilities have remained a cumbersome and lengthy hindrance. War-fighting capabilities are consistently degraded as time-dependent requirements are outpaced by new technology before delivery. To determine the current impediments within the IT/IS procurement process, we limit our examination to the IT/IS decision-making processes, policies, and organizational structures that may be affecting the timely delivery of IT/IS systems. For the purpose of this thesis, the term governance encompasses these focus areas. Though we discuss aspects of the acquisition process and its guiding policies, a full analysis of the process remains outside the scope of this thesis. Instead, we chose to focus on how governance is affecting the timely delivery of IT/IS capabilities to the warfighter. A timeline analysis of relevant defense program cases forms the basis of our assessment of IT/IS governance. The aim of this thesis is to right-size the governance, or authority therein, required to effectively deliver IT/IS solutions to the war-fighter. We conclude with findings and recommendations as well as further research into adjusting responsibilities and authorities for IT agencies and acquisition professionals.

2017-12, Bogan, Matthew R., Percy, Anthony S., W.Kellermann, Thomas, Mortlock, Robert F., Dillard, John T., Department of Defense Management (DDM), Business & Public Policy (GSBPP)

The current budgetary climate in the federal government is one of increasing uncertainty, making the long-term acquisition of critical weapon systems within the Department of Defense a challenging prospect. Rapid budget growth and a preoccupation with global military operations over the last fifteen years created a difficult environment to prioritize and track failed acquisition programs, resulting in a poor understanding of the actual root causes of program failures. By studying a subset of cancelled major defense acquisition programs, it is possible to achieve a better understanding of root causes for failure and analyze whether there are commonalities among the root causes for failure to apply to future programs. This research informs military leadership and program executive officers of potential risk components in future acquisition programs that are critical to the achievement of national security objectives. Areas of particular concern include poor technology progression, negative congressional involvement, waiving milestone A, and a significant change in requirements.

2018-06, Shutt, Christopher M., Sullivan, Ryan S., Brien, Spencer T., Department of Defense Management (DDM), Graduate School of Business and Public Policy (GSBPP)

This report analyzes publicly available, current and historical Total Force Costing (TFC) methods, data sources, modeling assumptions, and strategies to determine if TFC similarities exist between the services. If similarities are found, is it possible to construct a best-practice TFC model that will satisfy multi-service budget estimating needs in a joint environment? Despite the blending of resources in a joint-warfighting environment, it is apparent that each service continues to use its own assumptions, cost groupings, and calculations to plan future spending. Cross-talk between service budget planners is a mandatory starting point for future TFC calculation research. This will allow the services to create similar cost groupings, coordinate assumptions, and more accurately estimate future total force spending.

2006-12, Butkus, Joseph J., Howes, Matthew F., Yoder, E. Cory, Tudor, Ronald, Department of Defense Management (DDM), Graduate School of Business & Public Policy (GSBPP)

The purpose of this project is to examine the issues concerning the command and control of civilian contractors in a combat environment. Outsourcing of non-military specific job functions to civilian contractors and the increased reliance on Private Security Companies to protect those contractors has produced unexpected complications when examined in the context of an extended war-time scenario. The objectives of this project are to identify the weaknesses of current command and control doctrine as it applies to civilian contractors, identify significant issues regarding tracking and movement control of contractors and to identify issues faced by tactical commanders created by civilian contractors operating in their battlespace. The product of this project will be a potential course of action that the Department of Defense can pursue to correct deficiencies in the command and control of contractors and mitigate the risks created by contractors operating independently on the battlefield.

2018-12, Burgos, Angel, Mclean, Gary D., Jr., Apte, Aruna U., Department of Defense Management (DDM), Graduate School of Business and Public Policy (GSBPP), Graduate School of Business and Public Policy (GSBPP), Seagren, Chad W.

This project will focus on analyzing critical planning factors of the different ship classes within the Maritime Prepositioning Force (MPF) program for Humanitarian Assistance and Disaster Relief (HADR) operations in the Pacific theater. By optimizing how gear is transported, Marines can provide relief in an expedient manner and minimize cost (i.e., loss of life) in a HADR. We develop an initial response model, Joint Transportation Optimization Planner – Sealift (JTOP-S), to optimize the size and number of ships needed to conduct HADR effectively and efficiently based on the equipment utilized. The port functionality, capacity of the ships, and supply and demand requirements are some constraints that hinder the aid given and delay the process. JTOP-S is able to determine an optimal solution, given the different inputs and parameters. The scenarios we ran to test the model resulted in the following findings: (1) Capacity of the different ship classes is not a limiting factor, the speed is. (2) The model will first max out the available supplies from the closest Sea Port of Embarkation (SPOE) to the Sea Port of Debarkation (SPOD) via the fastest mode of transport. (3) The model will then select the ship class that has the lowest planning factor average from the same SPOE. (4) If the demand is not met from one SPOE, the model will source the remaining demand from the next closest SPOE via the fastest mode of transportation, and then from the planning factor average value.

2018-06, Scales, Sean N., Pajarillo, Raymond-Victor C., Foursha, Andrew W., Trainor, Stephen C., Department of Defense Management (DDM), Graduate School of Business and Public Policy (GSBPP), Graduate School of Business and Public Policy (GSBPP), Graduate School of Business and Public Policy (GSBPP), Augier, Mie-Sophia E.

As the world becomes more complex and evolves at faster rates, it has become imperative that organizations evolve their leadership training to adapt to the ever-changing industrial environment and maintain the organization’s competitive advantage. For example, the Department of the Navy has called for cultural changes and programmatic improvements to the way the civilian workforce is prepared for leadership roles and responsibilities. Patricia Ingraham, Heather Getha-Taylor, and the National Academy of Public Administration have conducted studies that identified the current level of training and developing civilian leadership is ineffective within the federal government regarding organizational requirements in an exponentially changing complex environment. If the current approach to leadership development is insufficient, an important question to study is, “What leadership capabilities, qualities and competencies contribute to effective leadership and organizational effectiveness in complex environments of defense acquisition?” By answering this question, we hope to offer suggestions and recommendations to improve leadership development in the Navy Civilian Acquisition Workforce.

2014-12, Morgan, Jason A., Prentiss, Jacob M., Brinkley, Douglas E., Tick, Simona, Department of Defense Management (DDM), Graduate School of Business & Public Policy (GSBPP)

Additive manufacturing (AM) technology, known as three-dimensional (3-D) printing, was developed in the 1980s and has matured such that it is being implemented into modern business processes as a way to reduce prototype design and production lead times. Similar to companies in civilian industry, the U.S. Navy’s Chief of Naval Operations Rapid Innovation Development Cell has been looking for ways to introduce this technology into the Navy’s supply chain. The Navy is operating in a continuously shrinking, budget-constrained environment and always seeks ways to save money and improve business practices. Implementing AM into the Navy’s supply chain has the potential to reduce costs and improve acquisition processes. As the Navy continues to invest in AM, current inventories of material must be reviewed for applicability and compatibility to determine what is 3-D printable. This project’s goal is to provide decision support criteria by identifying influential factors that determine the applicability of 3-D printing alternatives. The approach taken involves an analysis of the technology, its use in civilian industries, and a discussion of influential factors determining whether 3-D printing is a alternative to traditional supply chains. Moreover, it identifies potential uses and provides examples for printing 3-D material for the Navy.

2005-12, Cortese, Casey A., Shelby, Heather, Strobel, Timothy J., Hudgens, Bryan J., Rendon, Rene G., Roberts, Nancy, Department of Defense Management (DDM), Graduate School of Business & Public Policy (GSBPP)

The Department of Defense (DoD) is using industry best practices to transform the way it manages its acquisition functions to include its people, processes, practices, and policies. Strategic sourcing is one such process. The objective of strategic sourcing is the creation and application of carefully crafted procurement strategies to acquire various supplies and services at the lowest total cost. While numerous sourcing strategies exist (e.g., those for strategic items, leverage items, bottleneck items, and noncritical items), this study focused on leverage items and the use of commodity councils, specifically the Air Force Information Technology Commodity Council (AFITCC). Using a case study approach, this research identified the specific factors that contributed to the successful development and implementation of AFITCC. These factors included the development of an overall sourcing strategy, the utilization of an appropriate commodity strategy, and the ability to implement change within an organization. Thus, by documenting specific challenges and successes, this research should help to guide the development and implementation of commodity councils throughout the Air Force, DoD, and various other public organizations.

2018-12, Folster, Austin D., Sawko, Ryan, Eggers, David C., Nussbaum, Daniel A., Hudgens, Bryan J., Department of Defense Management (DDM), Graduate School of Business and Public Policy (GSBPP), Graduate School of Business and Public Policy (GSBPP), Graduate School of Business and Public Policy (GSBPP), Walzer, Lawrence M.

This project will give Department of Defense (DoD) procurement and area planners an assessment on the availability of energy within the U.S. Indo-Pacific Command (INDOPACOM) area of responsibility (AOR). The assessment will help make future decisions on sourcing energy purchases and may be expanded on with assumptions for risk potentials within the energy supply chain. This project includes market research on refined oil shipping and Military Sealift Command's capacity to move fuel to the warfighter. It includes research on tanker contracting procurement by Military Sealift Command, worldwide commercial tanker characteristics, and shipping activity within Asia.