Cost analysis of outsourcing an Air Force supply squadron
Mahoney, Ryan J.
Schofield, Scott D.
Brook, Douglas A.
Summers, Donald E.
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Outsourcing is a commonly used method for providing cost savings in business and the Federal Government. This project begins by providing background on the history, goals, and problems associated with the A-76 process. It will then analyze the financial management aspects of the Air Forceb2ss 2001 decision to outsource one of its supply squadrons to determine whether anticipated cost savings were achieved. Any costs savings or increases will be analyzed to determine to what extent they exceeded expectations. If added costs came up throughout the life of the contract, the causes of these will be sought and determination made whether or not they could have been anticipated in the initial contract competition and used in the initial cost comparison. Furthermore, this research lays a foundation for building a body of knowledge to be utilized in future research regarding the federal A-76 or competitive sourcing practices and procedures, from which overarching conclusions of federal outsourcing can be drawn to include strengths and weaknesses of the procedures currently utilized.
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