Outsourcing strategic services in the Colombian defense sector analysis of a Naval aviation case
Godoy, Alberto E.
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The Colombian Navy (COLNAV) has been outsourcing flight services from a private company since 2003 in order to provide transportation for troops and military cargo as well as general logistical support. The Colombian Naval Aviation's (AVNA) lack of proper equipment to perform these types of missions in a cost-efficient manner has required the senior naval command to sign iterative contracts, over four years, with a private contractor, one of the two companies with such capacity in the country, and the only one with the available resources to accomplish the contracts' terms. Such limitations have developed a highly-dependent relationship with one supplier, resulting in a non-beneficial agreement for COLNAV, especially with sensitive security implications, considering the internal Colombian context generated by the Narco-terrorist Organizations (ONT) within the national borders. This situation will be analyzed from a managerial perspective, and using a Game Theory approach, present four possible alternatives in order to strengthen COLNAV's bargaining position when dealing with a sole source of aviation services and, thus, improve the Naval Aviation's capabilities in the long run.
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