How the implementation of performance based contracting has affected program management within the Department of Defense

Abstract

The objective of this research is to investigate the impact that performance based contracting (PBC) can have on program management in the Department of Defense. Interviews are utilized to gather information from Army, Navy, and Marine Corps program Management Offices involved in the acquisition process. The study identifies how program management has been affected by the implementation of PBC and describes its use in three DoD acquisition programs. The advantages, disadvantages, and risks associated with PBC are analyzed to determine potential areas for improvement of the process, and the study develops guidelines that future program managers can use in the setup of PBC acquisitions. Based on key findings and conclusions, the study recommends the Government determine metrics for measurement of the effectiveness and efficiency of PBC, evaluate the waiver process associated with this initiative, and increase the training opportunities for the acquisition workforce. The study further recommends that DoD establish a marketing plan to foster positive cultural change towards PBC and outlines a number of areas for further research.