An analysis of current and proposed oversight processes for the acquisition of large-scale services seen through the eyes of the Navy Marine Corps Intranet program

Abstract

At approximately $6.9 billion, The Navy-Marine Corps Intranet (NMCI) was the largest service contract that DoD had ever awarded. The U.S. Navy viewed it as a typical multi-year, Performance Based Services Contract (PBSC) and not a new acquisition program. Congress took a different view. Congress attached milestones, conditions, a requirement for rigorous testing and limited funding. This all had the effect of delaying the implementation of NMCI. At approximately $60 billion per year and growing, acquisition of services is a major part of DoD acquisitions and it is expected to only grow in the future. The mechanics for implementing these types of acquisitions are well understood; the U.S. Navy's experience with NMCI suggests that the amount and type of oversight required are not as well defined. Realizing this, both DoD and the U.S. Congress are scrambling to create laws and policies to bridge this gap. The commercial section has considerable experience in this area, as acquisition of services is a growing endeavor there too. This thesis examines current and proposed policy and procedures for the oversight of the acquisition of large-scale services by the DoD, along with a brief analysis of and comparison to other best practices regarding service acquisition.