Managing the service supply chain in the Department of Defense: opportunities and challenges
Lewis, Ira A.
Rendon, Rene G.
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The following article is taken as an excerpt from the proceedings of the annual Acquisition Research Program. This annual event showcases the research projects funded through the Acquisition Research Program at the Graduate School of Business and Public Policy at the Naval Postgraduate School. Featuring keynote speakers, plenary panels, multiple panel sessions, a student research poster show and social events, the Annual Acquisition Research Symposium offers a candid environment where high-ranking Department of Defense (DoD) officials, industry officials, accomplished faculty and military students are encouraged to collaborate on finding applicable solutions to the challenges facing acquisition policies and processes within the DoD today. By jointly and publicly questioning the norms of industry and academia, the resulting research benefits from myriad perspectives and collaborations which can identify better solutions and practices in acquisition, contract, financial, logistics and program management. For further information regarding the Acquisition Research Program, electronic copies of additional research, or to learn more about becoming a sponsor, please visit our program website at: www.acquisitionresearch.org. For further information on or to register for the next Acquisition Research Symposium during the third week of May, please visit our conference website at: www.researchsymposium.org.;The DoD's services acquisition volume has continued to increase in scope and dollars in the past decade. Between FY 1999 to FY 2003, the DoD's spending on services increased by 66%, and in FY 2003, the DoD spent over $118 billion or approximately 57% of total DoD's procurement dollars on services (GAO, 2005b). In recent years, the DoD has spent more on services than on supplies, equipment and goods, even considering the high value of weapon systems and large military items (RAND, 2004). These services belong to a very broad set of activities ranging from grounds maintenance to space launch operations. The major categories include professional, administrative, and management support; construction, repair, and maintenance of facilities and equipment; information technology; research and development, and medical care. As the DoD's services acquisition volume continues to increase in scope and dollars, the agency must keep greater attention to proper acquisition planning, adequate requirements definition, sufficient price evaluation, and proper contractor oversight (GAO, 2002a). In many ways, these are the same issues affecting the acquisition of physical supplies and weapon systems. However, the unique characteristics of services and the increasing importance of services acquisition offer a significant opportunity for conducting research in the management of the service supply chain in the Department of Defense. The objectives of this exploratory research are to (1) analyze the size, structure and trends in the DoD's service supply chain, (2) understand the challenges faced by contracting officers, program managers and end-users in services acquisition, (3) develop a conceptual framework for understanding and analyzing the supply chain in services, and (4) provide policy recommendations that can lead to more effective and efficient management of the DoD's spending on services. Addressing issues related to theory and practice, this research makes a modest contribution towards more effective and efficient management of service acquisition in the Department of Defense.
Third Annual Acquisition Research Symposium
NPS Report NumberNPS-AM-06-085
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Apte, Uday; Ferrer, Geraldo; Lewis, Ira A.; Rendon, Rene G. (Monterey, California. Naval Postgraduate School, 2006); NPS-AM-06-032The services acquisition volume in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade. Between FY 1999 to FY 2003, DoD's spending on services increased by 66%, and in FY ...
Apte, Uday; Ferrer, Geraldo; Lewis, Ira; Rendon, Rene G. (2006-12-01); NPS-AM-06-032The services acquisition volume in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade. Between FY 1999 to FY 2003, DoD''s spending on services increased by 66%, and in FY ...
Managing the Service Supply Chain in the Department of Defense: Implications for the Program Management Infrastructure Apte, Uday; Rendon, Rene G. (2007-11-01); NPS-PM-07-126The services acquisition volume in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade. In fact, in recent years, DoD has spent more on services than on supplies, equipment ...