Service supply chain in the department of defense: opportunities and challenges

Abstract

In 2003, the Department of Defense (DoD) spent over $118B in purchasing services. In fact, in each of the last ten years, DOD has spent more dollars on services than on supplies, equipment and goods, which includes weapon systems and other military items. As DOD’s services acquisition volume continues to increase in scope and dollars, the agency must provide greater attention to such issues as proper acquisition planning, adequate requirements definition, establishment of appropriate contracts, and proper contractor oversight. 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 DOD.