Defining and Measuring the Success of Service Contracts
Miller, Frank D.
Newton, James M.
D'Amato, Salvatore A.
Rendon, Rene G.
Apte, Uday M.
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Services acquisition in the U.S. Department of Defense (DoD) has continued to increase in scope and dollars in the past decade. The DoD has spent more on services than on supplies, equipment and goods together, totaling approximately 57% of total acquisition expenditures and nearly a third of the total DoD budget. As a result, the agency must give greater attention to the management of services acquisition. Stakeholder theory illustrates how acquisition team members often have conflicting goals and objectives, leading to differing definitions and measurements of a successful service contact. We used stakeholder theory to address the following questions (1) how are successful service contracts within the DoD being defined by different stakeholders, (2) how are service contracts being measured within the DoD by different stakeholders, (3) how should service contracts be defined and measured within the DoD. We conducted 41 interviews and surveys of key stakeholders. Our findings reveal no standardized definition or measurements for success of service contracts. However, some salient characterstics of definitions are schedule, maintain costs, and well defined requirements. With respect to measurements, relevant characteristics included performance and cost. Furthermore, we provide recommendations on establishing standardized definitions and measurements of success.
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