Managing the Services Supply Chain in the Department of Defense: An Empirical Study of Current Management Practices

Abstract

Abstract : Services acquisition in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade. In fact, even considering the high value of weapon systems and large military items purchased in recent years, the DoD has spent more on services than on supplies, equipment and goods (Camm, Blickstein & Venzor, 2004). The acquired services presently cover a very broad set of service activities including 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 continues to increase in scope and dollars, the agency must give greater attention to proper acquisition planning, adequate requirements definition, sufficient price evaluation, and proper contractor oversight (GAO, 2002). Recently, the Director, Defense Procurement and Acquisition Policy (DPAP) has identified inappropriate use of services contracts in the DoD (Director, DPAP, 2007, March 2) and is taking action to improve contracting for services throughout the Department (Director, DPAP, 2006, August 16). In many ways, the issues affecting services acquisition are similar to those affecting the acquisition of physical supplies and weapon systems. However, the unique characteristics of services and the increasing importance of services acquisition offer a unique and significant opportunity for conducting research in the management of the service supply chain in the Department of Defense.