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Accession Number ADA591728
Title Make or Buy: A Systematic Approach to Department of Defense Sourcing Decisions.
Publication Date Jul 2013
Media Count 68p
Personal Author D. Berteau G. Ben-Ari J. Ellman J. Hofbauer
Abstract Over the last decade, Department of Defense (DoD) spending on service contracts more than doubled in constant terms, from $90 billion in 2000 to $183 billion in 2012. Policy-makers have recently attempted to reduce or even reverse this trend, in part by emphasizing instead the 'in-sourcing' of work performed under services contracts. Over the last three years, CSIS has worked to develop a more systematic framework for guiding sourcing decisions for services contracts within the DoD, which would have broader implications for the whole universe of budget-based decisions within the DoD. Towards that purpose, this paper analyzes the stated motivations, implementation strategies, and guiding analytical underpinnings for previous outsourcing efforts and for the currently ongoing in-sourcing initiative. It then assesses current and previous DoD methodologies for guiding sourcing decisions, highlighting the individual strengths and shortcomings of these methodologies. The third section of the paper presents an analysis of public sector sourcing decisions in the wider context of economics and business management, to provide broader conceptual insights for more informed determinations on these sourcing decisions. The final section analyzes recently updated DoD cost estimating guidance and discusses drawing on object class code data as a potential data source for cost estimation.
Keywords Competition
Contracted services
Cost estimates
Csis cost-estimation taxonomy
Decision making
Department of defense
Directive-type memorandum 09-007
Dod cost estimation methodologies
Dod instruction 7041.04
Government employees
Make or buy decisions
Military procurement
Omb circular a-76
Private sector sourcing decisions
Public- private competition
Service contracts
Sourcing decisions

Source Agency Non Paid ADAS
NTIS Subject Category 70B - Management Practice
96 - Business & Economics
74E - Logistics, Military Facilities, & Supplies
Corporate Author Center for Strategic and International Studies, Washington, DC. Defense Industrial Initiatives Group (DIIG).
Document Type Technical report
Title Note Research rept.
NTIS Issue Number 1411
Contract Number N00244-12-1-0042

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