Contract Overhead Reduction Across the Department of Defense
AIR WAR COLLEGE, AIR UNIVERSITY MAXWELL AFB United States
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The Department of Defense has become critically dependent on services, programs, and equipment contracted by government personnel. In an increasingly resource constrained environment, the allowed profit, overhead costs, excessive expenses, and ways to eliminate fraud within contracting deserve a careful analysis on behalf of the American taxpayers. Areas such as subcontracting, unnecessary requirements, fraudulent goods all lead to increased costs. Budgetary constraints juxtaposed with increasing material costs and ballooning appetites for robust solutions and high tech approaches versus good enough continue to chip away at government resources. Additionally, the questions of balance to preserve the nations industrial base and bolster the defense industry and economy or need for inherently government production and repair depots continues to be a choice for contracting officers to make. This analysis will endeavor to address these issues and propose solutions for reducing costs associated with contracts, ensuring that adequate resources remain for the Services to allocate to the most critical needs throughout the Department of Defense.
- Economics and Cost Analysis
- Administration and Management