Analysis of the Make-or-Buy Decision Criteria for Commercial/Industrial-Type Activities.
ARMY PROCUREMENT RESEARCH OFFICE FORT LEE VA
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Consistent with the United States free enterprise system, the stated policy of the Federal Government is to rely primarily on the private sector for its needed products and services. Although there is little disagreement with the policy, there is considerable controversy over the Governments implementation of its policy. Since the Governments make-or-buy decisions directly affect the jobs of contractor and Government personnel, representatives from both the private and public sectors are vocal in expressing their divergent views. A substantial sunk cost investment in Government-owned facilities and equipment as well as sociological and political considerations complicate the problem for Government decision makers. The objective of the study was to evaluate the laws, regulations, and general policy governing the Governments make-or-buy decision-making process to determine the appropriateness and effectiveness of current policies, practices, and implementing regulations e.g., OMB Circular A-76 and AR 235-5.
- Logistics, Military Facilities and Supplies