Measuring Productive Efficiency in Air Force Operational Contracting Squadrons: An Application of Data Envelopment Analysis
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF LOGISTICS AND ACQUISITION MANAGEMENT
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In an effort to improve the management feedback in operational contracting squadrons, this research concentrated on the development of an alternate method to measure operational contracting performance. Specifically, the research investigated the use of Data Envelopment Analysis DEA to measure the productive efficiency of 45 operational contracting squadrons. Operational contracting managers were surveyed to identify critical resources to and outputs from the contracting process. Based on this survey, four inputs and five outputs were included in the DEA model. The DEA was executed for each contracting squadron under study. The DEA output provided improved performance measurement and feedback information. DEA combined multiple inputs and outputs into a single measure of performance. Because it allows flexible weighting of decision variables, DEA accounted for differences in squadron size, mission, and purchase complexity. By examining the DEA generated Hypothetical Comparison Unit, specific input reductions and output increases were established for each relatively inefficient squadron. Finally, the DEA output addressed several desired characteristics of a performance measurement system identified by contracting managers. Data envelopment analysis, Efficiency, Linear programming, Procurement, Productivity.
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- Economics and Cost Analysis
- Statistics and Probability