An Analysis of the Efficiency of Sourcing Knowledge-based Services in the United States Air Force
MBA professional rept.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The purpose of this study is to explore whether and how the United States Air Force USAF can improve efficiency in sourcing knowledge-based services by instituting for-profit sector best practices in strategic sourcing. Knowledge-based services are a major part of the total services acquired by the Department of Defense DoD however, the DoD is currently unable to determine how much savings can be attained in this area. Despite evolving DoD policies, there is currently no cost-savingavoidance framework or set of best practices for knowledge-based service contracts. In this study, we interviewed procurement professionals from the for-profit and not-for-profit sectors, analyzed USAF knowledge-based service contracts, and conducted a spend analysis on the USAF FY2010 spend data to identify for-profit best practices to aid the USAF in realizing cost savings when purchasing knowledge-based services. The findings of this research suggest that the USAF is currently not utilizing the for-profit best practices to their fullest potential. This study provides recommendations for the USAF and DoD to realize additional cost savings in the purchasing of knowledge-based services. Additionally, the research serves as a pilot for future study on identifying for-profit sector best practices in the sourcing of knowledge-based services.
- Administration and Management
- Economics and Cost Analysis