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OSD's Obligation & Expenditure Rate Goals: An Examination of the Factors Contributing to the Interference
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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Managing DoD acquisition programs is a complicated process. The turbulence created by funding instability makes it even more difficult. To help program offices maintain their overall funding execution pace, the Office of the Secretary of Defense OSD instituted Obligation and Expenditure rate goals over two decades ago. Acquisition program managers have found it difficult to meet established Obligation and Expenditure rate goals. For the purposes of this study sponsored by Nancy Spruill, director of Acquisition Resources and Analysis, Office of the Under Secretary of Defense for Acquisition, Technology and Logistics and based on Defense Acquisition University and OSD subject matter expertise, the authors looked closely at potential causal factors that could be interfering with the achievement of these goals. Two hundred and twenty-nine DoD personnel responded to a comprehensive survey. The respondents were comprised of program office personnel program managers PMs, deputy PMs, budget and financial managers FMs, and contracting officers program executive officers PEOs and their chief financial officers and a variety of senior OSD staff including Headquarters FM senior staff and Senior Acquisition Executive staff. The respondents were asked if they found metrics helpful in better meeting OSD goals as well as the use of any process improvements.
APPROVED FOR PUBLIC RELEASE