Determinants of Services Sourcing Performance
Acqusition research program
NAVAL POSTGRADUATE SCHOOL MONTEREY CA GRADUATE SCHOOL OF BUSINESS AND PUBLIC POLICY
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The need for reform in the Department of Defenses DoD acquisition and management of services acquisitions has been recently highlighted by the Government Accountability Office and by top leadership within the DoD acquisition community. However, problems with the acquisition of business-to-business services have not been limited to purchasing in the public sector industry has also struggled with the effective acquisition of business-to-business services because the complexities and unique nature of services render the definition of requirements and the specification and measurement of contractor performance problematic. Despite these difficulties, little research has been conducted to examine the determinants of sourcing performance in services acquisitions. This study uses structural equation modeling to examine the relationships between service quality and its determinants in the U.S. Air Forces acquisition of business-to-business services. Data were collected by surveying a sample of contract administrators assigned to services acquisitions. The results of a statistical analysis on this data suggest that requirement definition sufficiency and government-contractor communication strongly affect the contract outcomes of service quality and regulatory and statutory compliance. A non-positive relationship was also found between the extent of compliance with regulations and statutes and the quality of the service rendered. Other results include a significant relationship between the level of commitment by the internal customer and the sufficiency of the requirement definition as well as the deleterious effects of personnel turnover on compliance with regulations and statutes.
- Logistics, Military Facilities and Supplies