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Delivery Performance Indicators

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Delivery of equipment in accordance with the users required schedule is essential to DARCOMs materiel readiness mission. However, DARCOM is experiencing increasing problems with delinquent deliveries. For DARCOMs major subordinate activities, delinquent deliveries of items under contract have been as high as 34. For DARCOMs major subordinate activities,procurement managers are often alerted of contractual delivery problems through analysis of data generated by performance indicators, such as delinquency rates. Since the current indicators often tend to look good in spite of continuing problems, a revised indicator is needed to better serve Army managers in becoming aware of problems so they may take corrective action. The objective of this study is to develop 1 Contract Delivery Performance Indicators which will provide better information regarding the need for possible action to thwart an impending or actual delinquency and 2 Tentative numerical targets for Headquarters DARCOM and each of its major subordinate commands, using the performance indicator developed. The present performance indicator is not sensitive a to the length of the delinquency i.e., how far behind schedule or b the criticality of the delinquency the importance of the item to the Army, as opposed to the size of the contract. As currently defined, the performance indicator rewards the practice of revising delivery schedules in the contractors favor. While this study does not look at the extent to which this practice occurs, the potential for abuse is clear. It is also clear that as management attention increases, so does the pressure for abuse.

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Final rept.



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Approved for public release; distribution is unlimited.

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