Using Multiple Objective Decision Analysis to Position Federal Product and Service Codes Within the Kraljic Portfolio Matrix

Despite the best efforts of the Federal Government to implement strategic sourcing, recent Government Accountability Office GAO reports highlight major procurement deficiencies and encourage the use of commercial best practices to identify and reap substantial savings. The Kraljic Portfolio Matrix KPM is considered the premier tool for purchasing organizations to determine which commercial best practices to utilize for different categories of spend. However, critics of the KPM point to its lack of analytical rigor and the absence of a simplistic quantitative methodology for implementation. The Air Force Installation Contracting Agency AFICA, the centralized procurement arm for79 USAF installations worldwide, desires to exploit the KPM to determine if current contracting strategies are in line with commercial best practices. Therefore, this research seeks to ll both an operational and research gap. The operational gap is filled using multi-objective decision analysis MODA as a framework to position installation procured goods and services within the KPM in order to facilitate AFICAs strategic sourcing eorts. The application of MODA fills a research gap by providing a quantitative methodology not yet found in literature.