Researching and manufacturing fighters, ships, and tanks are only
part of the picture for defense contracts. Contracting for services
accounts for over 41 percent of DoD contract obligations in 2018.
Services include maintaining equipment, moving people and things,
creating software, providing server space, and construction.
Service contracting is challenging as services can be difficult to
define and measure. But services are increasingly central to the
U.S. economy. The Department of Defense seeks to attract new firms
that will increase its speed and agility-many of these firms are
service providers, e.g., data analytics or cloud computing. CSIS
looked at a million contracts to evaluate how three factors
influence performance: 1.service complexity 2.contract-management
capacity 3.vendor's history working with a DoD contracting office
The existing data fails to explain large differences in contract
office performance. More DoD transparency about contracting office
capacity could help make a case for further investments. The report
also found that when vendors and contracting offices have a longer
history, they tend to have better results. That means DoD needs to
think not only about recruiting new partners, but also about
helping them succeed.
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