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This report responds to the requirement of the report by the National Security Committee, House of Representatives, on the National Defense Authorization Act for fiscal Year 1998 that we review the Department of Defense's (DOD) use of a single contract for multiple base operations support functions. The June 16, 1997, report noted that there was little information on how these contracts work, what services are best delivered under this arrangement, and what savings are realized. In response, this report addresses (1) the history and characteristics of selected single contracts for multiple base operations support services, (2) the kinds of services procured under these contracts, (3) lessons DOD has learned from the use of these contracts, (4) whether small businesses participate in these contracts, and (5) whether cost and efficiency gains have been documented. This report provides detailed information about the use of single contracts for multiple base operations support services at 10 military installations in the continental United States. We selected these installations from a list of 15 that were identified for us by DOD officials.
NSIAD-98-82 Base Operations: DOD's Use of Single Contracts for Multiple Support Services
In this study outsourcing is defined as the organizational practice of contracting for services from an external entity while retaining control over assets and oversight of the services being outsourced. In the 1980s, a number of factors led to a renewed interest in outsourcing. For private sector organizations, outsourcing was identified as a strategic component of business process reengineering-an effort to streamline an organization and increase its profitability. In the public sector, growing concern about the federal budget deficit, the continuing long-term fiscal crisis of some large cities, and other factors accelerated the use of privatization measures (including outsourcing for services) as a means of increasing the efficiency of government.
This report examines DoD logistical support contracts for troop support services in Iraq and Afghanistan administered through the U.S. Army¿s Logistics Civil Augmentation Program (LOGCAP), as well as legislative initiatives which may impact the oversight and management of logistical support contracts for the delivery of troop support services. LOGCAP is an initiative designed to manage the use of civilian contractors that perform services during times of war and other military mobilizations. Contents: (1) Intro.; (2) Major Developments: AF Contract, and Logistics Civil Augmentation Program; (3) Background: Awarding of Defense Contracts; (4) Potential Oversight Issues: Contract Oversight and Admin.; Use of Overhead Fees; Gansler Comm.