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SOURCE: William Bajusz & Associates, Inc.
Major changes in the way the Department of Defense buys goods and services are being driven by more than budget cuts.
Fairfax, Virginia (PRWEB) December 04, 2012
The first results of research to be published in the Spring of 2013, addressing “Affordability, Performance and Competitiveness for The Pentagon,” point to a very different Department of Defense (DoD) procurement system just on the horizon. The study began in 2009, when defense spending was at record levels.
Considerable evidence supports the conclusion that significant changes in how the Pentagon buys goods and service began before reductions in defense spending. These changes started because of the combined effects of:
However, necessary defense spending reductions have accelerated the rate of change. Moreover, the real possibility of imminent budget sequestration has caused government and industry to position for “worst case” budget scenarios. The consequence: the range of choices for any pragmatic restructuring of how and what the Pentagon buys is being quickly narrowed, whether or not sequestration actually happens.
Emerging research results strongly suggest that a de facto procurement system by the end of the decade is a real possibility. It could be the product of hundreds of scattered, only loosely coupled decisions more than any overall design for better performance at lower cost and strengthened governance. "There definitely will be a new DoD procurement system before the end of this decade, ” said Dr. Bill Bajusz, who directs the research, "but it may not be one that the Pentagon, its contractors, or lawmakers really want."
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