Defence Procurement
This section includes a number of key documents on procurement policy. In the UK, the USA and Australia (in particular), a number of insightful studies have now been undertaken looking at key issues that defence agencies and private sector partners have faced in procurement, most specifically in equipment purchases and large capital projects. The literature places particular emphasis on project commissioning and procurement, and contract design and performance.
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Warfigher Support: a Cost Comparison of Using State Department Employees versus Contractors for Security Services in Iraq (Word) United States Government Accountability Office, 2010 This Report looks at the non documentation of the comparative cost of using civilian employees or military members versus the cost of using contractors, particularly private security contractors, during contingency operations. Detailing a study in October 2005 carried out by Congressional Budget Office (CBO) that compared the cost of using military personnel, federal civilians, or contractors to provide logistic support for overseas operations and its findings. USA
Special Report 2: Lowest-priced security not good enough for war-zone embassies (PDF) Commission on Wartime Contracting in Iraq and Afghanistan, 2009 This second CoWC report addresses the issue of best value. It urges a review of previous statutory restriction which based contracting only on price and technical ability. In removing this restriction future contracts will deliver greater returns. USA
Contractors' Support of U.S Operations in Iraq (PDF) The Congress of the United States - Congressional Budget Office, 2008 The Congressional Budget Office (CBO) paper, which was prepared at the request of the Senate Committee on Budget, examines the use of contractors in the Iraq theater from 2003 through 2007, providing an overview of the federal government's costs of employing contractors in Iraq and in nearby countries. USA
Review of Acquisition for the Secretary of State for Defence: An independent report (PDF) Gray, Bernard, 2009 Ministry of Defence (MoD) An extensive review of defence procurement, which accounts for 40% of the UK's national defence budget. It argues for wider private sector engagement in the sector. Its recommendations include Strategic Defence Reviews, and separation and clarification of roles for different agencies. UK
Defense Acquisitions: Sound practices critical to ensuring value for the defense logistics agency's acquisitions (PDF) Solis, William M., 2009 Government Accountability Office (GAO)
This GAO testimony, from the Director Defense Capabilities and Management, focuses on regarding obtaining value when defence contracting and how these practices might also apply to DLA commodity acquisition.
USA
The privatisation of QinetiQ (PDF)
House of Commons Committee of Public Accounts, 2008
This report analyses the privatisation process of QinetiQ during its two phases. According to the CPA, the first phase in which a minority stake in the business was sold to the private equity firm, the Carlyle Group, was mismanaged. The second stage, however, a flotation on the London Stock Exchange, was conducted smoothly. This report includes the formal meeting minutes and the transcription of interviews with the Ministry of Defence, Shareholder Executive and the Chairman of QinetiQ.
UK
Contracting Out in Defense: Lessons from the British Experience for the U.S. and Great Britain (Web Page) Ted R. Broumund, 2009 The Heritage Foundation An analysis of contracting in the UK defence market, which offers important lessons for future use of contracting on both sides of the Atlantic. United States
Structure and Dynamics of the US Professional Services Industrial Base 1995-2007 (PDF) David Berteau, Guy Ben-Ari & Gregory Sanders, 2009 Centre for Strategic International Studies/Defense Industrial Initatives Group An analysis of the US Government's use of private-sector professional and support services, 1995-2007. This market is now established as larger than that for selling hardware to government. United States
Smarter Food Procurement in the Public Sector (PDF)
House of Commons Public Accounts Committee, 2007
The Stationery Office
This report examines the organisations responsible for the three largest areas of public food procurement - Department for Education and Skills, the Ministry of Defence and the NHS Purchasing and Supply Agency. It argues that improving certain practices such as pricing negotiations and levels of frontline expertise can allow public bodies to improve significantly the efficiency of their food procurement while also sourcing ethically and enhancing sustainability.
The Defence Industrial Strategy: Government Response to the Committee's Seventh Report of Session 2005-06 (HC 1488 Eighth Special Report of Session 2005-06) (PDF)
House of Commons Defence Committee, 2006
London: The Stationery Office
Ministry of Defence: Using the Contract to Maximise the Likelihood of Successful Project Outcomes (HC 1047 Session 2005-2006) (PDF) National Audit Office: Report by the Comptroller and Auditor General, 2006 London: The Stationery Office
This report on how the Ministry of Defence negotiates and manages contracts with external providers and how that can relate to the successful delivery of a project shows that some defence projects are exemplars of good contracting, however performance is inconsistent.
UK
The Defence Industrial Strategy (HC 824 Seventh Report of Session 2005-2006) (PDF)
House of Commons Defence Committee, 2006
London: The Stationery Office
Defence Industrial Strategy (CM 6697) (PDF)
Defence White Paper, 2005
Ministry of Defence
MoD Efficiency Programme: MoD Efficiency Technical Note (PDF)
Ministry of Defence (MoD), 2005
This technical note explains the different components of the MoD's Defence Efficiency programme, and explains how performance against them will be measured.
The Innovative Use of Private Finance in Defence Acquisition
Whitehall Paper 63, 2004
Royal United Services Institute for Defence and Security Studies
Defence Procurement (HC 572-I Sixth Report of Session 2003-4) (PDF)
House of Commons Defence Committee, 2004
London: The Stationery Office Limited
Defense Acquisitions: Space-Based Radar Effort Needs Additional Knowledge before Starting Development (GAO-04-759) (PDF)
United States Government Accountability Office, 2004
Competitive Sourcing: Greater Emphasis Needed on Increasing Efficiency and Improving Performance (GAO-04-397) (PDF)
Report to Congressional Requesters, 2004
United States General Accounting Office
Acquisition Management System (Web Page)
Ministry of Defence, 2004
Defence Procurement: Government's Response to the Committee's Eighth Report of 2002-03 (HC 1194 Fourth Report of Session 2002-03) (PDF)
House of Commons Defence Committee, 2003
London: The Stationery Office
Contract Management: High-Level Attention Needed to Transform DOD Services Acquisitions (GAO-03-935) (PDF)
Report to Congressional Committees, 2003
United States General Accounting Office
Missile Defense: Additional Knowledge Needed in Developing System for Intercepting Long-Range Missiles (GA-03-600) (PDF)
Report to the Ranking Minority Member, Subcommittee on Financial Management, the Budget, and International Security, Committee on Governmental Affairs, U.S., 2003
United States General Accounting Office
A review of technical and cost related issues of the US Ground-based Midcourse Defense and of any significant associated risk. The report includes interesting observations on challenges arising from inadequate knowledge and unreliable data when setting project requirements.
Defence Procurement (HC 694 Eighth Report of Session 2002-03) (PDF)
House of Commons Defence Committee, 2003
London: The Stationery Office
Ministry of Defence: Through-Life Management (HC 698 Session 2002-03) (PDF)
National Audit Office: Report by the Comptroller and Auditor General, 2003
London: The Stationery Office
This report examines the extent to which Through-Life Management is leading to effective delivery of military capacity. It argues that Through-Life Management is a key element of Smart Acquisition, requiring major change and linked to other changes. But the Department sill has to fully develop and coherently mange this change programme.
Best Practices: Better Acquisition Outcomes are Possible if DOD Can Apply Lessons from F/A-22 Program (GAO-03-645T) (PDF)
Statement of David M. Walker, Comptroller General of the United States, 2003
United States General Accounting Office
Defence Industrial Policy (PDF)
Ministry of Defence Policy Papers, No. 5, 2002
Major Procurement Projects: Government Response (HC 1229 Sixth Special Report of Session 2001-02) (PDF)
House of Commons Defence Committee, 2002
London: The Stationery Office
Major Procurement Projects (HC 799 Fourth Report of Session 2001-02) (PDF)
House of Commons Defence Committee, 2002
London: The Stationery Office
Competitive Sourcing: Challenges in Expanding A-76 Governmentwide (GAO-02-498T) (PDF)
Statement of Barry W. Holman, Director Defense Capabilities and Management, 2002
United States General Accounting Office
Ministry of Defence: Implementation of Integrated Project Teams (HC 671 Session 2001-02) (PDF) National Audit Office: Report by the Comptroller and Auditor General, 2002 London: The Stationery Office
This report explores the implementation of Integrated Project Teams (IPTs), introduced as a core element of Smart Acquisition, with the aim of improving acquisition by using a project-based approach. It finds that IPTs were introduced quickly and successfully but need to evolve further and that firm direction is needed in order to maintain momentum.
UK
Test and Evaluation of Major Defence Equipment Acquisitions (Audit Report No. 30 2001-2002) (PDF)
Australian National Audit Office: Auditor General, 2002
Canberra: Australian National Audit Office
Defence Acquisition (PDF)
Ministry of Defence Policy Papers, No. 4, 2001
European Defence Policy Paper No. 3 (PDF)
Ministry of Defence Policy Papers, No. 3, 2001
Ministry of Defence: Non-Competitive Procurement in the Ministry of Defence (HC290 Session 2001-02) (PDF) National Audit Office: Report by the Comptroller and Auditor General, 2001 London: The Stationery Office
This report examines the Ministry of Defence framework and guidance for non-competitive procurements, how the procurements are conducted, and what outcomes are achieved.
UK
Bidding Behaviour in the Department of Defense's Commercial Activities Competitions
Snyder, Christopher M., Trost, Robert P., Trunkey, R. Derek, 2001
Journal of Policy Analysis and Management, Vol. 20, No. 1 (Winter 2001), pp.21-42
Personnel Savings in Competitively Sourced DOD Activities: Are They Real? Will They Last?
Gates, Susan M., Robbert, Albert A., 2000
RAND Monograph Report
Issues Related to Competitive Sourcing (PDF) Hynes, Michael; Kirby, Shiela Nataraj; Sloan, Jennifer, 2000 A Casebook of Alternative Governance Structures and Organizational Forms, RAND, pp. 93-106 This appendix gives a brief overview of cost competition and examples of best practice in relation to competitive sourcing. USA
Competitive Sourcing Hynes, Michael; Kirby, Shiela Nataraj; Sloan, Jennifer, 2000 A Casebook of Alternative Governance Structures and Organizational Forms, RAND, pp. 69-84
Using case studies from both the USA and the UK, this chapter discusses the background, results and lessons learned from seven projects of competitive sourcing.
USAModernising Procurement (HC 808, Session 1998-99) (PDF) National Audit Office: Report by the Comptroller and Auditor General, 1999 London: The Stationery Office
This report compares characteristics, such as outcomes of recent competitions, with previous competitions, in terms of competition winners, time required to complete, savings produced and other relevant metrics. It identifies any problems in implementing the results of the competitions, and plans for government monitoring of contracts awarded as a result of the outsourcing.
UK
DOD Competitive Sourcing: Questions about Goals, Pace, and Risks of Key Reform Initiative (GAO/NSIAD-99-46) (PDF)
Report to the Chairman, Subcommittee on Military Readiness, Committee on Armed Services, House of Representatives, 1999
United States General Accounting Office
DOD Competitive Sourcing: Results of Recent Competitions (GAO-NSIAD-99-44) (PDF)
Report to the Chairman, Subcommittee on Readiness and Management Support, Committee on Armed Services, U.S. Senate, 1999
United States General Accounting Office
Defence Procurement in the UK
Hartley, Keith , 1998
Defence and Peace Economics, Vol. 9, Issues 1& 2 (March 1998), pp. 39-61
European Defence Procurement: Towards a Comprehensive Approach Trybus, Martin , 1998 European Public Law, Vol. 4, No. 1 (March 1998), pp. 111-133
This paper discusses European regimes on competition, merger control, subsidies and exports with regards to the possibility of future liberalisation of defence procurement within Europe. In Public procurement Volume II, Ed. Arrowsmith, Sue and Hartley, keith, Edward Elgard Publishing Ltd, 2002, pp 735-757 EC regimes on competition, merger control, subsidies and exports in light of the possibility of the future liberalisation of defence procurement within Europe.
UKBase Operations: Challenges Confronting DOD as it Renews Emphasis on Outsourcing (GA/NSIAD-97-86) (PDF) Report to the Chairman, Subcommittee on Military Readiness, Committee on National Security House of Representatives, 1999 United States General Accounting Office
This report examines the extent to which the US Department of Defence and military services emphasise the outsourcing of base support services, factors that influence savings in the outsourcing process, and impediments to DOD's outsourcing.
USAAnalysis of DOD's Commercial Activities Program Trunkey, R Derek, Trost, Robert P., Snyder, Christopher M., 1996 Virginia: Centre for Naval Analyses
This paper presents the results of all completed Department of Defense comprehensive A-76 competitions between 1978 and 1994.
USA
An Overview of Defence Procurement in the Federal Republic of Germany
Tyrbus, Martin , 1996
Public Procurement Law Review, Vol. 5, pp. 217-244
The Future of European Defence Policy: The Case for a Centralised Procurement Agency Cox, Andrew , 1994 Public Procurement Law Review, Vol. 63, pp. 65-86
This paper covers the history of European Defence Policy since the Second World War, including procurement; and an analysis of various possible approaches to future European defence policy and procurement structures. In Public Procurement Volume II, Ed. Arrowsmith, Sue and Hartley, Keith, Edward Elgar Publishing Ltd, 2002, pp 713-734.
UK
Economic Incentives and the Defense Procurement Process
Rogerson, William P. , 1994
Journal of Economic Perspectives, Vol. 8, No. 4 (Fall 1994), pp. 65-90
Defence Procurement (Web Page)
Industry Commission, Report No. 41, 1994
Canberra: Australian Government Publishing Service
This report reviews the efficiency and effectiveness of current defence procurement in Australia in achieving value for money, and the impact of procurement programmes on particular industries. It includes an analysis of procurement policy, programs and procedures, and future trends in procurement expenditure and longer term supplier arrangements.
Reform of United States Weapons Acquisition Policy: Competition, Teaming Arrangements, and Dual Sourcing
Burnett, William B. and Kovacic, William E., 1989
Yale Journal on Regulation, Vol. 6, No. 2 (Summer 1989), pp. 249-317
The Weapons Acquisition Process: Economic Incentives
Scherer, Frederic M , 1964
Division of Research, Harvard Business School
This paper contains interesting observations on economic incentives in weapons acquisition, reputation and the role of past performance in selection decisions, and the use of contractual incentives.