DOD Service Contracts: Actions Needed to Identify Efficiencies and Forecast Budget Needs : Government Accountability Office (GAO) , September , 2023
DOD Service Contracts: Actions Needed to Identify Efficiencies and Forecast Budget Needs : Government Accountability Office (GAO) , September , 2023
From the report: "Services performed by contractors, such as administrative and technical support, account for about half of the Department of Defense’s (DOD) contract obligations. Obligations on contracts for services increased from fiscal year 2017 through 2020 before decreasing in fiscal years 2021 and 2022, and ranged from $184 billion to $226 billion over the period. DOD has processes to validate individual service requirements but lacks some data needed to identify broader efficiencies among those requirements. DOD requires the military departments—the Air Force, Army, and Navy—to provide data that can be reviewed to identify efficiencies for service requirements valued at $10 million or more. GAO found that the Navy aggregates and reviews data on service requirements at that threshold. However, the Army does not aggregate data on service requirements, and the Air Force only does so for service requirements with a value at or above $100 million. This results in missed opportunities to identify efficiencies and potential cost savings among service requirements on contracts totaling billions of dollars, as shown in the figure."
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