Rene G. Rendon

PROCUREMENT PROCESS MATURITY: KEY TO PERFORMANCE MEASUREMENT

Performance measurement has been receiving increased attention in public organizations. As performance measurement systems begin to take on a central focus by public sector organizations, the challenges of measuring and improving critical organizational processes continue to increase in importance. Furthermore, as the procurement process continues to gain critical importance in public sector organizations, the need to apply specific performance measurement methods to measure and improve the procurement processes is essential for mission success. This article introduces the Contract Management Maturity Model (CMMM) as a method for assessing, measuring, and improving an organization’s procurement processes. The results of the case study describe the organizational benefits of using a contract management maturity model as a performance measurement, as well as a process improvement method.

Public Procurement Policy: Implications for Theory and Practice

This paper proposes a conceptual framework for the study of public procurement policy. It reviews policy-related writings by public procurement scholars and assesses these works from the perspective of their contributions to generalized understandings of public procurement policy. Selected tools and concepts from the policy sciences are applied to propose a model to illuminate unique aspects of public procurement policy in ways that will facilitate its study. The paper concludes by discussing some recent actions, trends, and issues from the U.S defense procurement sector in terms of the framework. Models such as the one proposed in this paper will contribute to enhanced approaches to procurement policy analysis by scholars, as well as to informed and sophisticated policy implementation by practitioners.

Public Procurement: Public Administration and Public Service Perspectives

Why is public procurement not a major topic in public administration education programs? While many scholars and practitioners acknowledge its importance, most master’s degree programs in public administration do not. In this paper we document this discrepancy, investigate its causes, and provide two remedies to place public procurement more squarely in the educational mainstream. The first entails a description of public procurement from wellestablished public administration perspectives, which illustrates how closely public procurement is aligned with the field’s traditional functions and issues. The second analyzes public procurement in the context of the “public service values” orientation of NASPAA’s accreditation standards, which indicates the extent to which these values are inherently accounted for and manifested in agency procurement policies, processes, and practices. Thus, public administration might achieve a deeper and broader understanding of public service values by paying more attention to public procurement in its education programs. We conclude with recommendations for public administration schools that may want to (a) incorporate public procurement content in existing master’s degree courses; (b) add a public procurement course; or (c) adopt a public procurement concentration for the master’s degree.

Contracting processes and structures for systems-of-systems acquisition

Acquisition of a system-of-systems can be an all new acquisition of multiple systems that are intended to operate together as a system-of-systems. Much more common in the U.S. Department of Defense (DoD) is acquisition of one or more new systems that are intended to interoperate with existing systems as a system of systems (SoS) with new capabilities. In either case, successful SoS acquisition necessarily depends on effective contracting structures and processes for SoS acquisition. In this paper, a set of issues that need to be addressed in SoS acquisition are identified, and the current findings discussed. The findings suggest maintaining an extensive systems engineering effort within the SoS acquisition and changes to the existing contracting processes, structures, and organizational structures to maximize the probability of SoS acquisition success. The resulting changes are recommended to current and future DoD SoS acquisitions. ©2012 Wiley Periodicals, Inc. Syst Eng 15

Leveraging strategic sourcing and knowledge management to improve the acquisition of knowledge-based services

Knowledge-based services (KBS) comprise a major portion of services acquired by public organizations. However, their procurement is not well managed; consequently, inefficiencies abound. Therefore, this study explores whether and how KBS can be sourced more efficiently by examining best practices and precepts from knowledge management theory. A spend analysis of one agencyʼs spend is used to identify the types of KBS procured. Interviews from 12 cases are then used to identify best practices and cost drivers in sourcing KBS. Twenty one recommendations for improving efficiency in sourcing KBS are offered. The findings suggest that potential is available from demand reduction strategies, and that public policy governing the procurement of knowledge is needed. The research concludes with theoretical implications and suggestions for future research.

SERVICES SUPPLY CHAIN IN THE UNITED STATES NAVY: AN EMPIRICAL STUDY OF CURRENT MANAGEMENT PRACTICES

Services acquisition in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade with over

Procurement fraud in the US Department of Defense: Implications for contracting processes and internal controls

200 billion spent for services in 2008. In this empirical study, we conducted a web-based survey to collect primary data on management practices in services acquisition in the U. S. Navy and studied such areas as contract characteristics, management approaches, and program management issues. The paper presents summary results of our survey, implications of current management practices, and recommendations useful for improving services acquisition in the Navy.

Benchmarking contract management process maturity: a case study of the US Navy

Purpose - This paper aims to explore selected real-world procurement fraud incidents in the US Department of Defense (DoD) and the implications of these incidents to the DoD’s contracting processes and internal controls. Design/methodology/approach - This paper analyzes actual procurement fraud incidents and identifies in which phase of the contract management process the fraud occurred and which internal control component was associated with the fraud scheme. Findings - The fraud incidents generally occurred during the source selection and the contract administration phases and involved the control activities, monitoring and control environment components of internal control. Research limitations/implications - The fraud incidents are analyzed using contract management and internal control frameworks adopted by the US Government. Recommendations are developed for improving contracting processes and internal controls as an approach to deterring and detecting procurement fraud and may be applicable to other international public procurement bodies. Practical implications - Governments are ensuring auditability in public procurement as a means of improving agency governance. The research findings suggest that an emphasis on capable contracting processes and effective internal controls should be adopted for fighting procurement fraud. Social implications - Ensuring auditability in public procurement has a far-reaching effect in society. The value of capable processes and effective internal controls is gaining much attention in public agencies, as they strive for accountability, integrity and transparency in their governance processes. Originality/value - By emphasizing capable processes and effective internal controls, governments can apply a strategic approach to detecting and deterring fraud and thus ensure that government monies are spent in the most effective and efficient ways.

PBL in the United States Defense Sector: Progress and Prospects

Purpose – The purpose of this paper is to present the results of contract management process maturity assessments in the US Navy using a process capability maturity model. The maturity model is used to benchmark an organization’s contract management process maturity and to use the assessment results to develop a road map for implementing process improvement as well as knowledge-sharing initiatives. Design/methodology/approach – This is survey-based research on benchmarking contract management processes in the US Navy. A web-based assessment tool was deployed to US Navy contracting officers located at aeronautical systems, sea systems, and logistics support contracting agencies. The assessment tool consists of survey items related to the use of contracting best practices. The survey responses are then used to calculate the agency’s contract management process maturity level. Findings – The benchmarking results reflected higher maturity levels in the pre-award contracting processes (Procurement Planning, So...

Examining the effects of source selection method on procurement outcomes

The purpose of this chapter is to describe the current state of affairs regarding PBL policy, practice, and theory in the U.S. defense sector. It highlights important aspects of PBL’s development, present status, and future directions. It identifies key policies, highlights selected PBL cases, comments on PBL’s theoretical development, and assesses the principal challenges currently facing effective implementation. As a conclusion, there is great potential for further progress by adopting a contingency approach to PBL implementation. Since most defense systems differ in significant ways (e.g., aircraft, ships, tanks, command and control systems), it follows that the acquisition strategy for each should be tailored; so, too, should the support strategy. It is possible that the DoD has placed too much policy emphasis on PBL as a “one size fits all” support approach, which has led to less than thoughtful implementation and the problems noted above. Like most other acquisition techniques, PBL correctly should be seen as one of several tools in the program manager’s kit, a tool to be used only when the circumstances are right, and then with intelligence, skill, and wisdom.