NPS-CM-11-166 ^`nrfpfqflk=obpb^o`e= pmlkploba=obmloq=pbofbp= = Joint-Base Contracting: A Comparative Analysis of Joint- Base Contracting Activities Between Services 9 November 2011 by Capt. Bryce J. Fiacco, USAF, and Capt. Daniel O. Stephens, USAF Advisors: Dr. Timothy G. Hawkins, Assistant Professor, and Dr. Rene G. Rendon, Associate Professor Graduate School of Business & Public Policy Naval Postgraduate School Approved for public release, distribution is unlimited. Prepared for: Naval Postgraduate School, Monterey, California 93943 = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v= k^s^i=mlpqdo^ar^qb=p`elli= The research presented in this report was supported by the Acquisition Chair of the Graduate School of Business & Public Policy at the Naval Postgraduate School. To request Defense Acquisition Research or to become a research sponsor, please contact: NPS Acquisition Research Program Attn: James B. Greene, RADM, USN, (Ret.) Acquisition Chair Graduate School of Business and Public Policy Naval Postgraduate School 555 Dyer Road, Room 332 Monterey, CA 93943-5103 Tel: (831) 656-2092 Fax: (831) 656-2253 E-mail: [email protected] Copies of the Acquisition Sponsored Research Reports may be printed from our website www.acquisitionresearch.net = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v= k^s^i=mlpqdo^ar^qb=p`elli= Abstract The Department of Defense (DoD) recently created 12 joint bases by consolidating the support functions of geographically close bases under the lead of a single Service. The 2005 Base Realignment and Closure (BRAC) Commission recommended the joint-basing initiative based on the expected savings of $183.8 million annually. The objectives of the BRAC process were to achieve cost savings, transformation, improvement of capabilities, and enhancement of military value. Using a case study approach, this research identified the specific factors that contribute to the organizational successes of joint-base contracting at Joint Base San Antonio (JBSA) and Joint Base Lewis-McChord (JBLM). These factors include processes, governance structures, organizational structures, and communication. This research also identifies barriers to consolidation, as well as compares and contrasts the way JBSA and JBLM operate. Additionally, this research identifies strengths and weaknesses of the approaches the Air Force and the Army use. Thus, by documenting specific enablers and barriers, this research should help to guide the planning and implementation of future consolidations throughout the DoD and other government organizations. = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - i - k^s^i=mlpqdo^ar^qb=p`elli= THIS PAGE INTENTIONALLY LEFT BLANK = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - ii - k^s^i=mlpqdo^ar^qb=p`elli= Acknowledgments Our sincerest gratitude goes to our advisors LtCol Timothy G. Hawkins and Dr. Rene Rendon, whose guidance and direction proved instrumental in the completion of this project. Their knowledge and support were greatly appreciated. = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - iii - k^s^i=mlpqdo^ar^qb=p`elli= THIS PAGE INTENTIONALLY LEFT BLANK = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - iv - k^s^i=mlpqdo^ar^qb=p`elli= About the Authors Bryce J. Fiacco, Captain, U.S. Air Force, Student, Graduate School of Business and Public Policy. Captain Fiacco graduated with a BS in 2006 from the U.S. Air Force Academy, Colorado Springs, Colorado, where he earned the Distinguished Management Major Award. Captain Fiacco also earned an MBA in 2009 from St. Mary’s University of San Antonio, Texas, where he earned the honor of Distinguished Graduate. Captain Fiacco is an Air Force contracting officer with five years of active-duty service, including his most recent assignment at the Air Education and Training Command Contracting Squadron in San Antonio, Texas. Upon graduation from the Strategic Sourcing Program at the Naval Postgraduate School in December 2011, Captain Fiacco will report to the Air Force Enterprise Sourcing Group at Wright-Patterson Air Force Base, Ohio. Daniel O. Stephens, Captain, U.S. Air Force, Student, Graduate School of Business and Public Policy. Captain Stephens graduated from the U.S. Air Force Academy in 2006 with a BS in economics. Captain Stephens is an Air Force contracting officer with five years of active-duty service. His most recent operational assignment was with the 90th Contracting Squadron at FE Warren Air Force Base in Cheyenne, Wyoming. Upon graduation from the Strategic Sourcing Program at the Naval Postgraduate School in December 2011, Captain Stephens will report to the Aeronautical Systems Center at Wright-Patterson Air Force Base in Fairborn, Ohio. = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - v - k^s^i=mlpqdo^ar^qb=p`elli= THIS PAGE INTENTIONALLY LEFT BLANK = = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - vi - k^s^i=mlpqdo^ar^qb=p`elli= = NPS-CM-11-166 ^`nrfpfqflk=obpb^o`e= pmlkploba=obmloq=pbofbp= = Joint Base Contracting: A Comparative Analysis of Joint Base Contracting Activities Between Services 9 November 2011 by Capt. Bryce J. Fiacco, USAF, and Capt. Daniel O. Stephens, USAF Advisors: Dr. Timothy G. Hawkins, Assistant Professor, and Dr. Rene G. Rendon, Associate Professor Graduate School of Business & Public Policy Naval Postgraduate School Disclaimer: The views represented in this report are those of the author and do not reflect the official policy position of the Navy, the Department of Defense, or the Federal Government. = = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - vii - k^s^i=mlpqdo^ar^qb=p`elli= = THIS PAGE INTENTIONALLY LEFT BLANK = = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - viii - k^s^i=mlpqdo^ar^qb=p`elli= = Table of Contents I. Introduction ................................................................................................ 1 A. Overview ......................................................................................... 1 B. Background ..................................................................................... 3 C. Problem Statement and Gap in Literature ..................................... 10 D. Research Objectives ..................................................................... 10 E. Methodology .................................................................................. 11 F. Managerial Implications ................................................................. 11 II. Literature Review ..................................................................................... 13 A. Introduction .................................................................................... 13 B. Concepts ....................................................................................... 13 III. Methodology ............................................................................................. 33 A. Research Design ........................................................................... 33 B. Data Collection .............................................................................. 35 C. Analysis ......................................................................................... 37 IV. Results ..................................................................................................... 41 A. Introduction .................................................................................... 41 B. Organizational Structures .............................................................. 41 C. Interview Coding Results ............................................................... 49 D. Selected Questions and Answers .................................................. 65 V. Discussion ................................................................................................ 83 VI. Conclusion ............................................................................................... 85 A. Introduction .................................................................................... 85 = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - ix - k^s^i=mlpqdo^ar^qb=p`elli= B. Answers to Research Questions ................................................... 86 C. Managerial Implications ............................................................... 104 D. Recommendations....................................................................... 105 E. Limitations ................................................................................... 111 F. Areas for Further Research ......................................................... 113 G. Summary ..................................................................................... 114 List of References ............................................................................................. 117 Appendix ........................................................................................................... 125 = = ^Åèìáëáíáçå=oÉëÉ~êÅÜ=mêçÖê~ã= do^ar^qb=p`elli=lc=_rpfkbpp=C=mr_if`=mlif`v - x - k^s^i=mlpqdo^ar^qb=p`elli= List of Figures Figure 1. Purchasing Portfolio Matrix (Kraljic, 1983, p. 111) ............................. 30 Figure 2. San Antonio Bases’ Purchasing Organizational Structures ................ 42 Figure 3. JBSA Purchasing Organizational Structure .......................................