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Each year, the US defense industry outsources nearly $400 bn of domestic goods and services through competitive bids. These procurement activities are quite often complex and specialized in nature because of a highly regulated federal acquisition contracting environment. Ongoing calls to improve supplier management and drive innovation in the defense industry offers an opportunity to adopt Early Supplier Integration (ESI) initiatives that have proven successful in the private sector. This paper identifies critical ESI activities and acquisition practices that the defense industry should adopt to ensure enhanced effectiveness in new product development.

Leveraging a conceptual ESI model derived from the research, an in-depth case study of 12 product development projects from a major defense contractor was performed. In the context of project performance, critical ESI activities and moderating effects were assessed.

Three key ESI activities have the greatest impact on aggregate project performance: system design involvement, design adjustment opportunities and design for manufacturability/assembly/testability involvement. Use of formal supplier agreements also significantly impacts project performance during the development phase. In addition, project complexity and product team maturity were identified as environment moderators; higher complexity projects tended to negatively moderate the impact of ESI upon performance, and higher team maturity levels tended to positively moderate the impact of ESI upon performance.

The results provide a sound framework for empirical validation through future quantitative studies and defense industry analyses. In addition, insights and recommendations for interpretation and adaptation of federal acquisition regulations to allow increased utilization of ESI within the defense industry are substantiated.

The purpose of this paper is to provide insight on high-interest areas of research in defense-related logistics and supply chain management and opportunities for advancing theory and practice in this domain.

A panel of experts provided their insight to several questions oriented toward examining research opportunities and gaps in defense logistics research at the 2018 Academic Research Symposium of the Council of Supply Chain Management Professionals annual conference on September 30, 2018.

Three overarching themes emerged from the panel discussion for advancing theory and practice in defense logistics and supply chain management, which are developing a central repository, creating publication opportunities and integrating research practice and knowledge with the greater academic community.

Logistics and supply chain research is critical for advancing knowledge and practice in the military, as well as industrial settings. The intention in this manuscript is to provide scholars and practitioners in both settings greater awareness and potential avenues for developing synergies and processes for advancing logistics and supply chain research.

The purpose of this study is to evaluate Department of Defense (DoD)-backed innovation programs as a means of enhancing the adoption of new technology throughout the armed forces.

The distribution of 1.29 million defense contract awards over seven years was analyzed across a data set of more than 8,000 DoD-backed innovation program award recipients. Surveys and interviews of key stakeholder groups were conducted to contextualize the quantitative results and garner additional insights.

Nearly half of DoD innovation program participants achieve no meaningful growth in direct defense business after program completion, and most small, innovative companies that win follow-on defense contracts solely support their initial sponsor branch. Causes for these program failures include the fact that programs do not market participants’ capabilities to the defense community and do not track participant companies after program completion.

Because the DoD does not market the capabilities of its innovation program participants internally, prospective DoD customers conduct redundant market research or fail to modernize. Program participants become increasingly unwilling to invest in the DoD market long term after the programs fail to deliver their expected benefits.

Limited scholarship evaluates the efficacy of DoD-backed innovation programs as a means of enhancing force readiness. This research not only uses a vast data set to demonstrate the failures of these programs but also presents concrete recommendations for improving them – including establishing an “Innovators Database” to track program participants and an incentive to encourage contracting entities and contractors to engage with them.

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims to investigate the ways in which the accelerating demand for increased security of supply of equipment and supplies to the Armed Forces requires adaptability in the procurement process that is governed by laws on public procurement (PP).

This paper is based on a review of current literature as well as empirical data obtained through interviews with representatives from the Swedish Defence Materiel Administration and the Swedish defence industry.

Collaboration with the globalized defence industry requires new approaches, where the PP rules make procurement of a safe supply of defence equipment difficult.

The study's empirical data and findings are based on the Swedish context. In order to draw more general conclusions in a defence context, the study should be expanded to cover more nations.

The findings will enable the defence industry and the procurement authorizations to better understand the requirements of Armed Forces, and how to cooperate under applicable legal and regulatory requirements.

The paper extends the extant body of academic knowledge of the security of supply into the defence sector. It serves as a first step towards articulating a call for new approaches to collaboration in defence supply chains.

This paper examines the role of government procurement as a social policy mechanism within a multilateral open trading system. Government regulations globally are being transformed to foster more responsible business conduct in multinational enterprises (MNEs). Yet, concern that sustainability may present a discriminatory barrier to trade has stalled the progress of sustainable public procurement (SPP) at the international level, raising questions regarding the role and scope of the World Trade Organisation’s (WTO) Government Procurement Agreement (GPA) to align taxpayer-funded contracts with the United Nations (UN) Sustainable Development Goals.

With a focus on social sustainability, this paper reviews the grey and academic literature to assess the changing landscape of public procurement policy and supply chain legislation in high-income countries.

Frontrunner nations are adopting a mandatory approach to sustainable public procurement and due diligence legislation is elevating supply chain risk from reputational damage to legal liability. While technological innovation and the clean, green production of manufactured goods dominates the sustainable public procurement literature, the social aspects of sustainability poverty, inequality and human rights remain underrepresented.

The scope of this paper is limited to the examination of government procurement covered by the WTO-GPA (2012). Smaller value contracts, under the WTO-GPA thresholds and the category of defence are beyond the scope of the paper.

The paper focusses on the underserved topic of social sustainability in business-to-government (B2G) – business to government – supply chains arguing that for responsible business conduct to become a competitive advantage, it must be more meaningfully rewarded on the demand-side of all taxpayer-funded contracts in organisation for economic co-operation and development countries. The paper introduces the idea of priceless procurement as a mechanism to build system capacity in the evaluation of non-financial sustainability objectives.

To build the capacity to stimulate competition based on social and environmental policy objectives, the paper introduces the concept of priceless procurement in B2G contracts.

Performance-based contracting (PBC) plays an increasingly important role in the defense industry. This paper aims to investigate factors that influence service provider’s willingness to accept PBC-induced risks. It also shows how these risks could be managed in a military service supply chain.

The case study focused on the relationship between a service provider and a customer that acted on behalf of other users in the defense sector. The contract involved the sustainment of a military engine in a complex supply chain.

The service provider’s performance attributability appeared to have a strong impact on its willingness to take PBC-induced risks. For the parts where the service provider did not have full control over the service performance, exclusions and Service Level Agreements (SLAs) were used to manage and mitigate the risks associated with uncontrolled performance. The service provider’s willingness to accept PBC-induced risks was also affected by its ability to make accurate forecasts, the applied growth path and the length of the contract.

This case has specific characteristics, unique by time (maturity of the technical system and supply chain) and place (market). It is recommended that results are tested in other research settings.

Organizations should be aware of the factors that influence a service provider’s willingness to bear PBC-induced risks. Customers should limit PBC to those parts of a contract where risks are of an acceptable level. Also, it is recommended to follow a phased growth path when it is not possible to make accurate forecasts in a PBC context.

This study is the first to address critical issues concerning the identification and management of risks under PBC in the defense industry.

Today, low-income people seeking resources from the federal government must often work through non-profit organizations. The purpose of this paper is to examine the constraints that the poor must face today to secure resources through non-profit organizations.

This is a conceptual paper. The authors review cases of non-profit organizations providing federally supported resources to the poor across multiple sectors.

The authors find that to accept government contracts serving the poor, nonprofit organizations must often engage in one or several practices: reject clients normally consistent with their mission, select clients based on likely outcomes, ignore problems in clients’ lives relevant to their predicament, or undermine client progress to manage funding requirements. To secure government-supported resources from nonprofits, the poor must often acquiesce to intrusions into one or more of the following: their privacy (disclosing sensitive information), their self-protection (renouncing legal rights), their identity (avowing a particular self-understanding) or their self-mastery (relinquishing authority over daily routines).

The authors show that the nonprofits’ dual role as brokers, both liaisons transferring resources and representatives of the state, can complicate their relation to their clients and the predicament of the poor themselves; the authors suggest that two larger trends, toward increasing administrative accountability and demonstrating deservingness, are having both intended and unintended consequences for the ability of low-income individuals to gain access to publicly funded resources.

There appears to be no empirical-based method in the literature for estimating if an engineering change proposal (ECP) will occur or the dollar amount incurred. This paper aims to present an empirically based approach to address this shortfall.

Using the cost assessment data enterprise database, 533 contracts were randomly selected via a stratified sampling plan to build two regression models: one to predict the likelihood of a contract experiencing an ECP and the other to determine the expected median per cent increase in baseline contract cost if an ECP was likely. Both models adopted a stepwise approach. A validation set was placed aside prior to any model building.

Not every contract incurs an ECP; approximately 80 per cent of the contracts in the database did not have an ECP. The likelihood of an ECP and the additional amount incurred appears to be statistically independent of acquisition phase, branch of service, commodity, contract type or any other factor except for the basic contract amount and the number of contract line item numbers; both of these later variables equally affected the contract percentage increase because of an ECP. The combined model overall bested current anecdotal approaches to ECP withhold.

This paper both serves as a published reference point for ECP withholds in the archival forum and presents an empirically based method for determining per cent ECP withhold to use.