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Department of Defense: Contract Labor Sourcing (A)
Cross, Tom; Laseter, Timothy M.; Burns, Heather; Consulting, Censeo Case OM-1183 / Published August 15, 2004 / 11 pages. Collection: Darden School of Business
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Product Overview

Contract labor services were typically sourced through small businesses, with large, nationally (and globally) recognized firms making up a small portion of total spend; however, large businesses could potentially provide DoD contract labor services at lower cost. By continuing to purchase contract labor from small businesses, DoD would be spending more money than necessary?in effect, taking money away from the overall budget that could be spent supporting the troops. Alternatively, a switch to cost-advantaged large businesses would negatively impact the socioeconomic goals expected in a government-procurement environment.



Learning Objectives

Developing a sourcing strategy using industry analysis balanced against socioeconomic goals


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  • Overview

    Contract labor services were typically sourced through small businesses, with large, nationally (and globally) recognized firms making up a small portion of total spend; however, large businesses could potentially provide DoD contract labor services at lower cost. By continuing to purchase contract labor from small businesses, DoD would be spending more money than necessary?in effect, taking money away from the overall budget that could be spent supporting the troops. Alternatively, a switch to cost-advantaged large businesses would negatively impact the socioeconomic goals expected in a government-procurement environment.

  • Learning Objectives

    Learning Objectives

    Developing a sourcing strategy using industry analysis balanced against socioeconomic goals