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Department of Defense: Contract Labor So...

Cross, Tom, Lasete...

Case

Department of Defense: Contract Labor Sourcing (A)

Cross, Tom; Laseter, Timothy M.; Burns, Heather; Consulting, Censeo

OM-1183 | Published August 15, 2004 | 11 pages Case

Collection: Darden School of Business

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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.

Developing a sourcing strategy using industry analysis balanced against socioeconomic goals