Abstract
Purpose. The national defense policy of consolidating technical support service contracts was examined for its affect on improved Department of Defense (DoD) mission effectiveness and organizational operational efficiency. The influence of this research can posture DoD organizations for optimal mission accomplishment with minimal resource expenditure. Theoretical framework. An assessment of organizational and economic theory underscored the literature review for the identification of determinants and measures of effectiveness and efficiency. Neoclassical organizational theory and systems theory indicated the development of a schematic research model that informed the research hypotheses. Methodology. Survey research was utilized to acquire qualitative and quantitative data obtained through surveys of DoD contract administration offices, since secondary data was not available. Data were analyzed utilizing descriptive and inferential statistical analysis. Research hypotheses stipulating improvement in effectiveness and efficiency were tested by a longitudinal analysis of qualitative data. A cross-sectional analysis of quantitative data utilizing multiple regression analysis tested the research hypotheses to determine if measures of effectiveness and efficiency are influenced by determinants of the contract environment. Findings. Mission effectiveness was determined to have increased overall with innovation realization, employee cross-utilization, and interoperability having achieved increased levels. Similarly, operational efficiency increased overall with the government to-contractor personnel ratio and the management-to-workforce percentage achieving increased levels. The effectiveness measures of employee turnover rate, employee cross-utilization, and award fee earned as well as the efficiency measures of government-to-contractor personnel and other-than-direct cost were determined to be significantly influenced by stipulated performance determinants. Gains in certain measures of effectiveness and efficiency were found to be correlated with specific determinants of the contract environment. Employee cross-utilization and the ratio of government-to-contractor personnel were both found to have significantly increased due to contract consolidation and were determined to be significantly influenced by specific determinants of effectiveness and efficiency improvement. Conclusions and recommendations. Specific measures of effectiveness and efficiency should be considered during contract acquisition strategy as only some of the frequently cited measures of effectiveness and efficiency were determined to realize improvement. Levels of improvement, as predicted by the regression equations, should be evaluated for their indication for contract consolidation given the characteristics of the contemplated contract consolidation environment. Recommended DoD practices include improving internal accountability within contract administration offices and standardizing generally acceptable measures of contract effectiveness and efficiency among DoD contract administration offices.