In the fourth installment of the series Maximizing Warfighter Edge Through Efficient Acquisition, we continue to examine how to optimize DoD’s purchasing power to ensure we protect and expand our warfighting advantages. The price the Department pays matters: the more DoD pays, the less combat capability DoD can acquire for a ready force. This session explores the significant role of the supply chain and subcontractor management in the equation.
The Defense industry has consolidated over time and shifted to a heavier reliance on its subcontractors. Some estimates indicate 60-80% of work is performed below the prime level. Prime contractors are the government’s trusted agent in negotiating with subcontractors to get fair and reasonable deals, yet they have expressed challenges in obtaining data from suppliers to support proposed costs. What can the DoD do, when it doesn’t have privity of contract, to ensure needed insight and analysis occurs on subcontract and supplier costs? How can our partners in the Defense Contract Audit Agency (DCAA) assist? The webinar will discuss the challenges and actionable ways to navigate it including how to leverage DCAA to ensure DoD gets the best value for every dollar spent on defense contracting, so we can save to spend on warfighter capability.