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The authors present eight significant actions that the federal government can take to improve the federal acquisition process. While the report centers on acquisition in the Department of Defense (DoD) because of its dominant size in the federal budget, the eight proposed actions—which build on previous acquisition reforms including increased competition, more use of best value contracts, expanding the supplier base, and better tailoring of contract types to contract goals—apply to civilian agencies as well.

In this report, Professor Wyld provides the first quantitative analysis of tail spend in the federal government.  In short, tail spend is procurement outlays that are outside of an organization’s core spending and core supplier groups, covering many miscellaneous expenditure categories that are not managed as part of an organization’s core operations.

Government administrative processes often receive criticism for focusing on inputs and not outcomes. A specific example of this criticism has been registered by members of the acquisition community regarding source selection processes used for contracting that could be improved to reduce bid protests, the appellate process for contracting. Protests do not occur frequently, but when they do occur the costs are significant—and when sustained, they can impact the process for many subsequent contracts.

Since creation of the IBM Center for The Business of Government more than 13 years ago, it has been our goal to help public sector executives and managers address real-world problems by supporting leading researchers who produce empirical evidence to inform the debates about whether particular management approaches will improve government performance.