DoD Workforce Cost Realism Assessment
May 17, 2011
Over the past decade, federal spending on service contracts more than doubled in constant terms, from $164 billion in 2000 to $343 billion in 2010. Policymakers have recently attempted to reduce or even reverse this increase, emphasizing instead what is now called the “insourcing” of services contracts. Conversions from contractors to government civilians, as well as other actions to expand the federal workforce, are being undertaken for political and cost savings reasons.
In this study, CSIS looks into recent developments of these insourcing efforts within one executive department: the Department of Defense (DoD). DoD is the largest government department in terms of demand for services. In 2010, it awarded $161 billion worth of service contracts, up from $67 billion in 2000. This report reviews the analytical validity of the current policy and practices and proposes an alternative methodology for conducting better sourcing decisions between private and public providers.