The Department of Defense (DoD) acquisition community has undergone several changes throughout history to institutionalize better business practices. One of the most notable legislative acts is the Federal Acquisition Streamlining Act (FASA) of 1994, which introduced commercial practices into the government contracting process. FASA made the acquisition process easier, promoted competitiveness, and enabled faster and more efficient procurement of goods and services.
Another significant legislative act is the Services Acquisition Reform Act (SARA) of 2003. It also required the DoD to establish a service acquisition training program to ensure that acquisition personnel were adequately trained to manage service contracts (Applying Best Business Practices from Corporate Performance Management to DoD, 2013). SARA established new guidelines for the acquisition of services, emphasizing the importance of service acquisition planning, management, and oversight.
The Weapon Systems Acquisition Reform Act (WSARA) of 2009 was another legislative act that institutionalized better business practices within the DoD acquisition community. It also required the DoD to implement cost and schedule reporting mechanisms and established new requirements for program managers (Applying Best Business Practices from Corporate Performance Management to DoD, 2013). WSARA aimed to improve the acquisition process for major weapon systems by promoting competition, incentivizing performance, and establishing new governance structures.
One of the best business practices mentioned in the Best Business Practices report is Strategic Planning and Performance Management. This practice involves setting clear goals and objectives, developing strategies to achieve those goals, and establishing metrics to measure progress towards those objectives. Also, business practices should consider the views of all stakeholders in order to promote a more sustainable economy (Business Roundtable, 2019). Strategic planning and performance management is crucial for ensuring that the DoD acquisition community is aligned with the larger mission of the DoD and that resources are being used efficiently and effectively.
Another important best practice is Risk Management. Risk management involves identifying potential risks and developing strategies to mitigate those risks. This practice is particularly important for the DoD, as the acquisition process can be complex and involves significant amounts of taxpayer dollars. Sustainability factors should also be incorporated into business practices in order to address risks in the investment process (Regulation, 2019). Proper risk management can help to ensure that programs are delivered on-time and within budget while minimizing the potential for fraud, waste, and abuse.
However, the best business practice that I find most important is Contracting and Acquisition. This practice involves using sound business principles to manage the acquisition of goods and services. Contracting and acquisition are critical for ensuring that the DoD has the resources it needs to carry out its mission effectively. By using commercial best practices, the DoD can ensure that it is getting the best value for its money and that contractors are held accountable for their performance.
In conclusion, several legislative acts have institutionalized better business practices within the DoD acquisition community, including FASA, SARA, and WSARA. These acts have simplified the acquisition process, encouraged competition, and established new governance structures. Best business practices such as strategic planning and performance management, risk management, and contracting and acquisition are crucial for ensuring that the DoD is aligned with its mission and that resources are being used efficiently and effectively. Contracting and acquisition, in particular, are essential for ensuring that the DoD has the resources it needs to carry out its mission effectively. By using sound business principles, the DoD can ensure that it is getting the best value for its money and that contractors are held accountable for their performance.
References
Business Roundtable. (2019). Statement on the Purpose of a Corporation. Web.
Defense Business Board. (2013). Applying Best Business Practices from Corporate
Performance Management to DoD. Web.
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector. Official Journal of the European Union, L 317/1 (2019). Web.