Historically, labor market sourcing contract was highly decentralized, individually with each of the military departments and agencies sourcing agency. Contract labor services were purchased by small businesses generally, with big, national (and worldwide) recognized companies. A small part of the total expenditure However, large companies could potentially DOD contract labor services at a lower cost. By continuing to temporary small business to buy, DOD would be spen … Read more »

Historically, labor market sourcing contract was highly decentralized, individually with each of the military departments and agencies sourcing agency. Contract labor services were purchased by small businesses generally, with big, national (and worldwide) recognized companies. A small part of the total expenditure However, large companies could potentially DOD contract labor services at a lower cost. By continuing to temporary small business to buy, DOD would be spending more money than necessary-in effect, the money from the general budget, which could be issued to support the troops. Alternatively, a change in a cost-advantaged large companies would adversely affect the socio-economic objectives in a government-procurement environment expected.
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from
Thomas Cross,
Heather Burns,
Timothy M. Laseter
Source: Darden School of Business
11 pages.
Publication Date: Aug 15,, 2005. Prod #: UV1449-PDF-ENG
Department of Defense: Contract Labor procurement (A) HBR case solution

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