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Identifying the appropriate balance between contractor and government staff is not a new challenge for the government. However, recent direction from Department of Defense (DoD) leadership has led to increased awareness of the importance of finding this balance. During the past decade, in-sourcing has received increased support from members of Congress and the Obama administration. Unfortunately, producing definitive guidance that can be used to objectively determine the appropriate balance between contractor and government staff has proven quite challenging.

The authors review the recent history of outsourcing and in-sourcing in DoD, assess relevant laws and policies, and offer interpretations of key terms. Using this information, they describe an approach to implementing current in-sourcing guidance and present a questionnaire designed to help officials make in-sourcing assessments in accordance with DoD policy.

Table of Contents

  • Chapter One

    Introduction

  • Chapter Two

    A Look at the History of Sourcing

  • Chapter Three

    Overview of Current Policy and Guidance

  • Chapter Four

    Methodology

  • Chapter Five

    Conclusions

  • Appendix A

    Examples of Inherently Governmental Functions, Federal Acquisition Regulation, Subpart 7.5

  • Appendix B

    Examples of Inherently Governmental Functions, Federal Acquisition Regulation, Subpart 7.503(D)

  • Appendix C

    Questionnaire

The research described in this report was prepared for the United States Navy. The research was conducted within the RAND National Defense Research Institute, a federally funded research and development center sponsored by the Office of the Secretary of Defense, the Joint Staff, the Unified Combatant Commands, the Navy, the Marine Corps, the defense agencies, and the defense Intelligence Community.

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