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By Nancy Y. Moore, United States Air Force, Rand Corporation

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Additional info for Using a Spend Analysis to Help Identify Prospective Air Force Purchasing and Supply Initiatives: Summary of Selected Findings

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Because there can be more than one purchasing activity and hence code at a location, SAF/AQC specifically requested that we use the term “purchase office code,” which is also the name of the data element in the DD350 data, rather than “purchasing office” or a similar variant in our briefings and reports. - 18 - contracts or those for goods and services for which there is only one qualified supplier or for which the Air Force has developed a single supplier account for nearly half of all DD350 contract dollars, but only about one in four of the total number of contracts for goods and services.

Conceivably, larger, longer-term contracts could be awarded to the best performing SDBs. One approach the Air Force could pursue in introducing PSM improvements with SDBs is to identify the best and develop partnerships to help them grow and improve. This is similar to what many commercial purchasers already do. Many commercial firms introducing PSM improvements have made commitments to help SDBs grow and prosper while maintaining stringent performance requirements. Although such enterprises may grow to the point that they are no longer small, they help commercial purchasers maintain their commitment to supplier diversity.

DB-434-AF-11 07/03 DB-434-AF-11 07/03 Examining Air Force purchases by different segments of its spend, both direct and indirect, as defined by commodity type and costs, risks of provision, competitiveness of market, and other variables also examined in private spend analyses, and the offices responsible for them further illustrates purchasing and supply management issues (for more definitions and formal discussions of spend analyses, see Steel and Court, 1996; and Dyer, Cho, and Chu, 1998). Buyers purchasing weapon systems spend the most total dollars, whereas buyers purchasing goods and services for sustainment of these systems or to support operations write more contracts.

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