The Defense Department forks over about half its annual budget -- about $200 billion -- on acquisition of services such as information technology, transportation and upkeep of bases. It's track record of managing these buys is even worse than its record on the procurement of weapons systems, Ashton Carter, Under Secretary of Defense for Acquisition, Technology, and Logistics, told a Pentagon press briefing on Tuesday.
The Defense Department forks over about half its annual budget -- about $200 billion -- on acquisition of services such as information technology, transportation and upkeep of bases. It's track record of managing these buys is even worse than its record on the procurement of weapons systems, Ashton Carter, Under Secretary of Defense for Acquisition, Technology, and Logistics, told a Pentagon press briefing on Tuesday.
Lack of common terminology in part frustrates efforts to better manage acquisitions and rein in costs, he said.
"We don't even have a standard way to talk about services," Carter told the briefing, during which he and Defense Secretary Robert Gates detailed plans to cut $100 billion from the Defense budget during the next five years. Lack of standard definition for services makes about as much sense as buying ships or tanks without defining what they are, he added.
The lack of a standard language -- a taxonomy -- for services acquisitions means the Pentagon has no way of measuring productivity in more than 50 percent of its contract investment, Carter said in a memo to acquisition professionals issued on Tuesday on how the Pentagon can better manage its spending.
Here's the Carter short services taxonomy -- a must read for anyone acquiring the intangible stuff that oils the Defense machine:
Knowledge-based services
Electronics and communications services
Equipment-related services
Medical services
Facility-related services
Transportation services
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