Donlon, J. P. The virtual organization.Chief
Executive no. 125(July 1997): 58+.
Virtual organizations focus on their core competencies and strive to develop partnerships or
outsource non-core activities. This article reports on a CEO roundtable discussion on virtual
organizations.
Gaudio, Louis M. and Myron G. Myers. Outsourcing best
practices. McLean, VA: Logistics Management Institute, 1996. 13 pp. (Shelved at
HD3858.G38 1996).
Successful outsourcing requires smart contracting. This report indicates that the success or failure
of outsourcing a particular function or activity is more closely tied to the acquisition process than
to the specific activity that is outsourced. DoD is sponsoring an ongoing examination to identify
support operations opportunities in which outsourcing could improve efficiency and operational
readiness. DoD is also seeking to identify model acquisition strategies to ensure effective
competition and successful outsourcing. Smart contracting can align DoD and suppliers' interests
and prevent the potential erosion of outsourcing benefits over the life of a contract.
Peterson, Donna J. S. and Norm O'Meara. DoD outsourcing
baseline. EC508LN2. McLean, VA: Logistics Management Institute, 1996. 11 pp.,
plus appendix. (Shelved at HD3858.P47 1996).
The authors suggest that it is wise to focus outsourcing attempts on services provided by
competitive markets for the greatest cost savings. At DoD, fixed-price contracts are used when
the scope of services required can be precisely defined, while cost-reimbursement contracts are
used when it is difficult to estimate accurately the resources needed to perform the
work.
Privatization and competition: Comments on S314, the Freedom from
Government
Competition Act. GAO\T-GGD-97-134. Washington: General Accounting Office,
1997. 10 pp. (Shelved at HD3861.U6S75 1997; Testimony of L. Nye Stevens, Director, Federal
Management and Workforce Issues. Also available at
http://www.gao.gov/AIndexFY97/abstracts/gg97134t.htm).
The Freedom from Government Competition Act would require the government to procure from
the private sector, with some exceptions, the goods and services it needs to carry out its
functions. The bill incorporates GAO suggestions, including provisions on the use of "best value" as a criterion for contracting decisions, allowing for situations where private sector sources
cannot meet the government's needs and recognizing that the identification of inherently
governmental functions is somewhat situational.
Venkatraman, N. Beyond outsourcing: managing IT resources as a value
center.Sloan Management Review 38, no.3 (Spring 1997):
51-64.
While outsourcing might be attractive for some parts of a value center, it is not a substitute for
crafting a strategy to leverage IT resources for business success. An effective strategy framework
recognizes four interdependent sources of value from IT resources and the approaches for
managing each source (article summary).
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