Using Data to Improve Defense Acquisitions: Background, Analysis, and Questions for Congress

Summary

Many analysts believe that data analysis is a critical element in making smart, informed, policy decisions and in managing government programs. Without data, there may not be an appropriate basis for making policy decisions, measuring or assessing the effectiveness of government programs, or providing transparency into government operations. Despite the importance of data, most observers believe that the Department of Defense (DOD), and other government agencies lag behind the private sector in effectively incorporating data analyses into decisionmaking. These analysts argue that by using data more effectively to support acquisition decisionmaking, DOD could save billions of dollars, more efficiently and effectively allocate resources, and improve the effectiveness of military operations.

In FY2014, DOD obligated more than $280 billion for federal contracts, more than all other federal agencies combined. Given the size of the defense budget, Congress has pursued a variety of approaches to improving the efficiency of DOD, such as requiring the department to be auditable, including provisions on acquisition reform in National Defense Authorization Acts, and holding numerous hearings on agency operations and acquisition reform. To the extent that improved data analysis could enable more effective decisionmaking, Congress may opt to conduct oversight in this area and explore ways to enable DOD to conduct more effective data analysis.

A number of analysts and government officials have argued that some of the critical elements required for DOD to use data more effectively include:

having the information systems to gather and manage data;

ensuring that data is sufficiently comprehensive and accurate; and

using data to inform decisionmaking.

Senior DOD officials acknowledge that the department does not sufficiently use data to inform decisionmaking and have emphasized the need to transition to a more data-driven decisionmaking process. Efforts are underway to improve IT systems, data quality, and the use of data to inform policy decisions—but success is not guaranteed. Many past efforts to use data to drive efficiency and management within DOD have not succeeded, and those that have met with success still sometimes fell short of initial expectations. To succeed in these efforts, many analysts argue that there must be a culture within DOD that not only values using data to drive decisions, but also integrates data gathering and analysis into the very fabric of the organization, making it part of standard routines and operating procedures. Under the best of circumstances, it will take years for DOD to implement and improve data systems and to foster a culture that routinely uses data to support its decisions. DOD’s efforts to use data analyses to improve business operations and decisionmaking raise a number of questions for Congress, including:

To what extent does DOD have the systems and qualified people in place to conduct robust data analysis?

To what extent does DOD have the right culture and processes in place to foster better decisionmaking?

How can DOD balance the benefits of sharing data with the need to safeguard information security concerns?

The answer to these and other questions could help inform congressional efforts to improve defense acquisitions.