Naval Postgraduate School Capstone Applied Project Report

Establishing Standardized Metrics for the Acquisition of Services Pathway

A completed December 2025 NPS capstone project on moving DoD services acquisition from process compliance toward outcome-based visibility, accountability, and mission readiness.

Stylized preview of the final thesis report cover
Final report preview. Source facts are summarized at a public-release level.
Authors Daniel J. Cary, Michael E. Alexander, and Ashley M. Presley
Program Master of Science in Defense Contract Management
Advisor Jamie Porchia
Second Reader Robert F. Mortlock
Completed

The final report is dated December 2025 and marked Distribution Statement A: Approved for public release; distribution is unlimited. This page presents selected public-release highlights and visual summaries of the finished work.

Project Snapshot

The Work At A Glance

24 DoD and industry stakeholder interviews
339 KPI rows in the supplemental workbook
123 Report pages including supplemental material
7 foundational metric areas identified in the final abstract

The study used qualitative policy-document analysis, literature review, and interviews to define a practical architecture for measuring service-acquisition health across enterprise, portfolio, and contract levels.

Research Base

Built From Policy, Oversight, Theory, Practice, And Stakeholder Evidence

The project pulled from several research streams instead of treating KPI selection as a dashboard-design exercise. The final framework reflects acquisition policy, oversight findings, academic measurement theory, private-sector service-management practices, existing DoD contract surveillance tools, and interviews with senior DoD and industry stakeholders.

Policy And Governance

DoD Services Acquisition Policy

DoDI 5000.74, Adaptive Acquisition Framework material, and services-acquisition guidance grounded the work in the actual pathway, roles, and oversight environment.

Oversight Findings

GAO, RAND, And Review Reports

External oversight and research helped identify the recurring gap between process visibility and outcome-based assessment of contracted services.

Measurement Theory

KPIs, Outcomes, And Balanced Systems

Public-sector performance measurement, balanced scorecard logic, leading and lagging indicators, and structure-process-outcome thinking shaped the framework.

Contract Tools

QASP, CPARS, And Service Artifacts

Existing surveillance, assessment, and contract-management artifacts showed where useful data already exists and where governance is needed to make it comparable.

Comparative Practice

Industry Service Management

Private-sector service-level agreements, outcome-based contracting, relational contracting, and portfolio reporting informed what could transfer into a DoD setting.

Field Input

24 Stakeholder Interviews

DoD and industry interviews tested whether the framework fit real acquisition work, including metric ownership, data burden, incentives, and decision usefulness.

Research Problem

Service Health Needs More Than Compliance Signals

DoD relies heavily on contracted services, but the Services Pathway lacks a standardized, outcome-based framework for assessing program health. Existing measures often emphasize process compliance, obligation rates, procurement lead time, competition, and administrative activity. Those measures are useful, but they do not consistently answer whether services are improving readiness, quality, cost-effectiveness, customer experience, or mission outcomes.

Primary Question

What outcome-based performance measures should be used to assess the health of services?

Supporting Questions

The project also examined how standardized metrics can improve DoD assessment and oversight, which private-sector KPIs can transfer to DoD service acquisitions, and what data collection challenges must be mitigated.

Framework

A Three-Part Performance Architecture

Flow diagram linking Core-Plus-Tail governance, Enterprise Performance Visibility, and Flexible Balanced Scorecard
Core-Plus-Tail defines what should standardize, EPV defines how measures roll up, and the scorecard defines how leaders view service health.
Final Contribution

From Measure Lists To Management System

Governance

Core-Plus-Tail

A governance model that standardizes a small enterprise-level core while preserving room for service-category tailoring and local contract diagnostics.

Structure

Enterprise Performance Visibility

A three-tier rollup structure connecting tactical contract measures to portfolio and enterprise visibility for senior acquisition leaders.

View

Flexible Balanced Scorecard

A scorecard approach that shows service health across cost, schedule, quality, customer satisfaction, compliance, readiness, stewardship, people, cyber, and innovation dimensions.

How It Works

Contract Signals Roll Up Into Enterprise Visibility

1

Contract Diagnostics

QASP, CPARS, schedule, cost, and user-value signals identify where management action is needed.

2

Portfolio Health

Category-tailored measures compare like services without forcing every contract into the same narrow dashboard.

3

Enterprise Decisions

Senior leaders get consistent visibility into readiness contribution, risk, customer value, and stewardship.

Balanced View

Service Health Across Multiple Dimensions

Balanced scorecard grid of cost, schedule, quality, customer, compliance, readiness, people, and cyber dimensions
The scorecard view keeps cost and compliance visible without letting them crowd out readiness, quality, customer experience, cyber, and workforce indicators.
Metric Areas

Foundational Metric Areas

The final abstract identifies seven foundational metrics grouped across cost, schedule, quality, customer satisfaction, and compliance. The supplemental workbook expands that core into a larger KPI universe that can support enterprise reporting, service-category tailoring, and contract-level diagnosis.

Cost and cost avoidance Schedule and timeliness Service quality Customer satisfaction Compliance Readiness contribution Leading risk indicators
KPI Universe

The Supplemental Workbook Turns Research Into Usable Measures

Stylized preview of the KPI Universe workbook fields
The workbook organizes candidate KPIs by portfolio, measure, source, frequency, owner, classification, related indicators, and scorecard category.
Bar chart of largest KPI categories in the supplemental workbook
Largest public category counts: 111 regulatory compliance, 79 schedule, 69 performance, 37 customer satisfaction, and 28 cost KPIs.
Key Findings

What The Research Showed

1

Stakeholders reframed service health as measurable contribution to operational readiness, not simply completion of administrative activity.

2

DoD has useful process measures, but the Services Pathway still needs a more consistent way to connect contract performance to mission outcomes, user value, and portfolio-level decisions.

3

A tiered framework can support both standardization and flexibility: common enterprise metrics for rollup, tailored category metrics for relevance, and contract-level diagnostics for management action.

4

Data governance matters as much as metric selection. Each KPI needs a source, owner, cadence, target, and decision use so measurement does not become another compliance exercise.

Recommendations

Four Moves To Make Measurement Actionable

01

Pilot the EPV Three-Tier Model

Use a bounded pilot to test enterprise, portfolio, and contract-level reporting before scaling across the Services Pathway.

02

Update Policy

Update DoDI 5000.74 or related guidance to require the core metric set while allowing Core-Plus-Tail tailoring by service category.

03

Automate the Data Chain

Connect structure, process, and outcome data in the acquisition data infrastructure so reporting is repeatable and less manually intensive.

04

Develop the Workforce

Train acquisition teams on pre-award metric discipline, including how to define outcomes, establish targets, connect QASP surveillance, and avoid gaming or metric overload.

Visual Summary
Why It Matters

A Practical Way To See Whether Services Are Working

The project turns a broad problem into an implementable performance-management architecture. Its value is not just a list of KPIs, but a way to govern, structure, and visualize service-acquisition health so DoD leaders can compare performance, identify risks earlier, and make better decisions about contracted services.

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