Private Sector and Support Services –
The private sector support and services (PS3) industry has been an indispensable component of the national defense apparatus since the nation’s birth. While PS3 support to the Department of Defense (DoD) is not new, in recent decades the industry has taken a more prominent role in providing critical capabilities in support of our national interests. A 66 percent reduction in troop strength from 1990 to 2000, combined with demands from contingency operations in Iraq and Afghanistan, resulted in increased reliance on defense contractors.1 Today, PS3 represents 46-56 percent of the deployed operational workforce, with more than 50 percent of the current DoD acquisition budget spent on the critical services they provide. The DoD’s heavy reliance on the PS3 industry is unlikely to change in the foreseeable future, and contracts for services will remain not only a critical component to expeditionary, stability, and reconstruction operations, but also a key role in maintaining US preeminence in defense technology and battlefield dominance. Recognition of this criticality is reflected in the previous Undersecretary of Defense for Acquisition, Technology and Logistics (AT&L) initiative to conduct an ongoing Sector-by-Sector, Tier-by-Tier analysis to inform its Annual Industrial Capabilities Report to Congress.
This industry study report synthesizes information gathered from independent research, classroom instruction, domestic and international field studies, and interviews with US Government and industry representatives. It analyzes and assesses the health of the industry and its preparedness to meet both current and future needs of the DoD. The report defines the PS3 industry, assesses the current condition of the industry, addresses challenges faced by the industry, projects the short and long term outlook of the future health of the industry, analyzes the government’s goals and roles, and provides policy recommendations. The report also includes essays on major issues within the PS3 industry and the DoD.
Read the report →