This monograph describes spend analyses that the RAND Corporation conducted in 2002 for the first phase of a purchasing and supply management demonstration conducted at the Oklahoma City Air Logistics Center for purchases of F100 jet engine spares and repair services and jet engine bearings. The authors provide details on the required data and processes involved in a spend analysis and discuss the implications of their findings for F100 purchasing and supply-chain management for future spend analyses.

The authors review Air Force purchases of 3low-demand2 parts, analyzing how much the Air Force spends on such parts and the types of parts that have a low demand. They then identify and synthesize best commercial purchasing and supply chain management practices used for developing supply strategies for such items, concluding with recommendations for the Air Force to improve its supply strategies for such items.

Recent bid protests have caused large disruptions in resource and operational planning in the Air Force, even leading to the cancellation of the Combat Search and Rescue helicopter program. Some tactics that the Air Force could use to counter such protests in the future include simplifying and clarifying selection criteria and priorities, explaining how its cost estimates are developed, and involving attorneys in external review of bids.