Blockchain Technology in the Department of Defense (DoD) - Implementation to Improve Acquisitions, Procurement, and Supply Chain, Analysis of Private Sector Programs, Purchase Card Pilot Program

This report has been professionally converted for accurate flowing-text e-book format reproduction. As is arguably common knowledge among defense procurement professionals, the Department of Defense (DoD) acquisitions process is slow, expensive, and inefficient. Since 1990, the Government Accountability Office (GAO) has highlighted DoD Weapons Systems Acquisition and Supply Chain Management as two high-risk areas requiring focused effort to meet cost, schedule, and performance goals. Blockchain technology has the potential to advance these goals. Congress agrees. By transforming how we conduct business, the DoD can realize significant benefits from blockchain technology. Private industry is testing blockchain and offers an opportunity for the DoD to learn from established practices. This research centers on how industry is implementing blockchain technology and leads to illustrate parallels where the DoD can apply similar practices to achieve efficiencies. We aimed to do this with an analysis of specifically selected case studies in which private companies use blockchain technology to solve issues comparable to those of the DoD. Our analysis revealed common elements during the successful implementation of blockchain within the private companies. After performing the case study analysis, we discuss the findings and determine what elements appear to be relevant and potentially significant to the DoD and public procurement sector. Furthermore, we include a list of recommendations based on the trends identified during data analysis.

This compilation includes a reproduction of the 2019 Worldwide Threat Assessment of the U.S. Intelligence Community.

I. Introduction * II. Background * A. Blockchain * 1. Key Aspects * 2. Current Government Efforts * B. DOD Acquisition Process * C. Our Contribution * III. Method * A. Structured Literature Review * B. Case Study * IV. Analysis and Findings * A. Findings From Literature Review * 1. Need for Auditability * 2. Duplicative Verification * 3. Traceability and Transparency * B. Case Studies * 1. Big Four Accounting Organizations Blockchain Program * 2. Maersk International Shipping Blockchain * 3. Walmart Blockchain Pilot Program * V. Discussion and Recommendations * A. Trends * B. Blockchain as a Solution * C. Recommendations * 1. Develop Necessary Organic Capabilities * 2. Government Purchase Card Pilot * 3. Procurement and Supply Chain System * VI. Conclusion * A. Limitations * B. Future Research * C. Conclusion

Blockchain technology has garnered widespread attention spanning from congressional politicians to computer technology hobbyists. Some authors suggest that blockchain will eventually improve nearly every transaction in the economy, while others caution society to have realistic expectations of the benefits. Regardless, one common theme emerges across the literature: Businesses and consumers must pay attention to the technology and understand that it is likely to fundamentally alter the way our world works. Just as the internet has changed the way we interact, shop, and learn, blockchain can change the way we do business, verify information, and create trust in interactions with unfamiliar people.