A systems theory analysis of outsourcing food service functions in the United States Coast Guard

This exploratory case study examined the systemic ramifications of a 1987 management decision by the United States Coast Guard (USCG) to outsource the operation of its 21 largest shore based food service facilities. The study tested the theory that outsourcing is an efficient means by which government agencies can obtain required goods and services. Using official USCG records and other archival data, this study examined the extent to which outsourcing was successful in achieving its intended goals. The impact of the outsourcing decision on the remaining members of the USCG Food Service Specialist rating was examined with respect to sea/shore duty rotation, geographic stability, and retention. The contract cost of operating three dining facilities and modeled inhouse costs were compared. The findings indicated that, from the perspectives of systems and equilibrium theories, outsourcing in this instance did not yield the anticipated efficiencies that provided the impetus for the original outsourcing decision.