Time Value of Data Decision Modeling for Major Defense Acquisition Programs

Abstract

This paper seeks to enhance the Department of Defense’s (DoD) understanding of time-value associated with contracted data deliverables and intellectual property (IP), particularly as encapsulated in digital Technical Data Packages (TDPs) for Major Defense Acquisition Programs (MDAPs). Drawing on business contract theory, it examines “economic hold-up scenarios,” where imbalances in transaction costs over terms, assets, or IP in controlled, specialized, or evolving markets create challenges. The Defining the Problem section defines the problem as it confronts DoD practitioners today, building on insights from past economic and business research; the How Hold-ups Have Been Addressed in Other Industries section investigates how other industries have tackled hold-ups, situating DoD’s challenges within the wider U.S. market; and the Implications for DoD TDP Contracting in MDAPs section evaluates the implications for MDAPs, integrating theoretical frameworks with practical case studies. The paper concludes by proposing a decision model to implement mitigation strategies in future DoD MDAP contracts, accompanied by suggestions for further testing and research to refine this model.