Description
Organization: MARCORSYSCOM, AAV RAM/RS Program Office
Team Name: AAV RAM/RS Team
Related Acquisition Topic(s): Acquisition Practices Streamlining, Business Process Reengineering (BPR), Commercial Practices, Cost As an Independent Variable (CAIV), Earned Value Management (EVM), Integrated Digital Environment (IDE), Integrated Product Teams (IPT), Paperless Program Office, Partnering, Specifications and Standards
Description:
Program Overview: Members of the U.S. Marine Corps' Assault Amphibious Vehicle Reliability, Availability, Maintainability/Rebuild to Standard (AAV RAM/RS) Team implemented a number of innovative acquisition approaches and processes to centralize management of an upgrade program to be performed through U.S. Marine Corps depots and industry facilities, to increase the quality, efficiency, responsiveness and timeliness of the acquisition process, and to reduce Total Ownership Cost (TOC) by over $ 550 million.
AAV RAM/RS program was approved as an FY99 new start acquisition in June 1997, and successfully achieved Milestone II in December 1997, Milestone III in October 1998, and commenced production in November 1998. Consolidation of diverse functions and responsibilities within the government team, establishment of a long term contractual relationship with industry to provide technical, engineering and management support for the remaining service life of the AAV, and extensive use of multiple command Integrated Product Teams (IPTs) with industry participation led to early development of quality products and an accelerated schedule. Marine Corps depots have improved processes and procedures for planning, controlling cost, and producing quality products through implementation of new tools at the U.S. Marine Corps Maintenance Centers, i.e., Earned Value Management Systems (EVMS), ISO 9002 techniques and procedures, Cost as an Independent Variable (CAIV), detailed Work Breakdown Structures, Statement of Work and Rebuild Standards development, a detailed integrated production plan, and sharing of industry production processes. Establishment of a long term contractual relationship with industry and emerging industrial business innovations has provided the government with technical, engineering, and vendor base support options not previously available. These significant innovations are directly applicable to other programs within the Department of the Navy and Defense.
Highlights: The AAV RAM/RS Program proposes to upgrade the current AAV7A1 Family of Vehicles (AAV FOV), first manufactured in 1972, by replacing the current engine and suspension system with that derived from the U.S. Army's Bradley Fighting Vehicle, rebuild the AAV to original specifications, and reduce the Total Ownership Cost by over $ 550 million dollars. This program, with rebuild effort directed to the Marine Corps Maintenance Centers at Albany, GA and Barstow, CA, was approved in June 1997 as a new start acquisition program beginning in October 1998, with a maximum four year production duration. The AAV program organizational responsibilities and authorities had been dispersed over the previous four years and emphasis on this soon-to-be-replaced system was more on maintenance than upgrade and acquisition. The AAV RAM/RS Team composed of responsible elements of the Marine Corps Systems Command (SysCom) in Quantico, VA, and Camp Pendleton, CA, and the Marine Corps Logistics Bases (LogBases), Albany, GA, rectified this dispersion by providing a unified management approach for this complicated and aggressive program. This management approach established an efficient, responsive and timely means for meeting the schedule and implementing procedures and processes to deliver on the original technical performance and cost estimates.
Traditionally, government-to-government tasking is a risky area in any acquisition program as no contractual vehicles exist, and the performing government activity has no legal way or resources to address emerging problems in schedule or cost. Historically, work at the depots was mostly maintenance oriented and represented a potential impediment to a cost/schedule constrained acquisition program. The AAV RAM/RS Team approach to this issue was manifold. First was establishment of a number of Memoranda of Agreement (MOA) to fully clarify and document the responsibilities and authorities of each command with respect to the AAV RAM/RS program. The primary MOA was between SysCom and LogBases, and additional MOAs were established among the various government agencies to include SysCom, LogBases, Defense Logistics Agency (DLA) and Defense Contracts Management Command (DCMC). Secondly, Integrated Product Teams (IPTs) were established as the means for reaching consensus and agreement between the two commands. The IPTs addressed substantive items such as cost estimating, CAIV, Request For Proposal (RFP) content, production process, integrated schedule and provided rapid resolution of diverging areas of concern. Thirdly, the Team utilized a common computer server to post all program related document to include acquisition plans, budgets, schedules, meeting minutes and action items in order to improve communication, efficiently disseminate valuable information, and correct erroneous information,. Finally, the government judiciously utilized concurrent engineering in order to perform testing, engineering, and proof of principle (manufacturing) in parallel. It was a risk that gave a big payoff. These acquisition initiatives allowed the government team to quickly come to closure on issues, produce quality products in record time, and meet the imposed aggressive schedule. These approaches were key to successfully achieving both Milestone II and III within only 18 months of program approval.
Cost avoidance and product quality are two of the major reasons for the AAV RAM/RS program. The tools available at the government facilities were not sufficient to ensure success in these areas. Through the means of the AAV RAM/RS Team, and with the enthusiastic support of the LogBases, an Earned Value Management System (EVMS), using Performance Management Baseline, Work Breakdown Structure, and Cost/Schedule Status Report formats was established and successfully demonstrated during a Proof of Principle (POP) in early 1998. Additionally, the LogBases is moving ahead to make itself ISO 9002 qualified. MOAs were established among SysCom, LogBases, and DCMC, to provide both EVMS and Quality Assurance assistance and oversight at the government facilities. Additionally, a long term AAV Contractor will be establishing its East Coast factory facilities within the LogBases and providing the government with the benefit of industry's knowledge of modern manufacturing techniques. These three initiatives are new to the Marine Corps facilities and represent a significant application of commercially proven practices to government production.
The AAV program has been in existence since the late 1960s and has seen a number of different contractors supporting the various upgrades to the vehicle. The AAV will, however, be fully replaced by the Advance Amphibious Assault Vehicle (AAAV) within a 15 year period, and the AAV RAM/RS program is only a four year program. Therefore, the AAV facts of life would not typically interest the type of contractors necessary to appropriately support the AAV. In order to interest industry in supporting this important combat vehicle for its remaining life, the AAV RAM/RS Team devised the concept of an encompassing long term contractor relationship. The government team offered industry the opportunity to compete for a contract that would select an offeror who would initially perform the hull modifications and parts buy on the AAV RAM/RS program and also provide long term Technical, Engineering and Management Support (TEAMS) and Foreign Military Sales (FMS) support. This innovative concept resulted in the original manufacturer, United Defense (formerly FMC) returning as an integral member of the AAV government/industry team. Additionally, industry was offered and has accepted location of its manufacturing facilities within the LogBases with potential use of its work force on agreed upon FMS efforts. This arrangement allows stabilization of the government's expert work force through industry business innovations, migration of industry proven production processes and material control standards and procedures to the government production line, and the availability of a dedicated industrial partner for the service life of the AAV. This approach is new and directly applicable to other parts of the Department of the Navy.
