Description
Organization: MARCORSYSCOM, AAV RAM/RS Program Office
Team Name: AAV RAM/Rebuild to Standard (AAV RAM/RS) Enterprise Team
Related Acquisition Topic(s): Acquisition Practices Streamlining, Alpha Contracting, Business Process Reengineering (BPR), Commercial Practices, Partnering
Description:
The U.S. Marine Corps/UDLP Assault Amphibious Vehicle Reliability, Availability, Maintainability/Rebuild to Standard (AAV RAM/RS) Enterprise Team developed an acquisition approach that produced a long term partnering relationship between government and industry. The Enterprise arrangement was established to develop an "Assault Amphibious Vehicle Team" that consolidated the interests of the Marine Corps and Industry, thereby providing a single point of contact for all International Customers. The Enterprise Team re-engineered the Security Assistance Business Process by uniting the positive elements of Direct Commercial Sales (DCS) and Foreign Military Sales (FMS) through innovations in Acquisition Program Management and Contracting. This Enterprise Team capitalizes on the "Core" capabilities of the U.S. Marine Corps and United Defense Limited Partnership. In order to develop a unified Marine Corps business strategy that optimizes the greatest Return on Investment while realizing the potential international market, the Marine Corps conducted an independent study. The Amphibious Vehicle International Business Strategy Study (AVIBS), the first of its kind in the Department of Defense, supported the AAV RAM/RS Enterprise Team approach. This study demonstrated a ROI to the Marine Corps of over $332 million using assets above Approved Acquisition Objective (AAO). In addition, as the AAAV is fielded additional AAV assets under this Business Enterprise will have a potential value 3.2 billion dollars in anticipated sales.
Highlights: The AAV RAM/RS Enterprise Team proposes to take advantage of our predominance and uniqueness not found in any government and industry team to date. The long-term relationship between MARCORSYSCOM and UDLP is the foundation upon which the Enterprise Agreement is built. The Enterprise represents a single point of contact for the foreign customer, blending the interests and expertise of both industry and the USMC. This provides a single source team that a foreign customer comes to for the procurement of an AAV RAM/RS vehicle. This relationship supports the interests of its members by addressing their primary desires. This Enterprise provides business opportunities for industry, and maximizes the amphibious vehicle Return on Investment to the USMC. The AVIBS supported the development of the AAV Enterprise Agreement to achieve the stated objectives. AVIBS showed a ROI total benefit to the US Government through a contractual credits and consideration, cost avoidance of demil & disposal, and IROAN reductions the overall AAV program. In addition, 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. Another benefit to all AAV customers is a higher level of operational readiness and cost savings through an expanded industrial base. To achieve the goals of the Enterprise, the Security Assistance Business Process was re-engineered by creating a TEAM that combines the interest of Direct Commercial Sales (DCS) and Foreign Military Sales (FMS).
The goals are furthered by innovations in Acquisition Program Management and Contracting. The 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. In addition MOA's were established to further define roles and responsibilities of the Team members. Utilizing existing production and management procedures and processes results in an efficient, responsive and timely means for meeting the requirements of customers by ensuring that production and schedule parameters are maintained to deliver a AAV RAM/RS Vehicle that meets the original technical performance and cost estimates. This effort will be performed through U.S. Marine Corps depots and industry facilities, to increase the quality, efficiency, responsiveness and timeliness of the acquisition process, resulting in a reduce Total Ownership Cost (TOC) to the customer.
Success of the Enterprise will be achieved by leveraging the core capabilities that each stakeholder brings to the Enterprise. The Core capabilities that the Marine Corps brings to the Enterprise is AAV ownership, training, maintenance, and logistics support. Attributes contributed by UDLP include it International Marketing ability and unique manufacturing abilities. The Core Business Element of the Enterprise Team is composed of Marine Corps Systems Command and UDLP, which provides a unified management approach for this complicated and aggressive initiative. The AAV RAM/RS Enterprise Team is composed of responsible elements of the following: Marine Corps Systems Command (MARCORSYSCO) in Quantico, VA, Marine Corps Logistics Bases (LogBases), Albany, GA, Defense Logistics Agency, Defense Contracts Management Command (DCMC), Defense Contract Audit Agency (DCAA), Tank and Automotive Command (TACOM), and United Defense Limited Partnership (UDLP).
The AAV RAM/RS Enterprise Team represents a significant commitment to Acquisition System improvements in the Department of the Navy. The Enterprise Team utilizes innovations in Acquisition Program Management and Contract Administration combined with Acquisition Reform Initiatives by the integration and strengthening of the joint commercial/defense industrial base. This approach provides innovations that are directly applicable to other programs within the Department of the Navy and Defense.
