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2002 ARJ Articles
| Spring
2002 |
AND THE SURVEY SAYS…THE
EFFECTIVENESS OF DOD OUTSOURCING AND PRIVATIZATION EFFORTS
Lt Col Warren M. Anderson, USAF, LTC John J. McGuiness,
USA,
and CDR John S. Spicer, USN
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The Department
of Defense (DoD) is implementing a Revolution in Business
Affairs (RBA) with the purpose of freeing resources
for the Revolution in Military Affairs (RMA). The goal
of the RBA is to transform how DoD conducts business.
As part of this RBA, DoD has undertaken outsourcing
studies using the Office of Management and Budget (OMB)
Circular A-76 and related initiatives. The objective
of these initiatives is to generate the cost savings
needed to fuel the RMA. Initial results have fallen
short; clearly there are challenges facing DoD in the
attainment of its goals. |
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EAC EVALUATION METHODS:
DO THEY STILL WORK?
David Christensen, Ph.D. and Templin, Ph.D. |
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Several methods
are described to evaluate the accuracy of the estimated
final cost of a defense acquisition contract, termed
the "Estimate at Completion" (EAC). The methods
are based on the Department of Defense experience that
cost variances tend to worsen after the 20 percent completion
point, and were validated on contracts completed in
the 1970s and 1980s. This study tests the validity of
two EAC evaluation methods on a sample of defense acquisition
contracts completed in the 1990s. Results show the mean
cost performance on contracts completed in the 1990s
did not worsen significantly from the 20 percent completion
point, thus challenging the basic premise of the evaluation
methods. We speculate that acquisition reform initiatives,
energized by the 1991 cancellation of the Navy's A-12
program, have improved defense cost performance. |
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AN ASSESSMENT OF AIR FORCE
DEVELOPMENT PORTFOLIO MANAGEMENT PRACTICES
Capt Michael A. Greiner, USAF, Kevin J. Dooley,
Dan L. Shunk, and Maj Ross T. McNutt |
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Selecting and
managing development project portfolios is a critical
function within the Air Force's weapon systems development
process. Decision makers must weigh benefits, costs,
and mission needs for a variety of proposed new initiatives
and current weapon systems programs in order to develop
an effective portfolio that provides the best value
to the User. This research examines current Air Force
development portfolio management practices as perceived
by those involved with the decision making process.
Research findings indicate several gaps between Air
Force practices and those commercial best practices
as found in the literature. A general approach for bridging
the differences is offered as recommendations. |
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CONSOLIDATION OF THE U.S.
DEFENSE INDUSTRIAL BASE:
IMPACT ON RESEARCH EXPENDITURES
Bruce G. Linster, Lt Col Stephen Slate, USAF, and
Robert L. Waller |
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In 1993, there were 21 companies
doing major defense aerospace work - today there are
five: Boeing, Raytheon, Litton Industries, Lockheed
Martin and Northrop Grumman. The battle for the shrinking
defense budget has resulted in not only mergers, but
also an increased emphasis on the formation of partnerships
among defense contractors. As the defense industry has
consolidated, the remaining firms have been forced to
cut back on internal research and development (R&D)
expenditures and other efforts to innovate due to cost
pressures. Should we expect a further reduction in internal
R&D efforts by contractors? How does the number
of competitors vying for a particular contract affect
the overall level of R&D? Does it matter whether
we have consolidation via acquisition, mergers, or bankruptcy? |
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GLOBALIZED SECURITY:
AN ALLIED INDUSTRIAL BASE FOR THE 21ST CENTURY
Lt Col Shannon Sullivan, USAF |
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During the Cold War, the
United States maintained an extensive industrial base
in the event of a global war with the Soviet Union.
With the Russian threat diminished, and the downward
spiral of allied defense budgets, a new industrial base
model may be more effective in managing scarce defense
resources. The new model would be spread across the
allies, rather than centrally focused in the United
States, with several prime-integrating contractors at
the hub, and supporting or niche specialties along the
spokes. |
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EXPANDING
THE TRADE SPACE:
AN ANALYSIS OF REQUIREMENTS TRADEOFFS AFFECTING SYSTEM DESIGN
MAJ Mark W. Brantley, USA, LTC Willie J. McFadden,
USA,
and LTC Mark J. Davis, USA (Ret)
The Department of Defense Simulation-Based Acquisition
(SBA) initiative focuses on identifying opportunities to improve
materiel procurement by using information technologies to
increase military utility, decrease life cycle costs, and
decrease the time to develop and field the system. Implementing
this initiative requires identifying the necessary analysis
tools, constructing a collaborative environment, and developing
a method to make timely decisions based on the results of
the analysis. This paper focuses on the latter two components.
In particular, it analyzes the opportunities to implement
the SBA initiative during the development and analysis of
the system's requirements trade space. We present a methodology
for a holistic approach to determining the system's requirements.
This methodology seeks to use models and simulations to support
decisions that occur throughout the system's life cycle while
in the system's concept development phase and then revisit
these decisions as the program matures.
AN INTEROPERABILITY
ROAD MAP FOR C4ISR LEGACY SYSTEMS
LTC John A. Hamilton, Jr., USA, Capt Jerome D. Rosen, USAF,
and Maj Paul A. Summers, USAF
Modern military operations require interoperability.
The Department of Defense (DoD) has made tremendous interoperability
gains over the last few years. Unfortunately, without a way
to assess the status of interoperability throughout the department,
it is difficult to quantify this progress. Although interoperability
issues are persistent and visible, the number of interoperability
successes is easily overlooked. Most systems developed today
meet the interoperability requirements that were specified
in their operational requirements documents (ORDs). The application
of a set of metrics addressing this domain would shed more
light on the situation and highlight the successes of the
many agencies that have labored to produce interoperable systems.
Effective metrics would enable the services and agencies to
make informed decisions about the allocation of scarce resources
to solve interoperability in already fielded systems.
Protecting Government
Works: The Copyright Issue
Paul C. Manz, Michael J. Zelenka, Raymond S. Wittig,
and Sally A. Smith
The federal government, through its employees and contractors,
produces commercially valuable inventions and information
every day, often without any protection of the intellectual
property involved. Intellectual property protection may provide
sufficient incentive to investors to commercialize by granting
a measure of exclusivity for a period of time. Federal program
managers and directors, as well as private sector investors,
should become familiar with all available intellectual property
protection, such as: copyright law, including its impact on
"government works," those created by federal and
contract employees; the alternatives that would permit the
Government to own the copyright in "government works";
the ability to allow private sector companies to assign co-authored
works; and the importance to a federal technology manager
of such protection.
Knowledge Management
in Acquisition and Program Management
(KM in the AM and PM)
Neal Pollock
Knowledge Management (KM) applies management principles to
the knowledge life cycle (cradle to grave). Both Acquisition
and Program Management (AM and PM) utilize some KM principles
(e.g., lessons learned) for some time, but there are additional
KM opportunities available to improve efficiency, effectiveness,
and customer satisfaction.
CONSIDERATIONS
IN ACQUISITION LESSONS-LEARNED SYSTEM DESIGN
Keith F. Snider, Frank J. Barrett, and Ram Tenkasi
This article describes issues affecting the design of lessons-learned
systems for defense acquisition organizations. It draws both
on studies of existing lessons learned systems and the literature
of organizational learning and knowledge management. The exploration
of these issues suggests that attention to social processes
within organizations is as important, if not more so, as the
development of information technology processes in the success
of lessons-learned systems. The article's conclusions can
assist in the determination of appropriate requirements and
resources for an acquisition lessons-learned system.
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The
Promise and Perils of Spiral Acquisition: A Practical Approach
to Evolutionary Acquisition
COL Wayne M. Johnson, USAF (Ret) and Carl O. Johnson
Many in the Department of Defense consider the
acquisition process broken. One means to address these problems
involve spiral acquisition, an approach often misunderstood.
It is evolutionary in the sense that the changes are incremental
instead of one long, large acquisition. This gains flexibility
in requirements definition and application. But few can actually
state where they have seen spiral development in practice,
or simply explain the difference between spiral development
and block approaches or other approaches tried in the past.
This paper offers a practical guide for spiral development,
the major attributes in order to be successful, and one specific
example. It is hoped this discussion is useful and provoke
some additional thinking into how best to use spiral development.
Interoperability
in DoD Acquisition Programs Through Enterprise "Architecting"
Mary Linda Polydys
Joint Vision (JV) 2020 guides the continuing transformation
of America's Armed Forces toward information superiority in
the ongoing "information revolution." JV 2020 states
that information superiority "is a key enabler to this
transformation," and that interoperability facilitates
information superiority. This article discusses the role of
enterprise architecture in the acquisition of interoperable
systems in the Department of Defense.
Auctions in Defense
Acquisition: Theory and Experimental Evidence
Bruce G. Linster, Ph.D. and David R. Mullin, Ph.D.
This article explores the implications of the theory and
experimental evidence for auctions in the defense acquisition
process. We begin with a brief review of the simplest auctions
and proceed to recent theoretical/experimental results. The
theoretical and experimental results discussed can shed light
on efficient acquisition in the Department of Defense.
Just Contracting
Parties, or Partners as Well?
Thomas I. Siemsen
Government and contractor acquisition personnel are frequently
directed by their superiors to trust one another and others
with whom they have contracts. Unfortunately, relatively little
thought may have been given to what trust consists of or what
an act of trust must entail. This paper considers what is
involved when one chooses to trust another person, under what
circumstances trust may or may not be appropriate, and the
consequences of trusting or not trusting. The paper concludes
with brief suggestions concerning the ways in which trust
might be incorporated into the source selection process.
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| Fall
2002 |
USING OPTIONS TO
MANAGE DYNAMIC UNCERTAINTY IN AQUISITION PROJECTS
B. Kagan Ceylan, Ph.D. and David N. Ford, Ph.D.
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Uncertainty
in acquisition projects and environments can degrade
performance. Traditional project planning, management
tools, and methods can effectively deal with uncertainties
in relatively stable environments. But in more uncertain
environments conditions can evolve beyond the assumptions
used in preproject planning and require major deviations
from initial plans. Important uncertainties often cannot
be identified and described adequately during preproject
planning to design optimal strategies. Therefore, rigid
project strategies prepared solely on the most likely
outcomes as perceived during preproject planning can
result in sub-optimal performance. In these cases, acquisition
planners must explicitly incorporate flexibility into
project plans to keep effective strategies available
until uncertainty resolves adequately to reveal the
best choice. Options can provide an effective framework
for designing, evaluating, and implementing flexible
acquisition project strategies and therefore can improve
project performance. A large complex defense project
illustrates the potential and challenges of options
and research needs to expand and improve their use to
manage uncertainty. |
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PRICE ENUMERATION
AND PROBABILISTIC EVALUATION IN SYSTEM AQUISITION
Maj Kevin Gaudette, USAF and Kevin Sweeney |
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A number of
environmental uncertainties in system acquisition can
lead to situations where exact requirements are difficult
to estimate. The uncertainties are often disregarded
in favor of a simple point estimate. This point estimate,
or best estimated quantity (BEQ), is then used in the
Request for Proposals (RFP) and subsequent source selection,
with the evaluation conducted at the BEQ price using
deterministic techniques. An alternative approach is
presented for BEQ and deterministic price evaluation.
The approach involves the solicitation of a range of
bid prices for all potential quantities in lieu of a
BEQ, with a complementary probabilistic analysis technique
in lieu of a deterministic price evaluation. The probabilistic
approach is then used to evaluate the range of bid prices
and make an award decision. The methodology is presented
in the context of an actual case study in which it was
implemented in 1996. |
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A LEAN SUSTAINMENT
ENTERPRISE MODEL FOR MILITARY SYSTEMS
Mario Agripino, Tim Cathcart, and Dennis Mathaisel,
Ph.D. |
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As existing
weapon systems age and the costs and cycle times on
the maintenance, repair, and overhaul of these systems
increases, various organizations within the U.S. Department
of Defense are conducting independent studies to help
the system become more efficient. Current research efforts
on maintenance repair and overhaul operations focus
on individual elements of this “sustainment”
system. However, to more effectively solve the sustainment
problem, research should be conducted on the whole enterprise,
from raw material suppliers to final product delivery.
To accomplish this objective, the authors developed
a new “lean” framework for military systems
sustainment. The goal of this model is to minimize non–value-added
activities throughout the entire enterprise. |
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SCIENTIFIC WARRIORS
Do They Have a Place in the 21st Century Army?
LTC Camille Nichols, USA |
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The Army has studied the
requirement for uniformed Army scientists (UAS) numerous
times over the past 20 years concluding every time that
the Army must have a complement of highly educated technical
officers. So far, such a program has failed to win the
necessary support for implementation. Why doesn’t
it happen? This paper looks at the viability of instituting
a uniformed scientist program in the Army today. The
paper attempts to explain why the Army has failed to
implement a UAS program; reaffirms the Army’s
need for scientific warriors; provides an update on
current support for an UAS program; recommends institutionalizing
a scientist program, and suggests several implementing
actions. |
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ACQUISITION REFORM
- INSIDE THE SILVER BULLET
A COMPARATIVE
ANALYSIS - JDAM VERSUS F-22
Dominique Myers |
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Over the past quarter century,
numerous acquisition reform initiatives have been implemented
in an effort to extract greater effectiveness and efficiency
from the federal acquisition system. Interestingly,
while such initiatives have made a positive difference,
uniformly positive results have not been achieved across
the board. And in some cases, the relentless search
for a “silver bullet” has detracted from
the real work that successful change entails. Acquisition
success stories abound, leading many to believe that
acquisition reform is the key to program success. This
paper compares the acquisition reform experiences of
two Air Force programs to assess the validity of this
assumption. |
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