International Cooperative Research And Development Programs
Neal Pollock

From a review of the literature and more than 30 interviews from those who work on International Cooperative Research and Development Programs comes a wealth of theoretical and practical advice on how to help these often logistically, politically, and economically complex projects succeed.

The Impact Of The Packard Commission’s Recommendations On Reducing Cost Overruns On Defense Acquisition Contracts
David S. Christensen, Ph.D., Capt David A. Searle, USAF, and Dr. Caisse Vickery

Using data from selected acquisition reports, Drezner et al. (1993) show that reform initiatives from 1960 to 1990 did not reduce cost growth on 197 defense programs. Using data from the Defense Acquisition Executive Summary data base, we show a similar result. Initiatives based on the recommendations of the Packard Commission did not reduce the average cost overrun percent experienced on 269 completed defense acquisition contracts evaluated over an 8-year period (1988 through 1995). In fact, the cost performance experienced on development contracts and on contracts managed by the Air Force worsened significantly.

The Impact Of The Buy American Act On Program Managers
Lt Col Joseph S. Smyth, USAF

The Buy American Act adds another layer of complexity to the program manager’s job, especially in the context of the acquisition reform era. Reviewing the background and implementation of the Act will give both industry and government managers guidance on how to proceed under its restrictions.

Logistics Test And Evaluation: An Overview
Tony Parker

Subtle flaws in design can have multimillion-dollar effects—and sometimes potentially catastrophic ones. A vigorous logistics test and evaluation process is essential to ferret out these potential problems, and make sure that when fielded a system is supportable, maintainable, safe, survivable, and transportable. An Office of the Secretary of Defense study suggests that this is a job we need to do better; here is a guide on how to go about it, illustrated with specific cases that show its value.

Using the Earned Value Cost Management Report to Evaluate the Contractor’s Estimate at Completion
David S. Christensen, Ph.D.

The earned value cost management report is a valuable management tool for project managers. Its long association with earned value management systems criteria (formerly cost/schedule control systems criteria) and the related technicaljargon, however, may have caused some project managers to ignore the information that it can provide about the future performance of their projects. This article is a brief tutorial for project managers and others interested in using the report more effectively. Actual performance data from a failed project and important research results are used to describe three simple analysis techniques for evaluating the contractor’s projected final cost of a project, termed the estimate at completion.

The Problem with Aviation COTS
Lt Col Lionel D. Alford, Jr., USAF

Commercial off the shelf (COTS) has become a byword for acquisition reform, but there are significant risks associated with the use of COTS products in military systems. These risks are especially acute for aviation systems. This article explains how COTS can negatively affect military acquisitions and gives ideas on how to plan and resolve COTS-caused problems.

Depot Utilization and Commercialization
William N. Washington

The excess capacity that currently exists within DoD maintenance depots presents an extra burden of overhead expenses. The remedies fall into two categories. The first represents what the Services have been doing through the base realignment and closure process: closing and moving workload to the fewer remaining depots.  The second approach is to find a new use for the depots through commercializing their facilities, and bringing in work from outside the current DoD maintenance system. This article discusses both proposed solutions, their potential problems, and the changes needed to ensure their success.

Letters to the Editor

DoD and the Change Paradigm: Change Agents Versus Established Service Roles, Missions and Cultures
J. Robert Ainsley, Ed.D. and James Riordan

What change agents can be applied to alter the established Service roles, missions, and cultures? The authors provide some background information on the barriers to establishing a single DoD acquisition organization and possible ways to overcome these barriers.

Quantify Risk To Manage Cost and Schedule
Fred Raymond

Unachievable budget and schedule goals result from unrealistic estimates and failure to quantify and communicate these uncertain estimates to managers and sponsoring executives. The Monte Carlo method of cost and schedule estimating can be used to overcome this, but it must be used in a systematic manner. The author provides that systematic approach based on the quantification of expert judgment applied in a pragmatic and consistent fashion.

General Flight Test Theory Applied to Aircraft Modifications
Lieutenant Colonel Lionel D. Alford, Jr., USAF and Robert C. Knarr

A modification program for an aircraft must adequately demonstrate the effects of the modification on the aircraft and its mission, using validated historical data and tests. The critical Test & Evaluation considerations required for any external aircraft modification, specifically for the C-130 aircraft, are discussed in detail.

Acquisition Reform Theory and Experimental Evidence For Tournament Sponsors
Richard Fullerton, Bruce G. Linster, Michael McKee, and Lieutenant Colonel Stephen Slate, USAF

Billions of dollars are awarded annually to the winners of research and development competitions. Research tournaments, used as decision-making experiments, can test theoretical predictions in a controlled setting with optimal results. Experiments using fixed prize mechanisms can obtain quality research at low cost, even under various market conditions. Results indicate that carefully designed research tournaments promote research efforts, and are highly effective.

Assessing Industrial Capabilities For Carbon Fiber Production
Frank T. Traceski

Carbon fiber, a key constituent of advanced composite materials in many defense aerospace systems, is still part of a growing industry despite reductions in defense aircraft and missile procurements on the 1990s. Commercial products and processes have actually sustained the industry and are even driving new development, much to the benefit of defense industry.

Outsourcing Automatic Data Processing Requirements and Support
William N. Washington

Outsourcing is a popular way to reduce cost and focus operations on the main objectives of an organization. However, outsourcing, specifically for automatic data processing (ADP), may not produce financial savings in all instances, even though overall quality may be improved. Although proper structuring of ADP contracts may provide higher financial savings, industry in general experiences incentives and potential savings that the government can not expect to achieve.

PURCHASING PERFORMANCE:
A PUBLIC VERSUS PRIVATE SECTOR COMPARISON OF COMMODITY BUYING
Maj Joseph Besselman, USAF, Ashish Arora, and Patrick Larkey

Hard evidence is needed to provide an accurate gauge of DoD spending efficiency. This study compares DoD and commercial spending on specific items, shows that DoD spends significantly less than its commercial counterparts on similar items. These findings question the widely-held beliefs about the inherent inferiority and inefficiency of DoD purchasing and acquisition. The findings also argue for much more careful research on purchasing and acquisition, so that the likely effects of reforms are known.

HE ROLE AND NATURE OF ANTI-TAMPER TECHNIQUES
IN U.S. DEFENSE ACQUISITION
Lt Col Arthur F. Huber II, USAF, and Jennifer M. Scott


Military technology can be compromised following foreign sales to an ally, accidental loss, or capture during a conflict by an enemy. Because U.S. military hardware and software have a high technical content that provides a qualitative edge, protection of this technological superiority is a high priority. Program managers can mitigate such risks with a relatively new set of technologies inclusively known as “anti-tamper.” Program managers need to know the state of the art in anti-tamper technology and of the emerging DoD and U.S. Air Force policy on its use. This article covers anti-tamper policies; explains how, where, and when to insert these technologies; and describes some anti-tamper technologies now in use.

PAVING THE WAY FOR PRICE-BASED ACQUISITION
Edward L. Will


One of the leading visions of the Defense Reform Initiative is “igniting a revolution in business affairs within the Department of Defense that will bring to the Department management techniques and business practices that have restored American corporations to leadership in the marketplace” (Cohen, February 1998). The current study of price-based acquisition (PBA) was first recommended by Secretary of Defense Cohen in his Section 912 report (April 1998). It is an important step in this direction, and is important to another DoD goal: civilmilitary integration. Acquisition reform initiatives over the past several years— including waivers of cost and pricing date and other price analysis methods— have already paved the way for changing to PBA. And they have demonstrated DoD can rely on these approaches to obtain best value for the war-fighter and taxpayer, reducing acquisition cost and cycle time.

SPS AND BEYOND:
INNOVATING ACQUISITION THROUGH
INTELLIGENT ELECTRONIC CONTRACTING
Dr. Mark E. Nissen


The Standard Procurement System (SPS) uses information technologies (IT) to support defense procurement through workflow technology. Although SPS has overcome many of the severe pathologies associated with the Defense procurement process, it is only a humble beginning for the application of state of the art in electronic contracting. This article outlines key aspects and limitations of nextgeneration information technology including waivers of cost and pricing data and other price analysis methods. SPS officials are challenged to investigate and incorporate these powerful technologies into future electronic contracting systems to improve procurement process performance.

CIVIL-MILITARY INTEGRATION: THE CONTEXT AND URGENCY
William B. Linscott


As defense budgets decline, progress in acquisition reform advances, and worldwide emerging threats become apparent, the need is obvious for a strong industrial base to maintain our economic and military strength and retain our position of global leadership in the 21st century. It also becomes clear that our success depends on integrating the civil and military sides of industry. We need only change the rules to find that solution.

A Systematic Approach to Prioritizing Weapon Requirements and Military Operations Through Requisite Variety
Major Douglas B. Bushey, USA, and Dr. Mark E. Nissen

Diverse, global mission requirements and constraints on force modernization will affect the U.S. military in the 21st century. The theory of requisite variety can provide a systematic basis for prioritizing research, development, production, and operational activities to ensure warfighting effectiveness. An Army advanced warfighting experiment documents important results and considerations with respect to requirements determination, weapon system prioritization, and battlefield operations.

The USAF PEO/DAC/MAD Structure Successful Pattern for Future Weapon System Acquisition?
Lieutenant Colonel Charles W. Pinney, USAF

The Program Executive Office (PEO), who oversees the execution of a portfolio of related major programs, is organizationally positioned between the Program Manager and the Service Acquisition Executive. However, this complicates the relative roles and responsibilities with other acquisition officials - the Mission Area Directors (MADs) and the Designated Acquisition Commanders (DACs) – with mixed results.

Open Systems and the Systems Engineering Process
J. Michael Hanratty, Robert H. Lightsey, and Arvid G. Larsen

Acquisition managers in DoD too often rely on unique products provided by a single supplier at high non-competitive prices, and they have little opportunity to insert technology from other suppliers. Commercial manufacturers of large complex systems have successfully used the open-system approach to systems engineering to avoid these problems. DoD needs a rigorous systems engineering process in which resulting system designs more readily accommodate change to achieve cost, schedule, and performance benefits through multiple sources of supply and technology insertion.

An Investment-Based Approach for Managing Software-Intensive Systems
Margaret E. Myers

An investment-based management approach to the acquisition of software-intensive Systems - especially those with extensive software components – requires command and control systems, automated information systems, and other information technology investments to keep us on the leading edge of both the Revolution in Military Affairs and the Revolution in Business Affairs.

"Subcontracting" as a Solution, Not a Problem, in Outsourcing
William N. Washington

The success of contracting has increasingly become dependent on subcontracting. Problems with subcontracting include loss of control and smaller-than-anticipated profits. Performance and comparability measurements can be used to monitor contractor performance and/or adjust the contract to reflect current pricing for performance.

Reengineering the Acquisition Process a Quantitative Example Of Acquisition Reform Working For the Air Force’s Launch Programs System Program Office
Robert Graham and Captain Eric Hoffman, USAF

The Air Force Launch Programs System Program Office "reengineered" the cycle time for contract proposals - using acquisition reform tools and techniques – by developing a contractor/government Integrated Product Team to define a new streamlined approach for changing existing contracts with a 63 percent reduction in cycle time.