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Organization: NAVAIR
Team Name: NAVAIR Affordable Readiness/TOC Implementation Team
Related Acquisition Topic(s): Acquisition Practices Streamlining
Description:
The NAVAIR Affordable Readiness/Total Ownership Cost (AR/TOC) Implementation Team was initially established in 1996 to coordinate and evaluate NAVAIRSYSCOM’s responses to the requirements of the Affordability Readiness (AR) process. AR is a concept of operations which requires acquisition/competency managers to continuously seek and implement initiatives to reduce the life cycle costs of program operation and infrastructure support while maintaining fleet readiness and safety. Savings resulting from this process are available to be invested in Naval Aviation modernization and re-capitalization. Under the Team's management, a NAVAIR-wide analysis of operating, support, and infrastructure costs was conducted as well as the establishment of an inventory of analysis tools and processes to support cost reduction efforts.
When NAVAIR directed that the AR process be applied to all In-Service aircraft and equipment, program teams developed AR plans to report progress in reducing operating and support(O&S) costs as well as to request financing for unfunded initiatives. The Implementation Team provided guidance on the AR concept to program teams and then reviewed and evaluated the wide range of initiatives resulting from program teams’ responses. In 1999, the Implementation Team managed the evaluation of over 200 AR initiatives provided by In-Service programs with projected O&S savings of hundreds of millions of dollars. The efforts of this Team were recognized by ASN(RDA) and the other SYSCOMs as the foundation for a Total Ownership Program in DON. With their guidance and assistance to the ASN(RDA) TOC Goal Management Board, the DON TOC process was initiated.
When ASN(RDA) directed the implementation of the related Reduction of Total Ownership Cost (RTOC) initiative in 1998, the Implementation Team moved forward aggressively to provide a focus for accomplishment throughout the entire NAVAIRSYSCOM. Drawing on lessons learned in initiating the AR process, through a series of briefings/classes, written documents, and personal interaction with interested program teams, the Team educated the entire NAVAIR team about the concept of Total Ownership Cost (TOC) and its implications for program management. A basic element in this education effort was the message that TOC, as defined for the ASN(RDA) Strategic Plan, includes all costs associated with the research, development, procurement, operation, logistical support, and disposal of an individual weapon system, including the total supporting infrastructure that plans, manages, and executes that weapon system program over its full life.
As a major focal point on AR/TOC processes, the Implementation Team has provided several important products to the Navy and DOD acquisition community by document and electronic media. In addition to producing the summary Guidance for Establishing TOC Objectives and Thresholds which implemented RTOC within NAVAIR, the Team was responsible for a complete detailed Guidebook. The book covers a wide range of information from AR/TOC background to definitions to a process roadmap to points of contact, information sources and examples. Another important effort by the Team was the creation of a standardized RTOC template for program teams to use in submittal formulation. Not only does this template provide a step by step pattern for any user, but it fully displays all aspects of a program’s life cycle cost and highlights funded and unfunded initiatives and their effect upon the program’s base cost. The Implementation Team is universally recognized as AR and TOC process experts throughout DOD and is continually called upon by the acquisition community to provide solutions to an extensive range of issues.
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