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> Home / Acquisition Topics / Business, Cost Estimating and Financial Management / CAIV / Cost as an Independent Variable / Installing a Commercial Cockpit in the E-6 Aircraft

Installing a Commercial Cockpit in the E-6 Aircraft

Installing a Commercial Cockpit in the E-6 Aircraft

Organization: NAVAIR, PEO (A)

Team Name: Multifunction Display System (MDS) IPT

Related Acquisition Topic(s): Alpha Contracting, Commercial Practices, Commercial and Non Developmental Items (CANDI), Cost As an Independent Variable (CAIV), Evolutionary Acquisition, Integrated Product Teams (IPT), Integrated Product and Process Development (IPPD), Open Systems, Paperless Contracting, Paperless Program Office, Partnering, Risk Management

Description:

The MDS is a flight deck avionics upgrade to the E-6B aircraft. MDS installs a 737-700 common commercial cockpit into the E-6 to sustain JCS-directed E-6 worldwide operations in support of Strategic Command Control Communications (C3) architecture. The large fleet size represented by the 777 and 737 ensures a long service life and widespread availability of spares and support. MDS provides a reduction of cockpit instruments from approximately one hundred (100) to thirteen (13), and new Flight Management Computers (FMC) with substantial software growth capability. This growth capability is required to meet Global Air Traffic Management (GATM)/Global Access, Navigation and Safety (GANS) requirements and future FAA/ICAO directives. The six (6) display units, the two (2) electronics units, and their control panels provide a dramatic increase in reliability over the present electromagnetic displays. MDS is an ACAT IVT program with IOC of 7 fully supportable A/C by Oct 02.

Reduced Life Cycle Cost

The program set aggressive, yet realistic cost goals during the establishment of performance objectives. Cost as an Independent Variable (CAIV) was employed from the outset as a tool to identify cost performance trades, ensuring requirements and performance growth did not impact cost thresholds and programs ability to meet IOC requirements. Over twenty four Cost Reduction Initiatives (CRI) were submitted by the integrated government and contractor team which resulted in savings of $13.98 million during the production effort. Use of the 737-700 commercial cockpit heavily leverages the commercial sector where over 1,500 commercial airplanes utilize the same systems. This economy of scale for sustaining engineering, spares, parts obsolescence and system upgrades will significantly reduce current life cycle costs of the 1950’s technology cockpit while increasing capability and safety. In addition, the hardware’s outstanding growth capabilities are a cost saver, enabling the program to meet future operational requirements with minimal cost. Future upgrades driven by changes in the air traffic management system will be performed in concert with the commercial airlines industry using the same hardware and software, reducing life cycle support costs. Estimates of total life cycle costs savings of $249M in then year dollars was substantiated using accepted commercial models.

Making the Acquisition System More Efficient, Responsive and Timely

The MDS IPT had to embrace a paradigm shift in commonly accepted acquisition principles to maximize system efficiency and responsiveness. Doing business the “old way” would not meet operational requirements, so the program utilized Alpha Contracting to achieve rapid program initiation, Video-Teleconferencing, and a Block Upgrade acquisition strategy utilizing commercial and non-developmental items (CANDI). The Block Upgrade, CANDI 737-700 systems approach required no engineering and manufacturing development phase, drastically reducing system acquisition time with associated benefits in operational timeliness. Developmental efforts in cost and schedule were previously accomplished by the commercial developers and customers. Commercial pricing guides similar to commercial system applications on CANDI equipment were utilized to minimize cost, auditing and justification. Final system configuration will be the most capable cockpit upgrade program ever installed on a DOD aircraft without utilizing a developmental acquisition phase.

Integrating Defense with Commercial Base and Practices

From the very start of the MDS program, “integrated” was emphasized in every facet of the program. This was absolutely necessary, as the MDS is literally a fully commercial system, requiring government understanding and acceptance of commercial contracting strategies, financial management practices and engineering, test, production, and logistics standards. Prime contractor risk items are totally integrated with overall program risk items, and government, prime contractor and subcontractors are all integrated and exposed to the system requirements and design. A single integrated contractor and government test team will be utilized to complete a single, integrated test program. From the very first ground test, the team will execute a coherent, focused and efficient test program TOGETHER, with NO redundancies. The test program will reflect commercial processes and practices, with particular emphasis on efficiency and reducing parallel testing efforts, yet comprehensive in its scope. This totally integrated, commercial approach was a dramatic change for government acquisition personnel, but the program siezed the opportunity to increase exposure to commercial standards and practices and applied these lessons learned on other efforts to the maximum extent possible.

Accomplish Specific Goals Associated with Acquisition Reform Initiatives - Improvements in Weapon System Support and Readiness

The program utilized ALPHA contracting with full team involvement during proposal development. Contractor and Government personnel were assigned the second level Integrated Product Teams which then reported to the first level Aircraft Integration Team (AIT), which was co-chaired by contractor and Government personnel. All design decisions were openly discussed and reviewed utilizing a Cost As an Independent Variable (CAIV) decision matrix. IPTs were empowered to identify, evaluate and recommend design philosophy to the AIT, keeping accountability at the lowest level.

In addition, electronic data interchange was utilized almost 100%. The MDS IPT established an electronic database of all acquisition documentation. The IPT had direct access to documents in this database through the program office hosted web page. The MDS IPT will also coordinate production of E-6B publications via the Internet. Data for these publications will be electronically transmitted and coordinated within the team.

NAVAIR, PEO (A)

Multifunction Display System (MDS) IPT



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Deputy Assistant Secretary of the Navy for Acquisition Management, DASN (ACQ)
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