Description
Organization: MARCORSYSCOM, PM - Light Armored Vehicle (PM-LAV)
Team Name: Light Armored Vehicle Team
Related Acquisition Topic(s): Acquisition Practices Streamlining, Alpha Contracting, Business Process Reengineering (BPR), Commercial Practices, Cost As an Independent Variable (CAIV), Cycle Time Reduction (CTR), Financial Management, Integrated Digital Environment (IDE), Integrated Product Teams (IPT), Integrated Product and Process Development (IPPD), Single Process Initiative
Description: PROGRAM DESCRIPTION:
PM-LAV has been in operation since the early 1980s, co-located at an Army facility, the US Army Tank-automotive and Armaments Command (TACOM). We managed the initial purchase and subsequent fielding of 772 vehicles for the USMC, and 1,117 vehicles for the Saudi Arabian National Guard (SANG) under an FMS program; and are currently implementing a Service Life Extension Program (SLEP) intended to extend the life of the USMC vehicles to 2015, when we expect a replacement vehicle to be available. Through our Weapon System Management (WSM) group, we oversee an ongoing Inspect and Repair Only As Necessary (IROAN) program conducted through the Marine Corps Logistics Base depots in Albany, GA, and Barstow, CA. We have also procured and fielded major component upgrades, such as the Thermal Sight System (TSS) and Silver Series engine. PM-LAV is dedicated to providing our customers/users with the best equipment and support possible, while managing our programs so as to reduce Total Ownership Cost (TOC).
SUMMARY OF ACCOMPLISHMENTS:
Reduction of Life Cycle Costs: PM-LAV conducted a detailed trade study that prioritized potential upgrade candidates for the LAV Service Life Extension Program (SLEP). The trade study assigned a utility to each upgrade candidate based on user input and an assessment of overall benefit to the USMC, in terms of the key program criteria of survivability, sustainability, lethality, mobility, and life cycle cost. Commercial software programs were used to ensure mathematical and statistical validity of the results of the study. The trade study results were used to prioritize evaluation criteria for the SLEP solicitation. Booz-Allen-Hamilton was contracted to assist us in conducting the study, and Georgia Tech was used to independently evaluate the results. The trade study model will continue to be refined and used throughout SLEP contract performance, to assist us in further trade analysis as the SLEP design matures. Other program offices, such as the Canadian LAV PMO, have expressed interest in using our trade study process. Cost as an Independent Variable (CAIV) is an essential element of the LAV SLEP program. Life Cycle Cost (LCC) was a key factor in the trade study that prioritized the upgrade candidates. The SLEP solicitation continues to emphasize CAIV through several mechanisms: (a) the offeror's CAIV program approach is an evaluation factor for award; (b) each offeror is required to submit development cost and Design to Unit Production Cost (DTUPC) goals that will become part of the contract, as well as a CAIV program plan; (c) successful achievement of contract cost goals is emphasized by making this an incentive fee area; (d) progress toward achievement of cost goals, including subsequently developed LCC goals, is addressed at design reviews and status reviews; and (e) a clause was included that allows the contractor to seek relief when design decisions drive up short run (development and production) costs but result in long term overall LCC benefits. Finally, the SLEP solicitation identified available funding as not to exceed requirements, and announced our intent to select the offeror that could provide the most upgrade capability within existing funding.
Best Value for the Government: Realizing that the technical data package for the LAV is proprietary, PM-LAV still decided to pursue competition for the LAV SLEP program, due to the potential benefits of lower cost and increased access to advanced technology provided by competition. To increase the possibility of effective competition, we (a) conducted a detailed market survey, which indicated strong commercial interest; (b) offered to loan vehicles to potential offerors (3loans were executed); (c) made vehicles available for viewing at sites across the country for potential offerors not interested in formal loans; (d) released all available non-proprietary information on a CD-ROM; and (e) used a draft solicitation and bidders conference to encourage comments on methods to increase competition. PM-LAV signed a cooperative agreement with Canada and Australia, to seek avenues of mutual benefit for the LAV user nations. The User Nation Group has been used to provide best value to the USMC through maximizing the standardization and interoperability of the User Nations. One example of the success of this union can be found where the Marine Corps recently received 541 LAV tire and wheel assemblies free of charge from the Canadian Armed Forces. Working closely with HQMC and DSCC Columbus, PM-LAV obtained second destination transportation money to transport these wheel and tire assemblies from Bosnia to CONUS, bypassed entry into the supply system, and distributed the assemblies to each LAR Bn on a fair share basis at no cost to the battalions. For a total of $60,000 in transportation costs, the USMC received LAV wheel and tire assemblies worth $733,000. The User Nation Group members are also working together to try to standardize parts and combine efforts to reduce vehicle signature.
Integrating Defense with the Commercial Base and Practices: PM-LAV initiated a partnering agreement with the Marine Corps Logistics Bases (MARCORLOGBASES) depots and the LAV developer, Diesel Division, GM of Canada (DDGM), to seek ways to reduce life cycle costs for the USMC through leveraging the unique expertise of each organization. The initial product of the agreement was a proof-of-principle test for Direct Vendor Delivery (DVD) on LAV spares. The DVD test will reduce Government support costs by avoiding DLA storage/stocking charges, and will reduce depot downtime due to lack of parts.
Promoting Continuous Improvement of the Acquisition Process: PM-LAV reorganized into product focused, cross functional IPTs in 1995. This organization change has produced significant improvement in terms of increasing customer focus and reducing acquisition cycle time. We have reinforced the importance of teaming through including team objectives in individual performance appraisals, and empowered the IPTs through team charters. Cost focus has improved by requiring teams to manage their programs to an approved budget. PM-LAV has also worked to extend teaming to other organizations, including our contractors, through Partnering Agreements and Alpha Contracting. PM-LAV has reduced Acquisition Lead Time (ALT) by an estimated 25% through co-location of a PCO and through combining Procurement Analyst and Contract Specialist Functions. We have also stressed the importance of continuous learning through including acquisition/acquisition reforming training goals in each team member's performance objectives.
Accomplishing Specific Goals Associated with Acquisition Reform Initiatives: PM-LAV has institutionalized the principles of acquisition reform through dedicated use of an Acquisition Reform Plan. This plan, initially implemented in 1997 and updated yearly since, includes short term (1 year) and long term (out to 5 years) metrics by which to measure improvements in our business processes through use of acquisition reform techniques. The plan is provided to all PM-LAV employees, and status is reported on a regular basis. Each IPT is required to implement the plan through including appropriate goals and metrics in their team charters. An example of the success of this approach is the area of integrated testing. Through the goal/metric of reducing testing through combining tests, using contractor test data, using modeling & simulation, and other methods, PM-LAV achieved estimated cost avoidance of $3M since 1997.
PM-LAV has been a leader in the USMC in implementing an Integrated Data Environment (IDE) ("Paperless PM"). We successfully completed Phase I of this project, in which we mapped our "as is" business environment using business process reengineering techniques. In Phases II and III, we will implement a pilot automated project, and finally complete our full IDE. The goal of our IDE is to allow our "virtual IPTs" to seamlessly collaborate and share data regardless of format or physical location; and to increase data sharing and communication with our vendors and customers. We have advertised our commitment to using automation to reduce cycle time through requiring the eventual SLEP contractor to interface with our IDE to deliver data electronically and exchange information. We have also benchmarked other organizations such as MCLB Albany and PM Blackhawk to identify IDE "best practices" and "lessons learned," so as to reduce time and cost associated with full implementation. As an initial step in improving communication with our users and industry partners, we executed a significant upgrade in the information and format contained in the PM-LAV website (http://www.tacom.army.mil/lav).
Our plan is to eventually allow users to use the website to submit QDRs/RODs, ask questions, gather information, etc. PM-LAV has partnered with DCMC Americas and DDGM to aggressively implement the DoD's Single Process Initiative (SPI) program in order to reduce government unique processes and the associated overhead costs. We have implemented 3 SPI process changes to date, with an estimated cost avoidance of $1M. PM-LAV has also used the SPI Management Council as a forum for improving communication with the contractor and DCMC, to increase the efficiency of our overall customer support.
