19 May 2009 -- Future Trend in Defense Acquisition

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Presented by Major Michelle “Shelli” Brunswick Professor, Acquisition Management The views presented here do not represent those of the DOD or DAU.

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Future Trends in Defense Acquisition presented for the Southbay NCMA Chapter, 19 May 2009

Transcript of 19 May 2009 -- Future Trend in Defense Acquisition

Page 1: 19 May 2009 -- Future Trend in Defense Acquisition

Presented by

Major Michelle “Shelli” BrunswickProfessor, Acquisition Management

The views presented here do not represent those of the DOD or DAU.

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Overview• OSD

– Threats– Politics– Weapon Systems– Research

• AT&L– Acquisition Process– Organization– Workforce

• Industry– Industry’s Role– Industrial Base Changes– Prime and Sub-prime Contractor– Industry’s Response to Market Forces– Global Economy

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OSD

“The greatest strength of our armed forces is the initiative and adaptability of our people.” MILCOM 2006 Conference

Gordon England – DEPSECDEF•OSD

–Threats–Politics–Weapon Systems–Research

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Threats

“What we do know is that the threats and challenges we face abroad in the first decade of the 21st century will extend well beyond the traditional domain of any single government agency.” Kansas State University Lecture, November 2007

Robert Gates - SECDEF

•Future threats

•Weakened economy

•Partnerships

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Future Threats

“A consensus is emerging that U.S. forces should prepare for ‘hybrid’ war where they may face unconventional fighters or insurgents, who are likely to be equipped with modern weapons and information technology.” September 2008, National Defense Magazine

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Economy

“China’s central bank, the People’s Bank of China, praised Washington’s move [to take over Freddie Mac and FannieMae], noting that ‘America’s financial market influences the stability of the global economic and financial markets’.” 9 September 2008, James, T. Areddy, The Wall Street Journal

Our core economy enables our strength. One underlying cause of a nation’s collapse is an economic failure, an example is the Soviet Union. The key is a strong ‘economic engine’. 19 February 2008

Michael C. Gass President and CEO for

United Launch Alliance

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Partnerships

The most important thing the military can do is prepare friends and allied nations to defend and govern themselves. National Defense Strategy, June 2008

“"We did talk about learning from the lessons of the past. We talked about the importance of moving forward. The United States, I've said many times, doesn't have any permanent enemies." Secretary of State Condoleezza Rice, 5 September 2008

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Partnerships

“The Iraqi government is seeking to buy 36 advanced F-16 fighters…a move that could help reduce its reliance on U.S. airpower and potentially allow more American forces to withdraw…The F-16 is one of the most widely exported fighters in the world. More than 4,400 have been built and are in service with 25 countries.” 5 September 2008, The Wall Street Journal, August Cole and Yochi J. Dreazen

“The U.S. Defense Department said the sale of the Boeing GBU-39 smart bombs would be consistent with the U.S. interest of assisting Israel ‘to develop and maintain a strong andready self-defense’.” International Herald Tribune, 15 September 2008

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Politics

“In my judgment, the Department today is overburdened with rules, regulations, and legislation that limit effectiveness.” Statement Before the House Armed Services Committee, June 2007

Gordon England – DEPSECDEF

•Congress authorizes the budget•Congressional legislation

“The Department strongly supports the improvements in the areas of defense acquisition and policy that are addressed in S. 454, the Weapon Systems Acquisition Reform Act of 2009 and in H.R. 2101, the Weapons System Reform Through Technical Knowledge and Oversight Act of 2009.” 12 May 2009 Secretary Ashton B. Carter, USD (AT&L)

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Legislation

“There’s a trade-off between regulations [of the industrial base] and market forces [that shape our industries], and we walk a narrow line between the two. I’m worried thatperhaps we’re going too far now in the direction of regulation as a result of reactions[to scandals, concerns about the integrity of the system]. The pendulum swings between these two positions on a cycle, if you consider the history of the industrialbase.” ICAF, 2005

Dr. Jacques Gansler -- former Under

Secretary for AT&L

“I don’t see government regulations being streamlined in any significant way in the years head. Industry is going global, yet our security procedures really discourage that.” 1 March 2008

Dr. John J. Hamre Former Deputy

Secretary of Defense

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Military Budget

“Wall Street's financial crisis and Congress's $700 billion rescue plan could take atoll on the Army's budget in the coming year.” 29 September 2008

•Reduced budget•Reduced manpower•Increased entitlement spending•Increased national debt

Pete Geren – Secretary of the U.S.

Army

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Defense Spending

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Defense Spending

“President Bush on Tuesday signed a sprawling stopgap spending bill to keep the government running for the next 12 months…The measure is dominated by $488 billion for the Pentagon, $40 billion the Homeland Security Department and $73 billion for veterans‘ programs and military base construction projects.” LA Times, 1 October 2008

“I think what worries me is what kind of money are we going to be able to come up with under a new president. A new president is going to find that it’s easy to campaign and say what you want to do, but domestic demands are so high that it’s going to be very difficult not to cut defense.” Representative John Murtha, 27 February 2008

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Weapon Systems

“What the department is seeking is timely synchronization and integrated delivery of capabilities—and to do it within projected costs and on schedule. The approach is to identify gaps and seams, to eliminate redundancies except by design, and to make sure that solutions are completely interoperable.” MILCOM 2006Conference

Gordon England – DEPSECDEF

• Information dominance• System-of-

Systems– Net-centric

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Cost

“In the year 2054, the entire defense budget will purchase just one aircraft. The aircraftwill have to be shared by the Air Force and the Navy 3 ½ days each per week except for leap year, when it will be made available to the Marines for the extra day.”Augustine’s Law Number XVI

Norman R. AugustineChairman and Chief Executive Officer,

RetiredLockheed Martin

Corporation

“I wish I had a dollar for every time I have heard the often repeated refrain that DoD will soon only be able to buy one ship and one airplane and on ground vehicle. ” 13 Jun 2008

Hon. John J. Young, Jr. USD(AT&L)

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Cost

The causes leading to Augustine’s scenario. “First flag officers want their weapon systems to do everything. Second, the wish to make changes throughout the development cycle ofthe weapon system…Third, the federal Bureaucracy guarantees inefficiencies… Fourth,there is a reluctance to purchase extant systems developed by other nations.” December 2007

Hon. John J. Young, Jr. USD(AT&L)

“I continue to appeal to everyone to focus on lowering cost. Look for ways to modestly adjust specifications or requirements in order to lower cost without seriously impactingcapability – remember it is your tax dollar that is helping pay for our systems . Further, We should want every dollar to buy the maximum amount of capability for the warfighterand the taxpayer. We are looking for elusive bargains.” 13 Jun 2008

Dr. Jan P. MuczykProfessor Emeritus of Management, Graduate School of Engineering and Management, AFIT

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Research

“The greatest long-term threat to America, and to our close friends and allies, is falling behind in science and technology.” MILCOM 2006Conference

Gordon England – DEPSECDEF•Current expenditures vs. long-term expenditures

•Driver of technology vs. receiver of technology

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Current vs. Long-term Expenditures

“There is a deep bias in our budgeting system favoring current expendituresagainst long-term expenditures. This bias is towards operations and againstinvestment. Money that would have been set aside for research and development is going towards personnel and operations supporting the war in Iraq and Afghanistan.” 1 March 2008

Dr. John J. Hamre Former Deputy

Secretary of Defense

The military must find a balance between conventional and irregular wars. Admiral Michael G. Mullen, Chairman of the Joint Chiefs

Admiral Michael G. Mullen, Chairman of

the Joint Chiefs

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Joint

“We have to maximize our dollars to do [joint] systems. Each Service has a different set of requirements. When you can bring a joint system together to meet those requirements, it’s a pretty doggone good thing. Joint programs arenot about politics or marketing, they give you capabilities.” 23 September 2008

Major General Charles Cartwright, Program Manager for Future

Combat System

Congress has levied joint-oriented requirements forcing agencies and Servicesto develop a joint policy and doctrine for managing contracts in theatre. We must have these joint documents so we don’t have to relearn lessons. A futureshortage of defense funds will require a more joint perspective In developing and utilizing capability. 7 March 2008

Keith Ernst – former Acting Director, DCMA

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Driver vs. receiver of technology

“The globalization of technology and production means that defense-fundedprograms no longer drive technology development in many areas, and in fact,commercial technology now leads DOD in many areas.” April 2009

“A platform’s mission computer will have its lineage traceable to a commercial processor, such as the Intel dual-core found in commercial laptops.” 24 February 2008

Lt. Gen Ted Bowlds, USAF -- Commander

ESC

Defense Science Board—Creating a

DOD Strategic Acquisition Platform

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AT&L

“We must have well-identified requirements, adequate funding and robust processes utilized by trained personnel that can execute the program.” 7 March 2008

Keith Ernst – former Acting Director, DCMA

•ATL–Acquisition Process–Organization –Work Force

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Acquisition Process

“But for those programs that do have cost and schedule growth, the biggestdrivers are unstable requirements, immature technologies, and funding instability.” 3 June 2008

•Acquisition Process–Requirements Process–Technology Maturity–Agility–Over Optimism–Cost Estimating–Funding–Oversight

Hon. John J. Young, Jr. USD(AT&L)

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“At the strategic level, DOD’s processes for identifying warfighter needs, allocating resources, and developing and procuring weapon systems—whichtogether define DOD’s overall weapon system investment strategy—are fragmented and broken.” 3 June 2008, GAO

Acquisition Process

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Acquisition Process

“Growing evidence of the need to improve acquisition practices, program management, and system engineering skills in both government and defenseIndustry.” 2008, Foreign Policy Research Institute

Secretary Ashton B. Carter – USD AT&L

“What kind of military does the United States need and why?”

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“DoD recently revised its policy and introduced several initiatives. The revisedpolicy, if implemented properly, could provide a foundation for developingindividual acquisition programs with sound, knowledge-based business cases.The policy recommends the completion of key systems engineering activitiesestablishes early milestone reviews, requires competitive prototyping, and establishes review boards to manage potential requirements changes to ongoing programs.” 3 March 2009 GAO

New DoDI 5000.02

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IOC

Technology Development

Production & Deployment

Operations & Support

FRP DecisionReview

FOCMaterielSolutionAnalysisMateriel Development Decision

User Needs

Technology Opportunities & Resources

Defense Acquisition Management System - 2008

ProgramInitiation

IOCBConcept

RefinementSystem Development

& DemonstrationProduction &Deployment

Operations &Support

C

FRP DecisionReview

FOC

TechnologyDevelopment

ProgramInitiation

Design ReadinessReview

ConceptDecision

User Needs &Technology Opportunities

BA C

A

Defense Acquisition Management Framework- 2003

Comparison of 2003 vs. 2008

Focus of major changes

Engineering and Manufacturing Development

Post-CDRAssessment

26

PDRPDR

or

Post PDRAssessment

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Requirements Process

“The DOD is approving more new programs than fiscal resources can support.This problem is compounded by the highly complex and interdependent programs that are commanding larger budgets than past programs.” 3 June 2008, GAO

Big “A”

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Requirements Process

“Stop tinkering with requirements for weapons systems because such actionscause cost overruns and schedule delays.” 30 July 2007

Little “A”

Hon. John J. Young, Jr. USD(AT&L)

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Requirements Process

“To limit cost growth, the DOD should establish an early program baseline and maintain it throughout the acquisition process.” Steven R. Meier, CIA, March 2008

Hon. John J. Young, Jr. USD(AT&L)

Configuration Steering Boards will review all proposed requirement changes, and any proposed technical configuration changes which could impact cost andschedule. Boards can reject any changes. 3 June 2008

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$$

Technology Maturity

“The GAO reported that of the programs assessed, only 15 percent entered development with demonstrated high levels of technology maturity, causing many programs to experience significant growth in development cost.” 15 November 2005, GAO

Incremental development vs quantum leaps

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Technology Maturity

I have expanded the use of Defense Support Teams who are made up of outside world-class technical experts to address our toughest program technical issues.3 Jun 2008

Hon. John J. Young, Jr. USD(AT&L)

“I have issued policy requiring competitive, technically mature prototyping. My intent is to rectify problems of inadequate technology maturity and lack of understanding of the critical program development path.”3 Jun 2008

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Agility

“…If I tried to pull that through the current system, God only knows how long itwould have taken. The Army needs to be able to buy off-the-shelf hardware and adapt it for combat use quickly. The MRAP is a ‘perfect example’ of the model that should be adopted. The current system doesn’t conform to that.” March 2009

Transitioning from the traditional acquisition approach to a more agileacquisition approach which allows more flexibility due to the uncertainty of the future. More responsive—not locked into a product that may not be relevantin the future. 19 March 2008

Gen. Peter ChiarelliArmy, Vice Chief of Staff

Dr. Patricia SandersFormer, Executive Director for the Missile Defense Agency

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Over Optimism

“Industry can also play a part and fuel overzealous advocacy if a low bid is submitted to the government for a large acquisition in order to capture the contract. Steven R. Meier, CIA, March 2008

“Development costs for major acquisition programs are consistently under-estimated at program initiation by 30% to 40% in large part because the estimates are based on limited knowledge and optimistic assumptions about system requirements and critical technologies.” GAO, July 2008

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Cost Estimating

“DOD acquisition programs fail because the Department continues to rely on unreasonable cost and schedule estimates, established performanceexpectations, insist on the use of immature technologies, and direct costly changes to program requirements, production quantities and funding levels in the middle of ongoing programs.” 3 Jun 2008

“Government has to create or recreate a robust cost estimating organization.”4 February 2008

Senator Carl LevinChairman of Senate Armed Services Committee

Tom Bowler Vice President, Programs Bath Iron Works

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Cost Estimating

“…the environment and incentives that lead DOD and the military services to overpromise on capability and underestimate costs in order to sell new programs and capture funding will need to change.” GAO, 29 April 2008

“DOD’s inability to allocate funding effectively to programs is largely driven bythe acceptance of unrealistic cost estimates, and a failure to balance needs based on available resources.” GAO, July 2008

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Funding

“Funding instability on complex weapon systems causes renegotiation and re-baselining of the plans, schedule and integration. This has a ripple effect through the supply chain.” 6 March 2008

Keith Ernst – former Acting Director, DCMA

“DOD pays for poorly performing programs by expropriating funds from other programs. This type of action destabilizes the other programs and reducesthe overall buying power of the defense dollar.” 7 March 2008

Nick Kuzemka – VP, Program Management,

Lockheed Martin

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Funding

“Under the capital funding concept, the Department guarantees a certain level of funding for a fixed period of time.” Hearing on “Oversight of Defense Department Acquisitions” 29 April 2008

J. David Patterson -- Principal Deputy

Under Secretary of Defense (Comptroller)

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Streamlined Acquisition

“…the acquisition plan should include an outline for acquiring new capabilitiesIn multiple, shorter-phased increments—referred to as block upgrade Acquisition made possible by incremental spiral development.” DSB April 2009

“Streamlining means fewer but more experienced people, fewer committees, fewer reviews, and more effective and experienced leadership—which shouldlead to more efficient execution with less risk.” DSB April 2009

Defense Science Board –Creating a

DOD Strategic Acquisition Platform

CDD1TechnologyDevelopmen

tAoA

DAB

EMD Increment 1

Materiel SolutionAnalysis

DAB

DAB

DAB

JROC JROC JROC

Ga

p A

na

lys

is

ICD CPD1

JROC

CDD2

JROC

CBA

TechnologyDevelopment

EMD Increment 2

CPD2

DAB

C

DAB

JROC

CDD3

JROC

TechnologyDevelopment

EMD Increment 3 CPD3

DAB

B

B

. . .Joint Operating ConceptsJoint Functional Concepts

DoDStrategic Guidance

DAB

A

DAB

A

MDD

Continuous Technology Development and Maturation

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Oversight

The GAO concluded that DOD policy provides for a series of early reviews focused on the acquisition process. Unfortunately, these reviews are often skipped or are not fully implemented. March 2007

“I must also certify that the program demonstrates a high likelihood of accomplishing its intended mission. These are two of the ten criteria I certify.” 3 June 2008

Hon. John J. Young, Jr. USD(AT&L)

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Oversight

The DOD needs to make tough decisions -- which programs to pursue, and more importantly, not pursue; make sure programs are executable; lock in requirements before programs are ever started; and make it clear who is responsible for what and hold people accountable when responsibilities are not fulfilled. 29 April 2008

“Take control of the processes to ensure you have an executable, funded, and manageable program. Be prepared to be held accountable for execution of your program.” 6 June 2008

Hon. John J. Young, Jr. USD(AT&L)

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Organization

“The organization is only as good as the people you put in it” 28 March 2008

Ralph DiCicco, JR – Acting Dir., AF/ ACE

Top 100 Defense Contractors

“Agencies need to consider developing a total workforce strategy … address the extent of contractor use and the appropriate mix of contractor and civilian and military personnel…identifying and distinguishing the responsibilities of contractors, civilians and military personnel are critical to ensure the contractor roles are appropriate.” 11 March 2008

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Inexperienced Workforce

An inexperienced workforce coupled with high turnover rates can be significantcontributors to cost and schedule growth on many DoD and Intelligence Community programs…March 2008

“Many problems appear to be caused by the use of immature technology, requirements ‘creep’, or funding instability. Such problems, however, are reallyonly symptoms of the lack of experienced judgment on the part of Departmentpersonnel who structure acquisition programs in a way that will almost certainly lead to failure.” April 2009

Defense Science Board—Creating a

DOD Strategic Acquisition Platform

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Inexperienced Workforce

“We are losing our competence as a government to be an effective buyer.” 1 March 2008

Dr. John J. Hamre -- former DEPSECDEFHon. John J. Young, Jr.

USD(AT&L)

“There is broad agreement that we need to grow the acquisition workforce. TheAcquisition workforce has remained relatively flat since 2001 while the Defense Department budget for development and acquisition has increased by 119%...We need to be more precise about how many people we need, why the people Are needed, and what specific skills these people need to have.” 13 March 2009

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Organization

The current joint programs are not able to streamline the requirements process across the Services. For example, the JSF Program Office has a RequirementsBoard where the different Services convene. However, after a joint decision hasbeen made, each Service is still required to go through their individual approvalchannels” 6 March 2008

Nick Kuzemka – VP, Program Management,

Lockheed Martin

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Work Force

“We must help our people succeed through training and experience.” 18 April 2008

Hon. John J. Young, Jr. USD(AT&L)

•Workforce–Experience–Corporate Knowledge–Knowledge Sharing–Training–Certification–Tools–Workforce Challenge

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Inexperienced Workforce

An inexperienced workforce coupled with high turnover rates can be significantcontributors to cost and schedule growth on many DoD and Intelligence Community programs. Steven R. Meier, CIA, March 2008

“Many problems appear to be caused by the use of immature technology, requirements ‘creep’, or funding instability. Such problems, however, are reallyonly symptoms of the lack of experienced judgment on the part of Departmentpersonnel who structure acquisition programs in a way that will almost certainlylead to failure.” DSB April 2009

Defense Science Board—Creating a

DOD Strategic Acquisition Platform

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Inexperienced Workforce

“We are losing our competence as a government to be an effective buyer.” 1 March 2008

Dr. John J. Hamre -- former DEPSECDEF

“There is broad agreement that we need to grow the acquisition workforce. TheAcquisition workforce has remained relatively flat since 2001 while the Defense Department budget for development and acquisition has increased by 119%...We need to be more precise about how many people we need, why the people Are needed, and what specific skills these people need to have.” 13 March 2009

Hon. John J. Young, Jr. USD(AT&L)

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Experience

Program Management is a profession just like any other profession, and it musthave upward visibility and mobility. The Department must re-professionalize theprogram management career field by providing personnel with formal education and practical experience. 19 February 2008

Lt . Gen Lawrence P. Farrell, Jr., USAF (Ret)

-- President & CEO NDIA

The greatest challenge to developing experienced program managers is the decrease in DOD weapon system procurement. One solution to this shortageis to rotate DOD program managers with program managers in other U.S. government agencies and industry and vice versa.

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Corporate Knowledge

20% of knowledge in an organization is information you can search for in books, regulations or manual. The remaining 80% of the knowledge resides inexperience, insight and lessons learned. This corporate knowledge is the why and how to do things, knowing what works and what doesn’t work. 12 February 2008

Colonel William S. “Bill” Kaplan, (ret) USAF, Chief Knowledge Officer, Acquisition Solutions

A single drop of water can send a ripple for miles; similarly a single idea,given at the right time, can help you for years to come.

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Knowledge Sharing

The government needs to capture the knowledge in each program office and establish a partnership with industry to enhance and encourage knowledge sharing. There needs to be knowledge sharing among the various Servicesand with industry to capitalize on lessons learned. 24 January 2008

Allison Stiller, Deputy Assistant Secretary of the Navy, Research, Development, and Acquisition, Ship Programs

Hon. John J. Young, Jr. USD(AT&L)

“As part of our ‘knowledge sharing’ initiatives, we are participating in the National Defense Industrial Association’s Industrial Committee on Program Management.” … “We are teaming with industry to develop and expand theuse of Program Startup Workshops to improve communication and clarify expectations up front.” 3 June 2008

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Training

“We are increasing our use of just-in-time training. DAU is deploying its “Core Plus” concept that involves additional position-specific coursework for programmangers in specialty areas…We have initiatives led by DAU to ensure our program managers have access to an array of tools and templates. ” 3 June 2008

Hon. John J. Young, Jr. USD(AT&L)

“We are instituting a requirements manager certification course developed in conjunction with the Joint Staff and Defense Acquisition University to ensurethat requirements are written with a better understanding of and appreciation for the needs of the acquisition process.” 3 June 2008

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Certification

“I would hope that the DOD and Congress would accept certification and credentialing by professional societies (e.g. PMI, NCMA, etc.) as totally equivalent to the DOD methodology.” 18 February 2008

“[The] organization will continue to be under the DAWIA credential and qualification community. Constant training will be paramount and increasedcollaboration among industry, educators, and training institutes will prevail inorder to have a steady stream of qualified personnel.” 7 March 2008

James M. Gallagher, PMPPresident, Togra Associates

Rex Reagan Manager at BearingPoint, Inc

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Tools

The workforce of today is more capable than the workforce of 30 years ago because of the tools employed in the work environment to make them more productive...The workforce will only continue to improve and become moreproductive with time. 27 March 2008

Secretary Gary E. Payton, Deputy Under Secretary of the Air Force for Space Programs

Risk management and system engineering tools, along with networked communications, should enhance transparency of the acquisition process…and real-time reassessment of the risk profile. 27 February 2008

Lt. Gen George Muellner (ret) USAF, former President, of Advanced Systems, IDS, Boeing

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Work Force Challenge

“I think the challenge will be maintaining a trained work force. Today there isa gap in engineering trained resources…more emphasis is needed to interestyoung people in pursuing a career in engineering”. 10 February 2008

“Central to these improvements is experienced personnel—in leadership, in the acquisition workforce, and, equally important, in the contractor base.” April 2009

George Guerra -- VP HALE System,

Northrop Grumman Corp.

Defense Science Board—Creating a

DOD Strategic Acquisition Platform

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Work Force Challenge

“The Department of Defense will face a worldwide civilian manning challengein the near future, because roughly 22% of its work force will reach retirement age within two years. We really will be in dire straits because of attrition” 13 March 2008

“We launched the Federal Acquisition Intern Coalition, a government-wide recruitment, development, and retention campaign that promotes acquisition asa career of choice, and serves as a “one stop shop” for job seekers to findinternship and career development opportunities.” 14 February 2008

Patricia Bradshaw, Deputy Undersecretary of

Defense for Civilian Personnel Policy

Paul A. Denett – Administrator for Federal

Procurement Policy

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Industry

“Change is relentless…I’d say in a single word ‘more’. We see more foreignownership of U.S. assets…more export from U.S. companies into the globalmarketplace…more global supply…more (international) partnering…the globalthreat and the nature of warfare are changing…” June 2005

Mark H. Ronald -- President and CEO, BAE Systems North

America, Inc.•Industry–Industry’s Role–Industrial Base Changes–Role of the Prime & Sub-Prime Contractor–Industry’s Response to Market Forces–Global Economy

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Industry’s Role

“I see industry’s role with the Government in 2025 to be an integrated solution provider.” 2 May 2008

Frederick C. Payne -- Corporate Director of Program Management for BAE Systems, Inc.

“The right direction is team-mate and partner with the government in delivering a capability.” 27 February 2008

Lt. Gen George Muellner (ret) USAF, former President, of Advanced Systems, IDS, Boeing

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Industrial Base Changes

“Domestic mergers will start to decline as compared to the last two decades,but international mergers and acquisitions will increase.” 28 April 2008

Steve Goo -- VP, International

Operations IDS, Boeing

This will lead to the introduction of many non-traditional suppliers, who have not previously been associated with defense work…because of the increased use of commercial products and the reduction in resources for the development of unique military solutions. 24 February 2008

Lt. Gen Ted Bowlds, USAF -- Commander

ESC

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Industrial Base

“Moving toward fewer competitors in each market, and moving towards a European concept. One company does everything. If they are not competentyou run the risk of not getting the product.” Our eagerness to consolidate companies has led to a lack of competition and innovation. Secretary Payton 27 March 2008

“Importantly, DOD’s desire to acquire commercial systems should not be basedon a presumption that commercial suppliers are interested in doing business with the Department. In fact, the onerous nature of government rules and requirements act as a deterrent to many potential suppliers. DOD needs to putIncentives in place to encourage commercial and foreign suppliers.” April 2009

Secretary Gary E. Payton, Deputy Under Secretary of the Air Force for Space Programs

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Role of the Prime and Sub-Prime Contractor

“The shift is already underway with prime contractors and subprime contractorshaving close working relationships. Contractor teams will align themselves early on in the acquisition process with common goals and objectives, and they are willing to share the fee.” 10 Feb 2008

George Guerra -- VP HALE System,

Northrop Grumman Corp.

In order for the prime/sub-prime contractor teams to collaborate and communicate more effectively, common systems must be used…The trendwill be for the prime contractor’s systems and processes to be adopted by the sub-prime. 6 Mar 2008

Nick Kuzemka – VP, Program Management,

Lockheed Martin

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Global Economy

“The Department must be prepared for more global involvement in the manufacturing of the components going into weapon systems. This will requirea major cultural shift in thinking about how to produce military hardware [coupled with] National Security concerns.” 14 February 2008

“The government comprises 7% of industry’s space business revenue and many of the subtiers are divesting from government contracts towards more profitable markets. The subtier components are bound by legislation such as ITAR that increases the cost of domestically manufactured products and dis-advantages the U.S. supplier.” 27 March 2008

Secretary Gary E. Payton, Deputy Under Secretary of the Air Force for Space Programs

Col August J. Caponecchi (ret). USAF -- President Emeritus, Tactair Fluid Controls

Inc.

Defense Science Board—Creating a

DOD Strategic Acquisition Platform

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Global Economy

“While the decision to buy European planes has proved politically unpopularamong many, it follows a growing stream of such deals.” The Wall Street Journal, 5 March 2008

“Many government requirements (Berry Amendment, Naval Vessel Rules, ITAR,and others) directly contradict today’s design and manufacturing trends. The current rules significantly harm national security options by limiting DOD accessto commercial and global technologies and allies’ markets.” April 2009

Col August J. Caponecchi (ret). USAF -- President Emeritus, Tactair Fluid Controls

Inc.

Defense Science Board—Creating a

DOD Strategic Acquisition Platform

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Industry’s Response to Market Forces

“Industry supporting defense is reshaping itself to respond to significant changes in military missions. Major defense firms are responding by reducing excess capacity, streamlining processes, and revamping supplierrelationships.” Aug 2005

J. David Patterson -- Principal Deputy

Under Secretary of Defense (Comptroller)

The technical paradigms will evolve, leading to industry’s improved responsiveness and advancement along the curve of flawless execution…this will enhance industry’s ability to deliver to government expectations.6 March 2008

Nick Kuzemka – VP, Program Management,

Lockheed Martin

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Conclusion

“Buy the right thing, the right way, with the right process.” 5 March 2008

General Lester L. Lyles (Ret) USAF -- former Commander, AFMC

The acquisition process can go one of two ways. It can get more bureaucraticand stringent or it can embrace solutions from various studies to improvethe whole process. 7 April 2008

Dr. Jacques Gansler -- former Under

Secretary for AT&L

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About the Author

“I believe the initiative, talent and adaptability of our government and industry team will succeed in providing an acquisition process that meets the demanding requirements of our ever changing world.”

Major Brunswick, an Acquisition/Space Professional in the United States Air Force (USAF), is a Professor of Acquisition Management at Defense Acquisition University (DAU) and is Defense Acquisition Workforce Improvement Act (DAWIA) certified in Program Management Level III and a certified Space Professional Level II by the United States Air Force Space Professional Functional Authority. She attained her Project Management Professional (PMP) certification in 2002. She also holds Bachelor’s and Master’s degrees in Business Administration. Major Brunswick has served 23 years in the USAF. Prior to joining the DAU faculty, she was a Program Integrator at Defense Contract Management Agency (DCMA), where she led a multifunctional team on the Missile Defense Agency’s Space Tracking and Surveillance System. Before her assignment at DCMA, she participated in the Air Force Institute of Technology’s Education with Industry with the Boeing Corporation. She entered the acquisition career field with the Space and Missile Systems Center at Los Angeles Air Force Base, California, as a Project Manager and as a Test and Verification Project Officer for the Spacelift Range program. Major Brunswick has served one tour in Iraq with DCMA and a joint tour in Washington, D.C., with the Office for the Administrative Review of the Detention of Enemy Combatants under the authority of the Deputy Secretary of Defense. (E-mail address: [email protected])

Major Michelle “Shelli” Brunswick, USAF -- Professor, Acquisition

Management, DAU

The views presented here do not represent those of the DOD or DAU.