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7 Findings and Recommendations
Pages 40-51

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From page 40...
... 5. Increase DOD and defense sector awareness of planned and emerging commercial technologies and capabilities.
From page 41...
... ICMM offers defense prime contractors the same rewards and business potentials as commercial original equipment manufacturers (OEMs) , but only if DOD changes acquisition practices identified as barriers, especially profit policies and provisions that bias make/buy decisions.
From page 42...
... that is steeped in commercial practice; Government acquisition provisions that commercial suppliers are unwilling to accept, including cost accounting, auditing, specialized specs and standards, procurement laws and socioeconomic provisions, and logistics practices; · Government practices on intellectual property rights that are incompatible with commercial practice; Acquisition and upgrade cycle times that are drastically misaligned with commercial cycles, including lengthy test and evaluation and requalification requirements; A requirements process for new systems that is often incompatible with evolutionary commercial capabilities and development practices and that does not set cost requirements based on ICMM opportunities; A definition of a commercial product or service (FAR 2.101) that significantly constrains the ability to procure commercial R&D; · A lack of effort on the part of DOD commands to fully implement FAR Part 12, Acquisition of Commercial Items; Failure to take full advantage of DEARS profit policy provisions on technology innovation continued emphasis on investment in new facilities acts as a disincentive to commercial outsourcing; Lack of modular equipment architectures, such as modular open systems architecture (MOSA)
From page 43...
... The committee finds that current DOD knowledge of commercial markets and products is inadequate for assessing emerging commercial products and capabilities and taking them into account in defense system plans and requirements. Defense contractors can help provide improved insight into the commercial base, but DOD needs its own (in-house or contracted)
From page 44...
... should issue specific policy statements and implementing guidelines that remove barriers to the use of commercial products and processes, that provide metrics for commercial content in military systems, and that monitor implementation in milestone reviews. Implementing guidelines should specifically include the following: · Source selection factors.
From page 45...
... Particular emphasis should be placed on the robust implementation of the technology innovation provisions of DEARS 215.404-71-2. In addition, DOD should seek changes in intellectual property and data rights laws to align DOD practice with commercial practice, including negotiation of field-of-use rights and limiting technology exchange to specific contracts, people, and durations using commercial nondisclosure agreements.
From page 46...
... and contracting officers identify latitude in the existing legal and regulatory language that would allow procurement of products and services from the commercial sector. Recruit faculty with skills in commercial industry practices, especially in the areas of commercial pricing techniques and commercial intellectual property issues.
From page 47...
... Reexamine the present roles and missions of the Defense Production Act Titles I and III programs, including the Diminishing Manufacturing Sources and Industrial Base Analysis programs and processes, to ascertain their full potential for supporting a more robust transformation of the defense industrial base to an ICMM base. Focus and fund the DOD ManTech Program (and its service/DLA components)
From page 48...
... Supplementing this in-house capability with access to commercial market research companies and their knowledge bases. Encouraging defense prime contractors to establish business relationships that give them insight into the proprietary plans of commercial partners and allow them to assess ICMM possibilities for emerging commercial technologies and planned production capabilities.
From page 49...
... The Director of Defense Research and Engineering should establish a program to develop generally applicable solutions to mitigate the effects of differences between military operating environments and commercial operating environments. Examples of solutions are designs and manufacturing methods that harden commercial items to perform reliably in military environments (temperature, humidity, shock, vibration, and radiation)
From page 50...
... To take full advantage of these advances, DOD needs to be more actively involved in commercial standards development processes to ensure early consideration of the interfaces needed for defense applications. Commercial industry will generally not make changes to accommodate defense needs once standards are set.
From page 51...
... While progress has been made with COTS end items and components, the opportunities for custom items using commercial production capabilities have not been well capitalized on. There is also a broad range of commercial practices that can be applied throughout the life cycle of virtually all military systems.


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