Breaking the Mold Forging a Common Defense Manufacturing Vision (1993) / Chapter Skim
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Appendix B: A Review of Selected Reports on Defense Acquisition and Management
Appendix B: A Review of Selected Reports on Defense Acquisition and Management
Pages 52-77
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From page 52... ...
It was based upon comprehensive historical case studies of 12 weapon system programs and seven commercial product development programs and upon more limited investigations of several specific research questions. In Part I, the book addresses the consequences of the unusual buyer-seller relationship in the nonmarket environment of the weapon acquisition process.
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From page 53... ...
It also was found that additional contractor investment in basic and applied research, component development, and long lead time production items would benefit the weapon acquisition process. The volume provides only one specific public policy proposal: the development of a top flight data gathering and analysis organization within the Office of the Secretary of Defense to provide the basis for improved program decisions.
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From page 54... ...
to manage combined program/budget review, · use of the time in the annual cycle freed by combining the program and budget reviews to focus additional attention on strategic and resource planning, including resolution of selected major issues prior to the program/ budget review, . greater integration of the internal PPBS and the Presidential resource allocation process, enhancing the DoD's capability to support Presidential decision making, · closer relationship of the program/budget process to the acquisition process.
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From page 55... ...
In April, 1981 the administration launched a series of 32 major management initiatives to improve the defense acquisition process. The DoD Acquisition Improvement Program (AIP)
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From page 56... ...
For example, the Congress approved 21 multiyear programs for which DoD claims savings of $3.4 billion. See Office of Technology Assessment's Holding the Edge: Maintaining the Defense Technology Base, Volume 2, page 20.
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From page 57... ...
The PPSSCC, better known as the Grace Commission, characterizes its recommendations as means for reducing program waste, correcting system failures, improving personnel management, and attacking structural deficiencies within the federal government. The PPSSCC was organized into 36 task forces, 22 of which were assigned to study specific departments and agencies, and 14 to study cross-cutting functions such as personnel, data processing, and procurement practices.
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From page 58... ...
The Grace Commission estimated that net savings in the national security area over a three-year period, after allowing for duplications and overlaps, would be $94 billion. However, the majority of the defense recommendations did not permit cost estimates because they lacked sufficient programmatic detail or because the nature of the recommendations did not lend themselves to savings estimation.
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From page 59... ...
This study focused on the Air Force acquisition process and was undertaken in response to growing concerns over increasing costs and lengthening development and production times for major programs. The goal of the study was not to identify specific solutions, but to highlight key problem areas for later study.
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From page 60... ...
This includes timely implementation of the Defense Acquisition Improvement Program initiatives, development of enhanced cost management tools to ensure that program cost estimates incorporate most likely costs, and development of a comprehensive and realistic program baseline before proceeding into FSD. The study established that program instability (large unplanned changes in program funding and/or schedule)
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From page 61... ...
A major task of the Commission was to evaluate the defense acquisition system, to determine how it might be improved, and to recommend changes that could lead to the acquisition of military equipment with equal or greater performance but at lower cost and with less delay. For this reason, the Commission formed an Acquisition Task Force.
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From page 62... ...
S industrial competitiveness problems: forging the right relations with industry; · improving the acquisition system; · establishing strategic defense industrial plans that support U.S.
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From page 63... ...
The DMB was modeled after the Defense Science Board. Both advisory bodies played a major role in facilitating several other recommendations, such as advising the office of the Production Base Advocate on issues such as factory modernization investments, how to integrate commercial and military production, and how to achieve greater stability in major acquisition programs.
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From page 64... ...
Defense Industry U.S./Japanese Defense Trade and Cooperation - Coping with Escalating Offset Demands Strengthening U.S. Defense Industrial Base .
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From page 65... ...
Lifeline in Danger: An Assessment of the United States Defense Industrial Base.
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From page 66... ...
Boston, Mass: Harvard Business School Press. Fox and Field address two prevailing attitudes toward the government's role in their study of defense acquisition management.
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From page 67... ...
Enhancing the quality of acquisition personnel create clear career paths retain top talent increase promotion opportunities increase salaries increase knowledge of technical and production functions 2. Streamlining the acquisition organization and procedures fewer but more qualified people making decisions reduce oversight within DoD to two levels develop simple government procurement regulations that give procurement personnel far greater freedom to exercise their management decisions (empowerment)
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From page 68... ...
Make organizational changes to ensure that non-traditional uses of advanced technology are encouraged 6. Expanding the use of commercial products take advantage of high volume in the commercial sector at the component level, subsystem level, and even the system level rely less on military specifications, rely more on commercial specifications, and change procurement practices Increase competition, with emphasis on quality and demonstrated performance - rely on market incentives where prior performance and quality are major decision factors overcome hindrances such as higher up-front costs that promise savings later A broad strategy for the defense industry is offered involving five ma .
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From page 69... ...
This report focuses on the management of defense technology base programs and facilities, technology transition, and dual-use technology. It is divided into three sections.
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From page 70... ...
He highlights the extent to which strategies for developing arcane and uncertain technologies have come to be shaped more by the needs of American politics than by the needs of technology. The resulting acquisition process errs systematically in the way it chooses new technologies, develops them into weapon systems, and rushes them prematurely into the field.
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From page 71... ...
This study represents the final report of the Center for Strategic and International Studies (CSIS) Defense Industrial Base Project, which was cochaired by Senators Jeff Bingaman and John McCain.
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From page 72... ...
The report identifies the DoD's inability to reach easily beyond its captive defense industrial base as a central problem. The DoD procurement system virtually forces a separation of the private sector into two discrete economies: defense and non-defense.
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From page 73... ...
The Summer Study Task Force concentrated on the first two alternatives. A number of concepts were examined that showed promise for achieving cost reductions, including competition; use of commercial equipment; reducing the cost of current regulations, specifications, and the acquisition process itself; and minimizing the cost drivers inherent in the process of setting performance requirements.
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From page 74... ...
This DSB study focuses on two main issues: (1) the effectiveness of DoD's Technology Base program in producing technology options for various users and operations; and (2)
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From page 75... ...
The objective of the Task Force was to recommend a strategy and specific actions for government and industry to adopt that would ensure the defense industry's capability to provide the support required to fulfill national strategy objectives. The industrial and technology base faces new and difficult challenges, including global interdependence on resources, an impending loss of technological leadership, and insufficient long-term investment by industry because of a propensity toward short-term planning.
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From page 76... ...
4245.6,"Defense Production Management," 19 January 1984, is a DoD policy to plan production early in the acquisition process and to integrate actions ensuring an orderly transition from development to cost-effective rate production. The policy directive emphasizes the application of fundamental engineering principles during development and production, and calls for an assessment of production risks throughout the acquisition process.
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From page 77... ...
Risks shall be reduced to acceptable levels in accordance with DoDD 4245.7. DoDD 4245.7,"Transition From Development to Production," 19 January 1984, requires the application of integrated design and engineering disciplines in the construction and conduct of defense acquisition programs.
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