Transcript Slide 1

NDIA Defense
Forum Breakfast
MG JEFFREY SORENSON
Deputy for Acquisition & Systems Management
Office of the Assistant Secretary of the Army
(Acquisition, Logistics and Technology)
21 MARCH 2007
Agenda
• “Big A – little a” of Acquisition
• Army Budget Status
• Industrial Base
• Rapid Acquisition Process
• Summary
2
“Big A – Little a”
One Process – One Team
CAPABILITY
NEED
RESOURCES
ACQUIRE
DEVELOP
CONTRACT
TEST
PRODUCE
FIELD
OPERATE/
SUSTAIN
UPGRADE/
MODERNIZE
FMS
RETIRE
DEMIL
acquisition
ACQUISITION
D O T L M P F
?
Doctrine, Organizations, Training, Leader Development, Materiel, Personnel, Facilities
3
DoD Budget Authority
Since WW II
40%
600
$ (Billions) Constant FY07 Dollars
$618B
550
500
WW II
$567B
$518B
$480B
$513B
WW II
37.9%
30%
450
400
Reagan
Buildup
350
Vietnam
Korea
14.2%
300
War on
Terrorism
Korea
250
Vietnam
9.5%
Reagan
Buildup
6.2%
200
20%
3.0% in 2000--Lowest
since prior to World
War II.
150
GWOT
3.9%
10%
100
DoD % of Gross Domestic Product (GDP)
650
50
0
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
0%
2000
2005
2010
DoD Budget Authority
4
Current Fiscal Guidance
$B
$150
Current Fiscal Guidance (Includes Growth)
$145
$140
140.7
+$68.9B
$135
$130
130.0
+$52.1B
$125
$120
$115
$110
FY 07 Appropriation
FY07 President’s
Budget
Initial April 2006 Fiscal Guidance
110.1
FY 04-06 Actuals
$105
$100
$95
$90
Revised October
Fiscal Guidance
101.0
99.2
95.9
FY04 FY05
FY04
FY06
FY07
FY08
FY08
FY09
FY09 FY10
FY10 FY11
FY11 FY12
FY12 FY13
FY13
5
8 Feb 07
Army Base + GWOT Funding
– FY03-09 ($B)
240
210
• Army FY03-08 Supp Funding = ~ $360B
• Army FY03-08 GWOT Growth = $58.8B
* Note: FY 07/08 Supp requests pending
180
?
150
120
90
60
30
0
FY03
FY04
FY05
FY06
FY07
FY08
FY09
GWOT
24.6
38.3
58.5
65.6
* 90.5
* 83.4
TBD
Base Appn
90.6
95.9
101.0
105.8
110.1
130.0
140.7
Total Army
115.1
134.2
159.5
171.4
200.6
213.4
Actuals
Note: Figures do not include JIEDDO, ISFF, ASFF
Request
6
Industrial Base – Family Tree
Rockwell
Boeing
Argo Systems
Litton Precision Gear
McDonnell Douglas
Hughes Electronics Satellite
Boeing
Jeppesen Sanderson
Honeywell-Electro-Optics
Fairchild Weston Systems Inc.
Loral
Ford Aerospace
BDM International Inc.
Librascope
LTV–Missile Business
IBM–Federal Systems
Unisys Defense
General Dynamics–Ft. Worth
MEL
Lockheed
Martin Marietta
Gould Ocean System Division
General Electric–Aerospace
COMSAT Corp.
Loral
Lockheed
Martin
BDM (Carlyle)
Aerospace Electronic
Systems
Affiliated Computer Services Inc. (ACS)
Commercial Aerostructures
Logicon
General Dynamics Space Business
Northrop
LTV–Aircraft Operations
Grumman Corp.
Westinghouse El. Defense
Ryan Aeronautical
Kistler Aerospace Corp.
Alvis Logistics–EDD Business
Northrop – West Virginia
Northrop
Grumman
Teledyne Ryan Aeronautical
Federal Data Corp.
Taratin
TASC (Primark)
PRC (Black & Decker)
General Instruments–Defense
Varian–Solid State Devices
Litton Industries
Avandale Industries
Newport News Shipbuilding
TRW
Hughes
General Motors
BET PLC's Rediffusion Simulation
General Dynamics Missile Division
Magnavox
REMCO SA
Raytheon
STC PLC–Navigation Systems
TRW-LSI Products Inc.
Corporate Jets
E-Systems
Chrysler Techn. Airborne
Texas Instr. El. Defense
Raytheon
Hughes Electronics
Raytheon – Flight Simulation
Raython Co-Plant, Quincy
Eng &
Const.
Int’l
Aircraft
Integration
Systems
Segment
Vertex
Aerospace
Veridian Corp
GM Defense
Motorola Integrated Info Sys
Galaxy Aerospace
Primex Technologies
Santa Barbara
GTE Government Systems Corp. Units
Gulfstream Aerospace
NASSCO Holdings, Inc.
Computing Devices International, Inc
Lucent Advanced Technology Systems
ockheed Martin Defense Sys, Armament Sys
Bath Iron Works
Chrysler Defense, Inc
General Dynamics
Missile
Operations
1980
Source: SDC, DACIS DM&A
1982
1984
1986
First Wave
1988
1990
1992
Electronics
Division
Fort
Worth
Div.
General
Dynamics
Space
Propulsions
Space Systems
1994
1996
1997
1998
1999
2000
2001
2002
2003
2004
Second Wave
7
$35
Lockheed Martin
Big DoD Contractors Dwarf Field
6 Companies receive
50% of payments
to top 100 contractors
For 2006
Raytheon
$21
General Dynamics
Northrop Grumman
Boeing
$14
Halliburton
2006 Direct DoD Contracts ($B)
$28
$7
$0
1
5
9
13
17
21
25
29
33
37
41
45
49
53
57
Source: DoD Directorate for Information Operations and Reports Procurement Statistics
61
65
69
73
77
81
85
89
93
97
8
Chain of Command (Theoretical)
DAE
AAE
PEO
SVC Program Manager
+30 People
ASA(ALT) Mission:
Effectively and efficiently develop, acquire, field,
and sustain materiel by leveraging domestic,
organic, commercial, and foreign technologies
and capabilities to meet the Army’s current and
future mission requirements.
9
Chain of Command (Realistic)
White
House
Secretary
Of
Defense
Congress
GAO
DOTE
OSD POL
Appointees
OGC
DCMA
DAE
Press
SVC Secretary
Secretariat
ATEC
Users
DoDIG
AAE
AT&L
Staff
IDA’S
ARSTAFF
Staffers
PEO
OTC
Press
Congress
AAA
AMC
Joint
Staff
OMB
DCAA
LCMC
Staffers
SVC Program Manager
+30 People
XXXX
MACOMS
10
Spiral Development
Balancing Act
11
ACAT 1 Programs - Cumulative
Rebaselines by Month
(Period over 1988-2005)
Number of Rebaselines over time period from 1988-2005
70
Data over 17 years serves as a heads up!
60
50
PBDs
PDMs
Auth. Act
Approp. Act
DoD Budget
Is this known occurrence factored into OSD
and Joint Staff processes and planning?
DoD Budget
OMB
President’s
Budget to
Congress
40
Group A
Group B
Group C
Cumulative
30
20
10
0
Jan
Feb
Mar
Apr
May
Jun
Month
Jul
Aug
Sep
Oct
Nov
Dec
12
Current Process
DoD 5000
User Needs &
Technology Opportunities

Process entry at Milestones A, B, or C

Entrance criteria met before entering phase

Evolutionary Acquisition or Single Step to Full
Capability
(Program
Concept
Refinement
C
B Initiation)
A
Technology
Development
FOC
IOC
Production &
Deployment
System Development
& Demonstration
Concept
Decision
Design
Readiness
Review
Pre-Systems Acquisition
Systems Acquisition
LRIP/IOT&E
Operations &
Support
FRP
Decision
Review
Sustainment
Accelerated Process
OIF / OEF
ONS
AR2B
DEVELOPMENT/
PROCUREMENT
SAFETY
RELEASE
RELIABILITY
FIELD
13
# of Approved Operation
Needs Statements (ONS)
1800
1600
1400
Communicate
Shoot
Support
Protect
Move
Other
1200
1000
800
600
400
200
0
FY03
FY04
FY05
FY06
14
FCS Brigade Combat Team
Manned Ground Vehicles (MGV)
Unmanned Aerial Systems (UAS)
Command and
Control
Vehicle (C2V)
Infantry Carrier
Vehicle (ICV)
Class I UAV
Class IV UAV
Mounted Combat
System (MCS)
Reconnaissance
And Surveillance
Vehicle (RSV)
Unattended Ground Systems (UGS)
T-UGS
U-UGS
Common Chassis
Non-Line of
Sight Cannon
(NLOS-C)
Tactical and Urban
Unattended
Ground Sensors
Non-Line of
Sight Mortar
(NLOS-M)
MULE-C
Medical Vehicle
Treatment (MV-T)
FCS Recovery and
Maintenance
Vehicle (FRMV)
Medical Vehicle
Evacuation (MV-E)
Non-Line of Sight
Launch System
(NLOS-LS)
Unmanned Ground Vehicles (UGV)
Multifunction Utility/
Logistics
and Equipment
Countermine and
Transport
MULE-T
Small UGV (SUGV)
Armed Robotic
Vehicle – Assault
(Light) (ARV-A-L)
6 Feb 07
15
FCS (BCT)
System-of-Systems Schedule
16
Current To Future Force
through Technology Spin Outs
FCS – System Development and Demonstration
Spin-out 1
FY 2008-10
Networked Sensors/
Shooters
- Limited Battle
Command
- JTRS (GMR/HMS)
- Unattended ground
sensors
Spin-out 2
FY 2010-12
Spin-out 3
FY 2012-14
Network and Ground/
Air Vehicles
- ABCS to FCS
Battle Command
- ARV-A-L
- Small UGV
- Class I UAV
- Class IV UAV
Systems/ Component
-APS
- Mast Mounted
Sensor
Options:
- Small UGV
- Class 1 UAV
Core
Program
Delivery
FY 2015
Joint
Networked
System of
Systems
- Non-line of sight
launch systems
Fielding 6 current force BCTs/yr (70)
Current
Infantry Stryker
Heavy
Lessons learned
OIF and OEF
RAVEN Tactical UAV
Interceptor Body Armor (IBA)
Counter IED (Warlock, Duke)
Uparmored Vehicles (UAH, AoA)
Buffalo mine-clearing vehicle
Future
Fielding 15 FCS BCTs
– ARH (2009)
– LUH (2008)
– DCGS-A (V3)
(2007)
– Excalibur
Infantry Stryker Heavy
FCS
– WIN-T (2014)
– JTRS AMF (2011-12)
– JTRS (GMR/HMS)
– Apache Longbow Block III (2011)
(2007)
Related Advanced Developments
17
Current GWOT Support – PEOs/PMs
Military
85
Government 38
Contractors 2870
Total
2493
18
Way Ahead
• “Big A – little a” Acquisition
• Health of Industrial Base
Critical to Success
• Rapid Acquisition – Team
Sport!
19
Bottom Line
Program Manager’s Ultimate Decision Tool:
When All Factors Are About Equal,
What Is Best For The Soldier?
20