Transcript Slide 1

David R. Gust
MG, USA (RET)
President, USfalcon Inc
www.usfalcon.com
AGENDA
• My Acquisition Experience
• Past Acquisition Reform
• Defense Enterprise Program Concept
• Beyond DOD I 5000 Policy
• Small Business Support/Categories
• Some Problem Areas
• Suggestions for Change
AN/GRC 3 SERIES RADIO
AN/GRC 3 SERIES RADIO
Component
User
# ChannelsFreq. Range
RT-66
Armor
80
20-27.9 MHZ
RT-67
Artillery
120
27-39 MHZ
RT-68
Infantry
170
38-55 MHZ
For Patrols in Baltimore, RT units had to be
exchanged for frequency compatibility
Acquisition Experience
• AMCPM – MI
Oct 84 – Mar 86
• PEO - Fire Support Apr 86 - Jan 88
• PEO - IEW
Feb 88 - Jun 88
• PEO - COMM
Aug 89 - Jun 95
• PEO - IEW
Jul 95 - Nov 99
• AMC DCSRDA
Nov 99 - ETS (Oct 00)
Acquisition Reform
The Hoover
Commission
(1949)
The Hoover
Commission
(1955)
The Fitzburgh
Commission
(1969)
The Commission
on Government
Procurement
(1972)
The Carlucci
Initiatives
(1981)
The Grace
Commission
(1982)
The Packard
Commission
(1986)
The Defense
Management
review
(1989)
Acquisition
Streamlining
(Section 800)
(1993)
Defense Science
Board Studies
(Ongoing)
What’s
Different
Now?
Reorganization Chronology
 PACKARD COMMISSION DRAFT REPORT - FEB 86
 NSDD 219 - APR 86
 PACKARD COMMISSION FINAL REPORT - JUN 86
 DEFENSE REORGANIZATION ACT OF 1986
(GOLDWATER - NICHOLS)
 DOD FY87 AUTHORIZATION ACT - OCT 86
 SEC ARMY LETTER - 30 JAN 87
------------------------------------------------------------------------ PEO IMPLEMENTATION (24 PEO’S) -- PROJECTED
-- 30 SEP 87
Defense Enterprise Pilot
Programs 1987
Army
Navy
Air Force
MSE
SSN-21
SRAM II
ATACMS
TRIDENT II
(D-5)
T-45TS
MLV
TOW II
TITAN IV
C-17
ARMY ACQUISITION POLICY
GUIDANCE
1. CECOM Pamphlet 70-7, 1 November ’93
CECOM Acquisition Handbook
Paragraph 2-3 Non-Development Items
“a. Acquisition of commercial off-the-shelf
products to satisfy Army requirements is
authorized and encouraged …
b. When possible, a commercial market
specification or a performance specification will
be used …”
ARMY ACQUISITION POLICY
GUIDANCE
• 3. AMC Pamphlet 715-3
Contracting for Best Value
Page 1 –
“… best value is the outcome of any
acquisition that ensures we meet the customer’s
need in the most effective, economical and timely
manner.”
ARMY ACQUISITION POLICY
GUIDANCE
4. AMC Pamphlet 715-3, Volume 6
Debriefing Handbook
Page 2 –
“good debriefings do not encourage protests …”
Page 9 –
“Industry is entitled to know how we evaluate proposals …
and what they might do to improve their proposals.
Page 12 –
“Comprehensive debriefings are mutually beneficial to us
and industry …”
Policy of Congress
“It is the declared policy of the congress that the government should
aid, counsel, assist, and protect insofar as is possible the interests of
small business concerns in order to preserve free competitive
enterprise, to ensure that a fair proportion of the total purchases and
contracts for supplies and services for the Government be placed with
small business enterprises, and to maintain and strengthen the overall
economy of the nation.”
Section 201
Small Business Act of 1958
 23 Million American Small Businesses
 Create More than 50% of Industrial Innovations/Inventions
 Employ More than 50% of Private Workforce
 Generate More than 50% of U.S. Gross Domestic Product
 Principal Source for New Jobs in the U.S. Economy
Small Business Program
Goal Categories
FY71
FY80
SMALL BUSINESS SMALL BUSINESS
SMALL BUSINESS SET-ASIDE
SMALL DISADVANTAGED BUSINESS
WOMEN-OWNED-SMALL BUSINESS
FY01
SMALL BUSINESS
SMALL BUSINESS SET-ASIDE
SMALL DISADVANTAGED BUSINESS
WOMEN-OWNED SMALL BUSINESS
R&D AWARDS TO SMALL BUSINESS
AWARDS TO HISTORICALLY BLACK
COLLEGES AND UNIVERSITIES AND
MINORITY INSTITUTIONS (HBCUs/MIs)
SMALL BUSINESS SUBCONTRACTING
SMALL DISADVANTAGED BUSINESS
SUBCONTRACTING
WOMEN-OWNED SMALL BUSINESS
SUBCONTRACTING
HUBZONES
VERY SMALL BUSINESS
SERVICE DISABLED VETERAN SB
PROBLEM AREAS
A “Green Uniform to Business Suit” Perspective
1. Bundling of requirements – reduces the contract
workload on Army procurement offices, but …
 Must be bid by large prime contractors due to
scope
 Small businesses participate as subcontractors
on teams
 After awards to the large prime, small business
has little leverage to gain a fair split of the
workload as avowed in pre-award proposal
PROBLEM AREAS
2. High cost of IT specialists – Army is contracting
out many IT missions – Ask yourself why?
 Understand the need for pay
differential for IT specialists. They
are a scarce commodity in demand in
industry.
PROBLEM AREAS
3. ID/IQ contracts with multiple awards – Army
benefits from good competition, however …
 Each Task Order ends up being competed
 Small Businesses spend more B&P funds
trying to win Task Order competitions.
 Make Task Order responses page limited, ie.
maximum four-page response.
SUGGESTION #1
• Quick Reaction Capability (QRC) Projects
respond to a specific need. These QRC’s
are the future of acquisition. When one
QRC project succeeds, make it a program
of record, fund it in the POM and complete
its life cycle logistics support
SUGGESTION #2
• DOD and Services’ policy writers rarely
have any project implementation
experience. Suggest they attend Defense
Acquisition University training, then be
assigned to work in a Service PM office for
six months to a year. A job trade scenario
with a trained PM going to the Pentagon as
a backfill. (Might add some reality to
policies)
SUGGESTION #3
• Treat Information Technology (IT) systems
differently. Recognize Moore’s Law of a 18
month obsolescence cycle. Use spiral
development and block enhancement
fieldings to get new IT technology in the
hands of the Warfighters faster.
But Some are
Better Than Others