David R. GustMG, USA (RET)

President, USfalcon Incwww.usfalcon.com

David R. GustMG, USA (RET)

President, USfalcon Incwww.usfalcon.com

AGENDAAGENDA

• My Acquisition ExperienceMy Acquisition Experience

• Past Acquisition ReformPast Acquisition Reform

• Defense Enterprise Program Defense Enterprise Program ConceptConcept

• Beyond DOD I 5000 PolicyBeyond DOD I 5000 Policy

• Small Business Support/CategoriesSmall Business Support/Categories

• Some Problem AreasSome Problem Areas

• Suggestions for ChangeSuggestions for Change

AN/GRC 3 SERIES RADIOAN/GRC 3 SERIES RADIO

AN/GRC 3 SERIES RADIOAN/GRC 3 SERIES RADIO

ComponentComponent UserUser # Channels# ChannelsFreq. RangeFreq. Range

RT-66RT-66 ArmorArmor 8080 20-27.9 MHZ20-27.9 MHZ

RT-67RT-67 ArtilleryArtillery 120120 27-39 MHZ27-39 MHZ

RT-68RT-68 InfantryInfantry 170170 38-55 MHZ38-55 MHZ

For Patrols in Baltimore, RT units had to be For Patrols in Baltimore, RT units had to be

exchanged for frequency compatibilityexchanged for frequency compatibility

Acquisition ExperienceAcquisition Experience

• AMCPM – MIAMCPM – MI Oct 84 – Mar 86Oct 84 – Mar 86

• PEO - Fire SupportPEO - Fire Support Apr 86 - Jan 88Apr 86 - Jan 88

• PEO - IEWPEO - IEW Feb 88 - Jun 88Feb 88 - Jun 88

• PEO - COMMPEO - COMM Aug 89Aug 89 - Jun 95- Jun 95

• PEO - IEWPEO - IEW Jul 95 - Jul 95 - Nov 99 Nov 99

• AMC DCSRDAAMC DCSRDA Nov 99Nov 99 -- ETS ETS (Oct 00)(Oct 00)

Acquisition ReformAcquisition Reform

The HooverCommission

(1949)

The HooverCommission

(1955)

The FitzburghCommission

(1969)

The Commissionon Government

Procurement(1972)

The CarlucciInitiatives

(1981)

The GraceCommission

(1982)

The PackardCommission

(1986)

The DefenseManagement

review(1989)

What’sDifferent

Now?

AcquisitionStreamlining(Section 800)

(1993)

Defense ScienceBoard Studies

(Ongoing)

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

1 April 871 April 87

Defense Enterprise Pilot Defense Enterprise Pilot Programs 1987Programs 1987

ArmyArmy

MSE

ATACMS

TOW II

Navy

SSN-21

TRIDENT II(D-5)T-45TS

Air Force

SRAM II

MLV

TITAN IV

C-17

ARMY ACQUISITION POLICY ARMY ACQUISITION POLICY GUIDANCEGUIDANCE

1. CECOM Pamphlet 70-7, 1 November ’93

CECOM Acquisition HandbookCECOM 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 ValueContracting 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 HandbookDebriefing HandbookPage 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 201Small 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 ProgramSmall Business Program

SMALL BUSINESS

SMALL BUSINESS SET-ASIDE

SMALL DISADVANTAGED BUSINESS

WOMEN-OWNED-SMALL BUSINESS

SMALL BUSINESS

SMALL BUSINESS SET-ASIDE

SMALL DISADVANTAGED BUSINESS

WOMEN-OWNED SMALL BUSINESS

R&D AWARDS TO SMALL BUSINESS

AWARDS TO HISTORICALLY BLACKCOLLEGES AND UNIVERSITIES ANDMINORITY INSTITUTIONS (HBCUs/MIs)

SMALL BUSINESS SUBCONTRACTING

SMALL DISADVANTAGED BUSINESSSUBCONTRACTING

WOMEN-OWNED SMALL BUSINESSSUBCONTRACTING

HUBZONES

VERY SMALL BUSINESS

SERVICE DISABLED VETERAN SB

FY71FY71 FY80FY80 FY01FY01SMALL BUSINESS

Goal CategoriesGoal CategoriesGoal CategoriesGoal Categories

PROBLEM AREASPROBLEM AREAS

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

A “Green Uniform Green Uniform to Business SuitBusiness Suit” Perspective

PROBLEM AREASPROBLEM 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 AREASPROBLEM 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 #2SUGGESTION #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 #3SUGGESTION #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 But Some are Better Better Than OthersThan Others