Resources include proposal volumes and contracts from previous production years. Even more revealing informa- tion lies in the initial Form 1921s, Cost Data Summary Reports, that the system integrator and major subcontractors are required to submit to the Defense Cost and Resource Center after contract award. Tere is definitive information in the final 1921s. Tese documents provide much of


the information on


“actuals” that is needed to analyze cost data, such as labor and material costs and direct and indirect costs, all of which can be stratified to highlight the true cost drivers quickly. (See Figure 1.)


Targeting the biggest cost drivers provides the best return on investment in identifying where to establish competitive conditions. Te more production contracts there are, the more data are available for analysis. Stratifying the data will also provide valuable insight to the technical evaluation team, as well as arm the procuring contracting officer (PCO) to negotiate upcoming contracts. Once the system cost and price drivers are identified, they can be prioritized and targeted to determine what to compete first; however, the legal conditions are also an important factor to consider.


Q. What right does the government have to compete?


THE SUM OF MANY PARTS


The competitive landscape has changed over the past 20 years with the consolidation of defense contractors. But by looking at primary cost drivers and then making those elements of a program subject to competition, the Army can still drive down costs. Here, 2LT Will Lamb and SFC Eddie Isaac inspect a variety of new weapons Oct. 2, 2012, at the Military Equipment and Technology Expo on Joint Base Lewis-McChord, WA (U.S. Army photo by SGT Adam Keith, 19th Public Affairs Detachment)


A. Tis depends on the status, accu- racy and completeness of data rights.


the system


Continuously pursue data rights. Chal- lenging


administrative markings is


frustrating work, but it is critical to setting conditions


for competition


throughout the system life cycle and for future increments. It can also require significant staff time within the PMO,


for the government PCO and for indus- try legal


representatives. Additionally,


physical configuration audits take time and money to execute, to ensure that the drawing packages are free and clear as well as accurate.


Acquiring the data rights at the system level may be years away; however, some components and/or subsystems may be significantly further along in the


THE STRONGEST FORCE MULTIPLIER FOR ACHIEVING THE DESIRED


BBP OBJECTIVE CONDITIONS IS AN ENVIRONMENT IN WHICH


THE GOVERNMENT DRIVES DOWN COST AND PRICE THROUGH THE


COMPETITION, OR BY FOR COMPETITION ASC.ARMY.MIL


ESTABLISHING IN


WHICH IT CAN AFFECT COST AND PRICE. 131


COMMENTARY


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168