FROM THE AAE
FROM THE ARMY ACQUISITION EXECUTIVE THE HONORABLE HEIDI SHYU
THE POWER of
T both
BETTER BUYING Maintaining efficiency during tough times
his issue focuses on our continued emphasis in achieving better buying power for the Army. Since its inception in 2010, the Better Buying Power initiative has resulted in significant accomplishments. It has proved timely, as
these efforts to achieve efficiency in our programs and embrace best-value business practices have helped to prepare us for the budget challenges we face now and into the foreseeable future.
Te success of the Better Buying Power initiative is attributable to
its comprehensiveness—looking at cost control,
competition, affordability analysis etc.—and its timeliness, coming as we transition from a decade of combat into a period of constrained resources in which we can no longer rely on the funding created for overseas contingency operations.
MEASURABLE PROGRESS I’m very proud of our Army’s efforts to embrace and implement the Better Buying Power initiative. Our dedicated commitment has resulted in measurable progress and tangible savings for DOD and the taxpayer:
Te successful execution of multiyear production contracts for the CH-47F Chinook and 537 UH-60 Black Hawk air- craft has lowered procurement costs by nearly $709 million.
More than $286 million was saved through negotiated con- tracts for the High Mobility Multipurpose Wheeled Vehicle.
In another example of multiyear competition, the Fam- ily of Medium Tactical Vehicles program saved more than $575 million.
We generated $66 million in savings in buying the double V-hull
Strykers and nuclear, biological and chemical reconnaissance vehicles (NBCRVs) using a single contract.
In an example of leveraging real competition, the Joint Tactical Radio System Enterprise Business Model produced at least $500 million worth of efficiencies in the procurement of the Multifunctional Distribution Information System – Low Volume Terminal radio.
Another tenet of Better Buying Power calls for building stronger partnerships with the requirements community to control costs. Making affordability a key performance parameter in our acquisition programs requires flexibility to trade or modify requirements to meet the cost thresholds.
We accomplished this in the Joint Light Tactical Vehicle program. Te program’s technology development phase was used to demonstrate the integration of mature technologies as a complete system. Te results were then used to refine the requirements through the use of cost- informed trades
in close partnership with the Army and
U.S. Marine Corps user communities, which yielded a set of achievable, affordable requirements.
ASC.ARMY.MIL 5
FROM THE AAE
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