bring much-needed capabilities to the force such as increased survivability, off- road mobility, and onboard electronics, among other things.
An underlying message here is that we need to continue our efforts to focus on mature technologies and achievable requirements; in fact, we encourage our PEOs, PMs, U.S. Training and Doctrine Command breth- ren, and industry partners to question, refine, and streamline requirements wher- ever possible, especially at the front end of the process so as to avoid the delays and cost overruns often associated with the pursuit of unrealistic requirements.
PROCESS
The Army has also achieved substantial savings by conducting Capability Portfo- lio Reviews; CPRs are aimed at increasing efficiency and eliminating redundancy by looking holistically across groups or
“portfolios” of programs with a mind to how they impact one another and the Army as a whole.
The Precision Fires CPR, for instance, resulted in at least $1 billion in savings for the Army because the service was able to identify some redundant capabilities and, among other things, cancel the Non- Line-of-Sight Launch System.
While we applaud these important sav- ings, it is also important that we seek to eliminate redundancy in a manner that preserves the development of what is needed for our Soldiers. In fact, it is our firm belief that finding ways to become more efficient and responsible with our taxpayer dollars is in no way incompat- ible with meeting the current and future needs of our force.
CONTRACTING Multiyear contract buys, such as those we’ve pursued with the improved Chinook
SMART BUY
The improved CH-47F Chinook helicopter is being acquired by the Army through multiyear contract buys, which will yield a projected cost avoidance of more than $373 million over five years. Advancements include a new machined airframe, vibration reduction, digital source collectors, and compatibility with joint digital connectivity requirements. (U.S. Army photo.)
“F” model and Black Hawk helicopters, provide yet another instance wherein we have concurrently delivered much-needed new technology and reduced cost; our five-year, FY13 to FY18 purchase plans for the Chinook “F” will result in a pro- jected cost avoidance of more than $373 million. Multiyear buys, which are also in effect for the Black Hawk “M” model helicopter, provide tremendous stability with the prime contractor and its suppli- ers; in addition, they allow us to acquire long-lead items in larger quantities in advance, thus driving down prices.
Purchasing data rights and Technical Data Packages is another effective means to achieve cost avoidance, because it allows the government to own TDPs for key technologies and then to increase com- petition among vendors interested in developing and producing the materiel.
This approach paid dividends for the Army’s Family of Medium Tactical Vehicles program; the Army’s acquiring
of the TDP and resulting competition for the contract wound up saving more than $1 billion. In yet another instance, the Army’s purchasing of the data rights to the Precision Guidance Kit, a GPS- guided 155mm round, resulted in more than $19 million in cost avoid- ance due to increased competition among contractors.
CONCLUSION Overall, lessons from each of these sce- narios help us make tremendous gains in acquisition now and going forward. Many of the improvements to the acquisi- tion process chart our course to a better, more efficient, and prosperous future. As we continuously endeavor to improve the results of our requirements, resourcing, acquisition, and sustainment process, let us not forget our many successes. Army acquisition is truly a team effort. I look forward to working with all Army orga- nizations and stakeholders to continue meeting the needs of our present and future Soldiers.
ASC.ARMY.MIL 7
FROM THE AAE
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