$ affords acquisition program managers


the opportunity to dedicate manpower to more


complex this procurements and


increases the throughput of work. Further,


approach decreases the


administrative burden on contractors responding to government requirements, which is


especially important in the


small business arena, where contractors have limited resources and expertise to develop lengthy proposals.


Under this approach, the average time from receipt of a requirement to deliv- ery order award has been reduced to less than 45-60 days. Under the old acquisi- tion strategy, historical cycle times were 18-24 months. It is estimated that this strategy will result in a government labor cost


avoidance of approximately $60 million over the 10-year contract life.


Most of the contemplation letters issued have


resulted in effective tion and end-item savings. the


component unit price reductions have ranged from 3 percent with most of


reductions competi- Individual


to 51 percent, in the


11-18 percent range. For several com- ponents, this approach has resulted in nonincumbent and nonhistorical ven- dors winning delivery orders, thereby increasing the supplier base. Use of split awards (two or more contracts) under this IDIQ approach has created a very competitive environment, resulting in reduced end-item costs.


Two industry days introduced this


innovative approach to the small busi- ness community. Draft RFPs were posted publicly; the comments received were considered in the resulting RFPs. Flexibility


and increased contracting


opportunities were offered to industry through solicitations with multiple line items, allowing contractors to pick and choose items on which to bid.


Small businesses have received 68 sepa- rate contract awards for 53 items. Under the old process of awarding a single end- item contract, small businesses would have received only 29 awards. Tese contracting dollars also contribute to the Army’s small business goals. Many small businesses that previously had not pro- duced ammunition-related items are now delivering items supporting PM CAS.


Industry responses to contempla- tion letters have been overwhelmingly strong, demonstrating that this strategy is meeting the guidance of the Under Secretary of Defense for Acquisition, Technology, and Logistics.


In addition, PM CAS received a 2012 David Packard Excellence in Acquisi- tion Award for this IDIQ small business set-aside strategy. Te Packard Award recognizes DOD civilian and/or military organizations, groups, or teams who have


Numerous awards to new producers, as well as significant savings in industry’s costs of preparing proposals, have proven this unique strategy to be effective for our small business partners. It strengthened the commercial and defense industrial base by allowing commercial contractors who were not past producers of ammuni- tion items to participate on those items that fit their capabilities.


CONCLUSION Tis acquisition strategy materialized through the combined effort of several organizations commands


spread across multiple supporting PM CAS and


PEO Ammo. Tis cross-fertilization was the catalyst behind cultural change that created unique opportunities to select best practices while streamlining acquisition processes, thus maximizing opportunities


for small business reducing single-point failures. and made highly significant contributions


that demonstrated exemplary innovation and best acquisition practices, reflecting achievements that exemplify goals and objectives established for furthering life- cycle cost


reduction and/or acquisition excellence in DOD.


For more information, see the Office of Federal Procurement Policy guidance Best Practices for Multiple Award Task and Delivery Order Contracting at http:// georgewbush-whitehouse.archives.gov/ omb/procurement/interagency_acq/ best_practices_multiple_award_task_ contracting.html.


MR. AARON RAPPAPORT is Acting Chief, Acquisition Planning Branch for Project Manager Combat Ammunition Sys- tems (PM CAS). Rappoport holds a B.A. in political science from Brooklyn College and an M.B.A. in accounting from Fairleigh Dickinson University. He is Level III certi- fied in contracting and a member of the U.S. Army Acquisition Corps (AAC).


MR. TIM JOENS is Acquisition Manager, Acquisition Planning Branch, PM CAS. He holds a B.A. in economics from East Stroudsburg State College. Joens is Level III certified in contracting and Level II certi- fied in program management. He is an AAC member.


MR. RONALD RAPKA is the retired Chief, Acquisition Planning Branch, PM CAS. Rapka holds a B.S. in accounting from Seton Hall University and a Master of Business Administration and Manage- ment from Monmouth University, and has completed post-M.B.A. course work at the University of Pennsylvania. He is Level III certified in auditing, purchasing, and con- tracting, and Level II certified in program management. Rapka is also a Certified Public Accountant.


ASC.ARMY.MIL 159


EFFICIENCIES


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