$
Te Army acquisition executive (AAE) holds PEOs
and program managers
accountable for should-cost management. Tere are a number of avenues whereby the AAE receives reports from the PEOs on their progress in implementing should-cost initiatives across their port- folios, including annual reviews of their delegated ACAT II programs and annual summaries of their ACAT III programs.
Project managers for MDAPs or major automated information systems (MAIS) have the opportunity to update the defense acquisition executive (DAE) when they brief the monthly Defense Acquisition Executive Summary (DAES) Senior Meeting Forum. Finally, the AAE also provides the DAE and other senior OSD leaders a quarterly report on should-cost activities at the aggre- gate Army level during Business Senior Integration Group meetings. All of these forums help maintain a high degree of command emphasis on the importance of should-cost management as an ongo- ing effort.
THE ARMY’S APPROACH Within the Office of the Assistant Sec- retary
of the Army for Acquisition, FIGURE 1
*Defense Acquisition University defines “then year dollars” as funds “that include the effects of infla- tion or escalation and/or reflect the price levels expected to prevail during the year at issue.”
MISSED OPPORTUNITIES? PEOs are responsible for ensuring that program managers implement should-cost management by identifying should-cost initiatives and developing should-cost estimates for their Acquisition Category I, II and III programs. This chart itemizes annual savings achieved by PEO Missiles and Space from FY12 to FY16 after it successfully implemented a multiyear procurement contract for the TOW Missile system. (SOURCE: OASA(ALT) PARCA)
SPREADING THE WORD James Lackey, executive director of the Aviation and Missile Research, Development and Engineer- ing Center (AMRDEC), speaks with attendees for the BBP 3.0 open exchange forum. According to Lackey, AMRDEC will be operating under severe budget restrictions for the foreseeable future and BBP 3.0 guidance will help center their strategic attention on how to get the job done in an affordable, mutually leveraged manner. Meanwhile, the Army is teaming with National Defense Uni- versity to develop more and better training in should-cost contracting. (Photo by Carlotta Maneice, AMRDEC Public Affairs)
ASC.ARMY.MIL
101
BBP 3.0
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