‘SHOULD’ DOES


Logistics and Technology (OASA(ALT)), the Office of Performance Assessments and Root Cause Analyses (PARCA) acts as the Army policy proponent and clearinghouse for should-cost activi- ties. Te PEOs and program managers provide quarterly updates on their initia- tives to PARCA, which then compiles and analyzes the data for updates to the ASA(ALT) leadership and for briefings to the Business Senior Integration Group.


Based on should-cost data that the PEOs and program managers submitted in FY14 and FY15, PARCA identified certain patterns as the Army more con- sistently implements


should-cost across


the acquisition enterprise. PARCA’s aim is to identify areas where the Army per- forms well and areas where the Army can improve. Te Army realized a total cost savings of $225.7 million and an addi- tional cost avoidance of $298.3 million for FY15.


One measure of successful implemen- tation is the number of acquisition programs implementing should-cost


SHOULD-COST EVANGELIST Carter speaks with service members at Joint Base Pearl Harbor-Hickam during a visit to Hawaii in November 2015. Carter intro- duced the principles of should-cost among the original BBP initiatives in 2010, and directed managers to look for innovative methods and approaches that could save money or avoid expenditure compared with the originally expected contract cost. (U.S. Air Force photo by SMSgt Adrian Cadiz)


Without


question,


should-cost management


is


an


accepted best practice throughout the Army’s acquisition enterprise. As a BBP initiative, it receives constant com- mand emphasis from leadership in the Army and OSD.


initiatives. In FY14, 205 of 219 programs reported a total of 326 should-cost ini- tiatives. In FY15, the numbers dropped, with 205 programs implementing 180 initiatives.


Fourteen programs requested and received approval


for exemptions in FY14, com-


pared with 25 requested and approved in FY15, allowing the programs to imple- ment no should-cost initiatives. Tere are three reasons a program may request an exception: 1) It is a joint program with another service as the executive agent; 2) It has either met 90 percent of its fielding requirements or expended 90 percent of


its total funding requirements; or 3) Its funding has been eliminated. Exemptions require the AAE’s approval for MDAP and MAIS programs and PEO approval for ACAT II and III programs.


Te extent to which acquisition pro- grams implement should-cost initiatives across the breadth of the acquisition life cycle constitutes another measure of suc- cess. Beginning in FY14 and continuing in FY15, the Army programs reported should-cost initiatives in all five phases of acquisition, ranging from (pre-MS A) materiel-solution analysis to the opera- tions and support phases.


102


Army AL&T Magazine


January-March 2016


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