$ FIGURE 3 MORE BANG FOR WHICH BUCKS?
The Army applies should-cost to seven target acquisition processes in which programs may be active during any phase in the acquisition life cycle. Should-cost initiatives targeting contracting activities in FY15 yielded much greater cost savings and avoidance than all other acquisition activities combined. PARCA’s next step is to take a closer look at the results, to determine if opportunities for implementing initiatives in other phases of the life cycle are being overlooked. (SOURCE: OASA(ALT) PARCA)
KEY
Reqts: Overst: Ctr:
200 154.5 150
Requirements of the JCIDS Oversight and review Contracting
Prod:
Log: T&E:
Product deliverables, such as production and delivery of equipment and systems engineering
Logistics and sustainment Test and evaluation
100
50 6.6 0 Reqts Overst Ctr Prod Log SHOULD-COST INITIATIVES
moves forward with new programs such as the Armored Multi-Purpose Vehicle and Joint Air-Ground Missile, both of which successfully accomplished MS B decisions in 2015 and will begin report- ing in 2016?
CONCLUSION Without question, should-cost man- agement is an accepted best practice throughout the Army’s acquisition enter- prise. As a BBP initiative, it receives constant command emphasis from lead- ership in the Army and OSD.
Should-cost is also a very successful BBP initiative. Since its initial implementa- tion in 2012, the Army has documented $2.2 billion in cost savings. Programs that execute successful should-cost ini- tiatives are able to reinvest the savings back into their programs, allowing some
programs to buy down risk and oth- ers to procure greater quantities. Tus, should-cost as a BBP initiative impacts both affordability and productivity or efficiency.
Moving forward, ASA(ALT)’s goal is to streamline and simplify planning and reporting will-cost/should-cost initiatives for the PEOs and project managers. In addition, ASA(ALT) is working closely with the other services and National Defense University to increase should- cost training for all members of the Army acquisition enterprise.
For more information, contact Dale Fletcher at
dale.n.fletcher.civ@
mail.mil or Michael Lebrun at michael.e.lebrun2.
civ@mail.mil.
T&E Other 4.6
40.3 26.6 21.9 1.2
MR. MICHAEL E. LEBRUN is the PARCA director in OASA(ALT). He holds an M.A. in political science from the University of Maryland College Park, an M.S. in national resource management from the Industrial College of the Armed Forces and a B.S. in foreign service from Georgetown University. He is a member of the Army Acquisition Corps (AAC) with Level III certification in program management.
MR. DALE N. FLETCHER is PARCA’s should-cost manager. He holds an M.S. in cost analysis from the Air Force Institute of Technology and a B.S. in mathematics from Chicago State University. He is an AAC member with Level III certifications in cost
estimating, financial manage- ment and program management. +
ASC.ARMY.MIL 105
BBP 3.0
DOLLAR VALUE OF COST SAVINGS IN MILLIONS
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