$


Manage Acquisition By Program Risk Not Just Scope Figure 3


Descripon Overall Risk [Tech-Integ- Program]


1 2


Exisng system, NDI w/ ECPs for


safety, RAM & LCC


Exisng system, development w/ block improvement


3


New system, to improve an exisng capability


w/produced tech & beer engineering


4


New system providing a new, innovave


capability with


developed, proven technologies


New system for early adopon of


5


technologies yet to complete


development RA


Rapid Acquision J/ACTD REF RFI


[M-M-M] High [H-H-H]


Mod-High Low-Mod Low


[Javelin]


System Proto + Dev


CPIF


[Crusader (LP)] [AAH]


[CPOF] J/ACTD


Rapid Proc Rapid Proc


Varies FPIF FPIF


ONS


UONS JUONS


6.3-6.7


Proc/OMA Proc/OMA


I/CDD RDT&E ACAT ID = DAE Low [L-L-L]


Low - Mod [L-L-M]


Low -Mod [L-M-M] Mod


Acquision Strategy


ECP FP


[AH-64D Blk II] 2 Step


FPIF or CPIF [AH-64D Blk III] 2 Step FPIF [Stryker]


Subsystem Proto + Dev


CPIF I/CDD RDT&E ACAT ID = DAE


ACAT II/IC = SAE


4-8 yrs 4-6 yrs I/CDD RDT&E ACAT ID = DAE


ACAT II/IC = SAE


2-5 yrs 4-6 yrs


ACAT II /IC= PEO/SAE


1-2 yrs 3-5 yrs


Contract Type


Requirement Color of $ Approver MDD - MS B MS B - C Maximum DoDI5000.2 Info Requirements


CCB [Safety,


RAM, Life-Cycle Sustainment]


I/CDD Procurement RDT&E PM/PEO PEO/SAE ~3-6 mos. ½ - 2 yrs 1-2 yrs ECP w/ATP TDS, STAR(U),AS,


1.5-3 yrs APB (U), CARD(U), SEP, TEMP, LCSP(U)


AoA, TDS, STAR, CARD, AS, APB, SEP, TEMP, LCSP


schedule is good when it comes to smaller and rapid acquisition programs. “We actually have done well in ACAT II and III programs and some rapid adaptation and rapid equipment fielding.”


The major problems, Dempsey said, have arisen with ACAT I programs that use the traditional DOD 5000 procurement process.


AoA, TDS, STAR, CARD, AS, APB, SEP, TEMP, LCSP


AoA, TDS, STAR, CARD, AS, APB, SEP, TEMP, LCSP


PEO/SAE ~2-4 yrs


~3-18 mos ~3-6 mos


N/A 0 0


ACTDP Varies Varies


“The real challenge is to figure out why we do so well in some of these rapid acquisi- tion procedures and not so well in the very deliberate DOD 5000 series of acquisi- tions,” he said. The Army “should pull the future toward us and not have aspirations to deliver programs much beyond seven, eight, nine years. When they stretch beyond that, they become the definition of ‘in-credible,’ of lacking credibility.”


participation at the U.S. Army War College and U.S. Army Command and General Staff College, the review states. AAC mem- bers should also be able to gain experience and understanding of industry and high technology through assignment as PMs to the Defense Advanced Research Projects Agency, NASA, and national laboratories. In addition, potential PMs could gain valu- able expertise through short assignments to staff positions in operational units.


To ensure adequate funding, the panel recommends:


• “Fencing” funds for up to six key ACAT I programs.


• Investing upfront in reducing Integrated Process and Product Development, and Operations and Support costs, to gen- erate future savings for production and sustainment.


• Increasing the use of multi-year con- tracts on stable programs.


• Focusing development and production on what needs to be fielded to the oper- ational force in the next seven years.


CONCLUSIONS The review panel asserts that implementa- tion of its recommendations will result in a highly skilled workforce with essential tools, processes, and effective organiza- tional alignment; high-quality, resource- constrained requirements approved by the Pentagon within four months; and greatly reduced program cost overruns, slippages, and terminations.


The net result, the review states, will be “deliv- ery of needed capabilities to warfighters in a more timely manner and paid for at a small fraction of the savings in lost sunk costs.”


GEN Martin E. Dempsey, Chief of Staff of the Army, told the Senate Appropria- tions Defense Subcommittee May 18 that the Army’s record of managing cost and


The answer lies in a combination of the Army Acquisition Review’s findings and in reexamining acquisition regula- tions, “particularly for the long-lead-time procurement programs,” Dempsey said.


“We’ve got to merge requirements and procurement and senior leadership inte- gration much earlier in the process.”


Wagner’s Feb. 25 slide presentation of the Army Acquisition Review at the Association of the United States Army Institute of Land Warfare’s Winter Symposium and Exposi- tion is available at http://crprogroup.com/ eventnotebook/2011%20Winter%20 Symposium/Friday%20Final%20 PDFs/GEN%20Wagner%20Fri%20 1045-1115.pdf.


MARGARET C. ROTH is the Senior Editor of Army AL&TMagazine. She holds a B.A. in Russian language and linguistics from the University of Virginia. Roth has more than a decade of experience in writing about the Army and more than two decades’ experience in journalism and public relations.


A S C . A RMY.MI L 77


BETTER BUYING POWER


Type


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