GROUND TRUTH
COMPETITIVE PROTOTYPING CAN LOWER COSTS Shown here is the Joint Light Tactical Vehicle (JLTV) produced by Oshkosh Truck Corp., one of the vendors for the JLTV program’s EMD phase, along with AM General LLC and Lockheed Martin Corp. Among the Army’s lessons learned on collaborating with industry is to consider having multiple vendors compete to build prototypes dur- ing the EMD phase. Even though this is likely to require more government time and money up front, it has lowered costs across the life cycle of at least one program. (U.S. Army photo)
• Allowing the PM to assume control of communicating pro- gram requirements to lessen rumors, untruths and third-party feedback.
• Allowing early industry buy-in.
LL_230: Programs are most effective in working with ven- dors when a program adopts practices and expectations that are familiar to vendors.
Background When a program is acquiring commercial items, vendors can be strategic partners. Relationships with key vendors can take many forms. One program adopted a rule to resist modifications to selected commercial items and asked the vendor to make a change only if it made sense commercially. Te vendor checked on the viability of any enhancements by asking other buyers. Tis program was able to influence, rather than direct, the vendor. Other programs found that including vendors as part of inte- grated product teams helped foster a more trusting partnership among the vendor, contractor and PMO.
Te relationship between the program and the vendor is, in most instances, very different from the relationship with a contrac- tor, and PMs frequently overestimate the impact they can have on vendors. While contract incentives shape the relationship with a contractor, the vendor is selling a product—not program- unique services. However, programs have been successful
in
influencing product changes. In one case, a program worked as part of a users group to influence other customers to sup- port changes needed by DOD, and the vendor implemented the widely supported changes. On the other hand, some PMs have been convinced that changes to commercial items would be included in subsequent commercial releases. In several cases, the custom enhancements never became part of the commercial item; the PMs had to choose whether to maintain a unique ver- sion of the commercial item or redesign the system without the modifications.
Recommendation To strengthen program, contractor and vendor relationships:
• Verify vendor and contractor claims for commercial items. • Verify the availability of commercial items.
24 Army AL&T Magazine July-September 2016
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