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UNDERSTANDING ARMY ACQUISITION


LOOK TO THE FUTURE


Gen. John M. Murray talks with Soldiers while being briefed on equipment tested during Joint Warfighting Assessment 19 in May at Yakima Training Center, Washington. Murray is the first commander of the Army Futures Command, which many experts agree is a major development in the effort to speed acquisition. (U.S. Army photo by Spc. Audrey Ward, 982nd Combat Camera Company (Airborne))


according to Govini, a data and analytics firm. An analysis by Bloomberg Govern- ment says the number will top $7 billion in 2019.


Te Army has driven the growth in OTA use. In 2012, the Army had approximately 40 OTAs worth less than $500 million. In 2018, it had more than 220 worth more than $2.5 billion. “When we look at the data … the Army has definitely made a calculated decision to use OTA and other middle-tier-of-acquisition approaches for its modernization today,” said Andrew Hunter, a senior fellow at the Center for Strategic and International Studies (CSIS), a Washington think tank.


“The most important thing about the numbers is it’s an indicator that people are getting more comfortable with the appli- cation of the OTAs, that they’re finding


good applications in those OTAs, and they’re justified in those OTAs,” Jette said in the interview.


While improved, OTAs are not new. Congress first authorized their use in 1958, with the legislation that created NASA. Congress allowed the Defense Advanced Research Projects Agency to use “other transactions” in 1989, and their use was extended to the military services in 1996.


“Tis extension of the authority didn’t come out of nowhere,” said Stan Soloway, presi- dent and CEO of Celero Strategies LLC, a business-growth strategy company work- ing with technology and other firms in the government market. Soloway has also served in government, as deputy under- secretary of defense for acquisition reform and director of the Defense Reform Initia- tive during the Clinton administration.


Efforts to get what is known as produc- tion authority began about 20 years ago, Soloway said, as it became clear that limit- ing OTAs to just the prototype phase of acquisition limited their effectiveness.


Soloway sees the growth in OTAs as a reflection of DOD becoming more customer-focused in a customer-centric world, responding to the frustration of its customers—be they industry, academia or Soldiers—about “an acquisition system that they do not believe has been meet- ing their needs, in terms of either time or capability.”


HOW WE GOT HERE The impetus for the current wave of change in DOD acquisition started in a big way in 2015, when congressio- nal leaders in military affairs—namely Sen. John McCain, R-Ariz., and Rep.


https://asc.ar my.mil 11


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