david r. gust mg, usa (ret) president, usfalcon inc david r. gust mg, usa (ret) president, usfalcon...
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David R. GustMG, USA (RET)
President, USfalcon Incwww.usfalcon.com
David R. GustMG, USA (RET)
President, USfalcon Incwww.usfalcon.com
AGENDAAGENDA
• My Acquisition ExperienceMy Acquisition Experience
• Past Acquisition ReformPast Acquisition Reform
• Defense Enterprise Program Defense Enterprise Program ConceptConcept
• Beyond DOD I 5000 PolicyBeyond DOD I 5000 Policy
• Small Business Support/CategoriesSmall Business Support/Categories
• Some Problem AreasSome Problem Areas
• Suggestions for ChangeSuggestions for Change
AN/GRC 3 SERIES RADIOAN/GRC 3 SERIES RADIO
ComponentComponent UserUser # Channels# ChannelsFreq. RangeFreq. Range
RT-66RT-66 ArmorArmor 8080 20-27.9 MHZ20-27.9 MHZ
RT-67RT-67 ArtilleryArtillery 120120 27-39 MHZ27-39 MHZ
RT-68RT-68 InfantryInfantry 170170 38-55 MHZ38-55 MHZ
For Patrols in Baltimore, RT units had to be For Patrols in Baltimore, RT units had to be
exchanged for frequency compatibilityexchanged for frequency compatibility
Acquisition ExperienceAcquisition Experience
• AMCPM – MIAMCPM – MI Oct 84 – Mar 86Oct 84 – Mar 86
• PEO - Fire SupportPEO - Fire Support Apr 86 - Jan 88Apr 86 - Jan 88
• PEO - IEWPEO - IEW Feb 88 - Jun 88Feb 88 - Jun 88
• PEO - COMMPEO - COMM Aug 89Aug 89 - Jun 95- Jun 95
• PEO - IEWPEO - IEW Jul 95 - Jul 95 - Nov 99 Nov 99
• AMC DCSRDAAMC DCSRDA Nov 99Nov 99 -- ETS ETS (Oct 00)(Oct 00)
Acquisition ReformAcquisition Reform
The HooverCommission
(1949)
The HooverCommission
(1955)
The FitzburghCommission
(1969)
The Commissionon Government
Procurement(1972)
The CarlucciInitiatives
(1981)
The GraceCommission
(1982)
The PackardCommission
(1986)
The DefenseManagement
review(1989)
What’sDifferent
Now?
AcquisitionStreamlining(Section 800)
(1993)
Defense ScienceBoard Studies
(Ongoing)
Reorganization Chronology
PACKARD COMMISSION DRAFT REPORT - FEB 86
NSDD 219 - APR 86
PACKARD COMMISSION FINAL REPORT - JUN 86
DEFENSE REORGANIZATION ACT OF 1986(GOLDWATER - NICHOLS)
DOD FY87 AUTHORIZATION ACT - OCT 86
SEC ARMY LETTER - 30 JAN 87-------------------------------------------------------------------------PEO IMPLEMENTATION (24 PEO’S) -- PROJECTED
-- 30 SEP 87
1 April 871 April 87
Defense Enterprise Pilot Defense Enterprise Pilot Programs 1987Programs 1987
ArmyArmy
MSE
ATACMS
TOW II
Navy
SSN-21
TRIDENT II(D-5)T-45TS
Air Force
SRAM II
MLV
TITAN IV
C-17
ARMY ACQUISITION POLICY ARMY ACQUISITION POLICY GUIDANCEGUIDANCE
1. CECOM Pamphlet 70-7, 1 November ’93
CECOM Acquisition HandbookCECOM Acquisition Handbook
Paragraph 2-3 Non-Development Items
“a. Acquisition of commercial off-the-shelf products to satisfy Army requirements is authorized and encouraged …
b. When possible, a commercial market specification or a performance specification will be used …”
ARMY ACQUISITION POLICY GUIDANCE
• 3. AMC Pamphlet 715-3
Contracting for Best ValueContracting for Best Value
Page 1 –
“… best value is the outcome of any
acquisition that ensures we meet the customer’s
need in the most effective, economical and timely
manner.”
ARMY ACQUISITION POLICY GUIDANCE
4. AMC Pamphlet 715-3, Volume 6
Debriefing HandbookDebriefing HandbookPage 2 –
“good debriefings do not encourage protests …”
Page 9 –
“Industry is entitled to know how we evaluate proposals …
and what they might do to improve their proposals.
Page 12 –
“Comprehensive debriefings are mutually beneficial to us
and industry …”
Policy of Congress
“It is the declared policy of the congress that the government should aid, counsel, assist, and protect insofar as is possible the interests of small business concerns in order to preserve free competitive enterprise, to ensure that a fair proportion of the total purchases and contracts for supplies and services for the Government be placed with small business enterprises, and to maintain and strengthen the overall economy of the nation.”
Section 201Small Business Act of 1958
23 Million American Small Businesses
Create More than 50% of Industrial Innovations/Inventions
Employ More than 50% of Private Workforce
Generate More than 50% of U.S. Gross Domestic Product
Principal Source for New Jobs in the U.S. Economy
Small Business ProgramSmall Business Program
SMALL BUSINESS
SMALL BUSINESS SET-ASIDE
SMALL DISADVANTAGED BUSINESS
WOMEN-OWNED-SMALL BUSINESS
SMALL BUSINESS
SMALL BUSINESS SET-ASIDE
SMALL DISADVANTAGED BUSINESS
WOMEN-OWNED SMALL BUSINESS
R&D AWARDS TO SMALL BUSINESS
AWARDS TO HISTORICALLY BLACKCOLLEGES AND UNIVERSITIES ANDMINORITY INSTITUTIONS (HBCUs/MIs)
SMALL BUSINESS SUBCONTRACTING
SMALL DISADVANTAGED BUSINESSSUBCONTRACTING
WOMEN-OWNED SMALL BUSINESSSUBCONTRACTING
HUBZONES
VERY SMALL BUSINESS
SERVICE DISABLED VETERAN SB
FY71FY71 FY80FY80 FY01FY01SMALL BUSINESS
Goal CategoriesGoal CategoriesGoal CategoriesGoal Categories
PROBLEM AREASPROBLEM AREAS
1. Bundling of requirements – reduces the contract workload on Army procurement offices, but …
Must be bid by large prime contractors due to scope
Small businesses participate as subcontractors on teams
After awards to the large prime, small business has little leverage to gain a fair split of the workload as avowed in pre-award proposal
A “Green Uniform Green Uniform to Business SuitBusiness Suit” Perspective
PROBLEM AREASPROBLEM AREAS
2. High cost of IT specialists – Army is contracting out many IT missions – Ask yourself why?
Understand the need for pay
differential for IT specialists. They
are a scarce commodity in demand in
industry.
PROBLEM AREASPROBLEM AREAS
3. ID/IQ contracts with multiple awards – Army benefits from good competition, however …
Each Task Order ends up being competed
Small Businesses spend more B&P funds trying to win Task Order competitions.
Make Task Order responses page limited, ie. maximum four-page response.
SUGGESTION #1
• Quick Reaction Capability (QRC) Projects respond to a specific need. These QRC’s are the future of acquisition. When one QRC project succeeds, make it a program of record, fund it in the POM and complete its life cycle logistics support
SUGGESTION #2SUGGESTION #2
• DOD and Services’ policy writers rarely have any project implementation experience. Suggest they attend Defense Acquisition University training, then be assigned to work in a Service PM office for six months to a year. A job trade scenario with a trained PM going to the Pentagon as a backfill. (Might add some reality to policies)
SUGGESTION #3SUGGESTION #3
• Treat Information Technology (IT) systems differently. Recognize Moore’s Law of a 18 month obsolescence cycle. Use spiral development and block enhancement fieldings to get new IT technology in the hands of the Warfighters faster.