27 Aug '08 -- Future Trends in Defense Acquisition DAU Webinar

Presented by

Major Michelle “Shelli” BrunswickProfessor, Acquisition Management

The views presented here do not represent those of the DOD or DAU.

Overview• OSD

– Threats– Politics– Weapon Systems– Research

• AT&L– Acquisition Process– Organization– Workforce

• Industry– Industry’s Role– Industrial Base Changes– Prime and Sub-prime Contractor– Industry’s Response to Market Forces– Global Economy

OSD

“The greatest strength of our armed forces is the initiative and adaptability of our people.” MILCOM 2006 Conference

Gordon England – DEPSECDEF•OSD

–Threats–Politics–Weapon Systems–Research

Threats

“What we do know is that the threats and challenges we face abroad in the first decade of the 21st century will extend well beyond the traditional domain of any single government agency.” Kansas State University Lecture, November 2007

Robert Gates - SECDEF

•Future threats

•Weakened economy

•Partnerships

Politics

“In my judgment, the Department today is overburdened with rules, regulations, and legislation that limit effectiveness.” Statement Before the House Armed Services Committee, June 2007

Gordon England – DEPSECDEF

•Congress authorizes the budget•Congressional legislation

Weapon Systems

“What the department is seeking is timely synchronization and integrated delivery of capabilities—and to do it within projected costs and on schedule. The approach is to identify gaps and seams, to eliminate redundancies except by design, and to make sure that solutions are completely interoperable.” MILCOM 2006Conference

Gordon England – DEPSECDEF

• Information dominance• System-of-

Systems– Net-centric

Research

“The greatest long-term threat to America, and to our close friends and allies, is falling behind in science and technology.” MILCOM 2006Conference

Gordon England – DEPSECDEF

•Current expenditures vs. long-term expenditures•Driver of technology vs. receiver of technology

The military must find a balance between conventional and irregular wars. Admiral Michael G. Mullen, Chairman of the Joint Chiefs

AT&L

“We must have well-identified requirements, adequate funding and robust processes utilized by trained personnel that can execute the program.” 7 March 2008

Keith Ernst – former Acting Director, DCMA

•ATL–Acquisition Process–Organization –Work Force

Acquisition Process

“But for those programs that do have cost and schedule growth, the biggestdrivers are unstable requirements, immature technologies, and funding instability.” 3 June 2008

•Acquisition Process–Requirements Process–Technology Maturity–Funding–Oversight

Hon. John J. Young, Jr. USD(AT&L)

“At the strategic level, DOD’s processes for identifying warfighter needs, allocating resources, and developing and procuring weapon systems—whichtogether define DOD’s overall weapon system investment strategy—are fragmented and broken.” 3 June 2008, GAO

Acquisition Process

Requirements Process

“The DOD is approving more new programs than fiscal resources can support.This problem is compounded by the highly complex and interdependent programs that are commanding larger budgets than past programs.” 3 June 2008, GAO

Big “A”

Requirements Process

“Stop tinkering with requirements for weapons systems because such actionscause cost overruns and schedule delays.” 30 July 2007

Little “A”

Hon. John J. Young, Jr. USD(AT&L)

Requirements Process

“To limit cost growth, the DOD should establish an early program baseline and maintain it throughout the acquisition process.” Steven R. Meier, CIA, March 2008

Hon. John J. Young, Jr. USD(AT&L)

Configuration Steering Boards will review all proposed requirement changes, and any proposed technical configuration changes which could impact cost andschedule. Boards can reject any changes. 3 June 2008

Technology Maturity

“The GAO reported that of the programs assessed, only 15 percent entered development with demonstrated high levels of technology maturity, causing many programs to experience significant growth in development cost.” 15 November 2005, GAO

Incremental development vs quantum leaps

Technology Maturity

I have expanded the use of Defense Support Teams who are made up of outside world-class technical experts to address our toughest program technical issues.3 Jun 2008

Hon. John J. Young, Jr. USD(AT&L)

“I have issued policy requiring competitive, technically mature prototyping. My intent is to rectify problems of inadequate technology maturity and lack of understanding of the critical program development path.”3 Jun 2008

Funding

“Funding instability on complex weapon systems causes renegotiation and re-baselining of the plans, schedule and integration. This has a ripple effect through the supply chain.” 6 March 2008

Keith Ernst – former Acting Director, DCMA

“DOD pays for poorly performing programs by expropriating funds from other programs. This type of action destabilizes the other programs and reducesthe overall buying power of the defense dollar.” 7 March 2008

Nick Kuzemka – VP, Program Management,

Lockheed Martin

Funding

“Under the capital funding concept, the Department guarantees a certain level of funding for a fixed period of time.” Hearing on “Oversight of Defense Department Acquisitions” 29 April 2008

J. David Patterson -- Principal Deputy

Under Secretary of Defense (Comptroller)

Oversight

The GAO concluded that DOD policy provides for a series of early reviews focused on the acquisition process. Unfortunately, these reviews are often skipped or are not fully implemented. March 2007

“I must also certify that the program demonstrates a high likelihood of accomplishing its intended mission. These are two of the ten criteria I certify.” 3 June 2008

Hon. John J. Young, Jr. USD(AT&L)

Oversight

The DOD needs to make tough decisions -- which programs to pursue, and more importantly, not pursue; make sure programs are executable; lock in requirements before programs are ever started; and make it clear who is responsible for what and hold people accountable when responsibilities are not fulfilled. 29 April 2008

“Take control of the processes to ensure you have an executable, funded, and manageable program. Be prepared to be held accountable for execution of your program.” 6 June 2008

Hon. John J. Young, Jr. USD(AT&L)

Organization

“The organization is only as good as the people you put in it” 28 March 2008

Ralph DiCicco, JR – Acting Dir., AF/ ACE

Top 100 Defense Contractors

“Agencies need to consider developing a total workforce strategy … address the extent of contractor use and the appropriate mix of contractor and civilian and military personnel…identifying and distinguishing the responsibilities of contractors, civilians and military personnel are critical to ensure the contractor roles are appropriate.” 11 March 2008

Organization

“We are losing our competence as a government to be an effective buyer.” 1 March 2008

Dr. John J. Hamre -- former DEPSECDEF

“Several programs, which I have recently reviewed, that experienced cost and schedule problems cited a shortage of program office personnel as one of thecontributing factors.”… “I’m doing a manpower study to look at the skills we have, the work we have to do, what are the gaps, what are the potential needs for other people and then I am planning…to go and try to get budget and billets so I can potentially add people.” 3 June 2008

Hon. John J. Young, Jr. USD(AT&L)

Organization

The current joint programs are not able to streamline the requirements process across the Services. For example, the JSF Program Office has a RequirementsBoard where the different Services convene. However, after a joint decision hasbeen made, each Service is still required to go through their individual approvalchannels” 6 March 2008

Nick Kuzemka – VP, Program Management,

Lockheed Martin

Work Force

“We must help our people succeed through training and experience.” 18 April 2008

Hon. John J. Young, Jr. USD(AT&L) •Workforce

–Experience–Mentorship–Knowledge Sharing–Training–Tools

Experience

Program Management is a profession just like any other profession, and it musthave upward visibility and mobility. The Department must re-professionalize theprogram management career field by providing personnel with formal education and practical experience. 19 February 2008

Lt . Gen Lawrence P. Farrell, Jr., USAF (Ret)

-- President & CEO NDIA

The greatest challenge to developing experienced program managers is the decrease in DOD weapon system procurement. One solution to this shortageis to rotate DOD program managers with program managers in other U.S. government agencies and industry and vice versa.

Mentorship

20% of knowledge in an organization is information you can search for in books, regulations or manual. The remaining 80% of the knowledge resides inexperience, insight and lessons learned. This corporate knowledge is the why and how to do things, knowing what works and what doesn’t work. 12 February 2008

Colonel William S. “Bill” Kaplan, (ret) USAF, Chief Knowledge Officer, Acquisition Solutions

A single drop of water can send a ripple for miles; similarly a single idea,given at the right time, can help you for years to come.

Knowledge Sharing

The government needs to capture the knowledge in each program office and establish a partnership with industry to enhance and encourage knowledge sharing. There needs to be knowledge sharing among the various Servicesand with industry to capitalize on lessons learned. 24 January 2008

Allison Stiller, Deputy Assistant Secretary of the Navy, Research, Development, and Acquisition, Ship Programs

Hon. John J. Young, Jr. USD(AT&L)

“As part of our ‘knowledge sharing’ initiatives, we are participating in the National Defense Industrial Association’s Industrial Committee on Program Management.” … “We are teaming with industry to develop and expand theuse of Program Startup Workshops to improve communication and clarify Expectations up front.” 3 June 2008

Training

“We are increasing our use of just-in-time training. DAU is deploying its “Core Plus” concept that involves additional position-specific coursework for programmangers in specialty areas…We have initiatives led by DAU to ensure our program managers have access to an array of tools and templates. ” 3 June 2008

Hon. John J. Young, Jr. USD(AT&L)

“We are instituting a requirements manager certification course developed in conjunction with the Joint Staff and Defense Acquisition University to ensurethat requirements are written with a better understanding of and appreciation for the needs of the acquisition process.” 3 June 2008

Tools

The workforce of today is more capable than the workforce of 30 years ago because of the tools employed in the work environment to make them more productive...The workforce will only continue to improve and become moreproductive with time. 27 March 2008

Secretary Gary E. Payton, Deputy Under Secretary of the Air Force for Space Programs

Risk management and system engineering tools, along with networked communications, should enhance transparency of the acquisition process…and real-time reassessment of the risk profile. 27 February 2008

Lt. Gen George Muellner (ret) USAF, former President, of Advanced Systems, IDS, Boeing

Industry

“Change is relentless…I’d say in a single word ‘more’. We see more foreignownership of U.S. assets…more export from U.S. companies into the globalmarketplace…more global supply…more (international) partnering…the globalthreat and the nature of warfare are changing…” June 2005

Mark H. Ronald -- President and CEO, BAE Systems North

America, Inc.•Industry–Industry’s Role–Industrial Base Changes–Role of the Prime & Sub-Prime Contractor–Industry’s Response to Market Forces–Global Economy

Industry’s Role

“I see industry’s role with the Government in 2025 to be an integrated solution provider.” 2 May 2008

Frederick C. Payne -- Corporate Director of Program Management for BAE Systems, Inc.

“The right direction is team-mate and partner with the government in delivering a capability.” 27 February 2008

Lt. Gen George Muellner (ret) USAF, former President, of Advanced Systems, IDS, Boeing

Industrial Base Changes

“Domestic mergers will start to decline as compared to the last two decades,but international mergers and acquisitions will increase.” 28 April 2008

Steve Goo -- VP, International

Operations IDS, Boeing

This will lead to the introduction of many non-traditional suppliers, who have not previously been associated with defense work…because of the increased use of commercial products and the reduction in resources for the development of unique military solutions. 24 February 2008

Lt. Gen Ted Bowlds, USAF -- Commander

ESC

Role of the Prime and Sub-Prime Contractor

“The shift is already underway with prime contractors and subprime contractorshaving close working relationships. Contractor teams will align themselves early on in the acquisition process with common goals and objectives, and they are willing to share the fee.” 10 Feb 2008

George Guerra -- VP HALE System,

Northrop Grumman Corp.

In order for the prime/sub-prime contractor teams to collaborate and communicate more effectively, common systems must be used…The trendwill be for the prime contractor’s systems and processes to be adopted by the sub-prime. 6 Mar 2008

Nick Kuzemka – VP, Program Management,

Lockheed Martin

Industry’s Response to Market Forces

“Industry supporting defense is reshaping itself to respond to significant changes in military missions. Major defense firms are responding by reducing excess capacity, streamlining processes, and revamping supplierrelationships.” Aug 2005

J. David Patterson -- Principal Deputy

Under Secretary of Defense (Comptroller)

The technical paradigms will evolve, leading to industry’s improved responsiveness and advancement along the curve of flawless execution…this will enhance industry’s ability to deliver to government expectations.6 March 2008

Nick Kuzemka – VP, Program Management,

Lockheed Martin

Global Economy

“The Department must be prepared for more global involvement in the manufacturing of the components going into weapon systems. This will requirea major cultural shift in thinking about how to produce military hardware [coupled with] National Security concerns.” 14 February 2008

Col August J. Caponecchi (ret). USAF -- President Emeritus, Tactair Fluid Controls

Inc.

“The government comprises 7% of industry’s space business revenue and many of the subtiers are divesting from government contracts towards more profitable markets. The subtier components are bound by legislation such as ITAR that increases the cost of domestically manufactured products and dis-advantages the U.S. supplier.” 27 March 2008

Secretary Gary E. Payton, Deputy Under Secretary of the Air Force for Space Programs

Conclusion

“Buy the right thing, the right way, with the right process.” 5 March 2008

General Lester L. Lyles (Ret) USAF -- former Commander, AFMC

The acquisition process can go one of two ways. It can get more bureaucraticand stringent or it can embrace solutions from various studies to improvethe whole process. 7 April 2008

Dr. Jacques Gansler -- former Under

Secretary for AT&L

About the Author

“I believe the initiative, talent and adaptability of our government and industry team will succeed in providing an acquisition process that meets the demanding requirements of our ever changing world.”

Major Brunswick, an Acquisition/Space Professional in the United States Air Force (USAF), is a Professor of Acquisition Management at Defense Acquisition University (DAU) and is Defense Acquisition Workforce Improvement Act (DAWIA) certified in Program Management Level III and a certified Space Professional Level II by the United States Air Force Space Professional Functional Authority. She attained her Project Management Professional (PMP) certification in 2002. She also holds Bachelor’s and Master’s degrees in Business Administration. Major Brunswick has served 23 years in the USAF. Prior to joining the DAU faculty, she was a Program Integrator at Defense Contract Management Agency (DCMA), where she led a multifunctional team on the Missile Defense Agency’s Space Tracking and Surveillance System. Before her assignment at DCMA, she participated in the Air Force Institute of Technology’s Education with Industry with the Boeing Corporation. She entered the acquisition career field with the Space and Missile Systems Center at Los Angeles Air Force Base, California, as a Project Manager and as a Test and Verification Project Officer for the Spacelift Range program. Major Brunswick has served one tour in Iraq with DCMA and a joint tour in Washington, D.C., with the Office for the Administrative Review of the Detention of Enemy Combatants under the authority of the Deputy Secretary of Defense. (E-mail address: [email protected]; Comm: 424-456-7204)

Major Michelle “Shelli” Brunswick, USAF -- Professor, Acquisition

Management, DAU

The views presented here do not represent those of the DOD or DAU.