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Mr. Miller was appointed to the Senior Executive Service as the second Deputy Program Executive Officer for Tactical Aircraft Programs, providing advice on acquisition-related issues for a variety of aircraft and weapons programs. In 1994, he was selected as the Assistant Commander for Corporate Operations, where his responsibilities included the strategic planning and corporate business functions of the Naval Air Systems Command. Additional duties included Chief Information Officer. In 1998, he was appointed Principal Assistant for Acquisition, Programming and Budgeting for the Director of Air Warfare within the Office of the Chief of Naval Operations. Mr. Miller was later selected as the Assistant Deputy, Chief of Naval Operations, Warfare Requirements and Programs, defining and developing a variety of warfare requirements for the Department of the Navy. He is a frequent speaker at government, industry and national forums. = = ==================^Åèìáëáíáçå=oÉëÉ~êÅÜW=ÅêÉ~íáåÖ=ëóåÉêÖó=Ñçê=áåÑçêãÉÇ=ÅÜ~åÖÉ=======- 317 - = =
Best Practices: Better Support of Weapon System Program Managers Needed to Improve Outcomes Presenter: Michael Sullivan, Director, Acquisition and Sourcing Management, GAO Presenter: Cristina Sullivan, US Government Accountability Office Highlights The Department of Defense (DOD) relies on a relatively small cadre of officials to develop and deliver weapon systems. In view of the importance of DOD’s investment in weapon systems, we have undertaken an extensive body of work that examines DOD’s acquisition issues from a perspective that draws lessons learned from the best commercial product development efforts to see if they apply to weapon system acquisitions. In response to a request from the Chairman and Ranking Minority Member of the Subcommittee on Readiness and Management Support, Senate Committee on Armed Services, this report assesses (1) how successful commercial companies position their program managers, (2) how DOD positions its program managers, and (3) underlying reasons for the differences. In compiling this report, GAO conducted a survey of program managers. See http://www.gao.gov/special.pubs/gao-06-112SP/index.html . GAO recommends the Secretary of Defense develop an investment strategy to prioritize needed capabilities; require senior stakeholders to formally commit to business cases for new weapon system developments; and develop a process to instill and sustain accountability for successful program outcomes. DOD agreed with our recommendations. U.S. weapons are among the best in the world, but the programs to acquire them often take significantly longer and cost more money than promised and often deliver fewer quantities and capabilities than planned. It is not unusual for estimates of time and money to be off by 20 to 50 percent. When costs and schedules increase, quantities are cut, and the value for the warfighter—as well as the value of the investment dollar—is reduced. When we examined private sector companies that developed complex and technical products similar to DOD, we found that their success hinged on the tone set by leadership and disciplined, knowledge-based processes for product development and execution. More specifically, long before the initiation of a new program, senior company leaders made critical investment decisions about the firm’s mix of products so that they could commit to programs they determined best fit within their overall goals. These decisions considered long-term needs versus wants as well as affordability and sustainability. Once high level investment decisions were made, senior leaders ensured that programs did not begin unless they had a business case that made sure resources were inhand to execute the program—that is, time, technology, money, and people. Once a business case was established, senior leaders tasked program managers with executing that business case for each new product from initiation to delivery, but required their program managers to use a knowledge-based product development process that demanded appropriate demonstrations of technology, designs, and processes at critical junctures. The program manager was empowered to execute the business case, but also held accountable for = = ==================^Åèìáëáíáçå=oÉëÉ~êÅÜW=ÅêÉ~íáåÖ=ëóåÉêÖó=Ñçê=áåÑçêãÉÇ=ÅÜ~åÖÉ=======- 318 - = =
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Author(s) Title Publisher Issue Dat
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The research presented at the sympo
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Preface and Acknowledgements Those
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The NPS A Team Rear Admiral James B
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4 th Annual Acquisition Research Sy
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PANEL -- IMPLEMENTING AN OPEN SYSTE
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Plenary Panel - Acquisition Reform
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In May 1996, Rear Adm. Hamilton bec
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Panel - Enhancing Collaborative Cap
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Collaborative IT Tools Leveraging C
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Group’s Perceived Usefulness Grou
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diagnose collaborative capacity enc
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Organization A Problem Interagency
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Incentives - Collaboration as a pre
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Two other frequently cited barriers
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Panel - Analytic Approaches to Shap
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Discussant: Michael McGrath - Deput
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Panel - Strategic Sourcing Wednesda
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Abstract In this paper, we examine
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support from the taxpayer. A key co
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etc. (Figure 1) (Kraljik, 1983). Vi
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that companies adopted a strategic
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Benchmarking Industry According to
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80% 70% 60% 50% 40% 30% 20% 10% 0%
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initiatives. In efforts to reduce s
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eduction goals. Also, in the same m
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Conclusion The DoD is struggling to
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Gabbard, E. G. (2004, April). Strat
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Staff. (2005, December 8). Hacket r
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Panel - Implementing RFID in the De
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What Is the Right RFID for Your Pro
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Introduction The evolution and appl
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Literature Review RFID technology w
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The reader is a device used to coll
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Active tags sometimes have sensors
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An RFID network with open architect
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Passive tag application: Railcar ta
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This system has lowered the risk of
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Because of the temperature-induced
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Thereafter, through a process of tr
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to be read at a few inches by an op
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RFID technology has even enhanced s
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The Costs of RFID operation An RFID
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• Abandonment: The ability to aba
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Fleisch, E., & Tellkamp, C. (2005).
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Williams, D. (2005, August 4). Pres
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logistics systems from the military
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Panel - Transforming the DoD Acquis
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upon the best knowledge and practic
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cost, this form appears to be the m
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access to, and conducted his analys
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organizational problems surface thr
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Change in analytic framework. Burea
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As we look at the effort to change
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interpretation or narrative. What
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common construction. Rather, sense-
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There will be a temptation for acto
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modeling suite. The key comparison
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This model provides us also with th
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here, particularly if the organizat
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organization identified through pri
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Levitt, R.E., Thomsen, J., Christia
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BACKGROUND To an extent, we are add
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Concept Refinement Concept Decision
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some subset of commercial “best p
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transforms the value of a public-se
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We also assume that since the gover
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Of course, we know in reality that
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CONCLUSIONS The acquisition of publ
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Panel - Issues in Acquisition and P
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To What Extent are DoD Activities C
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NAVSUP Data Call (2003 and 2004) FI
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exemption from a particular regulat
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time in the procurement schedule, a
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should be fully supported by applic
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example, federal government, state
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ADR Techniques Traditional litigati
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out the top three with 25.7% of res
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It is a consensus building, public
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Investigative Question 1—Conclusi
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Question 3b: Did the ADR process us
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suited than another to resolution.
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Investigative Question 7: Barriers
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customer, and each of these service
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Panel -- Implementing an Open Syste
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Open Systems and Modular Open Syste
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procurement planning phase include
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procurement documents and specific
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system technical architecture requi
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These evaluation factors are tradit
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In the Cost Reimbursement contract
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technical, schedule, and past perfo
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Developing Performance Based Requir
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The DoD Performance Specification d
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due to many of the reasons presente
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even if there were ten other upgrad
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software developers can employ when
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Conducting this analysis will be as
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integration of “best of breed”
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Reform of Budgeting for Acquisition
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350000 300000 250000 200000 150000
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In fact, the disagreement between t
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Functional Area Analysis D O T M L
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Though many in Washington blame the
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In response to an open-ended questi
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CAPITAL BUDGETING IN THE DoD AND TH
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investment. Full funding also helps
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c. Functional Requirements If it is
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4. Budgeting Phase of Capital Progr
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private firm, one can combine the t
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4. Acceptance of a project using th
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Another disadvantage of the payback
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Another guideline is that firms mus
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This concept has remained consisten
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purchases. Also, the Office of Mana
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CONCLUSIONS The current practices o
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REFERENCES Bierman Jr., H., & Smidt
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Ratnam, G. (2005, December 12). Big
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Brian C. Payne, Captain Instructor
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A Transactions Cost Economics (TCE)
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SECTION 1: INTRODUCTION This report
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SECTION 2: REVIEW OF TRANSACTION CO
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cooperative agreements, but since t
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characteristic that defines many ou
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The added risk faced by military co
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J) Some Empirical Evidence On the w
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unproductive bargaining and influen
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also include the costs of internal
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N) Results from a Bargaining-game M
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efforts to screen for reliability a
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Program Managers lead Program (Proj
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Table 2. Research, Development, Tes
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To minimize transaction costs for t
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A recent initiative to accommodate
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Technical complexity within a syste
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As briefly introduced above in Sect
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Table 5. Typical Contract Type by P
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multiyear procurements and other ty
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Page 299 and 300: Attributes of Good Metrics. Certain
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Page 309 and 310: forcing each activity and report to
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Page 341 and 342: Figure 4. System Components INTEGRA
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Kharbanda, O., & Pinto, J. (1996).
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Panel - Service Contracting Thursda
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Managing the Services Supply Chain
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include professional, administrativ
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Service Characteristics and their I
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given stage is made dependent on th
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contracted effort. The procurement
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Construction, Repair and Maintenanc
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The second phase of the procurement
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human capital. This is partially du
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for the contracting of services wil
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Yet a RAND study of the Army showed
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services, the Army appears to have
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(janitorial) services, food service
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Each requirement organization provi
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Brown, S. W., Gummesson, E. Edvards
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Gronroos, C. (1982). Strategic mana
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What Works Best when Contracting fo
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Panel - Earned Value Management Thu
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Measuring Uncertainty in Earned Val
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level of rate-of-change and the abs
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But, if the widget is only half com
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so more rapidly in environments cha
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Impending Task Delays (ITD) can be
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with: v: In the Fisher model, it re
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In discrete time form, the estimati
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Thus, various types of delay such a
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Entropy The uncertainty (non-specif
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Panel - Contractors in Support of M
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Contractors Supporting Military Ope
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drivers and other historical refere
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Another factor driving toward incre
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number of highly experienced Blackw
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Unity of command is one of the prin
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was reimbursed for expenses actuall
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principles, such as unity of comman
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aircraft involved in re-supply miss
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President Cheney) has apparently ma
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modest proposals for incremental ch
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In July 1937, the “China Incident
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President Roosevelt’s assistant,
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Pilots of the Flying Tigers receive
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was larger than the marine aid stat
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Merchant vessels kept Britain in th
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The final vignette involves Charles
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contract (Wake Island pre-war). In
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purposes continues to be the “leg
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Going to War with Defense Contracto
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Abstract This paper reports on an e
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Table 1: Factor loadings and alpha
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depict causal relationships tested
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work-related experience than younge
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Discussion and conclusion On averag
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2003 - 2006 Sponsored Acquisition R
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NPS-PM-04-017 Matthews, David. The
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Technical Reports NPS-GSBPP-03-003
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