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December 31, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

Six things on the Pentagon’s 2019 acquisition reform checklist

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WASHINGTON — Under the purview of Defense Secretary Jim Mattis, reform has become a buzzword inside the Department of Defense, with every office trying to find ways to be more efficient, whether through cost savings or changes to bureaucracy.

The department's Acquisition and Sustainment office, headed by Ellen Lord, manages billions of dollars in materiel; and by Lord's own belief, it is ripe for changes that could net the department big savings.

On Dec. 17, Lord sat down with reporters and outlined a series of goals for 2019 that she hopes will help transform how the Pentagon buys equipment. Here, then, are six key items to watch for in the coming year.

1. Rework the department's key acquisition rules: The DoD Instruction 5000.02 is a key bedrock that forms the basis of how the defense acquisition system works, guiding acquisition professionals in their day-to-day program execution. And if Lord gets her way, she'll largely rip it up and start over.

“In 2019, one of my key objectives is to rewrite 5000.02. We have, right now, this huge, complicated acquisition process that we encourage our acquisition professionals to tailor to their needs,” Lord said. “We are going to invert that approach and take a clean sheet of paper and write the absolute bare minimum to be compliant in 5000.02, and encourage program managers and contracting officers to add to that as they need for specific programs.”

Lord envisions taking the massive, unwieldy 5000.02 guidance and getting it down to “a couple page outline of what you need to do,” with “simple” contract language and an easy-to-follow checklist “so that this isn't an onerous process.”

“I'm encouraging what I call creative compliance. I want everyone to be compliant, but I want people to be very thoughtful and only use what they need,” she said. “This is literally starting with a clean sheet of paper, looking at the law and the intent, and working to vastly simplify this.”

Andrew Hunter, a former Pentagon acquisition official now with the Center for International and Strategic Studies, notes that the instruction is supposed to be rewritten every five years to keep it fresh, and now is probably the right time to start looking into that.

But, he added, “a lot of what she says she wants to do are things that sound very similar to my ear to what [Lord's predecessor] Frank Kendall was trying to do in the last rewrite. He tossed stuff out left and right, worked very hard to create the different models, put in extended discussions of different potential models of programs so that it would be obvious to people there's not one single way to do a program.”

Hunter is cautious when it comes to a massive shift in the 5000.02 system. “If you literally tell the system, ‘All the rules are repealed, go do everything you want,' the reaction won't be a sudden flood of creativity that astounds you with the amazing talent at the department, even though there is a lot of talent there," he said.

“What's more likely to happen is you have total paralysis because everyone is sitting around going: ‘Oh no, the rules are gone. How do we know what we can do? What do we do now?' But over time that might shake out.”

If Congress needs to get involved, Lord said, she's prepared to go to Capitol Hill “because I know they are partnering with us and they want to make sure we do things in a simpler, most cost-effective manner.”

2. Intellectual property rules: A long-standing fight between the department and industry is over who should own the intellectual property used by the American military. Before fully taking on 5000.02, Lord hopes to write a departmentwide intellectual property policy.

Lord pointed to the “very good job” done by the Army on creating an IP policy and said her goal is to build on that to create a standard across the DoD.

“From an industry perspective, we are trying to be consistent across all the services and agencies, so that we don't have different requirements for similar needs,” Lord said. “So intellectual property is a good example. We'd like to have the same kind of contract language that can be tailored to individual needs, but basically have consistent language.”

David Berteau, a former Pentagon official who is now the president and CEO of the Professional Services Council, noted it is hard to read the tea leaves for what Lord may be planning based on her public comments.

But he pointed out the long-standing challenge for the Pentagon — that nearly 70 percent of all program costs are life-cycle sustainment and maintenance costs — as a sign that something needs to change so the department can avoid major issues in the future.

Depending on how new rules are implemented, the use of IP might drive down costs — or, he warned, it might lead to companies unable to compete, forcing the Pentagon to pay more or be less prepared for challenges. Put plainly, Berteau said, “it's complicated.”

He hopes Lord will begin interacting with industry on this issue in ways similar to the current “listening tour” on changes to progress payments.

3. Better software development: It's become almost cliché that the department needs to do better at developing software, but in this case it's a cliché that experts, including Lord, agree with.

The Defense Innovation Board, a group of tech experts from outside the department, is working on a series of studies on software, including one focused on how to drive agile development techniques inside the building. Lord said to expect that report before the end of March, adding: “I think that will be important in terms of capturing a road map forward on how to do this correctly.”

4. Increase use of OTAs: In 2018, Lord's office released a handbook on when and how to use other transaction authorities — legal standards designed to speed acquisition that critics say are underutilized by the department. Lord called it “sort of a warmup” for creating more useful handbooks for the acquisition community, but said that the goal for 2019 is to get people to correctly employ OTAs.

“Usually they should be used when you don't have a clear requirement. So, true prototyping when you don't know what you're going to get,” Lord said. “Prototyping early on, probably before you get to the middle-tier acquisition.”

5. Greater use of prototyping: Speaking of which, Lord said the department has about 10 projects underway for rapid prototyping at the mid-tier level, with the goal of growing to about 50 in the next year. The goal is to take the systems into the field, test them out and then grow the next iteration of the capability based on what is learned.

“We're taking systems that are commercially available and perhaps need a little modification, or defense systems that need a modicum of modification to make them appropriate for the war fighter,” Lord said. “That's one of the authorities we are very appreciative for, and we will continue to refine the policy. I signed out very broad policy on that this year. We'll write the detailed policy coming up early next year.”

6. Making the Selected Acquisition Reports public again: Until recently, the department publicly released annual Selected Acquisition Reports for each of the major defense programs. Those reports can inform the public of where programs stand and the costs associated.

However, under the Trump administration, those reports have been largely classified as “For Official Use Only,” or FOUO, a higher level of security. Critics, including incoming House Armed Services Committee Chairman Adam Smith, D-Wash., have argued there is no need for those once-public reports to be listed as FOUO. It appears Lord is working to open those back up.

“We're going to try to minimize the FOUO on that,” Lord said in response to a question about it. “There are certain information [issues] that we have to protect, but [we] understand the need, the requirement, and I will put our guidance to make everything open to the public to the degree we can.”

https://www.defensenews.com/pentagon/2018/12/27/six-things-on-the-pentagons-2019-acquisition-reform-checklist/

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  • Contract Awards by US Department of Defense - December 16, 2020

    December 17, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - December 16, 2020

    ARMY Central Lake Armor Express,* Central Lake, Michigan (W91CRB-21-D-0004); Bethel Industries Inc.,* Jersey City, New Jersey (W91CRB-21-D-0005); Carter Enterprises LLC,* Brooklyn, New York (W91CRB-21-D-0006); Point Blank Enterprises Inc., Pompano Beach, Florida (W91CRB-21-D-0007); and Slate Solutions Inc.,* Sunrise, Florida (W91CRB-21-D-0080), will compete for each order of the $837,591,519 firm-fixed-price contract for the Soldier Protection System. Bids were solicited via the internet with 11 received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 14, 2029. The U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. Towill Inc., Concord, California, was awarded a $22,666,666 firm-fixed-price contract for photogrammetric and Light Detection and Ranging (LiDAR) surveying and mapping. Bids were solicited via the internet with 38 received. 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DEFENSE LOGISTICS AGENCY Belmont Instrument LLC, Billerica, Massachusetts, has been awarded a maximum $133,570,787 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract under solicitation SPE2DH-16-R-0002 for a hospital and portable rapid blood infuser product line, military kits, associated consumables and accessories. This was a competitive acquisition with 132 responses received. This is a five-year contract with no option periods. Location of performance is Massachusetts, with a Dec. 15, 2025, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2021 through 2026 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D1-21-D-0004). The Boeing Co., St. Louis, Missouri, has been awarded an estimated $108,537,739 modification (P00122) to five-year base contract SPRPA1-14-D-002U with one five-year option period adding consumable items supporting various aircraft. Location of performance is Missouri, with a Sept. 16, 2024, performance completion date. Using customers are Army, Navy, Air Force and military forces in Australia, Finland, France, Israel, Greece, Kuwait and Switzerland. Types of appropriation are fiscal 2021 defense working capital funds and Foreign Military Sales funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. The Boeing Co., St. Louis, Missouri, has been awarded a maximum $41,709,797 cost-plus-fixed-fee delivery order (SPRPA1-21-D-9002) against five-year basic ordering agreement SPRPA1-14-D-002U for consumable and depot-level repairable parts for the KC-46 military unique program. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a three-year base contract with two one-year option periods. Location of performance is Missouri, with a Dec. 15, 2023, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2021 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. OFD Foods LLC,* Albany, Oregon, has been awarded a maximum $34,162,535 fixed-priced with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for boil-in-bag dehydrated egg mix. This was a competitive acquisition with three responses received. This is a four-year contract with no option periods. Location of performance is Oregon, with a Dec. 11, 2024, ordering period end date. Using military services are Army, Navy and Marine Corps. Type of appropriation is fiscal 2021 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE3S1-21-D-Z230). The Boeing Co., St. Louis, Missouri, has been awarded a $10,849,059 modification (P00122) against five-year basic ordering agreement SPRPA1-14-D-002U for additional F/A-18 A-D and E-G aircraft integrated product support. This is a firm-fixed-price contract. Locations of performance are Missouri, California, Virginia, Washington, Nevada and South Carolina, with a Dec. 31, 2023, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2021 Navy operation, maintenance and procurement funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. 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  • Here are the four prizes Textron Systems is watching in 2019

    January 14, 2019 | International, Land

    Here are the four prizes Textron Systems is watching in 2019

    By: Valerie Insinna WASHINGTON — Textron Systems is focusing on the U.S. Army this year, with its chief executive naming four unmanned and small arms programs with the service as the company's “need to win” items in 2019. Speaking to reporters Jan. 10, Textron President and CEO Lisa Atherton laid out the company's top priorities: 1. Squad Mobility Equipment Transport With its recent acquisition of Howe & Howe Technologies, Textron finds itself a player in the Army's Squad Mobility Equipment Transport competition. The Army wants to buy a robotic equipment carrier that troops can load with their gear, and Howe & Howe's tracked RS2-H1 robot is competing alongside three other companies for the contract. “We believe that program will progress this year, and we look forward to moving that to low-rate production,” Atherton said. The other competitors undergoing tests with the Army and Marine Corps are the Polaris MRZR X, a four-wheeled vehicle based on the Polaris MRZR currently in service with the Marines; the General Dynamics four-wheel drive Multi-Utility Tactical Transport; and the six-wheeled HDT Global Hunter WOLF, or Wheeled Offload Logistics Follower, Army Times reported last year. Each company delivered prototypes to two Army infantry brigade combat teams and a Marine Corps unit for tests last year. “They asked us to deliver eight vehicles and then just give them to the soldiers and let the soldiers do what they will with them and basically try to break them,” Atherton said. The vehicles have now come back to Textron in good working condition, which Atherton said is a “testament to the robustness of that capability.” After a year of tests, the Army will make a decision on the way forward with the program, which could involve a downselect to a single SMET provider, Army Times has reported. 2. Robotic combat vehicle As the Army looks to replace the Bradley Fighting Vehicle with what the service is calling the Next Generation Combat Vehicle, it is also hoping to develop an unmanned tank that can accompany it into battle as a robotic “wingman.” Again, Textron's acquisition of Howe & Howe gives the company an entry point into the competition, Atherton said. “We believe that the Ripsaw is tailor-made for that,” she said, referring to the light unmanned tank developed by Howe & Howe. “So this year we will be focused on responding to the [requests for proposals] that come out for the prototypes.” Ripsaw's appearance on the show “Jay Leno's Garage” attracted Atherton's attention to Howe & Howe and laid the foundation for the company's eventual acquisition. The robotic tank has been featured in numerous TV and movie spots, including the film “Mad Max: Fury Road.” The Army previously tested it at Picatinny Arsenal in New Jersey. Atherton said Textron will make investments to improve the survivability of Ripsaw, as well as add “other innovations.” Brig. Gen. David Lesperance, who is leading the NGCV Cross-Functional Team, said in March that both NGCV and robot combat vehicle prototypes will be ready for soldier evaluations by 2020, with follow-on prototypes ready by 2022 and 2024. 3. Future tactical unmanned aerial system As the Army looks to replace its RQ-7 Shadow drones, it's testing a number of small, nondevelopmental unmanned aerial systems with the hopes of buying something off the shelf. As part of that effort, Textron was chosen to demonstrate Aerosonde HQ at Dugway Proving Ground, Utah, last month, Atherton said. Aerosonde HQ is a version of Textron's small Aerosonde UAS and includes a kit that allows it to take off and land vertically. “Our team widely exceeded the threshold requirements,” she said. “So we're very proud of what we were able to do: very rapidly integrate those techniques and procedures and technologies into the Aerosonde to be able to provide that to the Army for the future tactical UAS.” 4. Next Generation Squad Weapons Textron also believes it has strong offerings for the Army's Next Generation Squad Weapons effort, an umbrella program to replace soldiers' small arms, Atherton said. Reducing the weight of small arms is a major goal of the program, and Textron previously developed case-telescoped weapons it claims are lighter in weight and more lethal than current weaponry. “We believe we are the leaders in the case-telescoped prototypes for the Army's next-generation squad weapon with our lightweight small arms technologies,” Atherton said. The company showcased a 5.56mm light machine gun variant and a 6.5mm caseless service rifle variant at the Association of the U.S. Army's annual meeting in 2017, Army Times reported. The service has awarded contracts to Textron; FN America, LLC; General Dynamics; PCP Tactical; and Sig Sauer to build prototypes of a Next Generation Squad Automatic Rifle, or NGSAR. The prototypes are due to be delivered this year. That weapon would replace the M249 Squad Automatic Weapon, which fires 5.56mm rounds. The program also seeks to find a replacement for the M4, which it calls the Next Generation Squad Weapon Rifle, or NGSW-Rifle. Both NGSW-Rifle and NGSAR will fire 6.8mm rounds. https://www.defensenews.com/land/2019/01/11/here-are-the-four-prizes-textron-systems-is-watching-in-2019

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