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16 janvier 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Does the Pentagon need a chief management officer?

By: Jerry McGinn

Ms. Lisa Hershman, an accomplished former CEO who has been serving in the Department of Defense for over two years, received Senate confirmation by unanimous consent to become the DoD chief management officer shortly before Christmas. At the same time, however, the 2020 National Defense Authorization Act required two studies from the DoD that openly posit eliminating the CMO function altogether.

What gives? The mixed signals coming out of these discordant events underscore the fact that the theory behind the current CMO function (and similar efforts over the past two decades) does not match the reality of the business structure of the DoD. The solution that will ultimately work best for the DoD is one that truly takes a business-based approach to DoD business operations.

The CMO function is the latest in a long-running series of efforts since the early 2000s to reform the business of defense. The essential idea has been to bring the best commercial business practices into DoD business operations through organizational and legislative changes.

While the rationale for these respective initiatives is unassailable, they have struggled in execution. The CMO and its predecessor organizations, for example, have focused on the acquisition or certification of DoD business systems. These efforts, however, have largely devolved into bureaucratic battles over resources and authorities, pitting the business-focused organization against the formidable military departments and the “fourth estate.”

Whatever the outcome, the business-focused organization ends up being seen as weak and ineffective.

Why is that? Having worked for years in and around these respective efforts in both government and industry roles, I have come to the conclusion that these well-meaning initiatives are just the wrong type of solution. This is largely because their respective organizations, often despite strong leadership and empowered by various degrees of legislative authority, have not had the bureaucratic throw-weight to succeed in Pentagon battles with the services and the fourth estate.

The solution to this challenge, however, is not to further tinker with the CMO's authority or to create a larger or different CMO organization. Part of the solution is to recognize that while the DoD is not a business, it is in many ways a businesslike organization. There are no profit and loss, or P&L, centers in the DoD, but the military departments frankly function in much the same way as a P&L line of business. The services are directly responsible for training and equipping their soldiers, sailors and airmen just as P&L leaders are responsible for delivering products and solutions on time and profitably.

Likewise, fourth estate entities such as the defense agencies and the Office of the Secretary of Defense have direct responsibility over their respective functions. Harnessing the power and authority of these organizations through the training and enabling of good business practices is a much more natural fit for the DoD.

Devolving responsibility in and of itself is not the answer, however. The other part of the solution is accountability. Commercial businesses do not have a CMO function. Instead, well-run businesses are led by strong executives who are responsible and accountable for delivering results to their employees and shareholders. Those that succeed are rewarded, while those that fail are replaced.

The same goes for the DoD.

DoD leadership should focus on establishing business-reform objectives for each major DoD organization, and then holding leaders of these respective organizations accountable to the achievement of measurable business goals. This should be driven by the secretary and the deputy, and enabled by a much smaller CMO function. Secretary Mark Esper appears to be headed in that direction in his recent memo on 2020 DoD reform efforts, which focuses the CMO's efforts on the fourth estate and makes the services directly responsible “to establish and execute aggressive reform plans.” That is the right approach.

In short, the DoD does not need a management organization to oversee the business of defense; it needs to enable its leaders to utilize business best practices, and then hold these leaders accountable for results.

Jerry McGinn is the executive director of the Center for Government Contracting at George Mason University. He previously served as the senior career official in the Office of Manufacturing and Industrial Base Policy at the U.S. Defense Department.

https://www.defensenews.com/opinion/commentary/2020/01/15/does-the-pentagon-need-a-chief-management-officer

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  • Contract Awards by US Department of Defense - December 16, 2019

    17 décembre 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - December 16, 2019

    DEFENSE LOGISTICS AGENCY The Boeing Co., St. Louis, Missouri, has been awarded a maximum $835,737,596 modification (P00105) exercising the five-year option period of a five-year base contract (SPRPA1-14-D-002U) with one five-year option period for performance-based support of consumable items for various aviation platforms. This is a fixed-price-incentive firm contract. Location of performance is Missouri, with a Sept. 16, 2024, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. Sysco Hampton Roads, Suffolk, Virginia, has been awarded a maximum $90,716,317 fixed-price with economic-price-adjustment, indefinite-quantity contract for perishable and semi-perishable subsistence supplies. This was a sole-source acquisition in accordance with 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 363-day bridge contract with no option periods. Location of performance is Virginia, with a Dec. 11, 2020, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 and 2021 defense working capital funds. The contracting agency is Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3241). (Awarded Dec. 12, 2019) Pomp's Tire Service Inc., New Berlin, Wisconsin, has been awarded a maximum $15,046,656 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for pneumatic tire and wheel assemblies. This was a competitive acquisition with one offer received. This is a three-year contract with no option periods. Location of performance is Wisconsin, with a Dec. 16, 2022, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2022 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0014). Puerto Rico Industries for the Blind Corp.,** Mayaguez, Puerto Rico, has been awarded a maximum $11,036,311 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for flame resistant jackets. This was a competitive acquisition with three responses received. This is a one-year base contract with four one-year option periods. Location of performance is Puerto Rico, with a Dec. 15, 2020, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1219). UPDATE: Atlantic Diving Supply Inc., doing business as ADS Inc., Virginia Beach, Virginia (SPE8EC-20-D-0052), has been added as an awardee to the multiple award contract issued against solicitation SPE8EC-17-R-0005 announced April 5, 2017. ARMY Johnson Controls Building Automation Systems LLC, Huntsville, Alabama, was awarded a $400,000,000 firm-fixed-price contract for utility monitoring and control systems. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 19, 2024. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-20-D-0041). Lockheed Martin Corp., Orlando, Florida, was awarded a $64,736,518 modification (P00031) to contract W58RGZ-16-C-0008 for the Modernized Target Acquisition Designation Sight Pilot Night Vision Sensor Performance Based Logistics program sustainment, support elements, system components, test equipment and the supply retrograde infrastructure. Work will be performed in Orlando, Florida, with an estimated completion date of Dec. 31, 2020. Fiscal 2020 Army working capital funds in the amount of $64,736,518 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Attain LLC,* McLean, Virginia, was awarded a $30,492,418 modification (BA07 27) to contract W91QUZ-11-D-0016 to acquire and retain contractor employees with technical experience. Work will be performed in Picatinny Arsenal, New Jersey, with an estimated completion date of Dec. 31, 2020. Fiscal 2020 cost-plus-fixed-fee funds in the amount of $ 8,174,474 other procurement, Army funds were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. MGS Construction Services Inc.,* Sallisaw, Oklahoma (W911SA-20-D-2000); Ryan Herring Construction Inc.,* Lawton, Oklahoma (W911SA-20-D-2001); and A&J Construction Management LLC,* Springdale, Arizona (W911SA-20-D-2002) will compete for each order of the $15,000,000 firm-fixed-price contract for parts, labor, tools, equipment, materials, transportation and supervision necessary to perform design-build projects. Bids were solicited via the internet with eight received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 15, 2024. U.S. Army Mission and Installation Contracting Command, Fort McCoy, Wisconsin, is the contracting activity. NAVY General Dynamics Mission Systems, Pittsfield, Massachusetts, is awarded a $299,886,600 cost-plus-incentive-fee and cost-plus-fixed-fee contract (N00030-20-C-0005) for fiscal 2020 through 2023 U.S. and United Kingdom Trident II (D-5) Fleet Ballistic Missile Submarines Fire Control System, Guided Missile Submarines Attack Weapon Control System, and Support Equipment Rework Facility support. Work will be performed in Pittsfield, Massachusetts (90%); Kings Bay, Georgia (3.0%); Bangor, Washington (2.0%); Dahlgren, Virginia (2.0%); Cape Canaveral, Florida (1.0%); Puget Sound Naval Shipyard, Washington (1.0%); and Norfolk Naval Shipyard, Virginia (1.0%). Work is expected to be completed Dec. 30, 2024. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $9,061,163, fiscal 2020 other procurement (Navy) funds in the amount of $14,907,880, fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $1,006,230, and United Kingdom funds in the amount of $8,890,232 are being obligated on this award. Of this amount, $10,067,393 will expire at the end of the current fiscal year. This contract is being awarded to the contractor on a sole source basis in accordance to 10 U.S. Code 2304(c)(1) and (4) and was previously synopsized on the Federal Business Opportunities website. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. Lockheed Martin, Manassas, Virginia, is awarded a $27,681,322 cost-plus-fixed-fee and cost-only modification to previously-awarded contract N00024-19-C-6400 to exercise options for systems engineering and integration on Navy submarines. This option exercise is for engineering and technical services and includes all material travel, subsistence and incidental material in support of those services. Work will be performed in Manassas, Virginia (68%); Groton, Connecticut (10%); Waterford, Connecticut (10%); Middletown, Rhode Island (7%); and Newport, Rhode Island (5%), and is expected to be completed by December 2020. Fiscal 2018 shipbuilding and conversion (Navy) and fiscal 2020 research, development, test and evaluation funding in the amount of $7,198,430 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Motorola Solutions Inc., Chicago, Illinois, is awarded a $23,803,734 firm-fixed-price contract for lifecycle sustainment of the enterprise land mobile radio system for Naval Facilities Engineering Command anti-terrorism/force protection ashore program systems at various Navy installations worldwide. The work to be performed provides for preventive maintenance of hardware and software; response and resolution of service calls for corrective maintenance to include equipment repair, overhaul, or replacement, asset and configuration management, password management and software upgrade installation. The contract also contains four unexercised options, which if exercised would increase cumulative contract value to $93,614,301. Work will be performed worldwide, and is expected to be completed by December 2020. If all options are exercised, work will continue through June 2023. Fiscal 2020 operations and maintenance, (Navy) contract funds in the amount of $23,803,734 are obligated on this award and will expire at the end of the current fiscal year. This contract was solicited on a sole-source basis. Statutory authority for the use of other than full and open competition is found at 10 U.S. Code 2304 (c)(1) as implemented by Federal Acquisition Regulation 6.302-1(iii), only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity (N39430-20-C-2214). AIR FORCE ViaSat Inc., Carlsbad, California, has been awarded a $93,000,000 indefinite-delivery/indefinite-quantity contract to provide AN/PRC-161 Handheld Link 16 radios, ancillaries and associated training to special warfare operators. Work will be performed at Carlsbad, California, and is expected to be completed by Dec. 31, 2023. This contract is awarded on a non-competitive basis. Fiscal 2020 other procurement funds are being used and no funds are being obligated at the time of the award. The Air Force Life Cycle Management Center, Wright Patterson Air Force Base, Ohio, is the contracting activity (FA8629-20-D-5000). Able Aerospace Services Inc., Mesa, Arizona, has been awarded a $9,405,053 requirements contract for the overhaul of the dynamic components on the TH-1H helicopter. This contract provides for the overhaul of the dynamic components associated with the TH-1H helicopter which is used to train and develop pilot skills. The dynamic components provide power-train and aerodynamic functionality to the flight characteristics of the aircraft. Work will be performed at Mesa, Arizona, and is expected to be completed by Dec 15, 2024. This award is the result of a competitive acquisition and one offer was received. Fiscal 2020 defense working capital funds are being used and no funds are being obligated at the time of the award. The Air Force Sustainment Center, Robins Air Force Base, Georgia, is the contracting activity (FA8524-20-D-0004). Booz Allen Hamilton Inc., McLean, Virginia, has been awarded a not-to-exceed $9,111,111 predominantly firm-fixed-price undefinitized contract to provide technical security team support services in support of the Pakistan F-16 program. Work will be performed in Pakistan and is expected to be complete by June 18, 2020. This contract involves 100% foreign military sales to Pakistan. This award is the result of a sole-source acquisition. Foreign military sales funds of $4,464,444 are being obligated at the time of award. The Air Force Life Cycle Management Center, Air Force Security Assistance and Cooperation Directorate, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8630-20-C-5020). DEFENSE HEALTH AGENCY Cape Fox Facilities Services LLC, Manassas, Virginia, was awarded a three-year contract (one-year base and two option periods) with an estimated value of $19,500,300. This contract supports the Defense Health Agency, Deputy Assistant Director for Information Operations, Solutions Delivery Division. The contractor shall perform all activities within the scope of this contract under the construct of the Information Technology Infrastructure Library (ITIL), specifically the service operation and service transition domains. This initiative supports all operations and maintenance activities for the applications listed below under the ITIL construct. The seven applications are as follows: MHS Management Analysis and Reporting Tool, Patient Encounter Processing and Reporting, Electronic Surveillance System for the Early Notification of Community-based Epidemics, Protected Health Information Management Tool, Business Objects Common Services, Defense Medical Human Resources System - Internet and the Expense Assignment System. The contract was awarded on a sole source basis as authorized and in accordance with Section 8(a) of the Small Business Act (15 U.S. Code 637(a)(1)). The location of performance is inside the U.S. The base year is funded with fiscal 2020 operations and maintenance funding in the amount of $8,065,200. The Defense Health Agency, Professional Services Contracting Division, Falls Church, Virginia, is the contracting activity (HT0011-20-C-0001). MISSILE DEFENSE AGENCY The Boeing Co., Huntsville, Alabama, is being issued a $15,800,000 modification (P00024) to a previously awarded contract, HQ0277-18-C-0003. The value of this contract is increased from $62,361,210 to $78,161,210. Under this modification, the contractor will demonstrate a successful transition of fiber combined laser technology from the Massachusetts Institute of Technology–Lincoln Laboratory. The work will be performed in Huntington Beach, California. The period of performance is extended from March 31, 2020, until March 31, 2021. Fiscal 2020 research, development, test and evaluation funds in the amount of $3,000,000 are being obligated at the time of award. The Missile Defense Agency, Albuquerque, New Mexico, is the contracting activity. *Small Business **Small business in historically underutilized business zones https://www.defense.gov/Newsroom/Contracts/Contract/Article/2041268/source/GovDelivery/

  • Le ministère des Armées investit pour la disponibilité des aéronefs

    19 octobre 2020 | International, Aérospatial

    Le ministère des Armées investit pour la disponibilité des aéronefs

    Le 15 octobre, à Clermont-Ferrand dans les Ateliers industriels de l'aéronautique (AIA), la ministre des Armées Florence Parly a fait un point d'étape sur la modernisation du maintien en condition opérationnelle (MCO) en matière d'aéronautique, près de trois ans après son discours à Évreux en 2017 où elle a pris le dossier en main. Le ministère investit des moyens spectaculaires en crédits de paiement, dont l'enveloppe grossit depuis 2017 : 2,3 milliards d'euros en 2017, 2,7 milliards en 2020, 3 milliards en 2022 et 4,1 milliards en 2025. Près de 80% de hausse programmée en huit ans. Le ministère explique : « On met plus d'argent mais nous avons obtenu une amélioration très sensible sur la disponibilité des aéronefs sans être spectaculaire », souligne-t-on dans l'entourage de la ministre. Et d'estimer que « la tendance, qui est bonne, peut continuer à l'être » dans les prochaines années. La Tribune du 15 octobre 2020

  • France to request multibillion-dollar defense budget boost in 2023

    9 juillet 2022 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    France to request multibillion-dollar defense budget boost in 2023

    If enacted, the increase would be nearly twice as much as France had previously committed to boosting its year-over-year budget in the last two years.

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