Download or read book A Comparative Analysis of the Cost of Oversight of Major Defense Acquisition Programs Strictly Under the Direction of the Department of Defense 5000 Series of Instructions written by Gary P. Rousseau and published by . This book was released on 2004-03-01 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: The United States Department of Defense has been caught in a continual cycle of acquisition reform since its inception over two hundred years ago. The goal of acquisition reform has always been to find the perfect balance between the amount of program oversight and the amount of flexibility in which program managers are allowed to manage their programs. The only truth learned throughout this process is that defense acquisition does need oversight and that there is no cookie cutter pattern for oversight that will fit all types of acquisition programs equally well. That being said, the focus of this thesis will be to explore the foundations of oversight for programs following Department of Defense Directive 5000 -- the defense acquisition bible -- and employ Delphi survey techniques to develop an estimate of the actual cost of oversight for defense acquisition programs that are under the guidance of the DoDD 5000. The real value of this research will be to compare the oversight cost estimates for programs under the DoDD 5000 to oversight cost estimates developed using the exact same methodology, but examining programs with different types of oversight. Specifically, space acquisition and communications acquisition have been operating under different oversight formats over the last few years, and the interest is in determining if the changes have made defense acquisition any more efficient and any less costly. (58 tables, 3 figures, 44 refs.)
Download or read book Establishing a Foundation to Capture the Cost of Oversight for a Major Defense Program Within the Information Technology IT Acquisition Community written by and published by . This book was released on 2004 with total page 106 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1970 the Department of Defense introduced the Department of Defense Directive 5000 (DoD 5000) to standardize the acquisition process. The directive created oversight forums to ensure the policies and procedures created were followed, to track program progress, and to identify programs in trouble. Although oversight was essentially created to help reduce the cost of acquisitions, there is reason to believe that it may increase the costs. However, because only been a few studies have been conducted to estimate the cost of oversight, no one knows how much "oversight" actually costs individual programs. Numerous oversight processes are being used today, but there is no research showing that one process is any different from another. Also, there have not been any studies to determine the cost drivers for oversight. This thesis will provide a foundation and potential cost savings recommendations that would benefit the Department of Defense in most of the acquisition programs it monitors. An estimated cost of oversight will be calculated for programs following three different oversight processes using the Delphi Methodology. The estimates will be compared to determine if there are any statistical differences between them. A future track for the next generation of oversight processes will develop from the recommendations. (50 tables, 4 figures, 42 refs.)
Download or read book Sources of Weapon System Cost Growth written by Joseph George Bolten and published by Rand Corporation. This book was released on 2008 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: Previous studies have shown that the Department of Defense (DoD) and the military departments have historically underestimated the cost of new weapon systems. Quantifying cost growth is important, but the larger issue is why cost growth occurs. To address that issue, this analysis uses data from Selected Acquisition Reports to examine 35 mature, but not necessarily complete, major defense acquisition programs similar to the type and complexity of those typically managed by the Air Force. The programs are first examined as a complete set, then Air Force and non-Air Force programs are analyzed separately to determine whether the causes of cost growth in the two groups differ. Four major sources of cost growth were identified: (1) errors in estimation and scheduling, (2) decisions made by the government, (3) financial matters, and (4) miscellaneous sources. Total (development plus procurement) cost growth, when measured as simple averages among the program set, is dominated by decisions, which account for more than two-thirds of the growth. Most decisions-related cost growth involves quantity changes (22 percent), requirements growth (13 percent), and schedule changes (9 percent). Cost estimation (10 percent) is the only large contributor in the errors category. Less than 4 percent of the overall cost growth is due to financial and miscellaneous causes. Because decisions involving changes in requirements, quantities, and production schedules dominate cost growth, program managers, service leadership, and Congress should look for ways to reduce changes in these areas.
Download or read book Establishing a Framework for the Oversight of Major Defense Acquisition Programs A Historical Analysis written by Diane I. K. Kuderik and published by . This book was released on 2004-03-01 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Department of Defense (DoD) has budgeted over $134.5 billion for Fiscal Year 2004 for Acquisition, yet little is written about the personnel responsible for managing and evaluating Major Defense Acquisition Programs (MDAPs) -- those who perform Acquisition Oversight (AO). The AO process has not been studied in a disciplined manner during its 40-year history. Congress, past Administrations, and the DoD Inspector General have commissioned several studies on the AO Process. Recommendations were considered and implemented such that the process evolved to where it stands today. Over 40 years separate the first iteration with the latest version. Commission reports, countless studies, and historians agree on the need for oversight in military acquisitions; they agree that the system takes too much money, takes too long, and does not perform as well as most would wish; yet they disagree on who should perform oversight. This thesis has three objectives: define, document, and utilize available literature to identify the organizations involved with the process as it evolved to its form today; build models of the AO process with emphasis on the chain of command as it existed in the l950s, l960s, l970s, l980s, and today; and evaluate each model on its ability to accomplish seven goals derived from Clinton's 1994 Process Action Team on AO report. The thesis was limited to the DoD AO Process as it historically existed between the Air Force and the Secretary of Defense, or those serving similar positions. The author reviewed relevant literature to model historical oversight hierarchies. Then expert opinions were gathered from that literature on how well the oversight process models performed. As expected, the oversight process has improved over time, but further improvements are currently being sought. Those seeking improvement would do well to study past processes and learn from their mistakes. (13 tables, 11 figures, 41 refs.)
Download or read book Quantifying Cost and Schedule Uncertainty for Major Defense Acquisition Programs MDAPs written by Thomas Light and published by . This book was released on 2017-08-08 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "To help the Air Force better anticipate cost and schedule challenges and manage programs throughout their life cycles, this study developed a methodology that can be used to evaluate the likelihood of cost growth and schedule slip for major defense acquisition projects (MDAPs) based on program characteristics observable at milestone (MS) B. RAND Project AIR FORCE (PAF) has developed and maintains a comprehensive database of program cost and schedule information obtained by analyzing and summarizing the contents of Selected Acquisition Reports (SARs) from the inception of each program through the latest out-of-cycle and annual SARs submitted as part of each year's President's Budget. From this database, the authors calculate cost and schedule factors that serve as the outcome metrics for assessing MDAP performance from MS B to the final or FY14 President's Budget SAR. PAF's ongoing SAR analyses have led to the creation of models that can be used to assess at program inception the risk of future cost growth and schedule slip. This document describes the technical approach and findings of this work. It should be of interest to analysts concerned with MDAP cost and schedule growth issues"--Table of contents page.
Download or read book Trends in Nunn McCurdy Cost Breaches for Major Defense Acquisition Programs written by Michael J. Sullivan and published by DIANE Publishing. This book was released on 2011-06 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: For nearly 30 years, the statutory provision, known as Nunn-McCurdy (NM), has been an oversight tool for Congress to hold the DoD accountable for cost growth on major defense programs. A NM breach occurs when a program's unit cost exceeds certain thresholds. When that happens, DoD must notify Congress of the breach. There are a number of statutory provisions that help implement cost growth reporting under NM. Referring to these statutory provisions as the NM process, this report examines trends in NM breaches and factors that may be responsible for these trends. It also discusses changes DoD is making or proposing to make to the NM process. Charts and tables. This is a print on demand report.
Download or read book Expanding Operating and Support Cost Analysis for Major Programs During the DoD Acquisition Process written by Michael Boito and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Prepared for the Office of the Secretary of Defense."
Download or read book Defense Logistics written by Us Government Accountability Office and published by CreateSpace. This book was released on 2013-08-12 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Requirements for submitting SARs to Congress, including the timing of these reports and the types of information to be included, are established in statute. Under 10 U.S.C. § 2432, the Secretary of Defense shall submit to Congress at the end of each fiscal-year quarter a report on current major defense acquisition programs.12The statute also requires that the annual SAR include a full life-cycle cost analysis for each major defense acquisition program and each designated major subprogram included in the report that is in the system development and demonstration stage or has completed that stage. Each SAR for the first quarter of a fiscal year (also known as the comprehensive annual SAR) shall be designed to provide to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives the information these committees need to perform their oversight functions.
Download or read book Defense Acquisition written by United States. General Accounting Office and published by . This book was released on 1990 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Acquisition Reform written by United States. General Accounting Office and published by . This book was released on 1996 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense acquisition improved program outcomes are possible written by and published by DIANE Publishing. This book was released on 1998 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: We are pleased to be here today to discuss issues facing the Department of Defense (DOD) in its acquisition of weapon systems, related spare parts, and other goods and services. In response to the many changes that have been witnessed in the defense acquisition environment over the last few years, DOD has begun broad-based changes to its acquisition and contracting processes. However, weapon programs continue to have questionable requirements; unrealistic cost, schedule, and performance estimates; and strategies that begin production before adequate testing has been completed. This discussion of acquisition issues is well-timed, as DOD implements plans to increase its procurement budget to $60 billion in fiscal year 2001-a 40-percent increase over last fiscal year's budget. My testimony focuses on a different approach to improving weapon acquisition outcomes based on best commercial practices and an understanding of the acquisition culture. My testimony also includes some observations on (1) DOD'S management of its acquisition workforce and organization, (2) DOD'S experience with commercial pricing of spare parts, (3) the effectiveness of DOD'S mentor-protege pilot program, and (4) federal agencies' use of multiple award task- and delivery-order contracts.
Download or read book Acquisition Major Defense Acquisition Programs Cost Growth written by and published by . This book was released on 2002 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Government Performance and Results Act (GPRA) of 1993, Public Law 103-62, initiated program performance reform with a series of pilot projects by setting program goals, measuring program performance against those goals, and reporting publicly on progress achieved. This report is one in a series of reports on how DoD meets the GPRA goals and discusses the FY 2000 GPRA Performance Measure 2.4.1, Major Defense Acquisition Programs Cost Growth, on keeping the cost growth to 1 percent annually. Major defense acquisition programs (MDAPs) are designated by the Under Secretary of Defense for Acquisition, Technology, and Logistics (USD (AT&L) as a major defense acquisition program, or are estimated by USD (AT&L) as a program that requires an eventual total expenditure of more than $365 million in FY 2000 constant dollars for research, development, test, and evaluation or more than $2.19 billion in FY 2000 constant dollars for procurement. Cost growth is the difference between the MDAP program costs in the current year s budget and the previous year s budget, divided by the program costs in the previous year s budget.
Download or read book Defense Acquisitions DoD Must Prioritize Its Weapon System Acquisitions and Balance Them with Available Resources written by Michael J. Sullivan and published by DIANE Publishing. This book was released on 2010 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since FY 2000, the DoD has significantly increased the number of major defense acquisition programs and its overall investment in them. However, acquisition outcomes have not improved. In most cases, the programs failed to deliver capabilities when promised -- often forcing warfighters to spend additional funds on maintaining legacy systems. This testimony describes the systemic problems that have contributed to poor cost and schedule outcomes in DoD¿s acquisition of major weapon systems; recent actions DoD has taken to address these problems; and steps that Congress and DoD need to take to improve the future performance of DoD¿s major weapon programs. Illustrations.
Download or read book Defense Acquisitions Termination Costs are Generally Not a Compelling Reason to Continue Programs or Contracts That Otherwise Warrant Ending written by and published by DIANE Publishing. This book was released on 2008 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: The nation's long-term fiscal imbalances will likely make DOD's 1.6 trillion planned investment in new weapon systems unsustainable. Thus, it is critical that DOD retains the flexibility to end programs and contracts when necessary and appropriate. Although the federal government generally has the legal right to terminate contracts for convenience, defense stakeholders have sometimes expressed concerns that it will cost more to terminate a contract than to complete it. To address this perception, GAO examined (1) how expected contract termination costs and other factors affect DOD decisions on whether to end programs and contracts; (2) the circumstances under which it would cost more to terminate a contract for convenience than to complete it; and (3) the options DOD has for retaining value or reducing costs, when DOD ends programs or contracts. To do this, GAO examined DOD data on terminated contracts over $100 million; reviewed laws, regulations, and guidance; and met with key DOD officials. GAO recommends that DOD review, and as needed amend, guidance on terminations across the military services and DOD agencies to ensure that termination guidance identifies the conditions under which it is appropriate to end programs or contracts, and provides knowledge needed to use terminations as an investment portfolio tool. DOD agreed.
Download or read book Acquisition Reform written by United States. General Accounting Office and published by . This book was released on 1997 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Defense Acquisitions Managing Risk to Achieve Better Outcomes written by Paul Francis and published by DIANE Publishing. This book was released on 2011 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a print on demand edition of a hard to find publication. In FY 2009, DoD spent nearly $384 billion on contracts. This investment, representing over 70% of total gov¿t. contract spending, highlights the great need to better manage risk in acquisitions. But DoD has not always managed risks effectively: major systems continue to take longer to develop, cost more, and deliver fewer quantities and capabilities than originally planned. In addition, poorly managed growth in services spending has contributed to disappointing program outcomes. This testimony focuses on: (1) planning of DoD's acquisitions; (2) contract types and the award process, incl. bid protests; (3) outcomes of major acquisition programs; and (4) acquisition and contractor workforce mgmt. It also highlights relevant reforms in each area.
Download or read book Defense Logistics written by United States. Government Accountability Office and published by . This book was released on 2012 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the nation facing fiscal challenges and the potential for tighter defense budgets, Congress and the Department of Defense (DOD) have placed more attention on controlling the billions of dollars spent annually on weapon system operating and support (O & S) costs. These costs include, costs for repair parts, maintenance, and personnel, and account for about 70 percent of the total costs of a weapon system over its life cycle. The selected acquisition report (SAR) is DOD's key recurring status report on the cost, schedule, and performance of major defense acquisition programs and is intended to provide authoritative information for congressional oversight of these programs. Oversight of O & S costs is important because many of the key decisions affecting these life-cycle costs are made during the acquisition process. GAO reviewed weapon system O & S cost estimates that DOD submits in the SAR. Specifically, GAO determined the extent to which the SARs provide consistent and reliable O & S cost estimate information that enables effective oversight of these weapon system costs. To conduct its review, GAO analyzed SAR data for 84 major systems that submitted O & S cost estimates in the 2010 SAR and selected a nonprobability sample of 15 systems for more in-depth review. To enhance visibility of weapon system O & S costs during acquisition, GAO recommends that DOD improve its guidance to program offices on cost reporting and also improve its process for reviewing these costs prior to final submission of the SAR to Congress. DOD concurred with GAO's recommendations.
