PEO Ammunition Business Model Accelerates Acquisition, Cuts Costs
A team led by Project Manager Combat Ammunition Systems employees developed a multiple award, Indefinite Delivery/Indefinite Quantity, best value, 100% small business set-aside, long-term strategy for recurring production of ammunition. The approach set forth the path for procurement of 53 artillery and mortar components totaling $2.7 billion. This strategy eliminated the need for more than 100 separate market surveys, synopses, acquisition strategies and request for proposals while enhancing small business participation and competition. The average time from receipt of a requirement to delivery order award decreased from historical cycle times of 18-24 months for a new contract to 45-60 days. It is estimated that this new business model equates to a labor cost avoidance of approximately $60 million to the government. This innovative acquisition strategy established a flexible, efficient buying approach that can deliver cost effective ammunition to the Warfighter for the next decade.