Pentagon

 

Seven Better Buying Power Focus Areas

 

 

AT&L has identified 36 Initiatives grouped under seven Focus Areas to restore affordability in defense procurement and improve defense industry productivity.

 

Achieve Affordable Programs

 

Initiatives:

      • Mandate affordability as a requirement

      • Institute a system of investment planning to derive affordability caps

      • Enforce affordability caps


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Control Costs Throughout the Product Lifecycle

 

Initiatives:

      • Implement “should cost” based management

      • Eliminate redundancy within Warfighter portfolios

      • Institute a system to measure the cost performance of programs and institutions and to assess the effectiveness of acquisition policies

      • Build stronger partnerships with the requirements community to control costs

      • Increase the incorporation of defense exportability features  in initial designs


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Incentivize Productivity & Innovation in Industry and Government

 

Initiatives:

      • Align profitability more tightly with Department goals

      • Employ appropriate contract types

      • Increase use of Fixed Price Incentive contracts in Low Rate Initial Production

      • Better define value in “best value” competitions

      • When  LPTA  is used, define Technically Acceptable to ensure needed quality

      • Institute a superior supplier incentive program

      • Increase use of Performance-based Logistics

      • Reduce backlog of DCAA Audits without compromising effectiveness

      • Expand programs to leverage industry’s IR&D


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Eliminate Unproductive Processes and Bureaucracy

 

Initiatives:

      • Reduce frequency of OSD level reviews

      • Re-emphasize AE, PEO and PM responsibility and accountability

      • Eliminate requirements imposed on industry where costs outweigh benefits

      • Reduce cycle times while ensuring sound investment decisions


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Promote Effective Competition

 

Initiatives:

      • Emphasize competition strategies  and creating  and maintaining competitive environments

      • Enforce open system architectures and effectively manage technical data rights

      • Increase small business roles and opportunities

      • Use the Technology Development phase for true risk reduction


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Improve Tradecraft in Acquisition of Services

 

Initiatives:

      • Assign senior managers for acquisition of services

      • Adopt uniform services market segmentation

      • Improve requirements definition/prevent requirements creep

      • Increase use of market research

      • Increase small business participation

      • Strengthen contract management outside the normal acquisition chain – installations, etc.

      • Expand use of requirements review boards and tripwires


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Improve the Professionalism of the Total Acquisition Workforce

 

Initiatives:

      • Establish higher standards for key leadership positions

      • Establish stronger professional qualification requirements for all acquisition specialties

      • Increase the recognition of excellence in acquisition management

      • Continue to  increase the cost consciousness of the acquisition workforce – change the culture


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