P1247676904RpKJw

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MG(R) David Gust Acquisition Policy and Practices
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AGENDA

• My Acquisition Experience
• Past Acquisition Reform
• Defense Enterprise Program Concept
• Beyond DOD I 5000 Policy
• Small Business Support/Categories
• Some Problem Areas
• Suggestions for Change

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Acquisition Experience

• AMCPM MI Oct 84 Mar 86
• PEO - Fire Support Apr 86 - Jan 88
• PEO - IEW Feb 88 - Jun 88
• PEO - COMM Aug 89 - Jun 95
• PEO - IEW Jul 95 - Nov 99
• AMC DCSRDA Nov 99 - ETS (Oct 00)

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Acquisition Reform
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Reorganization Chronology

• PACKARD COMMISSION DRAFT REPORT - FEB 86
• NSDD 219 - APR 86
• PACKARD COMMISSION FINAL REPORT - JUN 86
• DEFENSE REORGANIZATION ACT OF 1986
• (GOLDWATER - NICHOLS)
• DOD FY87 AUTHORIZATION ACT - OCT 86
• SEC ARMY LETTER - 30 JAN 87
• --------------------------------------------------
  -----------------------
• PEO IMPLEMENTATION (24 PEOS) -- PROJECTED
• 
  -- 30 SEP 87

1 April 87
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Defense Enterprise Pilot Programs 1987
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ARMY ACQUISITION POLICY GUIDANCE

• CECOM Pamphlet 70-7, 1 November 93
• CECOM Acquisition Handbook
• Paragraph 2-3 Non-Development Items
• a. Acquisition of commercial off-the-shelf
  products to satisfy Army requirements is
  authorized and encouraged
• b. When possible, a commercial market
  specification or a performance specification will
  be used

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ARMY ACQUISITION POLICY GUIDANCE

• 3. AMC Pamphlet 715-3
• Contracting for Best Value
• Page 1
• best value is the outcome of any
• acquisition that ensures we meet the customers
• need in the most effective, economical and timely
  
• manner.

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ARMY ACQUISITION POLICY GUIDANCE

• 4. AMC Pamphlet 715-3, Volume 6
• Debriefing Handbook
• Page 2
• good debriefings do not encourage protests
  
• Page 9
• Industry is entitled to know how we evaluate
  proposals and what they might do to improve
  their proposals.
• Page 12
• Comprehensive debriefings are mutually
  beneficial to us and industry

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Policy of Congress
It is the declared policy of the congress that
the government should aid, counsel, assist, and
protect insofar as is possible the interests of
small business concerns in order to preserve free
competitive enterprise, to ensure that a fair
proportion of the total purchases and contracts
for supplies and services for the Government be
placed with small business enterprises, and to
maintain and strengthen the overall economy of
the nation.
Section 201Small Business Act of 1958

• 23 Million American Small Businesses
• Create More than 50 of Industrial
  Innovations/Inventions
• Employ More than 50 of Private Workforce
• Generate More than 50 of U.S. Gross Domestic
  Product
• Principal Source for New Jobs in the U.S. Economy

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Small Business Program
Goal Categories
FY71
FY80
FY01
SMALL BUSINESS SMALL BUSINESS SET-ASIDE SMALL
DISADVANTAGED BUSINESS WOMEN-OWNED SMALL
BUSINESS RD AWARDS TO SMALL BUSINESS AWARDS TO
HISTORICALLY BLACKCOLLEGES AND UNIVERSITIES
ANDMINORITY INSTITUTIONS (HBCUs/MIs) SMALL
BUSINESS SUBCONTRACTING SMALL DISADVANTAGED
BUSINESSSUBCONTRACTING WOMEN-OWNED SMALL
BUSINESSSUBCONTRACTING HUBZONES VERY SMALL
BUSINESS SERVICE DISABLED VETERAN SB
SMALL BUSINESS
SMALL BUSINESS

SMALL BUSINESS SET-ASIDE
SMALL DISADVANTAGED BUSINESS

WOMEN-OWNED-SMALL BUSINESS
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PROBLEM AREAS
A Green Uniform to Business Suit Perspective

• Bundling of requirements reduces the contract
  workload on Army procurement offices, but
• Must be bid by large prime contractors due to
  scope
• Small businesses participate as subcontractors on
  teams
• After awards to the large prime, small business
  has little leverage to gain a fair split of the
  workload as avowed in pre-award proposal

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PROBLEM AREAS

• 2. High cost of IT specialists Army is
  contracting out many IT missions Ask yourself
  why?
• Understand the need for pay
• differential for IT specialists. They
• are a scarce commodity in demand in
• industry.

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PROBLEM AREAS

• ID/IQ contracts with multiple awards Army
  benefits from good competition, however
• Each Task Order ends up being competed
• Small Businesses spend more BP funds trying to
  win Task Order competitions.
• Make Task Order responses page limited, ie.
  maximum four-page response.

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SUGGESTION 1

• Quick Reaction Capability (QRC) Projects respond
  to a specific need. These QRCs are the future
  of acquisition. When one QRC project succeeds,
  make it a program of record, fund it in the POM
  and complete its life cycle logistics support

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SUGGESTION 2

• DOD and Services policy writers rarely have any
  project implementation experience. Suggest they
  attend Defense Acquisition University training,
  then be assigned to work in a Service PM office
  for six months to a year. A job trade scenario
  with a trained PM going to the Pentagon as a
  backfill. (Might add some reality to policies)

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SUGGESTION 3

• Treat Information Technology (IT) systems
  differently. Recognize Moores Law of a 18 month
  obsolescence cycle. Use spiral development and
  block enhancement fieldings to get new IT
  technology in the hands of the Warfighters faster.

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