David R. Gust MG, USA (RET) President, US falcon Inc usfalcon

1. Evolving RDA Strategies in the Global War on Terrorism David R. Gust MG, USA (RET) President, USfalcon Inc www.usfalcon.com

2. 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

5. AN/GRC 3 SERIES RADIO

6. AN/GRC 3 SERIES RADIO Component User # Channels Freq. Range RT-66 Armor 80 20-27.9 MHZ RT-67 Artillery 120 27-39 MHZ RT-68 Infantry 170 38-55 MHZ For Patrols in Baltimore, RT units had to be exchanged for frequency compatibility

7. 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)

8. Acquisition Reform The Commission on Government Procurement (1972) The Hoover Commission (1949) The Hoover Commission (1955) The Fitzburgh Commission (1969) The Defense Management review (1989) The Carlucci Initiatives (1981) The Grace Commission (1982) The Packard Commission (1986) Acquisition Streamlining (Section 800) (1993) Defense Science Board Studies (Ongoing) What’s Different Now?

9. 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 PEO’S) -- PROJECTED • -- 30 SEP 87 1 April 87

10. Defense Enterprise Pilot Programs 1987 Army MSE ATACMS TOW II Navy SSN-21 TRIDENT II (D-5) T-45TS Air Force SRAM II MLV TITAN IV C-17

11. 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 …”

12. 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 customer’s need in the most effective, economical and timely manner.”

13. 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 …”

14. 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

15. Small Business Program Goal Categories FY71 FY80 FY01 SMALL BUSINESS SMALL BUSINESS SET-ASIDE SMALL DISADVANTAGED BUSINESS WOMEN-OWNED SMALL BUSINESS R&D 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

16. PROBLEM AREAS • 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 A “Green Uniform to Business Suit” Perspective

17. 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.

18. 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 B&P funds trying to win Task Order competitions. • Make Task Order responses page limited, ie. maximum four-page response.

19. SUGGESTION #1 • Quick Reaction Capability (QRC) Projects respond to a specific need. These QRC’s 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

20. 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)

21. SUGGESTION #3 • Treat Information Technology (IT) systems differently. Recognize Moore’s 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.

22. EASY No Job Is But Some are Better Than Others