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Effective and Timely AF Acquisition

Effective and Timely AF Acquisition. Mr David Van Buren Air Force Service Acquisition Executive (SAE) Acquisition Executive Panel 12 Apr 2011. SAF/AQ Acquisition Priorities. A More Affordable JSF KC-46A Execution in Initial Phases Long Range Strike Family of Systems Execution

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Effective and Timely AF Acquisition

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  1. Effective and Timely AF Acquisition Mr David Van Buren Air Force Service Acquisition Executive (SAE) Acquisition Executive Panel 12 Apr 2011

  2. SAF/AQ Acquisition Priorities A More Affordable JSF KC-46A Execution in Initial Phases Long Range Strike Family of Systems Execution AEHF, SBIRS, and Block Buys EELV Restructure Vertical Lift Source Selection Overall Efficiencies and AIP ISR in Theatre to Support Warfighter Needs

  3. Acquisition Future State Objective Average Savings 5 % Reward Industrial Performance and Productivity Procure Additional Quantities 10% Fee 25% Available for more fee or more quantity 60% Efficient Cost More Efficient 55% Efficient Cost Tailor SOW or Optimize Requirements 30% Inefficient Cost Reduce Non-Value Added Efforts 15% Inefficient Cost Future State Now

  4. AF Top 12 Modernization Programs(FYDP 11 – 52% of 220B, FYDP PB 12 – 55% of 221B)

  5. The Forces of Execution Inefficiency Increase in Sustaining/ Support Labor “Should Cost” Adequate Labor Excess Period of Performance Excess Period of Performance Normal Time The Standing Army Over Too Long a Period

  6. MDAP ACAT I – Average Cycle Times As of: 23 Feb 2011 Next Update: 1 Apr 2011 Acquisition Lifecycle Milestones IOC MDD MS-A PDR MS B CDR MS C FRP 71 Months B to C (20 Programs) 84 Months 93 Months 90 Months B to IOC (19 Programs) 110 Months 106 Months B to Full Rate Production (FRP) (9 Programs) 102 Months 127 Months C to IOC (9 Programs) 27 Months 32 Months C to FRP (10 Programs) 30 Months 36 Months = Original APB Milestone to Original APB Milestone = Actual/Current APB PM Estimate to Current APB PM Estimate Data Source: DAMIR - DAES As of: 23 Feb 2011 = DoD Average (2009 SARs)

  7. AF Acquisition EfficienciesAs of 11 Apr 2011 FY 12 – 16 Required Acquisition Efficiencies $10.4B $8B $6B $4B $3.58B $2B $0 Required to Support FY12 President’s Budget

  8. AF Acquisition EfficienciesAs of 11 Apr 2011 (1/2) Note: Most Recent Efficiencies listed first Total Validated Savings (FY12-16) to Date: $3.580B

  9. AF Acquisition EfficienciesAs of 11 Apr 2011 (2/2) Note: Most Recent Efficiencies listed first Total Validated Savings (FY12-16) to Date: $3.580B

  10. SAE Top 10 Top 10 Acquisition Opportunities to Enhance Profitability in a Flat-lined or Declining Budget Environment 10. Synchronize Corporate IRAD and Government CRAD Spend to Reduce Risk on Future Programs in Transition 9.De-Scope Unneeded or Inefficient Work on Low Profitability Programs 8.Focus on Programs that are More Incremental with Less Risk and Higher Profitability 7.Lean-Out and DeScope Existing Fixed Price Contracts with Sharing 6.Streamline Program Oversight for Proven Corporate Performance

  11. SAE Top 10 Top 10 Acquisition Opportunities to Enhance Profitability in a Flat-lined or Declining Budget Environment 5. Reduce Cycle Times and Scope to Allow Contractors to Underrun Incentive Contracts with Greater Profitability 4.Provide Enhanced Cash Flows for Proven Superior Performance 3.Reduce Bureaucratic Elements of Acquisition Process 2.Provide Award Fees on Top of Incentive Fee Contracts (i.e. IFPIF/AF) for Speed to Warfighter or Other Attributes 1.Buy more Production Product at More Efficient Rates and Reduce Spend on “Other Stuff”

  12. Principles forEffective Stewardship Properly Managing Resources in a Time of Fiscal Austerity • The significant challenges facing the Air Force in a “down” cycle for defense are: • Resources will decline and the downturn will likely last beyond the FYDP – make tough choices now rather than later • Efficiencies will be a partial solution and must become the standard – stay focused on tail to tooth • The notion that we can maintain the status quo cannot be the Air Force’s path forward • Don’t take on resource commitments that are unaffordable in the long run • Prioritize investments to drive down long-term operating costs • Emphasize flexibility in the face of funding instability and uncertainty

  13. AEHF

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