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As defense budgets decline and traditional defense industry supplies downsize and consolidate, many believe that the Department of Defense (DoD) must continue to increase its business activities in the commercial marketplace. This thesis is an examination of one such venture, as a result of acquisition reform, that explores the viability of using commercially produced vehicles for military use in the Department of Defense as light tactical trucks. The National Automotive Center (NAC) has initiated a program called Commercially Based Tactical Truck (COMBATT) that identifies dual-need/dual-use automotive technologies within the Defense Department and commercial automotive industry. This innovative approach is to adapt a modified commercial pick-up truck to perform some of the missions now assigned to the High Mobility Multipurpose Wheeled Vehicle (HMMWV). An economical analysis is presented to determine if the procurement of COMBATTs would be cost effective in augmenting the current light tactical vehicle fleet of HMMWVs. Research includes analyzing production cost and anticipated operation and support costs. Additionally, a cost-effectiveness analysis is performed on the program. COMBATT is shown to reduce the cost of developing and procuring and maintaining a light tactical wheeled vehicle. Recommendations are made for the Army's future buying strategy for its Light Tactical Vehicles. It is concluded that the services should meet their Light Tactical Vehicle needs with an appropriate mix of HMMWVs and COMBATTs.
Commercializing and reforming the Department of Defense (DOD) acquisition process is paramount to preserving the national security of the United States. A healthy and competitive U.S. Defense Industry lends itself to a well-equipped and capable combat force. Despite current budgetary increases and a focused emphasis on readiness, the U.S. military recently experienced a "13- year-long trend of real defense spending decline," marking "a 38 percent real reduction in spending from defense budgets in the mid-1980s". The real dollar budgetary decline and a push for quicker deployment of cutting edge technology highlight the need for a more efficient and effective DoD acquisition system; However, critical, high-value, military specific, sole-source procurements are often negotiated as cost-based contracts. In order to adapt to a changing defense environment, the DoD has explored alternative contracting processes such as Price-Based Acquisition (PBA), wherein "price" is established on a variety of flexible conditions. Regulatory, cultural and structural challenges confront the DoD in its efforts to attract non-traditional defense contractors to the prospect of conducting business with the DoD through processes such as PBA. As is such, this analysis presents major findings and puts forth recommendations with respect to the regulatory, cultural and structural challenges facing the DoD in its efforts to attract non-traditional research and development/high-tech applications.
We are pleased to be here today to discuss issues facing the Department of Defense (DOD) in its acquisition of weapon systems, related spare parts, and other goods and services. In response to the many changes that have been witnessed in the defense acquisition environment over the last few years, DOD has begun broad-based changes to its acquisition and contracting processes. However, weapon programs continue to have questionable requirements; unrealistic cost, schedule, and performance estimates; and strategies that begin production before adequate testing has been completed. This discussion of acquisition issues is well-timed, as DOD implements plans to increase its procurement budget to $60 billion in fiscal year 2001-a 40-percent increase over last fiscal year's budget. My testimony focuses on a different approach to improving weapon acquisition outcomes based on best commercial practices and an understanding of the acquisition culture. My testimony also includes some observations on (1) DOD'S management of its acquisition workforce and organization, (2) DOD'S experience with commercial pricing of spare parts, (3) the effectiveness of DOD'S mentor-protege pilot program, and (4) federal agencies' use of multiple award task- and delivery-order contracts.
Civil-military integration (CMI) lies at the core of current DoD efforts to reduce the costs of procuring and maintaining modern weapon systems. Based on an analysis of the commercial aerospace industry and on the experiences of various acquisition reform pilot programs, the authors conclude that a commercial-like acquisition approach could benefit major Air force acquisition programs. The Joint Strike Fighter would be an excellent candidate pilot program for application of acquisition reform measures during engineering and manufacturing development. The authors further recommend that future programs be structured to include greater risk-sharing between contractors and the government. The principal benefits of CMI for the acquisition reform pilot programs have come from the structuring and management of these programs to make them more like complex commercial product markets in which buyers and sellers establish and achieve price and performance targets in a cooperative environment. The real promise of CMI is to help insert the incentives for price discipline and high performance prevalent in the commercial marketplace into military R&D production.
This title provides an overview of the development and considerations of the Department of Defense with regard to combat and tactical vehicles, with a focus on the Marine Corps Amphibious Combat Vehicle (ACV) and Marine Personnel Carrier (MPC); the Joint Light Tactical Vehicle (JLTV); Mine-Resistant, Ambush-Protected (MRAP) vehicles; and other defence acquisitions.
This is the first comprehensive book on Military Cost-Benefit Analysis and provides novel approaches to structuring cost-benefit and affordability analysis amidst an uncertain defense environment and cloudy fiscal prospects. Lifting the veil on military Cost-Benefit Analysis, this volume offers several new practical tools designed to guide defense investments (and divestments), combined with a selection of real-world applications. The widespread employment of Cost-Benefit Analysis offers a unique opportunity to transform legacy defense forces into efficient, effective, and accountable 21st century organizations. A synthesis of economics, statistics and decision theory, CBA is currently used in a wide range of defense applications in countries around the world: i) to shape national security strategy, ii) to set acquisition policy, and iii) to inform critical investments in people, equipment, infrastructure, services and supplies. As sovereign debt challenges squeeze national budgets, and emerging threats disrupt traditional notions of security, this volume offers valuable tools to navigate the political landscape, meet calls for fiscal accountability, and boost the effectiveness of defense investments to help guarantee future peace and stability. A valuable resource for scholars, practitioners, novices and experts, this book offers a comprehensive overview of Military Cost-Benefit Analysis and will appeal to anyone interested or involved in improving national security, and will also be of general interest to those responsible for major government programs, projects or policies.