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DoD plans to increase its procurement investment to about $60 bill. by FY 2001. DoD has high expectations from this invest.: that new weapons will be better and less expensive than their predecessors and will be developed in half the time. Essential to these outcomes will be the adaptation of best practices (BP) that have enabled leading commercial firms to develop new products faster, cheaper, and better. This report addresses (1) the contribution DoD training makes to program offices' ability to apply BP , (2) the different methods used by DoD and commercial firms in training on BP, and (3) the strategic approaches that underlie DoD's training methods for BP.
NSIAD-99-206 Best Practices: DOD Training Can Do More to Help Weapon System Programs Implement Best Practices
The Department of Defense (DoD) plans to increase its annual procurement investment to about $60 billion by fiscal year 2001. DoD has high expectations from this investment: that new weapons will be better yet less expensive,than their predecessors and will be developed in half the time. Essential to getting these kinds of outcomes will be the adaptation of best commercial practices that have enabled leading commercial firms to develop new products faster, cheaper, and better. DoD has begun a number of acquisition reform initiatives based on commercial practices to help foster these outcomes. Their success depends greatly on the extent to which the program offices responsible for managing weapon acquisitions can implement the practices on individual programs. Training provided to the program offices serves as a key agent in both creating a culture that is receptive to new practices and in providing the knowledge needed to implement new practices at the workplace. At the request of the Chairman and the Ranking Minority Member, Subcommittee on Readiness and Management Support, Senate Committee on Armed Services, GAO evaluated the role DoD training is playing in implementing best practices in weapon system programs. This report addresses: (1) the contribution DoD training makes to program offices' ability to apply best practices, (2) the different methods used by DoD and leading commercial firms in training on best practices, and (3) the strategic approaches that underlie DoD's and leading commercial firms' training methods for best practices.
Although the Department of Defense's (DOD) annual weapon system investment has been increased from about $90 billion 3 years ago to almost $100 billion for fiscal year 2001, DOD's buying power will be weakened if weapons continue to cost significantly more and take much longer to develop than planned. DOD would like to get the most out of this investment and has set goals to develop new weapons in half the traditional time and within budget. It has a long way to go; long-standing problems that work against delivering new weapons within estimates have proven resistant to reform. When one program encounters such problems and needs more money than planned, it comes at the expense of delaying or canceling other program. This means less overall modernization and a lower, unpredictable return on investment. The ability to execute a program more predictably within cost and schedule estimates would lessen the need to offset cost increases by disrupting other programs.