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This document contains the final report of the DSB study on Defense Acquisition Reform (Phase II). The Phase I report firmly acknowledged the need to adopt commercial practices as a way of doing business, and developed a set of reform initiatives designed to accelerate the required changes. The thrust of the Phase II effort was to further define these areas by examining specific industry segments, identifying specific combatant commands for increase responsibility in the requirements process, and further identification of the barriers to the adoption of commercial practices. The Task Force concludes that: mature jet engines, microelectronics, software, and space systems can and should be procured and supported in a fully commercial environment; USACOM and CENTCOM should be given increased technical cadres to further their capability to participate in the requirements process; and it is feasible to eliminate may of the barriers to adoption of commercial practices without sacrificing the public trust in spending public funds.
Globalization-the integration of the political, economic and cultural activities of geographically and/or nationally separated peoples-is not a discernible event or challenge, is not new, but it is accelerating. More importantly, globalization is largely irresistible. Thus, globalization is not a policy option, but a fact to which policymakers must adapt. Globalization has accelerated as a result of many positive factors, the most notable of which include: the collapse of communism and the end of the Cold War; the spread of capitalism and free trade; more rapid and global capital flows and more liberal financial markets; the liberalization of communications; international academic and scientific collaboration; and faster and more efficient forms of transportation. At the core of accelerated global integration-at once its principal cause and consequence-is the information revolution, which is knocking down once-formidable barriers of physical distance, blurring national boundaries and creating cross-border communities of all types.
Over the past decade, dozens of studies, reports, directives, and commissions have recommended specific changes in the approach the Department of Defense (DoD) uses to acquire products (primarily major weapon systems). This Defense Science Board (DSB) Summer Study Task Force reviewed these prior studies and concluded that, by and large, the recommendations have ben implemented. Rather than adding to the list of 'what to do' recommendations, this Task Force concentrated on recommending 'how-to-implement' change. This is a departure from the typical technical recommendations, but the Task Force believes this 'how to' focus is urgently needed at this juncture.
This report provides three policy recommendations, based on the overarching theme of more closely integrating DoD with industry. The Sub-Panel believes that improved integration with industry is the critical element that will enable the acquisition system to perform better, faster, and cheaper in support of the warfighter. The recommended policy initiatives are that DoD should: 1. Restructure its Research, Development, Test, and Evaluation (RDT & E) organizations and associated workforce to enable the Department to make better use of the capabilities of industry and other government agencies, to concentrate in-house capabilities in areas where there is no external capability, and to eliminate duplicative capabilities. 2 Expand the use of price-based forms of contracting to reduce the cost of doing business with Department of Defense (DoD) for existing Defense contractors and to give DoD access the segments of industry that currently choose not to do business with the Department because of the costs and complexities associated with cost-based contracts. 3. Expand the oursourcing of sustainment activities to eliminate duplicative capabilities between DoD and industry, to enable the Department to capitalize on industry's advancements in applying technology to these functions, and to provide better support to the user.
This report is a product of the Defense Science Board (DSB). The DSB is a Federal Advisory Committee established to provide independent advice to the Secretary of Defense. Statements, opinions, conclusions, and recommendations in this report do not necessarily represent the official position of the Department of Defense. Attached is the report of the Defense Science Board Task Force on the Capabilities of Non-DoD Providers of Science and Technology, Systems Engineering and Test and Evaluation. This Study was requested by the Under Secretary of Defense (AT & L) in the Fall of 1998. The Terms of deterence directed that the Task Force make recommendations on: Non-DoD sources of Science and Technology and Systems Engineering - Processes tor out-sourcing of Science and Technology and System Engineering.