Vital Trends in DOD
Contracting and Implications
for 1102s
Breakout Session #E11
Kevin Carroll
Founder, CEO,
The Carroll Group, LLC
July 29, 2014
2:30
Panel discussion on acquisition trends
• Panelists
•
Kevin Carroll
• Founder, CEO, The Carroll Group, LLC
• Former PEO-EIS, Army
•
Michael Stewart
• Director of Business Transformation in the Office of the Deputy
Chief Management Officer of the Navy
•
Erin Lambert
• Director, Acquisition eBusiness, Office of Naval Research
• Moderator
•
Reid Jackson
• President, CEO, Compusearch
3
Modernization trend effecting Acquisition
workforce
•
“DOD has been attempting to modernize about 2,300 business systems,
which are supported by billions of dollars” – GAO
•
DOD needs to ensure that the thousands of DOD business system
modernization… economically justify investments on the basis of reliable
estimates of future costs and benefits
•
DOD is implementing multiple business systems across the military
departments and defense agencies to serve as the business backbone of
their operations“ -- Robert Hale, DOD's comptroller
•
“The Department of Defense (DoD) relies on too many independent systems
to support its business functions. Many of these systems have been in
place for decades and operate within a non-integrated and duplicative
environment.” – Whitehouse.gov
4
Modernization of DoD’s acquisition
support systems will effect all 1102s
• De-support of the Standard
Procurement System
•
•
22,000 DoD 1102s facing major modernization of their systems
•
Estimated 300,000 “Big A” acquisition professionals across DoD will be impacted
Scheduled for end of FY17
• Each Service has a web of nonSPS systems
•
Army – PADDS, VCE, etc.
•
Navy – NECO, ITIMP, etc.
•
AirForce – ConWrite, etc.
5
Business system modernization now
follows its own acquisition path
Defense Acquisition System Framework
A
Materiel Solutions Analysis
B
Technology Development
C
Engineering and Manufacturing Development
MDD
•
•
•
Production and Deployment
Operations and Support
FDD
Applied Major Weapons System model to IT modernization
Too slow for IT development and deployment
Was out of step with IT evolution and pace of change
Business Capability Life‐cycle Acquisition Model
A
Business Capability Definition
Investment Management
B
Prototyping
C
Engineering Development
MDD
•
•
Limited Fielding
Full Deployment
Operations and Support
FDD
Designed to reflect reality of acquiring and deploying modern business systems
Continues to reflect bias of “building” over “buying”
6
DoD is looking for lessons from the
last modernization effort on ERPs
• ERP investments reflected the old budget environment
•
•
Funding is now drastically more constrained
ERP investments had a mixed track record of success
•
•
•
Navy ERP 50% fielded Army left with 4 ERP systems
USAF program canceled
7
Questions for the panel
• How does the new budget environment impact the
modernization trend across DoD’s acquisition systems?
• How is the new BCL process working in practice?
• Which success stories should be highlighted and learned
from?
• How does the acquisition professional plan for their
program’s success during such impactful modernization?
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Our research findings:
•
Budget constraints lead to:
•
•
•
BCL has encouraged phased deployments, with mixed results:
•
•
•
Deployments phased by geography, for example, get full capability to the end-user while preempting a costly
surge of deployment resources
Deployments phased by layers of capability typically fail, leaving users with some basic but lacking
functionality that is too expensive to upgrade
Which success stories should be highlighted and learned from?
•
•
•
A healthy adversity to risk. So, buy proven solutions with high IOC.
Low-ball bids from vendors. So, don’t get locked in to the lowest bid that becomes the most expensive
solution.
Full scale deployments at ONR, NAF, NGA, Intel and Civilian agencies
Beware of “success” in the lab that doesn’t scale to accommodate complexity
How does the acquisition professional plan for their program’s
success during such impactful modernization?
•
•
•
•
Remember that few can afford cheap. Software that is inexpensive upfront is expensive but often worthless
in the medium term
Secure and review data models – an incisive means of determining whether software has the required range
of capability
Require deep, multi-day demonstrations of technology
Focus on products that are proven and widely referenceable for the intended use
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