U.S. Army Acquisition Workforce Growth AUSA Army Logistics Panel LTG Bill Phillips Principal Military Deputy Assistant Secretary of the Army (Acquisition, Logistics and Technology) and Director, Acquisition Career Management 27 October 2010 1
ASA(ALT) Strategic Direction SOLDIERS ARE THE DECISIVE EDGE ASA(ALT) develops, acquires, delivers and sustains the capabilities and equipment needed to provide Warfighters with the decisive edge in battle. This is achieved by combining and leveraging the four D s: Design, Develop, Deliver, Dominate principles which inform the Army s commitment to Soldiers. 2
Army Contracting: Did You Know? 1. How much did Army Contracting spend last night in Procurement dollars? a) $397M Also on 30 Sept 2009 last day of fiscal year Army spent $5.3B in contracts in one day! 3
Army Contracting: Did You Know? 2a. How much did we spend on LOGCAP last year? a) $7B $8B 2b. Since inception? a) $35.7B LOGCAP III (as of March 31, 2010) $2.4B LOGCAP IV (as of March 31, 2010) 4
Army Contracting: Did You Know? 3. How much did we spend in Contracted $ s for Fiscal Years 2008, 2009 and 2010? a) $372B (Source FPDS NG, as of 13 Aug 10) 5
Army Contracting: Did You Know? 4. What proportion of Federal contracting is executed by the Army? (FY09) a) FY09 = 36% (Source FPDS NG, as of 13 Aug 10) 6
Army Contracting: Did You Know? 5. How long have contractors been supporting the Warfighter on the battlefield? a) Since the American Revolution 7
Contractors on the Battlefield Complexity of Service Complexity of Conflict Civil War 1:5 American Revolution 1:6 World War I 1:20 World War II 1:7 Korea 1:2.5 Vietnam 1:6 Gulf War 1:60 Balkans 1:1 Iraq 1:1 Shorter duration of conflict in DS/DS required less contractor support. Numbers do not include HNS from Saudi Arabia. Afghanistan 2:1 Force caps in Kosovo/Bosnia resulted in higher KR to Soldier ratios. Simple Services > Longer Deployment / Nation Building > Complex Services Medical Laundry Food Service Shower Service Transportation Sanitation As conflicts become more complex, Commanders have been requiring more robust services in support of forces. Maintenance Construction Intelligence Security 8
Contractors in the Fight Today What They Do (Iraq) Supporting DoD Operations & Life Support Force Protection (Security) Vehicle Maintenance Sustainment needs of deployed personnel Contractors are the key 60% provide life support Water, electricity, sanitation, sewer, laundry, etc. Logistics Civilian Augmentation Program (LOGCAP) Provides over 650,000 meals per day Sleeping arrangements for 200K personnel Services provided in a War Zone Covering the area the size of California Construction and Operations Support Fuel deliveries Aircraft maintenance Training Category of Contract Services Number Base Support 49,256 Commo Support 603 Construction 1,336 Log/Maintenance 488 Security 11,195 Training 574 79,403 Contractors Trans/Interp 5,165 Transportation 1,782 Other 9,004 TOTAL 79,403 As of 31 July 2010 Equivalent to providing meals, housing, utilities, and services to the entire City of Orlando, scattered over terrain the size of California 9
Workload Explosion & Workforce Implosion 600,000 $180,000,000,000 500,000 Actions $160,000,000,000 $132B, 503K Actions 400,000 Dollars Workforce $140,000,000,000 $120,000,000,000 Workforce down 15% 300,000 $100,000,000,000 (Down 37% since 1982) $80,000,000,000 Workload up 500% 200,000 $60,000,000,000 100,000 0 $31B, 87K Actions 1996 1998 2000 2002 2004 2006 2008 2010 $40,000,000,000 $20,000,000,000 Army Contracting Became Broken Affected Contingency Contracting Operations!!! $0 10
Army Contracting Way Ahead! Sustained Army Senior Leader Emphasis Budget must align with workforce growth Fill key GO and SES billets with Contracting professionals Cultural shift of contracting workforce Compliance focus vs. Mission focus (Balance) Operationalize Contract execution Training/Professional Development Implement Weapon Systems Acquisition Reform Act Support Army Acquisition Review Life Cycle Logistics Workforce (3500+) and supporting organizations: Maintenance Depots Ammunition Plants Arsenals Contractors Keep Leadership & Industry Informed Annual Report to Stakeholders 11
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Contracting Complexity Over Time Contract Law Title 10 and Title 41 Authorities FAR and supplements DFARS and supplements DFARS Procedures, Guidance and Information (PGI) AFARS and supplements 13
Delivering Capabilities: Materiel Enterprise Collaboration Critical for Success Requirements KO/COR Support Collaboration across all elements of the Acquisition, Logistics, and Technology Community the Materiel Enterprise is essential for success! 14
Doing More Without More OSD Efficiencies Initiative Mission: Deliver the warfighting capability we need with the money we have. Obtain better value for the taxpayer by improving the way the DoD does business. Task: Abandon inefficient practices accumulated in a period of budget growth. Learn to manage defense dollars in a manner that is respectful of the American taxpayer at a time of economic and fiscal distress. Purpose: [Secretary Gates at the Eisenhower Library on May 8, 2010] Obtain a two to three percent net annual growth in warfighting capabilities without incurring a commensurate budget increase. 165 CPI/LSS Projects Completed in FY2010 with $2.52B in Financial Benefits 75% Improvement in Process Cycle Time 54% Reduction in Process Defects Must look for efficiencies inside programs and contracts Affordability 15
Defense Acquisition Strength in Partnerships White House Congress Department Of Defense Academia Marine Corps Media Navy Air Force 16
THANK YOU! for Supporting our Warfighters 17