Bridging the Disconnect: The Government-as-Integrator Approach to Streamlining the DOD Acquisition Process Highlights from a survey of defense leaders March 2014
Research goals and methodology Many organizations have long called for defense acquisition reform, but today s shrinking budgets, rapidly evolving threats associated with irregular warfare, and increasingly complex military operations have made the need for reform much more urgent. To gain a deeper understanding of the underlying causes of the broken acquisition process, Government Business Council (GBC) and Booz Allen Hamilton launched a research study in October 2013. Through a survey of 340 DOD leaders, GBC and Booz Allen explored the need for DOD acquisition reform, problems specific to the growing field of C4ISR, and the opportunities and challenges associated with reform. Grade/rank Job function 27% 22% 16% 16% 13% 2% 4% SES GS-15 GS-14 GS-13 GS-12 GS-11 Other Acquisition Engineering Operations Finance Human capital IT Facilities management Communications Other 17% 16% 9% 4% 4% 3% 1% 10% 36% Acquisition, engineering, and operations are the most represented job functions Percentage of respondents, n=340 2
The disconnect between government and industry expectations, followed by cost, is the most identified acquisition problem. Significant problems with defense acquisition process Disconnect between government and industry expectations Cost/funding Government does not own key assets Program managers not empowered to make decisions Wide array of stakeholders to manage Lack of input from warfighters and support personnel Vendor lock-in/sole sourcing Lack of framework to guide funding decisions Increased bid protesting Lengthy testing and deployment process Growing focus on LPTA source selection approach 19% 16% 24% 24% 30% 30% 36% 34% 39% 43% 42% Closer analysis reveals that engineers and operators are more likely to identify government not owning key assets as a significant problem Percentage of respondents, n=340 3
C4ISR acquisition problems mirror those of the overall process but are more prevalent. Significant problems with C4ISR acquisition process Disconnect between government and industry Cost/funding Government does not own key assets Wide array of stakeholders to manage Lack of input from warfighters and support personnel Lack of framework to guide funding decisions Program managers not empowered to make decisions Vendor lock-in/sole sourcing Lengthy testing and deployment process 60% 58% 54% 53% 50% 48% 46% 44% 43% Increased bid protesting Growing focus on LPTA source selection approach 36% 35% Percentage of respondents, n=340 4
When asked to rank C4ISR acquisition problems, respondents select stakeholder management as the most concerning. C4ISR acquisition problems ranked by level of concern 1 st Wide array of stakeholders to manage (avg. rank: 3.533) 2 nd 2 nd 3 rd Disconnect between government and industry expectations (avg. rank: 3.765) Cost/funding (avg. rank: 3.773) 2 nd 4 th Government does not own key assets (avg. rank: 3.875) 5 th Lack of input from warfighters and support personnel (avg. rank: 3.912) Lower average rank indicates higher concern, n=340 5
Greater government involvement in designing requirements could improve the overall acquisition process. More government involvement in designing requirements/ specifications (i.e., as the primary integrator) could improve the acquisition process. 62% of all respondents agree or strongly agree Strongly agree 27% Don't know 4% Strongly disagree 21% Disagree 13% Closer analysis reveals that engineers are more likely to agree or strongly agree Agree 35% Percentage of respondents, n=340 6
For C4ISR, greater government involvement is expected to improve interoperability and alignment with warfighter needs. Expected outcomes Products/services that better meet warfighter needs Greater interoperability with existing systems 51% 55% Greater alignment of gov't and industry expectations Fewer redundant products/services at program level Increased cost-effectiveness Improved framework for making funding decisions Enhanced ability to insert modern tech into existing programs More programs completed on time More competitive acquisition field Faster deployment of systems through rapid prototyping Percentage of respondents, n=340 Other 5% 45% 40% 38% 31% 29% 28% 25% 22% Engineers are more likely to identify greater interoperability with existing systems and more programs completed on time as outcomes. Operators are more likely to identify enhanced ability to insert modern technology into existing programs as an outcome. 7
Despite broad support for greater government involvement, budget, culture, and a lack of information sharing pose challenges to reform. Challenges to greater government involvement Volatile budget 4% 5% 6% 25% 60% Insufficient information sharing 5% 5% 4% 39% 47% Cultural resistance to change 6% 4% 10% 37% 43% Limited push for innovation 13% 3% 23% 41% 20% Size of workforce 8% 5% 30% 31% 26% 0% 25% 50% 75% 100% Don't know Strongly disagree Disagree Agree Strongly agree Percentage of respondents, n=340 8
Moving forward The research indicates a need for greater government involvement in designing C4ISR systems, interoperability as a priority for development efforts, and improved stakeholder coordination. Overcoming current acquisition challenges requires changing the engineering mindset within DOD and embracing an integrated approach. Though it presents its own challenges to overcome, a model in which government acts as the lead integrator of disparate stakeholders and systems can help optimize the defense acquisition process for a new era of rapidly evolving threats and limited budgets. For new technology acquisitions, DOD should build-in interoperability from the start. By inverting the traditional engineering approach so that government designs and owns the specifications that systems plug into, DOD can acquire smaller and more modular systems and provide opportunities for operators and engineers to offer valuable insight. The implications of this results are explored in greater detail in Booz Allen Hamilton s Smart Command Town Hall Series supported by Government Executive Media Group s Defense One. To learn more, visit boozallen.com/smartcommand. 9
Underwritten by About Booz Allen Hamilton Booz Allen Hamilton is a leading provider of management consulting, technology, and engineering services to the US government in defense, intelligence, and civil markets, and to major corporations, institutions, and not-for-profit organizations. Booz Allen is headquartered in McLean, Virginia, employs approximately 23,000 people, and had revenue of $5.76 billion for the 12 months ended March 31, 2013. In 2014, Booz Allen celebrates its 100th anniversary year. To learn more, visit www.boozallen.com. (NYSE: BAH) 10
About GBC Contact Our Mission Zoe Grotophorst Manager, Research & Strategic Insights +1 202 266 7335 zgrotophorst@govexec.com govexec.com/gbc Government Business Council (GBC), the research arm of Government Executive Media Group, is dedicated to advancing the business of government through analysis and insight. GBC partners with industry to share best practices with top government decision-makers, understanding the deep value inherent in industry s experience engaging and supporting federal agencies. Follow @GovBizCouncil 11