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 Moderator Director, Acquisition ebusiness, Office of Naval Research 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 Scheduled for end of FY17 Each Service has a web of non- SPS systems Army PADDS, VCE, etc. Navy NECO, ITIMP, etc. AirForce ConWrite, etc. 22,000 DoD 1102s facing major modernization of their systems Estimated 300,000 Big A acquisition professionals across DoD will be impacted 5
Business system modernization now follows its own acquisition path Defense Acquisition System Framework A B C Materiel Solutions Analysis Technology Development Engineering and Manufacturing Development Production and Deployment Operations and Support MDD 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 FDD Business Capability Life cycle Acquisition Model Business Capability Definition Investment Management A B C Prototyping Engineering Development Limited Fielding Full Deployment Operations and Support MDD Designed to reflect reality of acquiring and deploying modern business systems Continues to reflect bias of building over buying 6 FDD
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? 8
Our research findings: Budget constraints lead to: 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. 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? 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 9