Our Acquisition Challenges Moving Forward

Transcription

1 Presented to: NDIA Space and Missile Defense Working Group Our Acquisition Challenges Moving Forward This information product has been reviewed and approved for public release. The views and opinions expressed herein are strictly those of the authors and do not represent or reflect those of the United States Government. Reference herein to any specific commercial, private or public products, process, or service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by the United States Government. 21 November, 2013 Presented by: Mr. James B. Lackey, SES Director Engineering Directorate U.S. Army Aviation and Missile Research, Development, and Engineering Center

2 Caveat The Following Brief Expresses My Views and is not representative of any formal position by the Army, Navy, or OSD 2 FileName.pptx

3 My Role at AMRDEC 3 FileName.pptx

4 Aviation & Missile Research, Development, & Engineering Center MISSION: Deliver collaborative and innovative technical capabilities for responsive and costeffective research, product development, and life-cycle systems engineering solutions Who We Are: Government ~ 3,109 Military - 21 Contractors ~ 6,293 PhDs Masters 1, University/College Professors 2 Senior Research Scientists What We Do: Basic and Applied Research Technology Development Future Systems Development Fielded Systems Support Rapid Prototyping Obsolescence Management Technology Refresh Aviation S&T $125M Other PEOs $176M Who We Support: FY13 Final ($2,410M) MDA $175M Others Related $735M AMCOM $92M Missile S&T $174M What We Manage: FY14 Funding > $2.4B Over 1.6 M square feet in lab space 266 Facilities at Redstone Arsenal Additional unique test facilities and wind tunnels across US Expert engineering and laboratory capabilities to develop, transition, and sustain technology solutions for a wide variety of DoD customers PEO Aviation $629M PEO Missiles & Space $304M 4 FileName.pptx

5 AMRDEC Organization Scientific & Technical Positions (STs) Director Group Leader / Flight Control Technology Optical Sciences MILDEP Micro-Sensors & Systems - Vacant Radio Frequency Sensors - Vacant Computational Fluid Dynamics - Vacant Aviation Advanced Design - Vacant Aviation Engineering Weapons Development & Integration Aviation Development Systems Simulation, Software, & Integration Engineering Mr. James Lackey (SES) Aeroflightdynamics Aviation Applied Technology Center Support & G-Staff Technical Management Software Engineering System Simulation & Development 5 FileName.pptx

6 AMRDEC Part Laboratory / Part Engineering Services SCIENCE & TECHNOLOGY PROGRAMS Precision Navigation and Timing Missile Seekers Rocket and Turbine Propulsion Air Defense Vehicle Active Protection Fire Control Air Defense Radar Technology Target Acquisition Systems Aerodynamics and Structures Platform and Weapons Systems Integration Missile Condition Based Maintenance Manufacturing Technology AMCOM Corrosion Program TECHNOLOGIES SMART BUYERS SKILLED PERSONNEL LEVERAGED FACILITIES REAL WORLD NEEDS UNFORESEEABLE REQUIREMENTS TRANSITION OPPORTUNITIES LEVERAGED FACILITIES 85% OF ALL REVENUES Life Cycle Systems Engineering Software Engineering - Accredited Level 4 CMM High-Fidelity System Level Simulations Independent Product / Process Assessment Airworthiness Qualification and Release Authority Sustainment Engineering Support Rapid Prototype Engineering / Integration Production / Quality / Reliability Engineering AMCOM Corrosion Program Technical / Acquisition Management ENGINEERING SERVICES Engineering Directorate Roles/Responsibilities ~ 1/3 of AMRDEC Workforce AMRDEC S S&T WORK BUILDS THE BASE FOR ENGINEERING SERVICES THESE TWO SIDES WORK HAND IN HAND TO BUILD KNOWLEDGE AND EXPERTISE 6 FileName.pptx

7 In 10 Core Functions ED Works Across The Lifecycle CBA ICD MDD Materiel Solution Analysis A B Technology Development CDD PDR Engineering and Manufacturing Development CDR C CPD Production and Deployment FRP DR O&S Engineering Management (1) Systems Engineering Mission Assurance (2)Test & Evaluation (3) Product Assurance: Quality, Reliability (4) Configuration Management Production & Sustainment (5) Industrial Base Assurance (6) Production Engineering (7) Logistics Engineering (8) Lifecycle Cost Reduction (9) Manufacturing Technology (10) Rapid Response / Prototyping (PIF) 7 FileName.pptx

8 Our Acquisition Challenges 8 FileName.pptx

9 Current Environment Reducing significant CENTCOM presence but still battling on many fronts Diversification of operations Globally responsive and regionally engaged Prevent conflict, shape the operational environment, WIN DECISIVELY Now is the time to innovate Long term outlook: where do we want to take the Army? Some Examples Modularity, Open Systems Architectures, Interoperability Layered Survivability Advanced Materials, Manufacturing Long Range, Precision Effects Reduced Logistical Burden Focus On Lifecycle Affordability Nice to innovate, but we are now on a downward budget cycle slope 9 FileName.pptx

10 and there s more pain to follow Source: CSBA Report Chaos and Uncertainty: The FY 14 Defense Budget and Beyond, October 24, FileName.pptx

11 Contract Cost Growth Drivers Source: Performance of the Defense Acquisition System Annual Report, 28 June FileName.pptx

12 Underlying Cost Growth Root Causes Less Influences Immature Technology Unrealistic Performance Expectations Unanticipated Design, Engineering, Manufacturing or Technology Issues More Influences Poor Management Performance Systems Engineering Contractual Incentives Risk Management Situational Awareness Stakeholder Inputs Changes in Procurement Quantities Baseline Cost and Schedule Estimates Framing Assumptions Source: Performance of the Defense Acquisition System Annual Report, 28 June FileName.pptx

13 What Are Framing Assumptions? Unrealistic estimates are generally caused by the invalidity of major assumptions NOT methodological errors. Nose Orbiter Processing Facility Concept (1974) Actual Orbiter Processing Facility The cost estimating community can and should challenge assumptions but the acquisition community formulates them. Consideration of this has led to framing assumptions 13 FileName.pptx

14 Framing Assumption F-35 Example Framing Assumptions Design is mature (Prototype design is close to Production-Ready) Consequences Production and development can be concurrent! Estimating Assumptions Schedule will be more compact than historical experience! Original Program Cost and Schedule Estimates Responsible Communities: Requirements, Technical, & Program Management Cost Estimators F-35 Reality: immature technologies, unproven innovations 14 FileName.pptx

15 Moving Forward 15 FileName.pptx

16 Manage Life Cycle Costs Big Dial Examples Conduct proper Framing Assumptions Sustain Collaboration & Communication (Government / Industry 1 Team) Apply rigorous Systems Engineering Practices System Trades including Affordability Caps Disciplined Requirements Management ( Just Say NO ) Requirements Flow Set Executable and Resourced Baselines Event based Risk Reduction, Technology Maturation Conduct Incremental Efforts More Rapidly (ECP s over New Starts ) Shape Acquisition Strategies and Plans to meet our needs PM s have more influence to tailor than they realize Statutory = Constraint Regulation is sometimes actual Maneuver Space Be Data Driven, Measure Progress Objectively not subjectively Identify and Act Upon Key Cost Drivers (aka Should Cost ) 16 FileName.pptx

17 Better Buying Power Version 2.0 We are in this together Affordable Program Requirements and Strategies Control Costs Incentivize Productivity and Innovation Eliminate Unproductive Processes Tradecraft in Acquisition Of Services Promote Competition Professionalism Of the Acquisition Workforce How Are We Doing? - Adding Value? - Making a Difference? - Impact To Industry? - Forums to better promote exchange? 17 FileName.pptx