In September 2010 DoD issued initial guidance on transforming how the Pentagon would acquire things. This spending reform initiative kicked off many changes impacting integrators big and small.
In November 2012 this initiative was updated and new guidance was issued. The full memo codifying this update is available here .
In April 2013 a new memo of implementing guidance was provided, complete with graphics. It is available here.
We end this post with some suggestions for you on how to adapt and survive/thrive in the environment this memo is helping codify.
First, some background on the focus areas in this Better Buying Power initiative, copied from the Defense Acquisition University website:
BBP Focus Areas
Conducting a program at a cost constrained by the maximum resources the Department can allocate for a capability. These resources include funding, schedule and manpower.
Control Costs Throughout the Product Lifecycle
The ability to understand and control future costs from a program’s inception is critical to achieving affordability requirements.
Incentivize Productivity and Innovation in Industry and Government
Reward contractors for successful supply chain and indirect expense management.
Eliminate Unproductive Processes and Bureaucracy
Unnecessary and low-value added processes and document requirements are a significant drag on acquisition productivity and must be aggressively identified and eliminated.
Real competition is the single most powerful tool available to the Department to drive productivity.
Improve Tradecraft in Acquisition of Services
The substantial amount of money spent on contract support services demands a management structure to strategically source these goods and services.
Improve the Professionalism of the Total Acquisition Workforce
It is the duty of the acquisition workforce to conduct itself with excellence, responsibility, integrity and accountability.
More context:
- The department underscores in these principles that the first priority is to use judgement. The BBP program is full of new concepts and approaches, but it depends on a thinking workforce.
- It also depends on a thorough understanding and active management of technical risks and an ability to get the big early decisions, particularly in requirements trade-offs, right.
- New ways of information sharing with the DoD industry include the Defense Innovation Marketplace which is designed to be a centralized resource to reinvigorate innovation.
- This activity also underscores the importance of market research.
Considerations for your next action in this area:
- If you are in DoD or the industry serving DoD you should track this initiative closely. We will continue to report on it at CTOlabs.com and will also make it a periodic topic in our online newsletters, especially our DoD and IC Technology Weekly so sign up today to keep on this issue.
- If you are in a high tech firm supplying software to the integrators or direct to government now is the time to be able to articulate how your capability can help not only serve government missions but can help do so in a very cost effective way. Help make your case in your own words by submitting your technology here.
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