The Defense Department is making strides toward streamlining acquisition milestone decisions, but needs to do better, a recent Government Accountability Office (GAO) report said.
GAO recommended DoD find and get rid of reviews and information requirements that are no longer needed and use pilot programs for more streamlined approaches so only essential information is provided to decision makers.
In agreeing, DoD said its Better Buying Power (BBP) initiative introduced several streamlining efforts to reduce or get rid of unproductive processes and bureaucracy. Additionally, the Pentagon’s chief buyer has provided Congress with legislative proposals to reduce additional reporting requirements imposed on the acquisition workforce.
Under BBP 2.0, DoD said it is still implementing efforts to reduce the frequency of Office of the Secretary of Defense-level reviews. DoD is also in the process of identifying pilot programs for streamlined acquisition.
“The acquisition programs GAO surveyed spent, on average, over two years completing numerous information requirements for their most recent milestone decision, yet acquisition officials considered only about half of the requirements as high value,” the February report, GAO 15-192, said.
The requirements averaged 5,600 staff days to document, the study said. In some cases, the process can include as many as 56 organizations at eight levels for about half the time needed to complete information requirements.
A program manager survey done by GAO found most felt the reviews added high value to only about 10 percent of the documents.
GAO looked at four programs that recently held milestone decisions to get a look at the time and effort involved.
The Air Force F-22 Increment 3.2B modernization is a major software modification. Analysts found it took 24 months to complete the Milestone B process, with 33 documents prepared and 74 briefings. It took about 3,800 staff days costing more than $10 million. Another $800,000 was spent on contractor assistance. Lockheed Martin [LMT] produces the F-22 fighter.
The Army’s Paladin Integrated Management howitzer and its tracked ammunition carrier took 38 meetings, with 40 documents and 26 months to complete the Milestone C process. BAE Systems produces the Paladin PIM.
The Army/Marine Joint Light Tactical Vehicle took 23 months, 26 documents and 32 briefings to complete the Milestone B decision process. The program is in competition among AM General, Lockheed Martin-BAE, and Oshkosh [OSK].
Photo: NAVAIR
The Navy’s P-8 program, a commercial derivative built by Boeing [BA] to replace the P-3C Orion, needed 28 briefings, 32 documents and 24 months to complete the Milestone C process.
GAO discovered one reason the process takes so long is the large number of stakeholders at different levels above program management that review documents.
As well, functional staff often wants more information than required, slowing the process.
However, DoD has shown it can streamline its processes, as was done on the F-16 and F-117 aircraft programs as well as some classified programs, analysts said.
Also, commercial companies that use the milestone decision process minimize reviews for more efficient decisions. The bottom line depends on keeping to cost and schedule plans.
GAO interviewed five companies: Boeing, Caterpillar [CAT], Cummins [CMI], Honda of America Manufacturing [HMC], and Motorola Solutions [MSI].
For these companies, GAO found a strong link between program management and decision makers, a “critical factor” in making their streamlined approach work.
While there is a real need for documenting essential aspects of a program and holding reviews, GAO found the process has become “bloated, time consuming and cumbersome.”
GAO said: “The challenge is to find the right balance between having an effective oversight process and the competing demands such a process places on program management.”
The report was sent to the House and Senate Armed Services and Defense Appropriations Committees.