Defense Acquisition: Improved Program Outcomes Are Possible

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Report Type	Reports and Testimonies
Report Date	March 18, 1998
Report No.	T-NSIAD-98-123
Subject	Weapons systems Defense cost control Defense procurement Department of Defense contractors Federal agency reorganization Military downsizing Prices and pricing Private sector practices Procurement planning Small business assistance Spare parts Best practices Brilliant Anti-Armor Submunition C-17 Aircraft DOD Pilot Mentor-Protege Program F-22 Aircraft Joint Direct Attack Munition

Summary:

The Defense Department, which plans to increase its procurement budget by 40 percent to $60 billion in 2001, could acquire better weapon systems faster and cheaper by using "best practices" from the private sector and by changing the incentives that drive behavior in the military acquisition culture. Leading private sector firms have had much success with processes and decision-making practices that are based on knowledge and focused on production. Weapon system acquisitions could be improved if DOD and Congress were able to foster an environment that would give program managers incentives for applying best practices. This testimony discusses (1) the military's experience with the commercial pricing of spare parts, (2) DOD's mentor-protege pilot program, and (3) federal agencies' use of multiple award task- and delivery-order contracts.

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Defense Acquisition: Improved Program Outcomes Are Possible