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Defense Acquisition: Best Commercial Practices Can Improve Program Outcomes

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Report Type Reports and Testimonies
Report Date March 17, 1999
Report No. T-NSIAD-99-116
Subject
Summary:

In GAO's view, the Pentagon can use the best practices of leading commercial firms to improve its development of technology and weapon systems. In particular, knowledge standards that are rigorously applied, coupled with the practice of keeping technology development separate from product development, stand out as key factors in the most successful commercial examples. These practices have helped managers to develop better products in less time and within budget. Defense Department (DOD) programs generally proceed with lower levels of knowledge about key factors of product development, such as proof of design maturity and production readiness. In addition, DOD allows technology development to take place during product development. Getting better outcomes on weapon system programs will take more than grafting commercial best practices onto the existing acquisition process, according to GAO. Environmental factors, such as the intense competition for funding when a program is launched, encourage lower standards of knowledge and the acceptance of higher, but unrecognized, risks. The adoption of best practices should be aimed at fostering an environment in which DOD encourages or rewards such practices. These measures will put DOD program managers in a better position to succeed, for GAO believes that they are as informed and capable as their commercial counterparts.

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