DTIC ADA426669: Recent Large Service Aquisitions in the Department of Defense: Lessons for the Office of the Secretary of Defense

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by  Defense Technical Information Center

Recent Large
Service Acquisitions
in the Department
of Defense

Lessons for the Office of the
Secretary of Defense

DISTRIBUTIONSTATEMENTA,
Approved for Public Release
Disteibutian Unlimited

FRANK CAMM.
IRV BLICKSTEIN
JOSE VENZO®

20041008 314

NATIONAL DEFENSE RESEARCH INSTITUT
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Preface

In Augast 2001, Ue Direcarate of Aeqisirinn Resouces and Analy
sisi the Office ofthe Secrerary of Defense (OSU} afl the RAND
(Corporation to idencife policy issues soleva ws Luge service aexaise
lions chac deserved closer arenrian in OSL?, RAN‘? agreed to exam
ine a variety of mew large acqu’siinns of dillereat Kinds oF services in
different parts of the Depariman, af Defuse (DoD). Bared on an
inital se of pilot” cacestocies, RAND ideutiled « ceneative set of
policy sues that dserved OSD's saeutivn, RAND briefed OSD on
these isnes in Deccauber 2001. OSD asked RANT to fill one Fase
cose amies wiv additional iufaconcion end to expand che namie of
acquisitions covered in the study to sx to ces the rabtsiaess of the
icsucsidewticd in the December briefing. Tri Mareh 2002, OSD also
asked RAND 1 drew on interim findings to he'p OSD fate neve
polity on “Sequisiion of Seeviss,” a¢ required by the Fiseal Year
2002 Saional Defse Arboriaion At, Sein BOL
the Findings that resute foun the
tans, fuses sis case seudies ea idenuily high-level poligy iesues For
hia OSD is key co heros involved in lige, iauwvative service
svyuisitions as choir use expands in DoD. Lt shold interese analyse
and practiiocers invalead in the aeuusition of deferse rervices and,
more genenily, in emgoing acquishion xlotm elforsin DoT
The stork wae conducted in the Acquisition and ‘Lechnology
Policy Program of RAND Nativaal Defense Reeeaech Insrinise
ANDIU), a anit of che RAND Couporaion, NDRI is 9 federally
fused research and development ccnter (EARLS spomenred by rhe
1s ert angen agutons inthe Depateant offense

‘OMe af the Socteeary af Defense, the Joint Self, dhe Uuied Cura
misnds, and she cefonce agencies. NDDRI conducts esearch an cuan-
plex ational defense policy and straregy probleme for hich
shu dissiplinary eapahilirs, abjecrviry, and an explicit nacional-
interest charter ate esa

Please dneet any iuyuiries os ceunascats on the substantive con
rent ofthis dacument to the prujec: leaders, [re Mi¢ks:sn and Frank
Cam, 2 709-413-1100, ividrand or. or [email protected]
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teouutendations fllowe logically from the Findings and sic explained
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monsiaies understanding of
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pendent, and balanced. Peer revcw ts conducted by reseasc pris
Sonal tho

nar "acrabers ef the paujest te

RAND routinely eeviews anu refines its quali assurance poe
cess and also condncis peliodie exteral and internal reviews of he
quality of ie hady of woth, Kor addisivnal derats
RAND quality assurance proces, vse

Dupstiewe cong scanlands!
Contents

Preface
‘The RAND Corporation Quality Assurance Process
Tables

Simniaey
‘Acksonladgments
Actouytasaund bl

Jntcwdoction

Services Aqusiron ia DoD.
‘OSD Rake
Roulmp...

(Choosing che Service equine
Seimce Acquis Ena

Dees af Felings

A.Ganoa Refers cei

‘he Sty Acquisitons Seated
Ay Hala Spat Contec Pro

x“
2
Marine Ces Fa Senne Page
[Neriona!Securny Agency Greundbroter Progra
P/A-L&-E/T Inneprted Readiness Support Tesra Program

‘asp Rapid Wasps ca Crises Syma Requizerenes Progeem
Air Fora: Flxine Aegon and Sussaisanet Too,

Peimary Policy Tesuce inthe Acquisiions Studied
‘wide Vara nf Policy Goat

Servis Pune

‘esis Prawns

OSs Rote
‘Tusstrent of Sel and Disuleantagel Haines
fers of Mapoveer ard Personnel Celis
‘Oucsoueing sues
Various Term of Peviocmance-Based Services Acquisron
‘ube VrivaceInerachons Ea on Acyuis,
Publicvage Paetship Thuougzove an Acoso
alain, Pon Devfoemsnce in Bes-Valee Conspernons
Shean ger stig
Masai Cimtingney-Ralaed vamp.
Smphcnseme fr th eL9Aeyathon Woes,
Coonbnating Dot? Mauna and Personne Pic

‘Conclusions and Policy Implications

Getetal hssigh Taser for OSD.
‘sng Settiess Accubsrion Gosis we DoD Stange Goal

Managing Cengresonel Canceens About Sersioes Acquisition
Dvsloping and Diseminacng Letzons Lenard

Spe, Sultan Poly gus fr OSD? 9 Couaie
ror Ox Tha se

Suppar oF Gontinganin
Treat of Sule ane Duley Basins
Publicceiete Premerng
‘Trestent of Diglacad Gs unwn Chitians
acres to “nrovation it Savites Acpsition
‘Comparson ih Resa Serco: Aus, Polis Tiarves

A. Basle Questionnsine Gad ro Seaseare Ln’

RL. Guide co Case Study Marais

©. Bales Suppor Generar.

1. Mirine Comps Yood Seize Pagan

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T.PHa-TA-IZF cracgetal Rese Suppare Tene Progam
1G. Kay Rajon to Cia Sycere Regnisemste Pggar
IE Pleisle Aeisiiom and Suclamen: Ton: Proginn

Referens

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163

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1s:
Tables

5a
5.2
1.

2a

22.
23
cu
oa

Service Acgniscns Kaan
ajc FoieyYsuce Arising i Cases Sie
earn of the Severs nui ou Reon At TLR. 1837,
eleven rai Sis

‘Objoetsw ATT Goo and Subgoals eleva Svias
Austin

serv Actions Examined

jor Bliy een Suing in Cares Sic

Foual Courace Cons fr Hellas Support Contest
‘Weights from FIRST award-Foe Pla lie Peis 2-6
Summary

In Sugese 2001, the D'recrarte af Acqpisitian Resources and Ani
sis in the Office af the Socrewary of Delemse (OSD) asl die RAND
Corporation eo idenuils policy issues culovunt ws linge service acquis
tions char deserved eleses aucntinn én OS2, RAND? agreed ew examn-

acgplbitions wf various kinds of vervices in differant
pans of die De,swtmncut vf Defeuse (DoD) and en exeeaer policy ine
licaions levies w OSD. ‘his epurt docamencs aur findings rary
this ell,

‘able 8.1 pruvides high-level informerion aoc the sh ca80s we
cexatined. We chose these cases, with CS20's cancurence, BecieNe
they represent as hread a args of new approaches to serviecs equi
too 2s posi within a fired nurabor af cass, They include

+ Hach of the armed serviars and a dafeuse agency.

+ Single providers, ams of puovidass, and even cauliple teurns of
providers, each sith its on eonutact. One provider hay te
Separate prime coreracis in ns cas

+ Large and small pr

actors on one of the reams sn the sunyple, but some act a
prime concizetors (nat integrals all oversee she sevice of large
and small subcomt-acirs

+ Solewonros plowicets st providers welected by competition for
2 continuing prograen aul within 4 continuing program,

+ Purcly commercial activities, uel as faed service in the cont

1s. Most small providers serve as subeton=

nontal Unired States, and services with co immediace commat=