Table Of Content

Order Code IB96022 CRS Issue Brief for Congress WebCRS the throRuegche ived Defense Acquisition Reform: Status and Current Issues Updated January 9, 2002 Valerie Bailey Grasso Foreign Affairs, Defense, and Trade Division Congressional Research Service (cid:152)(cid:152) The Library of Congress Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. 1. REPORT DATE 3. DATES COVERED 09 JAN 2008 2. REPORT TYPE 00-00-2002 to 00-00-2002 4. TITLE AND SUBTITLE 5a. CONTRACT NUMBER Defense Acquisition Reform: Status and Current Issues 5b. GRANT NUMBER 5c. PROGRAM ELEMENT NUMBER 6. AUTHOR(S) 5d. PROJECT NUMBER 5e. TASK NUMBER 5f. WORK UNIT NUMBER 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Congressional Research Service,The Library of Congress,101 REPORT NUMBER Independence Ave SE,Washington,DC,20540-7500 9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR’S ACRONYM(S) 11. SPONSOR/MONITOR’S REPORT NUMBER(S) 12. DISTRIBUTION/AVAILABILITY STATEMENT Approved for public release; distribution unlimited 13. SUPPLEMENTARY NOTES 14. ABSTRACT 15. SUBJECT TERMS 16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF 18. NUMBER 19a. NAME OF ABSTRACT OF PAGES RESPONSIBLE PERSON a. REPORT b. ABSTRACT c. THIS PAGE Same as 19 unclassified unclassified unclassified Report (SAR) Standard Form 298 (Rev. 8-98) Prescribed by ANSI Std Z39-18 CONTENTS S UMMARY M TSO R TNECE D STNEMPOLEVE B DN ADNUORGKCA A SISYLAN a w erreyhEoNgtfeta rntoSitisiu qDcOAD htaP otmrofeR m rsoefte oRDmOoDrP snoit cmArof eftRocap mlIaitnetoP sserg nhotC 4 e0snh1eitussI noitazinag rnOoitisiuq csA’D OgDnirutcurtseR gnicruost uhOguor hstnoitcn uD FOgDnizitavirP sevitaiti nmIrof e fRtohgisrevO 5 0e 1hnstieussI ht sser gnoC strop edRetadn ayMllanoissergn o fCwoeiveR slen aePsnef e fDsonoitadnemmoc edR nsatnemssessA noitalsige Lnoitisiuqc Alarede Fn isegnahC 6 0e 1hnstieussI ht sser gnoC 106 ht sw acLilb u yP: esKsergn oC F OR A LANOITIDD R GNIDAE CRS Reports IB96022 01-09-02 Defense Acquisition Reform: Status and Current Issues S YRAMMU T eh dne fo eht dloC raW dna sti impact sector operation. tA eussi si tsuj wohot on esnefed gnidneps sah created a strong deen egnahc DOD tnemegan almennosrep ,seicilop to mrofer tnemtrapeD fo s’esnefeD)DOD( dna ecudortni D s’DO noitisiuqca mrofer noitisiuqca .metsys -dneps tnemerucorp htiW .rot ceetsav iseorehtpvtitaitini gni down, DOD stcepxe to dneped on sgnivas morf noitisiuqca mrofer polteh ecnanif erutuf Privatizing DOD’s functions through ecrof .noitazinredom srekamyciloPeveileb outsourcing: hguohtlA DOD dah nugeb -d olrapicrem meo rc eodsmluu o DhtOsaDht gnicruostuo emos ,snoitcnuf gnidnapxe sti esu ucts ,esuaceb ni ynam ,secnatsni yeht cost ssel sah neeb a rojam .laog sseccuS seirotsdna dna rieht ytilauq si elbarapmoc to products seiduts detamitse that gnicruostuo dluoc tliub gnidrocca to DOD y ratilim .snoitacificeps ecuder co sts dna esaer c.nyicneiciffe cisaB naM y hcus mrofer slasoporp era desabno snoitseuq edulcni devas eb nac hcum woh )1( noitingocer dsnraeir ryarbotalu gDteOarDht over eht mret-gnol dna woh l lsigwnivaseb a dloC raW noitisiuqca ”erutluc“ evah ;derusaem (2) nac s’DOD structure ylevitceffe detibihni eht noitcudortni fo laicremmoc eganam eht wen gnicruostuo ;slasoporp (3) do products. gnicruostuo slasoporp go dnoyeb eht “proper” stimil fo s’DOD m ission to protect U.S. na- ehT deen to ocne noitcaretni retaerg egaru lanoit ;ytiruces dna (4) nac ou gnicruostmrah neewteb eht esnefed dna laicremmoc seirtsudni s’DOD m yratili ssenidaer ro gnithgif-raw si deredisnoc lativ to gnipeek U.S. im yratil ?ytilibapac ygolonhcet eht tseb ni eht dlrow — arojam evitcejbo fo U.S. d esnefe .ycilop ynaM Oversight of reform initiatives: Con- h ygolonhcet-hgi laicremmoc products (e.g., sserg lliw unitnoc e to exercise a strong over- )scinortcele era state-of-the-art dna gnignahc thgis elor esuaceb fo sti nol emitg tseretnini s o,s ntosia trftao ac yhisrtf’aiDtcOieDlpism gninilmaerts s’DOD noitisiuqca .sessecorp Its “ ”.scepslim metsys tonnac peek .ecap -noC attention will be directed at several gr sse sah dessap lareves tnatropmi,smrofer yllanoissergnoc detadnam DOD reports on gnoma meht eht laredeF noitisiuqcA -maertS noitisiuqca mrofer deussi ni 1996. Important gninil tcA fo 1994, laredeF A noitisiuqc-eR topi s c eldlu ilwwcognh niDiOnDi lsmiaerts f mro tcA fo ,6991 esnefeD mrofeR tcAfo dna gnirutcurtser sti noitisiuqca,sessecorp 1997, dna eht laredeF itivitcA se yrotnevnI pr actices and infrastructure; increasing mrofeR tcA fo .8991 DOD sah derewolro cneiciffe ecnan ee stsgennniiei afrnmeiiduqca iloba dehs yrotaluger ;sreirrab strepxe,eerga dna riaper ;secivres dna , outsourcing DOD , rt eaev hre ktowdrmoeo hrw sioiuteqkearm support functions that are considered .sde eensnef e.dS .oeUtvisnops emrets yesht laicremmoc ni nature. sser glnloiCw ylerno eht snoitadnemmocer fo lareves reports, Restructuring DOD’s acquisition ksa Teh tgnidulcni Force on esnefeD ,mrofeR organization: detcanE smrofer lliw naem esnefeD ecneicS Board ksaT Force on Pro- greater modeerf ot ,etavonni ekamrekciuq tnemeruc feR orm, and the Section 912 (c) ,snoisiced dna evorpmi D DO margorp-leved report on gninilmaerts noitisiuqca ,sessecorp o tnemp — gninnur DOD erom ekil a pr ivate .erutcu retc srdaonrfafknriow Congressional Research Service (cid:152)(cid:152) The Library of Congress IB96022 01-09-02 MOST RECENT DEVELOPMENTS Section 832 of the FY2002 National Defense Authorization Act (S. 1438, P.L. 107-107) codifies and modifies the Berry Amendment, repealing Sections 9005 of the FY1993 DOD Appropriations Act (P.L.102-396) and Section 8109 of the FY1997 DOD Appropriations Act (P.L. 103-139). The Act calls for the overhaul of DOD’s management structure for procurement services from the Under Secretary of Defense for Acquisition, Technology, and Logistics and directs the Secretary of Defense to report to congressional defense committees on the progress made toward the goals and objectives of the procurement management plan; set procurement savings goals for the next 10 fiscal years; requires the Secretary of Defense to revise the Defense Federal Acquisition Regulations to develop rules for competition in the procurement of multiple award contracts; and grants temporary emergency procurement authority to raise the simplified acquisition threshold to facilitate the defense against terrorism or biological or chemical attack. Section 1062 of S. 1438 (the provision requiring the demilitarization of significant military equipment) was eliminated from the enrolled bill. The FY2002 Department of Defense Appropriations Act (H.R. 3338) prohibits the conversion of DOD activities or functions to contractor performance, if the activities are performed by ten or more civilian DOD employees, until a “most efficient and cost-effective analysis” is completed and certified to the congressional appropriations committees, and prohibits DOD from purchasing welded shipboard anchor and mooring chain (4 inches in diameter) unless the anchor and mooring chain are manufactured in the United States from components that are substantially manufactured in the United States. Section 8020 of the Act also prohibits the demilitarization or disposal of certain military equipment. BACKGROUND AND ANALYSIS et ael hetcniS 1980s, a dee tggoa rnt e aeosrevrrcvn toaotsthcnc aartfe rbfomopumni deen to mrofer s’DOD noitisiuqca ,metsys a s atha hmtetsys neeb yllacidoirep ,deiduts dna ,deretla over eht tsal 50 .sraey raey yreve denilced sah gnidneps tnemerucorp esnefed ,tsriF ecnis 1987. sihT enilced sah decrof srekamycilop ot enimaxe woh DOD syubyratilim rko of do,nltanempiuqe syaw to ecuder ere h,tdn o.c meeSts ynsoitisiuq csa’D OnsDitsoc sah neeb a noitazilaer that erom laicremmoc products dluohs eb desu yb DOD. esehT ,stcudorp ni ynam ,sesac era won repaehc dna fo elbarapmoc ytilauq ot ralimisstcudorp produced gnidrocca to s’DOD yratilim ps snoitacifice .)”scepslim“( ,deednI ynam ygolonhcet-hgih laicremmoc products, ylralucitrap ni eht scinortcele dni ustry, are state-of-the-art, dna yeht era gnignahc so tsaf that s’DOD cepslim metsys tonnac peek ecap htiw etavirp sector .stnemecnavda ,drihT ti sah emoceb nommoc egdelwonk tahts’DOD yrotaluger sreirrab dna sti noitisiuqca erutluc evah not ylno detluser ni rehgih costs, but osla de sguni embo rsftcudo rlpaicremm otcpek ni eht esnefed sector. srekamycilo p,tluse r as A er ommets ynsoitisiuq csa’D OeDk a omgtnike ews oenra (1) cost ;evitceffe (2) evitcaretni tra-eht-fo-et agtnsiruc odoretpttim m ) od3;cn(saeirtsu dlnaiicrem mhotciw r oyfgolonhcet .sisa bylemi tan osmetsy snopae wDOD srekamyciloP evah decaf ytluciffid gnipmaver a DOD noitisiuqca ;metsys ,revewoh eht yrategdub deen to do so sah emoceb erom dna erom apparent. esnefeD fo yraterceS remroF 1-SRC IB96022 01-09-02 yrreP dah stated that DOD saw gnidneped on laitnatsbus sgnivas morf noitisiuqca mrofer to ecnanif a tnacifingis portion fo erutuf ecrof .noitazinredom desserpxe dah eh ,drager siht nI eht ecnatropmi fo gniveihca greater noitargetni fo esnefed dna laicremmoc ,seirtsudni sa siht saw eht ylno yaw eht detinU setatS nac niatniam sti lacigol opnihhcsertedael — arojam .ycil oepsnef e.dS . fUtonemele revO eht tsal 7 ,sraey ssergnoC sah detcane a rebmun fo tnatropmi smrofer nieht noitisiuqca process. DOD sah nekat spets fo sti nwo ot ecuder ro etanimileyrotaluger ,sreirrab sa llew sa to egaruocne esu fo laicremmoc products ni yratilim .smetsys weiv eht nI fo ynam experts, ,revewoh a great laed erom work lliw eb dedeen ni eht erutuf to eveihca eht .sseco rnpoitisiuq csa’D O fDdoeriuq esrsenevisnops edr nyacneiciffe DOD Acquisition Strategy for the New Era ehT dne fo eht dloC raW produced a tnacifingis ilced en ni .S.U esnefed,gnidneps ylralucitrap ni tnemeru c.o srmPets ynsopa efnwooitisiuq ceaht gnidneps sah denilced 59% ni laer smret morf lacsif raey 7891YF to .7991YF gnidneps tnemerucorp DOD ni enilced ehT gnirud eht hsuB noitartsinimdA detluser ni noitanimret fo emos rojam nopaew .smargorp It osla prompted tnempoleved fo a wen noitisiuqca ,ycilop denifer yb eht notnilC ,noitartsinimdA that dezisahpme gnidargpu gnitsixe smetsys rather naht gnitaitini wen .seno ehT wen ycilop osla supported erom gnidneps rof esnefed hcraeser dna tnempoleved )D&R( dna dl ueorw ehhgtuoh t,lta a shnatowisi c ecef.hido ntg eoohilTtcud osrnpop a resowsfel eb a noitcuder ni eht ytitnauq fo wen snopaew produced, eht deen to niatniam lacigolonhcet ,ytiroirepus (a yek tabmoc )reilpitlum , deriuqer desaercni stroffe ot poleved wendna evitavonni .ygolonhcet DOD os lgnanaigre ebethlta yaw ti sdsied nhitsiuwb eehstnefed tsudni ,yr gnikool rof syaw ot ecuder .stsoc .S.U seinapmoc dekrabme no a yteiravfo seigetarts to tsujda to eht wen gnidneps tnemnorivne dna noitadilosn oeclbative neiht fo eht .yrtsud neisnefed Table 1 stsil lanoitan esnefed tegdub ,syaltuo .2002-2691YF ehT yaltuosrotalfed tneserper eht noitalfni ;rotcaf eht ”$YC“ era current raey srallod dna era desab on eht cost fo goods and secivres ni smret fo secirp current at eht emit fo ;esahcrup constant srallod eh tni driht nmuloc refer to eht cost fo goods or secivres detsujda to etanimile eht tceffe fo .noitalfni rehtonA egnahc ni DOD tnemerucorp ycilop dedulcni desaercni noitcaretni neewteb eht esnefed yrtsudni dna ,laicremmoc esnefed-non eirtsudni .s euD ot eht thgilp fo ehtesnefed yrtsudni yl gnisaercni( detceffa yb ,)skcabtuc eht dn201 ssergnoC detaitini a esnefed cimonoce si h .Tygolonhce tyratili mgnizilaicremmo cro fgnidnu fdedulcn ihcih wmargor ptnemtsujda margorp saw dengised to pleh U.S. seinapmo cesnefed yfisrevid rieht ;snoitarepo eht smrif erew degaruocne to pr ecudo dellac-os ”esu-laud“ stcudorp taht dluoc osla eb dlos nieht sevitnec ndiedulc nois l. tarIotc elsaicremmoc rof DOD to yrtsud nhit iswpihsrentr amprof to poleved gnittuc edge, esu-laud ygolonhcet that dluow eb yllautum .laicifeneb eht ,3991 nI notnilC noitartsinimdA proposed lanoitidda ;sevitaitini eht 103rd ssergnoC supported dna dednapxe meht to pleh htiw eht esnefed .noitisnart delliks-ylhgih detomorp sevitaitini esehT sboj ni esnefed-non dna esu-laud ygolonhcet ,saera yratilim-laicremmoc ,noitcaretni dna .ygolonhc entailiv iwc e nntisev n oisteitinutrop pnooisrevnoc 2-SRC IB96022 01-09-02 Table 1. DOD Procurement, FY1962 - FY2002* syaltuO syaltuO (CY$ in millions) (FY1998 $ in millions) s r,ostyaallfteuDO Year .c orP E&TDR .corP E&TDR 8991YFesaB 1962 0.1601 14,532 6,319 90,768 39,469 1963 0.1612 16,632 6,376 103,176 39,553 1964 0.1671 15,351 7,021 91,867 42,017 1965 0.1700 11,839 6,236 69,641 36,682 1966 0.1816 14,339 6,259 78,959 34,466 1967 0.1921 19,012 7,160 98,969 37,272 1968 0.2016 23,283 7,747 115,491 38,428 1969 0.2088 23,988 7,457 114,885 35,714 1970 0.2239 21,584 7,166 96,400 32,005 1971 0.2376 18,858 7,303 79,369 30,737 1972 0.2575 17,131 7,881 66,528 30,606 1973 0.2744 15,654 8,157 57,048 29,727 1974 0.2964 15,241 8,582 51,420 28,954 1975 0.3308 16,042 8,866 48,495 26,802 1976 0.3546 15,964 8,923 45,020 25,164 1977 0.3810 18,178 9,795 47,711 25,709 1978 0.4089 19,976 10,508 48,853 25,698 1979 0.4404 25,404 11,152 57,684 25,322 1980 0.4938 29,021 13,127 58,771 26,584 1981 0.5532 35,191 15,278 63,614 27,617 1982 0.6069 43,271 17,729 71,298 29,212 1983 0.6343 53,624 20,554 84,540 32,404 1984 0.6592 61,879 23,117 93,870 35,068 1985 0.6852 70,381 27,103 102,716 39,555 1986 0.7026 76,517 32,283 108,905 45,948 1987 0.7227 80,744 33,596 111,725 46,487 1988 0.7463 77,166 34,792 103,398 46,619 1989 0.7774 81,620 37,002 104,991 47,597 1990 0.8019 80,971 37,453 100,974 46,705 1991 0.8442 82,180 34,549 97,347 40,925 1992 0.8647 72,727 34,556 84,107 39,963 1993 0.8920 67,317 36,923 75,467 41,393 1994 0.9133 60,400 34,751 66,134 38,050 1995 0.9306 54,253 34,590 58,299 37,170 1996 0.9511 48,535 36,493 51,030 38,369 1997 0.9746 45,531 36,034 46,718 36,973 1998 1.0000 43,125 34,645 43,125 34,645 1999 1.0220 44,647 35,152 43,686 34,395 2000 1.0456 47,616 33,960 45,539 32,479 2001 1.0699 51,641 33,158 48,267 30,992 2002 1.0948 55,399 33,552 50,602 30,647 Source: CRS, based on DOD data; excludes Desert Shield/Desert Storm costs and receipts. 3-SRC IB96022 01-09-02 Path to Reform sA esnefed gnidneps deunitnoc ot enilced dna esnefed noitisiuqca ygetarts,devlove evisneherp m eoakcatred noDu tOdDetcer isdrekamycil olpanoissergnoc weiver dna yduts fo sti noitisiuqca ,metsys dna tneserp mrofer .snoitadnemmocer dellaC eht noitceS“”008 report retfa( eht tnenitrep noitces ni eht esnefeD noitazirohtuA tcA fo 1991, P.L. 101-510), stiesoprup saw not noissimm odCrakc ae Phetk i,lseidu tssuoive rfkpor oe whettacilp eort ydutS (1986) dna esnefeD tnemeganaM weiveR (1989), but to take rieht sgnidnif dna prepare a elbakrow set fo dednemmocer segnahc to noitisiuqca .swal The study, once completed, w dluo evres sa a rojam resource rof eht lanoitaN ecnamrofreP weiveR dna the Clinton .mets ynsoitisiuq cea hgtnidulc n,itnemnrev otgnevni e orsttrof fse’noitartsinimdA ehT tsrif egakcap fo lanoissergnoc ,smrofer ynam fo hcihw ew r e laisrevortnocnon snoitadnemmocer fo eht noitceS“ ”008 report, saw dessap ni eht eF larednoitisiuqcA gninilmaertS Act, or ,ASAF P.L. 103-355. yrotutats 522 naht erom desiver noitalsigel ehT ,selur degaruocne laredef seicnega to yub ,laicremmoc flehs-eht-ffo products, dna deifilpmis tnemnrevog procedures rof gnirucorp those products. :gniwollof eht dedulcni snoisivorp yeK (1) gnisiar morf $25,000 to $100,000 eht dlohserht rof gniviaw ynam setutagtnsinrevog );2t(nemeruc oerspnefed gninilmaerts eht bid-protest process to tneverp yltsoc syaled that dluoc tluser nehw contractors protest tnemerucorp contract ;sdrawa (3) gnisiar to $500,000 gnidd iwbol ldalu otwa hpt aecht esnefed contractors to ssapyb laiceps gnitnuocca smetsys ,stnemeriuqer dna diova gnidivorp yhtgnel cost dna gnicirp data to eht ;tnemnrevog (4) gnisiar 0 0m00o0 ,r 0o5fe,t2eh0$ut0l1a$v fo contracts that dluoc ;ssenisu bllam sro fdevrese reb .seicne ghacna rebvituce xr eosfetuta ttsnemeruco rlpared edfeifi ngunitae r) c5,(dna sihT noitalsigel promoted desab-ecnamrofrep gnitcartnoc ni DOD, sa llew sa eht esu fo e t hssotmetatrg o”rtpol impr“o fneoritisiuqca ssenevitceffe fo emos en o;sevitaitin imrofer hcus e elpmax si detneiro-no imsasrigmorp .tnemeganam desab-ecgnnaimtrcoafrrtenPoc senifed work to eb demrofrep ni ,elbarusaem detaler-noissim smret — ni contrast to eht heretofore procedure fo gninifed eht work ni broad, esicerpmi smret through a tnemetats“ fo work”. sihT hcaorppa saw dednetni ot ecuder tnemnrevog stsoc dna evorpmirotcartnoc ecnamrofrep yb gnigaruocne erom evitavonni dna tneiciffe sehcaorppa ottnemnrevog contracts. selpmaxE fo hcus smargorp edulcni tnioj kcatta-tcerid snoitinum,)MADJ( devired-yllaicremmoc tfarcria dna ,senigne dna a troppus-erif lacitcat reniart ees( Oversight of Reform Initiatives.) A dnoces egakcap fo ,smrofer dellac eht laredeF noitisiuqcA mrofeR tcA )ARAF( fo 1996, saw dessap sa part fo eht 6991YF esnefeD noitazirohtuA Act. segnahc edam ARAF ni eht noitisiuqca process ni eht saera fo ,noititepmoc laicremmoc ,smeti acifitrec tion stnemeriuqer dna eht laredeF noitisiuqcA Computer Network .)TENCAF( dellac( II ASAF e hgtnir uddess asp a)wARAF tsrif noisses fo eht 104th .ssergnoC rei lnetro hlapttieuIub ASAF ,noitalsigel dna saw dedulcni ni eht 6991YF .)601-401 .L.P( tcA noitazirohtuA DOD ehT tsewen mrofer snoisivorp sought to (1) yfilpmis procedures to pr erucolaicremmoc products dna ,secivres dna at eht emas emit evreserp eht concept fo luf l and open ;noititepmoc )2( ecuder sreirrab ot gniriuqca laicremmoc stcudorp yb gnitanimileeht tnemeriuqer rof deifitrec enilmaert s)3 (dn a;stcudor plaicremmo cro fata dgnicir pdn atso c eht dib protest process yb gnidivorp rof lla dib protests to eb detacidujda b y the General gnitnuoccA eciffO .)OAG( eht dna mrofer noitisiuqca fo seicneiciffe detcejorp eht tcelfer oT broader rewopnam snoitcuder gnirrucco at D OD, FASA directed DOD to reduce its 4-SRC IB96022 01-09-02 noitisiuqca workforce yb 15,000 lennosrep gnirud ,6991YF dna to report to ssergnoC on woh mor fs(ra et5yx een hgtnir undoitcud e%r 5l2lare v notanemelp moit October 1, 1995). In ,noitid d ta en”he yt mstneeiortriuagscdeioitvrlnopoi r“sdpnn oasceifiral ceh tsdradnatsfo conduct rof laredef slaiciffo ni eht noitisiuqca process, to erusne tnetsisnoc treatment fo hcus .sis aebdiw-tnemnrev onalgoennosrep ehT 6991YF snefeD tnnnooeiim tt eldtaafraecz mourgAiercenroodaofrehhnpfctiuA tnemhsilbat se ehhtguor hytgolonhcet mrof etRnemegan ayMgolonhc enToitamrof neI hfto tcA fo 1995 (ITMRA). ,tsriF ti detanimile eht lartnec tnemerucorp ytirohtua fo,ASG gnikam hcae laredef ycnega elbisnopser rof sti nwo noitamrofni ygolonhcet tnemerucorp dna .tnemtsevni ,dnoceS ti detcerid seicnega ot tnioppa a feihc noitamrofni reciffoesohw seitilibisnopser dluow edulcni gnirusne that noitamrofni ygolonhcet serutidnepxe mrofnoc to mta erdggndoaurbp tnemeganam .snoisiced ,dri h d Ttesin eihtsbtssmoeerobtcocoofrrpp noitamrofni ygolonhcet dna laredef tnemerucorp rednu .ytiroh tsu’aOAG (For a noissucsid fo current laredef seicilop on noitamrofni onhcet logy, see CRS Report 98-845, Federal Government Information Technology Policy: Selected Issues, dyertaaudnp au,J5).9991 snoisiveR to Part 15 fo eht laredeF noitisiuqcA snoitalugeR )RAF( 1 tnew otni tceffe on September 30, 1997. Part stneme riuq enroitaitog ed nnnaoitcel eescru oe shstenilmaer t5s1 to promote better noitacinummoc neewteb eht tnemnrevog a nd potential contract bidders. ehT wen selur evititep mefogoc n eawhrotr r,aenugol ani ed dpynola reagearuocne sreddib to those with a elbanosaer“ ”ecnahc fo gninniw eht tcart n,odcrawa dna etomroarlpudom“ ”,gnitcartnoc hcihw swolla egral stcejorp to eb nekorb nwod otni ,rellams erom elbaeganam parts, gnivig sreddib a ecnahc to sucof on rieht ralucitrap esitrepxe rehtar naht ekat noeht eritne project. s’ygrenE fo tnemtrapeD eht ni rotcaf a saw snoitaluger noitisiuqca desiver ehT elas fo sklE slliH lavaN muelorteP evreseR rof $3.65 ,noillib hcihw stneserper eht tsegral .ytrep olrapre deferofutitsevid DOD Promotes Reform remroF S yraterce fo esnefeD yrreP dna sih seituped erew evitca nignicudortni noitisiuqca smrofer to foster greater ,ycneiciffe cost ,ssenevitceffe a nail idvnic-yratilim lairtsudni .noitcaretni rebmun a gnitomorp dna gnicudortni nageb pihsredael DOD ,4991 nI fo wen concepts, gnoma :meht 1 ) eht elgnis ssecorp evitaitini ;)IPS( )2 detargetnitcudorp smaet (IPT) to poleved dna dliub snopaew ;smetsys ,dna 3) “cost sa na tnednepedni ”,elbairav a concept that dluow esaercni eht ytiroirp fo cost snoitaredisnoc ni nopaew metsys .snoisiced hcaE fo eht yratilim secivres dah osla decudortni smrofer to cificeps-ecivres parts fo s’DOD nwi oen rsaecivr ees hdt n Da. OmDets ynsoitisiuqca e se hgtnitnemelp m fisoega tssuoirav concepts. nI enuJ 1994, yraterceS yrreP decudortni a rojam gnisrever evitcerid mrofer noitisiuqca eht lanoitidart DOD ecnereferp rof scepslim ni rovaf fo ecnamro fsrneopitacificepsdna laicremmoc .sdradnats smetsys wen gnisahcrup ni segnahc ecnereferp deriuqer evitcerid ehT snoitacifido ms alle wsa fo gnitsixe .smetsys ot dedeen won era sreviaw laiceps ,tluser a sA 1 ehT esnefeD laredeF noitisiuqcA noitalugeR srorrim eht laredeF iuqcA sition Regulations, at .]/raf/vog.tenra.www//:ptth[ 5-SRC IB96022 01-09-02 esu scepslim dna lliw eb gr detna ni laiceps sesac ylno — a elur taht desu ot ylppaot ecnamrofrep snoitacificeps dna laicremmoc .sdradnats ehT nalp ot tnemelpm isihtycilop evitcerid saw eht SPI, hcihw deriuqer U.S. seinapmoc t o hsilbatse a nommocediw-tnalp process dna ecnamrofrep dradnats rof wen dna e gnitsix esnefed .stcartnoc tIdecrof contractors to ,etadilosnoc or ,etanimile elpitlum ,sessecorp ,snoitacificeps dna sdradnats rof a ralucitrap product rehtehw ti eb rof laicremmoc or esnefed esu nihtiw reffid e nt .secivres revO eht txen 12 to 18 ,shtnom DOD dluow yfidom lla contracts at a nevig caf ytili taeht .si stacbartnoc-yb-tcar tdfn naooaoect s,nei meimtas nI another tnatropmi ycilop ,noisiced DOD dediced ni yaM 1995 that eht IPT hcaorppa dluow eb desu ot poleved dna dliub nopaew .smetsys ehT TPI ,tpecnoc naylgnisaercni nommoc ecitcarp ni eht laicremmoc ,dlrow dluow knil sevitatneserper fo eht nopaew ,rekam eht yratilim ecivres ,resahcrup dna eht eciffo fo eht esnefed .yraterces maet eht fo srebmeM yats ni constant ,noitacinummoc gnisserdda p smelbor dna gnitaitogen segnahc oteht hgauo rhhttg nse’l mgtrnaaik rno awrheth t,aers iyr eatshtnaempole vse’dmargorp lamrof process hcus( sa through eht esnefeD noitisiuqcA Board). ot dednetni saw tpecnoc TPI ehT mrofsnart h yllacirotsi lairasrevda ,spihsnoitaler hcus sa neewteb sretrauqdaeh ffats itazinagro sno dna margorp eciffo ,smaet otni evitcudo r,pspihsrentrap dna ecalpdewener sisahpme on eht ecnatropmi fo gnikrow a s a ssorc lanoitcnuf maet ot ezimixamllarevo ydbeveih cnae esb ashsec c. ueScnamrofrep eht IPT e n;osmargo rw p e w nnheaicfaorppa elpmaxe si eht MADJ margorp ees( txen .)noitces nugeb sah DOD ,stluser sti yb degaruocnE ,tro fhf ce eu;nsgonits i dx wnehea tn,osbmarg orrep hyt notoaptmec n To ePcghIntinediw to weiver past ecnamrofrep ni eht source noitceles p ,ssecor sah detluser ni ycilopdna 5 0e1 h ntsieuss Ie“e sy(cil onpoitisiuq claared e nfsiegna hlcarudecorp ht .)ssergnoC nI eno fo eht ,tsetal yllaitnetop -raf gnihc a,esrnoisiced DOD sah nugeb a ycilopfo gnisaercni eht ecnatropmi fo soc“ ”t sa a rotcaf ni gnidiced no eh telebcantapmercocfarep level fo a nopaew .metsys emos yawa gnidart redisnoc ot srekam-noisiced ecrof ot ylekil si tI metsys ecnamrofrep to eveihca greater cost .sgnivas tpmetta dluow ,VIAC dellac ,ycilop ehT to evom yawa morf a rojam tenet ni eht e hetveih cogatniy rfetorutl ur cadWloC tseb level fo nopaew ecnamrofrep ta tsomla yna .tsoc htiW eht laog fo rewol stsoc dnaretrohs ,seludehcs eht ycilop dluow eriuqer DOD margorp sreganam to enimaxe eht nopaew s’metsys ,noitcudo r,ptnempolev edd nhacraes egrnidulc ne—ilcyc-ef ielritne operation dna support e esse(vitce jdsbnnoaret tt a ssdp—otncia Figure 1). ehT margorp reganam dluow evah to kniht about cost-related srotcaf hcus sa yrategdub resources, tinu costs fo elbarapmoc or dedleif ,smetsys noissim ,sseneyvgiotlcoenfhfceet trends, vitavonni e gnirutcaf u,nsaemuqinhcet dna laicremmoc ssenisub .secitcarp DOD sffo-ed aee mrhkoottatdme ee rrsformotcart ndsonrcaega nmaamrg ose srtvodpiitngetni dna teem cost targets; ,revewoh a tnacifingis egnellahc to gnitnemelpmi VIAC lliw eb to edausrep DOD dna yrtsudni sreganam otemoceb erom ,evitavonni gnitpecca regral sksir to eveihca shguorhtkaerb ni cost dna .ecnamrofrep taht seruliaf ezilanep ton ot si evitcejbo ehT thgim occur, etipsed s’tnemeganam tseb stroffe ees( eht sect i on on gnirutcurtser s’DOD .)noitazinag rnooitisiuqca enO fo eht tsom laisrevortnoc fo eht noitisiuqca mrofer sevitaitini si dellac tseb“ ”.eulav Best eulaV si a process desu ni evititepmoc gnitcartnoc to tceles eht tsom suoegatnavda reffo yb gnitaulave dna gnirapmoc lareves factors, gnidulcni 1) lacinhcet ;ecnetepmoc 2) nevorp past ;ecnamrofrep 3) tnemeganam ;ytilibapac 4) efil elcyc costs, not tsuj eht laitini ;ecirp ,dna 6-SRC