The arsenal ship acquisition process experience: contrasting and common impressions from the contractor teams and joint program office

285 Pages·1999·0.86 MB·English

by  Robert S. Leonard

The Arsenal Ship Acquisition Process
Experience : Contrasting and Common
title:
Impressions From the Contractor Teams and
Joint Program Office
Leonard, Robert S.; Drezner, Jeffrey A.;
author:
Sommer, Geoffrey
publisher: RAND
isbn10 | asin: 0833026909
print isbn13: 9780833026903
ebook isbn13: 9780585243498
language: English
United States.--Navy--Procurement, United
States.--Navy--Weapons systems--Costs,
subject
Warships--United States--Design and
construction, Shipbuilding--United States.
publication date: 1999
lcc: VC263.L42 1999eb
ddc: 359.6/212/0973
United States.--Navy--Procurement, United
States.--Navy--Weapons systems--Costs,
subject:
Warships--United States--Design and
construction, Shipbuilding--United States.
Page i
The Arsenal Ship
Acquisition Process Experience
Contrasting and Common Impressions from the Contractor Teams and
Joint Program Office
Robert S. Leonard
Jeffery A. Drezner
Geoffrey Sommer
Prepared for the Defense Advanced Research Projects Agency
National Defense Research Institute
Approved for public release; distribution unlimited
Page ii
The research described in this report was sponsored by the United
States Army under Contract No. DASW01-95-C-0059.
Library of Congress Cataloging-in-Publication Data
Leonard, Robert S.
the arsenal ship acquisition proscess experience : contrasting and
common impressions from the contractor and joint program office /
Robert S. Leonard, Jeffery A. Drezner, Geoffrey Sommer.
p. cm.
"prepared for the Defense Advanced Research Project Agency
(DARPA) by RAND's National Security Research Division"
"MR-1030-DARPA."
Includes bibliographical references (p. ).
ISBN 0-8330-2690-9
1. United States. NavyProcurement. 2. United States. Navy
Weapons systemsCosts. 3. WarshipsUnited StatesDesign and
construction. 4. ShipbuildingUnited States. I. Drezner, Jeffrey A.
II. Sommer, Geoffrey, 1957- . III. United States. Defense Advanced
Research Projects Agency. IV. National Defense Research Institute
(U.S.), V. Title.
VC263.L42 1999
359.6' 212 ' 0973dc21 98-52862
CIP
Page iii
Preface
Assimilating the experiences of acquisition programs is an important
element of process improvement. What is learned from programs
using nontraditional acquisition strategies is especially important. One
such program was the Arsenal Ship, a joint DARPA/Navy program
managed by DARPA (Defense Advanced Research Projects Agency).
The objective of this research is to understand the Arsenal Ship
program management experience and to distill lessons from it in order
to improve the management of similar innovative acquisition
programs, and to disseminate those lessons to the broader acquisition
community. This report should interest DoD officials concerned with
weapon system acquisition processes.
This study covers the duration of the Arsenal Ship program, from
March 1996 through December 1997. The plans for the entire
program, the events of the first two acquisition phases, and the
circumstances leading to the program's cancellation near the end of
Phase II are documented.
This research was sponsored by the Arsenal Ship Joint Program
Office in DARPA. It was conducted by the Acquisition and
Technology Policy Center of RAND's National Defense Research
Institute, a federally funded research and development center
sponsored by the Office of the Secretary of Defense, the Joint Staff,
and the defense agencies.
Page v
Contents
Preface iii
Figures ix
Tables xi
Summary xiii
Acknowledgments xxiii
Acronyms xxv
Chapter One 1
Introduction
Motivation Behind the Arsenal Ship Concept and 2
Program Approach
Research Approach and Objectives 3
Organization of This Report 4
Chapter Two 7
Arsenal Ship Program Overview
Program Definition 7
Phase I Solicitation and Description 8
Phase II Solicitation and Description 12
Phase III Solicitation and Description 15
The Balance of the Program Plan 16
Program Funding 17
Chapter Three 23
Aresenal Ship Acquistion Process
Weapon System Specification 24
Page vi
Contractor Design Responsibility 25
Small Joint Program Office 26
Unit Sailaway Price, Nonrecurring Funding, and Small 28
Crew
Integrated Product and Process Teams 30
Section 845 Other Transactions Authority 31
Why Not an Advanced Concept Technology 33
Demonstrator?
Chapter Four 35
A Contrast of Acquisition Approaches
The Traditional Navy Process 35
Arsenal Ship Process Differences 37
Schedule Comparison to the DDG 51 Program 38
Chapter Five 41
Acquisition Program and Process Impressions
Interviews 41
Organization of Material 42
Section 845 OTA and Acquisition Waivers 44
Phase I 45
Phase II 45
Performance Requirements and Contractor Design 46
Responsibility
Phase I 46
Phase II 47
Program Structure: Development Phases Funding and 49
Schedule
Phase I 49
Phase II 50
Unit Sailaway Price 51
Phase I 51
Phase II 51
Contractor Teaming and Business Arrangements 53
Phase I 53
Phase II 53
Interactions Between the Contractor Teams, ASJPO, and 55
Other Government Offices
Phase I 55
Phase II 57
Page vii
Overall Impressions 58
Phase I 58
Phase II 58
Chapter Six 61
Program Issues Resulting from the Acquisition Process
MK 41 VLS 62
Interactions with the NSWC Labs and Navy PARMS 64
NSWC Labs 64
Navy PARMs 66
Following the "Program Of Record" 68
Lockheed Martin's Proposed Merger with Northrop 71
Grumman
Insufficient Developmental Funding 72
Irrevocable Offer and Fixed Priced Development 74
Irrevocable Offer 74
Fixed Price Development 75
Conversion of the Demonstrator 76
Chapter Seven 79
Observations and Conclusions
The Underfunding Tale 80
Underfunded from the Beginning 80
Why No One Made an Issue of It 81