Defense AT and L Magazine. Volume 44, Number 5, DAU 246, September-October 2015
Abstract
The Department of Defense (DoD) generally buys major weapon systems through the defense acquisition system, a process that is highly tailorable but still built around the assumption that the DoD will compensate suppliers for product development, contract through Defense Federal Acquisition Regulations and be heavily involved in all aspects of the product life cycle. A number of organizationsincluding the Defense Business Board, some think tanks and some in Congresshave encouraged or recommended greater use of commercial practices. There are indeed times when using more commercial practices makes sense, and we should be alert to those opportunities in any aspect of defense procurement. There are three aspects of going commercial that I would like to addressfirst, purchases based on the fact that an item is offered as a commercial product; next, the need to access cutting-edge commercial technologies; and, finally, those cases where we can take advantage of private investments to develop products we might traditionally have purchased through the normal multi-milestone acquisition system. Our policies and regulations try to strike the right balance between taking the steps needed to protect the taxpayer from overpaying while simultaneously avoiding discouraging commercial firms from doing business with DoD by asking for more information than they are willing to provide. For purely commercial items widely and competitively sold on the open market, this is easy. For thousands of items, from office furniture to cleaning supplies to laptop computers, the DoD pays commercial prices (subject to negotiated adjustments for quantity-based discounts, etc.) without inquiring as to the costs to produce the products. Other items are more clearly and purely military products, such as a replacement part for a howitzer or a low observable fighter component.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 2015
- Accession Number
- AD1070756
Entities
People
- Charles Court
- Dale Ormond
- Edie Williams
- Frank Delsing
- Frank Kendall
- Jesse Stewart
- John Krieger
- Keith Jr D. Adkins
- Lawrence E. Casper
- Lisa Carroll
- Mark Brudnak
- Michael F. Pohland
- Michael Paul
- Mike Kotzian
- Roy Wood
- Stephen Jones
- Thomas H. Miller
Organizations
- Defense Acquisition University