Use of the Baseline Concept in Managing Major Weapon System Acquisitions
Abstract
In June 1986, the President's Blue Ribbon Commission on Defense Management (the Packard Commission) reported that impressive savings could be achieved by eliminating hidden costs that program instability brings. The Packard Commission reported that hidden costs could be minimized, and the stability of DoD acquisition programs enhanced, by various means, including establishing program baselines for major weapon systems. To enhance program stability, Congress enacted the Packard Commission's recommendations into Public Law 99-500 (U.S.C., title 10, section 2435) on October 18, 1986. Baseline agreements represent a contract between the Military Department program managers for major weapon system programs and the Acquisition Executives to execute the programs within certain key parameters. Baseline descriptions are to include key parameters on performance, cost, schedule, and other factors critical to a program 5 success. The Defense Acquisition Executive (DAE) approves baseline agreements for Defense Acquisition Board managed programs, while the Service Acquisition Executives approve baseline agreements for Component managed programs. Under the baseline concept, program managers are given authority to manage their programs as long as they do not breach a performance, cost, or schedule baseline parameter. According to the Packard Commission, this arrangement is to enhance program stability.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 18, 1991
- Accession Number
- ADA380060
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense