Addressing Risk Management in Non-Developmental Items Acquisition Programs

Abstract

Nondevelopmental Items (NDI) acquisition programs are enjoying popular support as faster, cheaper alternatives to new start research and development programs. Unfortunately, DoD policy on risk management in NDI programs is lacking. In the new, less-restrictive DoD Directive 5000.1 Acquisition Policy and DoD Regulation 5000.2-R, the program manager (PM) is expected to tailor risk management practices to the needs of the program. Tailoring DoD risk management policy to support NDI program management leaves the PM too much guesswork. An NDI PM's risk management program cannot reasonably benefit from DoD risk management guidance, procedures, and tools because he or she is focused on new development program risks and risk management practices. Missing is any explicit consideration of unique NDI risks and risk management requirements. NDI PMs need more structured policy and instruction regarding NDI risk management for the streamlined, accelerated NDI acquisition environment. A lesson that we have learned is that we need a published risk management plan as the source of NDI risk management program decisions and actions. This article makes specific recommendations for including NDI risk management in DoD policy. An NDI is a previously developed federal, state, local, or foreign government item with little or no development effort required (5000.2-R, Part 3). NDI acquisition strategies look to governments or commercial vendors as sources for a developed and available item. DoDD 5000.1 encourages the armed services to use the most cost-effective materiel solution over a system's life cycle. The first choice among materiel alternatives after buying commercial off-the-shelf items is to procure or modify previously developed U.S. military or Allied systems or equipment.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1997
Accession Number
ADA487900

Entities

People

  • Michael R. Steves

Organizations

  • United States Army Test and Evaluation Command

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Addressing
  • Business Administration
  • Contracts
  • Defense Systems
  • Department Of Defense
  • Governments
  • Life Cycles
  • Logistics Support
  • Program Management
  • Risk
  • Risk Analysis
  • Risk Management
  • Standards
  • Systems Management
  • Test And Evaluation
  • Training

Readers

  • Defense Financial Management and Audit.
  • Hydrologic Risk Analysis and Mitigation.
  • Software Engineering