Professional Documents
Culture Documents
545-560, 1991
81997 International Astronautical Federation. Published by Elsevier Science Ltd
Printed in Great Britain
0094-5765/97 $17.00 + 0.00
PII: sw4-5765(97)00147-l
545
546 47th IAF Congress
InthePast)
Government lndush
Detailed SOW Performed NOW ._
Government Way -I
Government Industry
Detailed Spec Constrained Solution
Statement of Determines “How”
Many Mil Specs Limited Flexibility Objectives
and Standards
erformance Spec Best Solution
Many CDRhs Huge Cost
Fewer Mil Specs Greater Flexibility
Massive RFP Massive Proposal and Standards
acquisition reform is common to all U.S. government DOD Directive 5000. I emphasizes the
departments. It can be illustrated by describing how mterrelationship of the three principal acquisition
it is being applied by the Department of Defense. decision support systems: 1) the Requirements
Generation System, 2) the Acquisition Management
System. and 3) the Planning, Programming and
ACQUISITION REFORM IN DOD Budgeting System. Several important themes now
run throughout the documents.
Acquisition reform in the DOD was initiated by
William Petry, Secretary of Defense, in 1994.’ In Teamwork. ‘Theprocedures described in DODD
1995. DOD Directive DoDD5000. I and DOD 5000.2 help to create an acquisition system that
Instruction DoD15000.2, which have been the capitalizes on the strengths of all participants in the
centerpiece of defense acquisition policies and acquisition process. The importance of working as
procedures for nearly 25 years, were modified. ‘.’ ’ cross-functional teams is emphasized.
The modified DOD 5000 documents were approved by
the Secretary of Defense on March 15, 1996.’ These Tailoring. While all programs must accomplish
documents, along with the 5000.2-M documentation certatn core activities, the appropriate Milestone
manual that was introduced in 1991, describe a Decision Authority (MDA) has the authority to tailor
disciplined management approach for acquiring how and when these activities occur. MDAs strive to
systems and materiel to satisfy valid military needs. tailor most aspects of the acquisition process,
The intent of the change is to make a complete break including program documentation, acquisition phases,
with the present system and the creation of a new and the timing, scope and level of decision reviews.
system which will allow the integration of the MDAs management should be tailored to specific
defense industrial base with the commercial industrial program circumstances, rather than treating every
base. The update incorporates new laws and polictes program identically.
that have been enacted since the last update. These
include the Federal Acquisition Streamlmmg Act Empowerment. Program managers have the
(FASA) and the institutionalization of Integrated authority to do anything not prohibited by statute,
Product Teams (IPTs).” Executive Order FAR/DFARS, or the DOD 5000
documents. The DOD has long relied on volumes of
47th IAF Congress 547
guidance and regulation, prescribing every detail of contract changes without having to share the savtngs
both process and documentation, and has traditionally with the government. However, if block changes to
dealt with Industry through a rigid system of military fixed-price development contracts yield what the
specifications. The updated documents reflect current Pentagon government deems “significant one-sided”
efforts to empower contractors to do the best they savmgs. the company is expected to negotiate a spht
can. The documents do not reduce responsibility. but of the money with the DOD and cost-benefit analyses
balance responsibility with authority. They reduce will have to be submitted. No such analysis is
the burden of mandatory procedures and specifications. required for “low value” or “short life” contracts.
but encourage prudent risk management. They imbue Failure to define “short-life” and “low-value” leaves
the acquisition process with a customer focus: to considerable room for interpretation by government
provide the best, most effective system or capability. administrative contracting officers (ACOs) and
in the most timely fashion. corporate lawyers.
comprehensive education and training program balanced program, identify and resolve issues. and
that integrates acquisition reform initiatives make sound and timely decisions. IPTs may include
l Look at the science and technology busmess members from both Government and industry.
practices m the Au Force laboratories including program contractors and sub-contractors.
. Arm to cut the time between formation of a They mclude program management, engineering.
requrrement and the award of a contract manufacturing. test, logistics. financial management.
procurement, and contract administration.
IPTs operate under the following broad princtples.
GENERAL PRINCIPLES
l Open discussion with no secrets
DODD 5000.1 articulates genera1 principles to guide l Qualified. empowered team members
all defense acquisition. These principles are l Consistent, success-oriented, proactive
representative of the approach being taken to participation
acquisition reform across all government departments l Continuous. “up the line” communications
and are organized mto three broad categories: l Reasoned disagreement
. Issues raised and resolved early
. Translating operational needs mto stable,
affordable programs Acquisition Reform Process Action Teams
Program stabihty (PATS). Druyun Lightning Bolt number 5 calls for
Risk assessment and management reinventing the AFSARC process through the
Total system acquisition formation of IPTs known as Acquisition Reform
Cost as an Independent variable Process Action Teams (PATS).
Program objectives and thresholds
. Acquiring quality products Integrated Concept Teams (ICTs). The U.S.
Event oriented management Army is planning to use Intepated Concept Teams
Hierarchy of materiel alternatives (ICTs) to develop requirements. ” ICTs will consist
Communication with users of mdividuals from Army user, requirements and
Competition acquisition communities. and relevant DOD staff,
Test and evaluation industry and academia. Under the new concept, the
Independent assessments Commander of Training and Doctrine Command will
l Orpamzmg for efficiency and effectiveness be responstble for all decisions on requirements.
Streamlined organizations
Acquisition corps Technical Coordination Teams (TCTs).
Teamwork NASA is totally committed to acquisition reform in
Limited reporting requirements its Reusable Launch Vehicle (RLV) Technology
Automated acquisition information Demonstration Program.” Figure 2 summarizes how
what are termed Technical Coordination Teams
(TCTs) are being used to streamline the activities of
INTEGRATED PROCESS AND PRODUCT the industry/government RLV development
DEVELOPMENT (IPPD) partnership.
X-Vehkk
RLV PwDociola”
RLV-LllHP
STS-suppwl
I cvoluuon
IHPRPT
IRlD
X-Vohkk
LT I HP Program k lully rllgned with RLV indultry pattwn. RLV
RLV Pre.D9cirk”
Highw undrrstanding and support of LTI HP by Mustry. RLV-LTlHP
RLV-LTlHP
Technology tasks am:
slssuppor(I Evolutlo” - not duplicatlvr
SrSsup~ I EVotutlo”
. Why was this solution selected Director, Program Executive Officer and Service
. Have alternate solutions been reviewed Acquisition Executive). The EELV goal is to reduce
. Has the program’s risk been assessed the cost of launch by at least 25 percent.
. Has a program baseline been developed
. What is the acquisition strategy The NASA Reusable Launch Vehicle (RLV) program
. Is the system or item producible IS entirely dedicated to acquisition reform.”
l Can the system be supported
. Has the stabihty of the design and the operational
capability of the system been verified HISTORY OF ACQUISITION REFORM
. Is the system operationally effective and suited to
the need The application of streamlined government
procurement practices is not new. One example is
the U.S. Air Force Space Test and Experimentation
HOW IS ACQUISITION REFORM BEING Program.“, ” Another is the Advanced Launch
IMPLEMENTED System (ALS).”
Acquisition reform is being applied to both on-going U.S. Air Force Test Program (STP)
and new programs SPACE NEWS reports an Air The U.S. Space Test Program (SIT’) has suppoqed
Force claim that acquisition reform has already helped the DOD space research community since 1966 by
the Air Force avoid $13 bilhon in costs it would have providing umque space flight testing opportunit/es for
incurred under previous rules.” Reforms so far have experiments ranging from basis research to advatjced
saved about $326 milhon on the Milstar program, development. Budgets have always been limited and.
f80 million on the Global Positioning System and in response, the program has developed a management
5579 million on the Talon Shield program, according philosophy to minimize costs by using private
to SPACE NEWS. industry’s best practices, eliminating imposition of
government specifications and standards, and
One of only four Air Force lead programs, the EELV minimizing the size of the program office.
Program IS in the forefront in implementing the new STP specializes in providing access to space using
DOD acquisition policy.” Streamlined management excess payload capability on the Space Shuttle or
concepts are m force. includmg a small SPO. other government. commercial, and foreign maipline
dedicated IPTs. acceptance of government Insight launchers. and on dedicated small launch vehicle/s.
rather than traditional oversight to nurture maximum The STP has flown more than 50 missions in the
contractor flexibility and responsibility, paperless pas1 30 years. More than 370 experiments have been
documentation. and the reduction of bureaucracy with flown in support of operational missions, including
only three levels of management (System Program communications, navigation, weather, surveillance
550 47th IAF Congress
pnvate) conducts its business. Cost savings will be eltminating duplicative management functtons. The
achieved in the near term. Whether these cost savmgs agency may consolidate as many as a dozen space
will be sustainable throughout program life cycles IS operations contracts worth $500 to $600 million in
hard to predict. the areas of maintenance and operations support.
sustaining engineenng and general support of its
Reduced D’ocumentation and Configuration worldwide space networks, mission and network
Control control facilities. data processtng and planning
Cost savings should be realizable if the number of systems and telecommunications systems. if
documents required to be delivered under each contract Implemented, four field centers could be affected:
IS reduced. Large programs such as the Global Johnson, Marshall, Goddard. and the Jet Propulsion
Positioning Satellite (GPS) and Milstar require up to Laboratory. This is in addition to the on-gotng
70 contractually deliverable documents. In additton. consolidation of about 28 Space Shuttle operations
the contractor’s format can be used for documentation contracts.
Instead of burdensome government documentation.
Human Resource Consolidation. Acquisition
Consolidation of Space Resources reform WIIIinevitably lead to consolidation of human
Acquisition reform is causmg consohdation and resources, both in government and private industry.
reduction in force in government as well as Industry resulting tn loss of jobs in the space community.
as management practices converge
Consolidation of Military and Commercial
Program Office Consolidation. Two Air Processes. In many government contractor’s
Force program offices that are products of previous facilities there are different processes imposed to
consolidations - the Military Satellite manufacture similar product lines. In one example
Communications Office and the Space-Based Infrared quoted by Dr Kaminski. a defense contractor was
Systems Program Office, have embraced acquisition forced to use eight different soldering specifications -
reform initiatives to produce faster, better and cheaper five for the government and three for commercial
space systems. Two launch vehicle system program customers purchasmg similar types of products.
offices. the Titan and the Medium Launch Vehtcle Three separate production processes were maintained
offices, at the Air Force’s Space and Missile Systems by General Dynamics for the Atlas Centaur vehible -
Center (AF/SMC) have been combined into one. The one for DOD, one for NASA, and one for commercial
new organization’s focus will remain on the products. vehicles. The DOD single process initiative will
with launch systems organized into IPTs with consolidate multiple processes to one or two and
separate support functions for each. The Program reduce costs.
Director still reports to the Office of the Assistant
Secretary of the Air Force for Acquisition and the The Single Process Initiative authorizes firms to
PEO for Space on Titan IV. The SMC Launch consolidate or eliminate all but one of the
Programs System Program Office @MC/CL) manufacturing processes they are applying to ongoing
consolidated with the Launch Programs System military contracts. Where appropriate, companies
Program Office which included Atlas, Delta, and may also consolidate military and commercial
Inertial Upper Stage with Titan Systems Program production processes. Industry has lobbied for the
Office. The Titan Systems Program office was right to make contract changes without having to
responsible for the Titan II, the Titan IV, and the share the savings with the government. However, if
Centaur Upper Stage. block changes to fixed-price development contracts
yteld what the Pentagon government deems
According to Co]. Brazie, Program Director, the “stgniticant one-sided” savings, the company ~$1 be
organization will more closely resemble re-engineered expected to negotiate a split of the money with the
businesses that have cut corporate bureaucracy and DOD and cost-benefit analyses will have to be
have flattened their organizational charts for a leaner, submitted. No such analysis is required for “low
more efficient organization. Standardized operations value” or “short life” contracts. Failure to define
and streamlined organizations are expected to reduce “short-life” and “low-value leaves considerable room
Titan IV launch processing time by 43 days at the for Interpretation by government admmistrative
Cape Canaveral Eastern range and by I34 days at the contracttng officers (ACOs) and corporate lawyers.
Vandenberg Western range. The Air Force expects to
cut Tttan IV program costs by IS to 20 percent tn the Consolidation of Government Agency
next three years. Satellite Management Responsibility. For
more than three decades, the U.S. government’s
Contract Consolidation. NASA hopes to cut satellites have been lumped into three management
$850 million from its long-term budget hy spheres: defense, intelligence and civil, Within each
552 47th IAF Congress
sector, various agencies or military services have been the commercial products even when modificatton is
responsible for tasks such as budgeting, operations, not required. Since the commercial sector is now
and maintenance. To reduce cost. the General advancing at breakneck pace the military can profit
Accounting Office (GAO) claims there is an from using commercial products. Encryption is
opportunity for agencies to share some of these needed m some areas but ndt everything needs to be
responsibilities. In the words of a GAO audit report. encrypted. Also. as the commercial sector depends
“The lack of strong coordination and cooperation more and more on software products for day-to-day
incentives among the agencies within these sectors operations It will inevitably develop and incorporate
has encouraged both direrent solutions to similar encryption safeguards to protect itself against cyber-
problems and overlap in capabihty. ----- We terrorists and industrial espionage.
recommend that the Natlonal Science and
Technology Council develop an inter-sector space Increased Emphasis on Dual Use
policy ---- that would integrate, consolidate. and share Technology Development
to the extent feasible, the nation’s satellite control The DOD has admitted that, in some areas, private
networks. ” The agencies affected would be NASA, sector technology is more advanced than the military.
the National Oceeanio Atmospheric Administration This factor, combined with the intent of the military
(NOAA). the DOD. and the National Reconnaissance to encourage m their supphers the application of the
Office (NRO). “Smgle Process Initiative” will naturally lead to an
emphasis on dual use technology development.
Government Outsourcing
The DOD believes it can save up to $15 billion by Importation of Private Corporate Practices
embracing new outsourcing initiatives, particularly into Government
in areas such as depot maintenance, base operatmg NASA is bemg brought into line with private
support, waste disposal, distribution and corporate structure. Virtually all pro@am oversight
transportation, warehousmg. housmg. finance and authority IS expected to be transferred to the centers.
accounting, and data centers. The top level of managers, known as Associate
Administrators, would remain at Headquarters with
To reduce the cost per flight, NASA is also making responsibility for obtaining funding, making policy
drastic cuts in the number of government and and determining requirements for programs. Program
contractor personnel mvolved in Shuttle operations. managers who run the projects and handle funding
Privatization of Shuttle operations has been would be based at the centers and report to the center
discussed, but the present plan is to consolidate directors. Capital investment board of directors would
Shuttle operations under a single sole-source Space Implement full-cost accounting methods that include
Fhght Operations Contract (SFOC) with United personnel and facilities in budget estimates.
Space Alliance, a 50-50 joint venture by Lockheed
Martm and Rockwell International, in order to launch As stated earlier, the reorganization being carried out
the first Space Station element in December, 1997. at AF/SMC will result in the SPOs taking on the
Presently, the two companies control almost 70 character of re-engineered commercial organizations.
percent of the current Shuttle operations contracts
which is an argument for not re-competing the Privatization of Traditional Government
contract. Functions
Reductions in government budgets will mandate that
Government Acquisition of Commercial certain functions traditionally performed by the
Products and Services government, or by government regulated
The dynamic nature of information technology has organizations, will be dropped or transferred to the
outpaced the development of military information private sector.
systems. The military’s acquisition system for
information technologies lags behind commercial NASA Institutes. According to SPACE NEWS,
developments. It has been recommended that Air NASA plans to create new, university-run institutes
Force laboratories “recast” themselves as users of to take over scientific research conducted by the
commercial and university research, rather than agency, as it cuts its staff by more than 30 percent.”
developers of information technologies since the The institutes are not intended to replace NASA’s 12
commercial sector IS developing faster, better and research centers, but, as NASA downsizes, will take
cheaper. over much of the scientific work now conducted at
these centers.
In the software area, although there is pressure to use
“commercial-of-the-shelf’ (COTS) systems to meet Three mstltutes that may be set up within the next
military needs, the military has a tendency to modify IWOto three years include: a Biomedical Research
47th IAF Congress 553
Institute at Johnson Space Center (JSC). Houston; an Justification. One proposal is to reduce fees to
Astrobiology Instiwe at the Ames Research Center. zero
Moffett Field, California; and a MicrogravIty Institute
for Fluid and Combustion at the Lewis Research MF has already spun off a separate company,
Center, Cleveland, Otuo. Already m existence are: Mitretek Systems. 10 pursue government work
the Global Hydrblogy and Climate Center at the outslde the FFRDCs that MITRE opeiates for the
Marshall Space Flight Center, Huntville, Alabama; DOD and the FAA. and eventually start a commercial
the Astromaterials Institute at Johnson Space Center; business sector. In order to retain its unique cadge of
the Goddard Institute for Space Studies at Goddard skilled aerospace professionals, The Aerospace
Space Flight Center, Greenbelt, Maryland; and the Corporation is planning 10 merge with Science
National Space Science Data Center. Goddard. Applications International Corporation (SAIC) ad is
also seekmg work outside the Air Force-sponsored
Additional proposals include: a Space Science FFRDC from domestic, foreign and international
Institute at MSFC; a Space Power Institute at Lewis; clients.
an Atmospheric Science Institute at Langley Research
Center, Hampton. Virginia; and a Microgravity Corporate Mergers and Consequent
Institute for Materials and Biotechnology at MSFC. Downsizing
In response to the new government policies, U.S.
By forming independently managed institutes. NASA aerospace companies are universally merging and
hopes to ensure a vibrant research program as the downslzing their work force. Unfortunately, in the
agency cuts thousands of staff positions as part of the process, they are eliminating their human knowlidge
government agency-wide downsizmg initiative. base which could have a serious detimental affect on
Some NASA personnel are expected to be hired by future programs.
the new organizations. Increased Emphasis on International Agreements and
Cooperauon
Federally Funded Research and For several years U.S. space policy has encouraded
Development Centers. Federally Funded the domestic space industry lo impon foreign
Research and Development Centers, such as those technology, and particularly Former Soviet Union
operated by The Aerospace Corporation and the (FSU) technology. where benefit can be obtaineq.
MITRE Corporation, will be subjected to budget cuts This has resulted in a number of agreements between
proportional to those Inflicted on their sponsors. Dr U.S. and FSU firms. particularly in the rocket
Kaminskr stressed at a press conference on February propulsion area. ” It has also resulted in Russia
5. 1996. that FFRDCs are important DOD partners becoming a partner in the International Space St+on
and major contributors to national security. program and the formation of new international
However, the new acquisition policy and the move organizations to market FSU launchers.
towards the government becoming a customer of the
commercial sector mandates change. The DOD has
scrutinized FFRDCs and introduced several major WHAT ARE THE POSSIBLE
mitiatlves to manage these organizations more CONSEQUENCES OF ACQUISITION
effecuvely. REFORM
. Sponsors of’each FFRDC have idenufied focused In principle, acquisition reform is obviously a “good
“core” work appropriate for each FFRDC. thmg” but there are some pitfalls that have to ba
Current work that is not core work is bemg considered. Grave concerns have been expressed1 for
transitioned out of the FFRDCs Instance, by senior government officials, such as Mr.
. A new DOD policy requires use of stringent Derek J. Vander Schaaf, Deputy DOD Inspector
cnteria for the acceptance of work outside the General.“’ In a prepared statement lo the House
core by the FFRDC’s parent corporation. This Small Business Committee, Mr. Vander Schaaf said:
will ensure a focus on FFRDC operations by the “Acquisition refoml ... . is carrying out a longstr+zding
parent and eliminate concerns regarding “unfair industrial or supplier agenda to cunail or elimin@te
advantage” in the acquiring of such work many ofrhese key safeguards which have been +ift
. An independent Advisory Committee of highly ituo the United States procurement process over: the
respected individuals from outside of DOD has past 200 years. I broadly class these as disclosure
been established to conduct a review of DOD requirements. certifications. price-reduction
management. use, and oversight of its FFRDCs requirements and audit rights. Certain of rhese
. A new set of guidelines has been developed to safeguards help ensure cosf #Gr price) and quality,
ensure that management fees provided to borh of which become greater risks as we rely wore
FFRDCs are based on need and detailed on commercial products and practices. It is our
554 47th IAF Congress
e.rperience .... that large private sector purchasers limb of the civilian population, but deaths have
consistently require these same apes of safeguards in occurred in two recent Chinese Long March failures.
their own dealmg with suppliers . If this had been the result of a Delta Atlas or Ariane
launch expensive litigation proceedings would have
High Cost of Program Recovery if Untried immediately been inittated and the fleet would have
Policy is Applied Without Scrutiny but been grounded for years, resulting in extensive loss of
titer Proves to be Faulty revenues.
Examples are the Shuttle Challenger failure m 1986
and the Titan III failures in the mid 1980s. Many The latest Long March failure was clearly caused by
launcher families have experienced a series of failures the Chinese launch vehicle. However, in the case of
when oversight principles have been bypassed. the previous two Long March failures, blame for the
failure was never assigned or accepted by either the
Transfer of Space Product Liability to the launch vehicle or the satellite. If a similar event
Private Sector occurs in the future where loss of life takes place, we
Traditionally, U.S. government contractors have been can expect an enterprismg American litigation lawyer
shielded from product Itability lawsuits. The basis of to file a lawsuit against an American company such
that protection has been the practice of the as Hughes m the U.S. courts on behalf of the
government to dictate, in excruciaung detail. how families of the deceased, whether they are American
space systems should be developed. tested and citizens or not. History shows that the courts could
manufactured. Once the product was accepted by the easily rule agamst the defendant.
government, all legal liability shifted to the
government. Under these conditions. attempts to sue Undiagnosed Failures because of Lack of
government contractors have been unsuccessful. As Oversight
the use of commercial processes and performance Space systems will continue to fail. Acquisition
standards become the rule, manufacturers will be held reform mandates insight rather than oversight of
responsible for the integrity of their products. The private industry and oversight rather than insight into
aerospace / defense industry could be exposed to the the FFRDCs that have traditionally performed the
kind of judgments imposed on other types of unbiased oversight role over industry for the
commerctal activities, such as those suffered by the government. There are many examples of the
auto and oil industries. This could amount to hundred problems generated when the oversight function has
of millions of dollars a year and escalating insurance been relaxed or eliminated. Examples include the
costs. Space Shuttle and the DMSP, IUS. Titan III.
Pegasus, LLV, Conestoga. and Long March
increase In Insurance Premiums programs.
The new acquisition policy is expected to generate an
increased need for insurance services in the aerospace Cost Overruns Late in a Program
industry. As the government transfers responsibility The MDA concept, which is intended to avoid cost
to the private sector, it can also be expected to overruns. could result in exactly the opposite. Each
disavow liability. Acceptance of delivery of a product MDA could still pass his/her problems downstream.
or service to the government will no longer The acquisition reform initiative, like the U.S. justice
automatically shift the liability for damages caused by system, does not incorporate a fool-proof way to
that product to the government. The contractor may assign crime and punishment.
no longer be shielded from litigation by the
government and its exposure to risk could be the Lack of Program Continuity
same as if it had delivered the product to a private Putting aside the debate as to whether the Space
sector customer. It can be expected that a broader Shuttle Program was good or bad, the Shuttle would
insurance base will be required and insurance never have flown if the new acquisition reform
premiums will increase. Establishing a protocol for policies had been in place. An MDA would very
converting to performance standards and commercial likely have stopped the program.
practices from the world of “mils pets” may be as
risky as tt is potentially rewarding because of Overly Conservative Program Management
possible product liability problems and lawsuits. If Value Criteria Based on “‘Avoid Failure”
Rockwell International had been held responsible for rather than “Succeed”
the Space Shuttle Challenger accident in 1986. for At a critical pomt in a program the MDA could be
instance. litigation costs IO the corporation could too cautious, resulting in the kind of event that
have been overwhelming. Expendable launch occurred in the case of the X-34 program but with
vehicles do not have a long history.of offering a greater down-stde consequences if a national security
threat to the life and issue were at stake.
47th IAF Congress 555
Degradation of Customer Insight into The new DOD acquisition strategy encourages the use
Cause of Failure of foreign sources and international cooperative
A lack of formalized oversight could degrade the level developments where advantageous and within the law.
of customer and contractor insight into the cause of a The potential exists for enhancing reciprocal defense
particular failure resulting in uncertainty and risk in trade and cooperation, including international
the recovery decision process. Examples of this cooperative research, development, production,
phenomenon are: the run of Titan III failures in the logistic support, and the sale of military equipment,
mtd-1980s; the Long March failures of December 21, conststent with the maintenance of a strong national
1992, January 26. 1995. and February 14. 1996. technology and industrial base and mobilization
when neither insight or oversight information was capability.
made available to the customer: the Lockheed Martin
LMLV and Conestoga failures; and the Pegasus XL Ail Western defense departments are facing the
failure where insight identified only a single anomaly challenge of reconciling high operational capabilbties
tn both the first failure and the second, but when an with reduced budgets and instituting changes sin&r
oversight review was implemented for the second to those being pursued by the DOD.” The U.K., for
failure. 87 anomalies were dtscovered. example, is concluding that outsourcing is the
solution. The Private Finance Initiative (PFI) isi one
Disruption of Critical Government of the British government’s key policies in the drive
Functions to deliver higher quality and more effective public
Reduction in oversight and excessive outsourcing will services.‘? Other policies with a similar aim are
place cxtenstve dependence on the private sector to privatization and the Competing for Quality (CPQ)
protect the public interest. Labor strikes or the vested initiative. PFI differs from privatization in that the
interests of management or stockholders could degrade Ministry of Defence (MOD) retains a substantial role
critical government functions at a time of crisis. and controlling interest, either as the main customer
for the services provided or as an essential enabler of
Public Interest Held Hostage by Corporate the program. It differs from CFQ in that the private
Lawyers sector is involved as the provider of the product as
Corporations may have increased opportunities to well as the services. These policies represent a
exploit the U.S. legal system against the public fundamental change in the role of the MOD, which,
interest by pitting highly paid experienced, well- like the U.S. DOD. is moving away from being a
connected court lawyers against possibly young, less provider of services to becoming a purchaser of
well-pald government lawyers. services.
Conflict of Interest in Consolidated The MOD has identified six areas as particularly fertile
Business Relationships ground for PFI. Increased private sector involvement
The wave of mergers and consolidation in private also is being pursued through the government-wlde
industry could result in one prime contractor’s CFQ. Thus far. 123 defense support activities with
556 47th IAF Congress
annual operating costs of more than 1 billion pounds forbidden: and the types of programs or development
(%1.S2 billion) have been reviewed with savings of phases important to the lessons-teamed. When
250 million pounds ($380 million) bemg forecast. appropriate. chapters will contain provisions for
Four activities were abolished altogether. recommended language. with tailoring instructions to
be included m an acquisition package if a pro-
Other national and international aerospace office wants to ensure that the “spirit” of the
organizations are dedicated to acquisition reform, document is to be contractually required.
particularly m Europe.
The Aerospace Corporation is working closely with
At a recent space transportation workshop chaired by AF/SMC on this project. AF/SMC is carrying out a
Mr. Chester Whitehair, Vice President, Space Launch complementary effort entitled Critical Processes
Operations, The Aerospace Corporation, a prestigious Assessment Tool (CPAT). CPATs are aimed at
international panel of experts concluded unanimously those who write RFPs and do not contain background
that the assured access to space that everyone desired rationale. The Aerospace Corporation lessons-learned
would be best accomplished by international handbook will provide the background. The
cooperation.” ’ handbook is expected to capture lessons learned from
approxtmately 45 space-related specifications and
standards and accessing the human knowledge base of
WHAT IS THE AEROSPACE Aerospace Corporation space veterans is crucial to the
CORPORATION DOING success of the project. At this time, chapters have
been written to capture the lessons learned previously
Many people are concerned that, in the attempt to embodied in DOD-E-83578A. General Specification
streamline government space system acquisition, for Explosive Ordnance for Space Vehicles; MIL-A-
space system expertise that has been accumulated over 83577, Moving Mechanical Assemblies: and MIL-
the past 35 years will be lost. Several hundred space- STD-498, Software Development and
related military specifications and standards and Documentation.
Commander’s Policies were cancelled as part of
acquisttion streamlining. DOD cancelled these “mil- The Aerospace Corporation has been actively
specs” with good reason: to concentrate on product involved in program office consolidation at AF/SMC.
performance rather than the manufacturmg process. This has resulted in several primary streamlining
However, mvaluable. hard-won. and enduring lessons- actions that have been heralded as acquisition
learned were painstakingly embodied m those streamlining success stories by the Assistant
specifications and standards. MIL-STD- 1540 is one Secretaty of the Air Force (Acquisition), Darleen
of the better-known examples. containing methods for Druyan. By reducing FFRDC support, it is estimated
restmp satellites on the ground to prevent failures on that the Delta II Program will achieve cost savings of
orbn. Because The Aerospace Corporation was $9.5 million from FY95-01. The Atlas II Program
heavily mvolved in the creation of many space-related has reduced its manpower support by 30 percent. In
specifications and standards it is in a unique position i 8 months. the Titan Program achieved a 33 percent
to document these lessons-learned. reduction in contract settlement time, a 25 percent
reduction in FFRDC/SETA support, a 90 percent
Sponsored jointly by the Chtef Engineer’s Office and reduction in contract provisions, and a 78 percent
the Oflice of the Executive Vice President, a three- reduction in both mil specs/standards and CDRLs;
year prqject is underway to develop an Aerospace SPO manning was reduced from 329 personnel to 247
lessons-learned handbook. The purpose of the personnel between August 1994 and March 1996.
handbook is to capture expertise that Aerospace has The IUS Program will achieve a cost saving of $9.4
acquired over 35 years and to document ways to million from FY96-FYOO due to a reduction in
mittgate technical risk in the acquisition reform FFRDC support.
environment. The handbook is envisioned as a “sage
wisdom” reference tool for program managers and While The Aerospace Corporation is helping the
matrix personnel to reduce technical risk in their Government to make acquisition reform a success, it
programs. is also considering its own future. As Government
financial support declines, the corporation expects,
Each chapter will cover a particular military through its merger with SAIC, to maintain its unique
specificauon. standard or Commander’s Policy. carp of expertise by offering its services to non-DOD
Chapters will include the historical background of customers. This will enable it to retain its traditional
each lesson: problems that led IO its creation: why level of excellence in its support to its Force, and at
certain methods. procedures or requirements were the same time participate effectively in the expanding
adopted; why other approaches were discouraged or globalization of space.
47th IAF Congress 557
SUMMARY / CONCLUSIONS failure of the first flight of the European Atiane 5 and
two consecutive Soyuz failures, in spite of extreme
Insight into the Pegasus failure revealed a single vtgilance and care, demonstrate that routine access to
anomaly on each of a series of flights. When concern space has yet to be achieved by any nation. Perhaps
over, the series of failures resulted in a traditional traditional oversight procedures are still required by
government oversight review being applied, the result the space launch community. The effect of
was more than 80 anomalies were identified, and acquisition reform on mission success will be
finally a successful flight achieved. The Chmese validated over the next few years by the results of the
Long March launcher had three out of five flights fail mandated changes made in the Air Force/Aerospace
without any clear understanding as to why the failures Corporation launch risk mitigation procedures and the
occurred. The range of potential failure points is success of the EELV and RLV programs. In the
broad, as illustrated in Table 1. It is believed that the meantime, Aerospace is documenting the corporate
intense scrutiny traditionally applied to U.S. knowledge base, built up over more than 35 years, to
government launches, and particularly the revtew ensure that lessons-learned are not forgotten. Also, in
which takes place when a failure does occur, would response to the downsizing of government technical
have mitigated this sttxng of failures. Relaxatton of work, which is the inevitable consequence of
these stringent requirements may stall be detrrmental acquisition reform, the company is packaging the
to U.S. launch industry although, because these products it has developed for the government in a
requirements have been imposed for many years by form that can migrate easily to the private sector. In
the U.S. government. their best features have already this way, the investment in space technology made
been incorporated into the private industry culture for by the U.S. taxpayer over the last 40 years will1not
mamline launches. Nevertheless, Figures 3.4 and 5 be lost but will be available to help private industry
demonstrate the historical effectiveness of the launch carry the responsibility being transferred to it by
risk mitigation practices and procedures traditionall!, acquisition reform.
used for U.S. government launches. The recent
Launch
Date Failure Site
Vehicle
I I I
USAF/Aerosoace SuDDorted
.. 1
I
Al/n h Al A (
Atlas I
Delta
I I IA*
Titan
Atlas
Delta
Titan
86 07 66 69 90 91 92 93 94 95 96 97
bird t
Id tmkl
hame
;at 7
89 90 91 92 93 94 95 96
v Launch Failures 8/29196
L orosi
86 87 88 89 90 91 92 93 94 95 96 97
VSatellite Failures in First 12 Months 6/21/96
REFERENCES
I. WhItehair. C. L. and M. G. Wolfe. “Space .!$sten~ 9. Kaminski, Paul G. “Commentary The DaD
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Mission Success. ” Presented at the 46’ February 1996.
International Astronautical Congress, Oslo.
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IAA.6.2.01). Force for Acquisition. “Acquisition Reform
Lightning Bolt Initiatives. ” June 1995.
2 Perry, Wilham. U.S. Secretary of Defense.
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Doing Business. ” 29 June 1994. TRADOC Commander Gen William Hartzqg.
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1996. 12. Whitehair, C. L. and M. G. Wolfe. “Curreqt
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1995. Presented at the 47” International Astronautical
Congress, Beijing, China. ( IAF Reprint IAF-96-
5. DOD Instruction. DoDI 5000.1. “Defense V.3.01).
Acquisition. ‘*1995.
13. SPACE NEWS. Vol 7, No 9. March 4-10, 1996.
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Portanova. “Affordability Through Innovation:
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Beijing, Chma. (IAA Reprint IAA-96-
8. Statute - Federal Acquisition Streamlining Act of IAA. I. I .02).
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560 47th IAF Congress
ACKNOWLEDGEMENTS