The Dod Weapon System Acquisition Process at Work

[Leatherneck]

-----Original Message-----
From: XXXX, Steve, Mr, OSD-DOT&E
To: {all of us} OSD-DOTE
Sent: Fri Jun 13 13:56:22 2008
Subject: FW: 06Jun08 AT&L Note from Hon. John Young


All: Pls see note from Mr. Young to AT&L on accountability -- thanks to Mike
and Tom for sending.  I am quite happy with the responsibility each of you
takes wrt your programs.  Sometimes people listen -- sometimes not.  I am
proud of your delivery of the truth about demonstrated performance and
positive recommendations for program improvement.  vr Steve


Subject: FW: 06Jun08 AT&L Note from Hon. John Young

Dr. McQueary,  You may have seen this, but just in case . . .

Vr  Tom


-- Please disseminate! 

~~~~~~~~~~~~~~~~~~~
Subject: 6 June 2008 AT&L Note

Dear AT&L Team Members,   
Many of my experiences this week, and the news this week, revolved around
accountability.  I have previously written notes on program manager
accountability.  I want to adamantly reaffirm to you the need for you to
take responsibility and accountability for your programs. 

YOU ARE WORKING ON BEHALF OF A NATION AT WAR

I reviewed a program this week - AH-1Z.  Yes, as part of enhancing the
accountability process, I intend to start naming programs in notes.  The
unit cost for this program is up, again.  Despite direction in previous AT&L
notes, I was not presented any options for de-scoping to stay within budget.
I will use Secretary Gates quote from today on a different issue - he was
disappointed that action "was not initiated" on a matter and as a result
"required (his) intervention."  USD (AT&L) cannot resolve every issue.  You
all have accepted responsibility to execute programs.

The Senate reminded me of these matters very clearly during my hearing this
week.  They clearly pointed to a need for greater accountability in the
management and cost control of DoD development and procurement programs.  I
personally think we should accept and act on that call for accountability
and responsibility.  Each of you is best positioned to highlight the areas
where people with no accountability are driving cost and schedule growth in
your programs.  Together, we can all address these issues, improve the
acquisition process, and deliver results on schedule and within budget.

SUMMARY
I would restate what I have said in earlier notes.  First, hope is not a
strategy.  Second, you are not victims of the process.  Take control of the
processes to ensure you have an executable, funded, and manageable program.

Be prepared to be held accountable for execution of your program.
JJY

This message is from my boss to all of us action officers in DOT&E, forwarding a message about accountability from Secretary Young. He got lectured by the SASC one day, and fired the program Manager of the troubled VH-71 program the next (actually, Young didn't fire him, but the Senate took his name off the list of new Rear Admirals, effectively ending his career unless Navy leadership intervenes on his behalf.)

The point is that current leadership seems serious about containing the disgustingly high cost of major weapon systems.

TC

[RevDisk]

This message is from my boss to all of us action officers in DOT&E, forwarding a message about accountability from Secretary Young. He got lectured by the SASC one day, and fired the program Manager of the troubled VH-71 program the next (actually, Young didn't fire him, but the Senate took his name off the list of new Rear Admirals, effectively ending his career unless Navy leadership intervenes on his behalf.)

The point is that current leadership seems serious about containing the disgustingly high cost of major weapon systems.

TC

Project is up to $11.2b as of a few months ago.  For 23 birds, not yet delivered.  Slightly under half a billion per bird.  Wouldn't that mean each Kestrel is approaching the cost of Air Force One?

Think it's likely the DoD will can the EH101?  Or is it more likely the Pentagon will grit their teeth for a few more billion? 

[Leatherneck]

Think it's likely the DoD will can the EH101?

Regrettably, No.

Or is it more likely the Pentagon will grit their teeth for a few more billion? 

Regrettably, Yes.

Ironically, it's not the fault of the current Navy PM: he was handed that bag of worms four months ago, and failed to deliver a miracle instantly. He's been making all the right moves, but the bad decisions were made way above him, some years ago.

TC

[RevDisk]

Think it's likely the DoD will can the EH101?

Regrettably, No.

Or is it more likely the Pentagon will grit their teeth for a few more billion? 

Regrettably, Yes.

Ironically, it's not the fault of the current Navy PM: he was handed that bag of worms four months ago, and failed to deliver a miracle instantly. He's been making all the right moves, but the bad decisions were made way above him, some years ago.

TC

Well, I'm sorry to hear that.  Uhm.  Would it make ya feel better if I told ya that we already delivered roughly equivilent VIP/Presidential birds to the Republic of South Korea on time, on budget?  Can't disclose the price, but it's less than a tenth of what you're paying per Kestrel.   

But at least pretty soon you guys will be able to brag that two Kestrels cost as much as a B2 stealth bomber.   

[Leatherneck]

Would it make ya feel better

Of course not. I'm personally appalled by what we pay, for what we get. Robber Barons?

TC

[ilbob]

a huge part of the dod acqusition mess is that congress forces "fairness" on the process.

in most cases that ends up meaning subcontracts get spread geographically across the country, regardless of whether it makes any economic sense. often times competitions between different designs come down to who has lined up the most politically astute group of subcontractors, as much as who came up with the best design.

there is also a lot of problem with "creep" of programs. additional capabilities and features are added, often for no discernable reason, and this frequently requires extensive redesign.

another big problem is that the specifications often do not reflect real world combat conditions that the thing will eventually face, so once they go out in the real world, a lot of modifications are needed, and it gets real pricey.

[Leatherneck]

there is also a lot of problem with "creep" of programs. additional capabilities and features are added, often for no discernable reason, and this frequently requires extensive redesign.

Not as much as is usually portrayed, Bob. In fact, requirements in general tend to be reduced these days, as the cost of filling them becomes apparent.

Most often, what is called "requirements creep" is actually the slow realization on the part of Industry as to what the operational requirements really entail. So on the part of the user, it's what he was asking for from the outset. On the part of industry, it's "Holy Cow: you want it to do WHAT?"

TC

[French G.]

VH-71. A gruesome six year long train wreck you just can't stop watching. Leatherneck, how do you do you job and stay sane?

[RevDisk]

http://bayourenaissanceman.blogspot.com/2008/03/vh-71-kestrel-wheres-outrage.html

I thought Preacherman's blog on it was interesting.

[Leatherneck]

I agree with Ken entirely on the VH-71; if I ever write a book, the chapter on "How Not To Do It" will feature the VH-71 program, start to finish. It's really a pity to see so many good people from the V-22 program crash and burn on the VH-71.

The AH-1Z is tragic in its own way: what should have been a simple life-extension program on a fairly simple pair of helicopters (UH-1N and AH-1W) turned into an eight-year development of new, expensive (approaching $20M per) problem-riddled helicopters. At least the UH-1Y is looking pretty good, even if the AH-1Z will take a couple more years.

TC

[RoadKingLarry]

A good friend of mine from highschool was involved in the V-22 project on the Navy side in the Dallas area, if I remember right he worked at a Bell facility but my memory may be faulty, or just plain wrong.

[Leatherneck]

Yep, the V-22 is very much a product of Bell in Texas and Boeing in Philadelphia. Bell engineering in Fort Worth, final assembly in Amarillo, which is also the production facility for the H-1 and eventually the 23 VH-71s.

TC

[Bogie]

Sometime, some guy is going to get creative, and cobble together a "state of the art" system using existing parts from other systems. It'll cost 10% of what a new "this must be special" setup will cost.
 
Sigh.
 

[Boomhauer]

Sometime, some guy is going to get creative, and cobble together a "state of the art" system using existing parts from other systems. It'll cost 10% of what a new "this must be special" setup will cost.

That's basically what the F-16 did, compared to the F-15 and the like. John Boyd and associates pushed for the F-16 as a low cost, alternative to the F-15...the brass and politicians Did Not Like him...they wanted an expensive, "gold plated" fighter so they could give money to the big defense contractors...

Sikorsky has a great helicopter that does the same thing for 15 million. But, no...some idiot thought it would be a great idea to rig the contract process, and end up paying half a billion for each copy...

[Leatherneck]

Sikorsky has a great helicopter that does the same thing for 15 million. But, no...some idiot thought it would be a great idea to rig the contract process, and end up paying half a billion for each copy...

Given the absolutely incredible politics that have surrounded the VXX--then VH-71--from the outset, I think we'd be looking at a $500M S-92, or VH-92, today. Sadly.

TC

[doc2rn]

For that kinda money they could fix the Osprey!

[xavier fremboe]

Sometime, some guy is going to get creative, and cobble together a "state of the art" system using existing parts from other systems. It'll cost 10% of what a new "this must be special" setup will cost.

That's basically what the F-16 did, compared to the F-15 and the like. John Boyd and associates pushed for the F-16 as a low cost, alternative to the F-15...the brass and politicians Did Not Like him...they wanted an expensive, "gold plated" fighter so they could give money to the big defense contractors...

Sikorsky has a great helicopter that does the same thing for 15 million. But, no...some idiot thought it would be a great idea to rig the contract process, and end up paying half a billion for each copy...

Wasn't the 16 originally developed as a 'fair weather fighter' whereas the the 15 was designed for European winter air superiority?

[Leatherneck]

For that kinda money they could fix the Osprey

Fix what about the osprey?

TC

[Sergeant Bob]

For that kinda money they could fix the Osprey

Fix what about the osprey?

TC

People's misconceptions about it....