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Management Perspectives Pertaining to Root Cause Analyses of Nunn-Mccurdy Breaches

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Management Perspectives Pertaining to Root Cause Analyses of Nunn-Mccurdy Breaches CHILDREN AND FAMILIES The RAND Corporation is a nonprofit institution that EDUCATION AND THE ARTS helps improve policy and decisionmaking through ENERGY AND ENVIRONMENT research and analysis. HEALTH AND HEALTH CARE This electronic document was made available from INFRASTRUCTURE AND www.rand.org as a public service of the RAND TRANSPORTATION Corporation. INTERNATIONAL AFFAIRS LAW AND BUSINESS NATIONAL SECURITY Skip all front matter: Jump to Page 16 POPULATION AND AGING PUBLIC SAFETY SCIENCE AND TECHNOLOGY TERRORISM AND HOMELAND SECURITY Support RAND Purchase this document Browse Reports & Bookstore Make a charitable contribution For More Information Visit RAND at www.rand.org Explore the RAND National Defense Research Institute View document details Limited Electronic Distribution Rights This document and trademark(s) contained herein are protected by law as indicated in a notice appearing later in this work. This electronic representation of RAND intellectual property is provided for non-commercial use only. Unauthorized posting of RAND electronic documents to a non-RAND website is prohibited. RAND electronic documents are protected under copyright law. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents for commercial use. For information on reprint and linking permissions, please see RAND Permissions. This product is part of the RAND Corporation monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND mono- graphs undergo rigorous peer review to ensure high standards for research quality and objectivity. MARK V. A RENA, IRV BLICKSTEIN, ABBY DOLL, JEFFREY A. DREZNER, JAMES G. KALLIMANI, JENNIFER KAVANAGH, DANIEL F. M CCAFFREY, MEGAN MCKERNAN, CHARLES NEMFAKOS, RENA RUDAVSKY, JERRY M. SOLLINGER, DANIEL TREMBLAY, CAROLYN WONG MANAGEMENT PERSPECTIVES PERTAINING TO ROOT CAUSE ANALYSES OF NUNN-MCCURDY BREACHES VOLUME 4 Program Manager Tenure, Oversight of Acquisition Category II Programs, and Framing Assumptions NATIONAL DEFENSE RESEARCH INSTITUTE MARK V. ARENA, IRV BLICKSTEIN, ABBY DOLL, JEFFREY A. DREZNER, JAMES G. KALLIMANI, JENNIFER KAVANAGH, DANIEL F. MCCAFFREY, MEGAN MCKERNAN, CHARLES NEMFAKOS, RENA RUDAVSKY, JERRY M. SOLLINGER, DANIEL TREMBLAY, CAROLYN WONG MANAGEMENT PERSPECTIVES PERTAINING TO ROOT CAUSE ANALYSES OF NUNN-MCCURDY BREACHES VOLUME 4 Program Manager Tenure, Oversight of Acquisition Category II Programs, and Framing Assumptions Prepared for the Office of the Secretary of Defense Approved for public release; distribution unlimited Approved for public release; distribution unlimited NATIONAL DEFENSE RESEARCH INSTITUTE The research described in this report was prepared for the Office of the Secretary of Defense (OSD). The research was conducted within the RAND National Defense Research Institute, a federally funded research and development center sponsored by OSD, the Joint Staff, the Unified Combatant Commands, the Navy, the Marine Corps, the defense agencies, and the defense Intelligence Community under Contract W91WAW-12-C-0030. Library of Congress Cataloging-in-Publication Data is available for this publication. ISBN: 978-0-8330-8205-3 The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. Support RAND—make a tax-deductible charitable contribution at www.rand.org/giving/contribute.html R® is a registered trademark. © Copyright 2013 RAND Corporation This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of RAND documents to a non-RAND website is prohibited. RAND documents are protected under copyright law. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents for commercial use. For information on reprint and linking permissions, please see the RAND permissions page (www.rand.org/pubs/permissions.html). RAND OFFICES SANTA MONICA, CA • WASHINGTON, DC PITTSBURGH, PA • NEW ORLEANS, LA • JACKSON, MS • BOSTON, MA DOHA, QA • CAMBRIDGE, UK • BRUSSELS, BE www.rand.org Preface Continuing concern about large cost overruns in a broad range of major defense pro- grams led Congress to enact new statutory provisions extending the ambit of the exist- ing Nunn-McCurdy Act, stipulating that the U.S. Department of Defense (DoD) review and report on the factors affecting program costs in both specific and general terms. In accordance with the revised Nunn-McCurdy Act, the Performance Assess- ments and Root Cause Analysis (PARCA) office must provide its root cause explana- tion as part of a 60-day program review triggered when the applicable military depart- ment secretary reports a breach. In March 2010, in view of staffing limitations, the newly created PARCA within the Office of the Secretary of Defense (OSD) elected to rely on federally funded research and development center support in discharging its new responsibilities. Since then, PARCA engaged the RAND Corporation to conduct multiple studies on the root causes of Nunn-McCurdy breaches or other large cost increases in seven major defense acquisition programs: the Wideband Global Satellite, the Longbow Apache, the Zumwalt-class destroyer (DDG-1000), the Joint Strike Fighter, the Excalibur, the Joint Tactical Radio System Ground Mobile Radio, and the Navy Enterprise Resource Planning.1 This report derives management perspectives from analysis of Nunn-McCurdy breaches and other cost growth questions with three issues related to the acquisition of materiel by DoD. Partly in response to a finding by the U.S. Government Accountabil- ity Office that the tenure of program managers was relatively short, the head of PARCA asked RAND to analyze the tenure of program managers and to provide an alternative perspective on the data relating to this topic, along with any conclusions that could be 1 See Irv Blickstein, Michael Boito, Jeffrey A. Drezner, James Dryden, Kenneth Horn, James G. Kallimani, Martin C. Libicki, Megan McKernan, Roger C. Molander, Charles Nemfakos, Chad J. R. Ohlandt, Caroline Reilly, Rena Rudavsky, Jerry M. Sollinger, Katharine Watkins Webb, and Carolyn Wong, Root Cause Analyses of Nunn-McCurdy Breaches, Volume 1: Zumwalt-Class Destroyer, Joint Strike Fighter, Longbow Apache, and Wide- band Global Satellite, Santa Monica, Calif.: RAND Corporation, MG-1171/1-OSD, 2011; and Irv Blickstein, Jeffrey A. Drezner, Martin C. Libicki, Brian McInnis, Megan McKernan, Charles Nemfakos, Jerry M. Sollinger, and Carolyn Wong, Root Cause Analyses of Nunn-McCurdy Breaches, Volume 2: Excalibur Artillery Projectile and the Navy Resource Planning Program, with an Approach to Analyzing Complexity and Risk, Santa Monica, Calif.: RAND Corporation, MG-1171/2-OSD, 2012. iii iv Management Perspectives on Root Cause Analyses of Nunn-McCurdy Breaches, Volume 4 drawn about whether recent policy changes have been effective in increasing tenure. A second issue was the management of Acquisition Category II programs and whether existing decentralized systems used to track the cost growth and performance of these programs are adequate or whether additional centralized guidance is warranted. The third issue that this report deals with is an exploratory one to determine whether it is feasible in acquisition programs to identify program assumptions that are so key to the program’s success that they could be used as a way to manage cost and schedule risk. This report should interest DoD staff and military personnel who are involved in the acquisition of defense systems. This research was sponsored by OSD PARCA and conducted within the Acquisi- tion and Technology Policy Center of the RAND National Defense Research Insti- tute, a federally funded research and development center sponsored by the Office of the Secretary of Defense, the Joint Staff, the Unified Combatant Commands, the Navy, the Marine Corps, the defense agencies, and the defense Intelligence Community. For more information on the RAND Acquisition and Technology Policy Center, see http://www.rand.org/nsrd/ndri/centers/atp.html or contact the director (contact information is provided on the web page). Contents Preface ................................................................................................. iii Figures ................................................................................................. ix Tables .................................................................................................. xi Summary .............................................................................................xiii Acknowledgments ................................................................................ xxiii Abbreviations ....................................................................................... xxv CHaptER ONE Introduction ........................................................................................... 1 Tenure Research ........................................................................................ 1 ACAT II Programs ..................................................................................... 2 Framing Assumptions ................................................................................
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