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The DOD C-17 Versus the Boeing 777 : a Comparison of Acquisition and Development / A

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The DOD C-17 Versus the Boeing 777 : a Comparison of Acquisition and Development / A The DOD C-I 7 versus the Boeing 777 The DOD .1 7 versus the Boeing 777 A Comparison of Acquisition and Development by A. Lee Battershell NATIONAL DEFENSE UNIVERSITY Washington, D.C. 1999 The Institute for National Strategic Studies (INSS) is a major component of the National Defense University (NDU), which operates under the supervision of the President of NDU. It conducts strategic studies for the Secretary of Defense, Chairman of the Joint Chiefs of Staff, and unified commanders in chief; supports national strategic components of N DU academic programs; and provides outreach to other governmental agencies and the broader national security community. The Publication Directorate of I NSS publishes books, monographs, reports, and occasional papers on national security strategy, defense policy, and national military strategy through NDU Press that reflect the output of NDU research and academic programs. In addition, it produces the INSS Strategic Assessment and other work approved by the President of NDU, as well as Joint Force Quarterly, a professional military journal published for the Chairman. Opinions, conclusions, and recommendations expressed or implied within are solely those of the authors, and do not necessarily represent the views of the National Defense University, the Department of Defense, or any other U.S. Government agency. Cleared for public release; distribution unlimited. Portions of this book may be quoted or reprinted without permission, provided that a standard source credit line is included. NDU Press would appreciate a courtesy copy of reprints or reviews. NDU Press publications are sold by the U.S. Government Printing Office. For ordering information, call (202) 512-1800 or write to the Superintendent of Documents, U.S. Government Printing Office, Washing- ton, DC 20402. Library of Congress Cataloging-in-Publication Data Battershell, A. Lee, 1940- The DOD C-17 versus the Boeing 777 : a comparison of acquisition and development / A. Lee Battershell. p. cm. Includes bibliographical references (p.). ISBN 1-57906-01 7-X 1. C-17 (Jet transport) 2. Boeing 777 (Jet transport) I. Title. UG1242. T7B38 1998 358.4'07'0973--dc21 98-44146 CIP First Printing, October 1999 To those whose help, support, and encouragement made this book possible: my family the Battershells, the Goodwins, and the Arringtons and my boss, Jackie Crawford Contents Acknowledgments .................................. Xtll Preface .......................................... XV PART I . INTRODUCTION ................................. 3 Problem ........................................ 4 Impact .............................. ........... 5 . A CONTRAST IN BACKGROUNDS ..... : ............. 7 The Boeing Company ............................. 7 History ...................................... 7 The 777 ............................... • ..... 8 The Department of Defense ......................... 8 Military Air Transport History .......................... 8 DOD Acquisition Process ............. ............ 10 The 017 .................................... 11 . ORGANIZATION AND MANAGEMENT .............. 1 5 Organization Theory ............................. 15 Constancy of Purpose ........................... 1 6 Mobility of Management ......................... 1 7 Communication ....................... ........ 17 Management Focus .............................. 1 8 The Boeing Company ............................ 1 9 Program Definition ............................. 21 Cost Definition ................................ 21 Production ................................... 22 Summary .................................... 23 The Department of Defense ........................ 24 Program Managers ............................. 30 The Air Force ................................. 30 McDonnell Douglas ............................ 31 Reorganization and Employee Turnover ............... 31 Program Reporting Chain ......................... 31 Plant Representative ............................ 32 The Contractor ................................ 32 Low-Level Research and Development ................ 33 Engineering and Manufacturing Development .......... 34 Concurrent Production and Development .............. 34 Summary .................................... 36 ZX Comparison .................................... 36 Commitment ................................. 37 Focus .... .................................. 37 Flexibility .................................... 37 Constancy of Purpose ........................... 37 . MISSION ...................................... 41 The Boeing Company ........................... 41 The777 ..................................... 41 Summary .................................... 44 The Department of Defense ........................ 44 The C-17 .............. ...................... 45 Summary .................................... 46 Comparison .................................... 47 . NEED ......................... ......... ..... 49 The Boeing Company ............................ 49 The 747 ..................................... 49 CA TIA ...................................... 50 Summary .................................... 50 The Department of Defense ................... i .... 50 The AMST ................................... 50 The 017 .................................... 51 Summary ........ ........................... 54 Comparison .................................... 54 PART II 6. PROGRAM MANAGEMENT ....................... 57 The Boeing Company ............................. $7 Phase 1 -- Program Definition ...................... 57 Phase 2--Cost Definition (9 Milestones) ............... .58 Phase 3-- Production ............................ 59 The 777 ..................................... 60 Summary .............................. ...... 60 The Department of Defense ................ ........ 60 Phase l--Mission Need .......................... 61 Phase 2--Concept Exploration and Definition .......... 61 Phase 3--Concept Demonstration and Validation ........ 61 Phase 4--Engineering and Manufacturing Development .... 62 Phase 5--Production ............................ 62 The 017 .................................... 62 Summary .................................... 64 Comparison ....................................... 64 X . TECHNOLOGY REQUIREMENTS AND PROBLEMS ...... 67 The Boeing Company ............................ 67 Technical Problems ............................. 67 Computer and Aircraft Design ..................... 69 Engines ...................................... 70 Summary .................................... 70 The Department of Defense ........................ 71 The AMST ................................... 71 Changing Payload Requirements .................... 72 Technical Problems ............................. 73 Summary .................................... 74 Comparison .................. ; ................. 74 . FUNDING ..................................... 79 The Boeing Company ............................ 79 The 777 ..................................... 80 Summary .................................... 82 The Department of Defense ........................ 82 The Congressional Process ........................ 83 The Defense Acquisition Board ..................... 83 Other Countries ............................... 84 Impact on Contractors ........................... 84 The 017 .................................... 84 Paying the Contractor ........................... 87 Paying with the Correct Funds ..................... 88 Avoiding an Antideficiency Violation ................. 89 Summary .... ................................ 90 Comparison .................................... 90 PART III . CRITIQUE ..................................... 93 Program Management ............................. 93 Selecting Technology ............................. 94 Organization ................................... 94 Mission ... .................................... 95 Needs Determination ............................. 96 Funding ....................................... 96 Approval ...................................... 97 Commitment ................................ ... 97 Focus ......................................... 97 Flexibility ...................................... 97 Conclusion .................................... 97 Glossary ........ ................................. 99 About the Author ................................. 1 03 Acknowledgments I have many to thank for helping with this that affected the C-17 development. The ideas book. First and foremost, thanks go to Profes- of Blaise Durante (Deputy Assistant Secretary sors Rita Wells, George McAleer, and Joseph of the Air Forces, Management Policy and Goldberg of the Industrial College of the Program Integration) helped form this book. Armed Forces. Without their guidance, ques- General Ronald Fogleman, former chief of staff tioning, challenge, and unwavering support, of the Air Force, cared enough about what I this book would not be. Many others, too was doing to take time out of a busy schedule numerous to list, also helped and supported to add tremendous perspective from his top- me along the way--thank you all. I also want level defense position. Former Undersecretary to acknowledge those at Boeing, McDonnell of Defense (Acquisitions) Dr. Paul Kaminski Douglas, and the Department of Defense who supported my efforts at every turn and has provided added support. suggested a follow-on to this study--an in- Lois White, Philip Condit's secretary at depth review of his own initiatives to The Boeing Company, believed enough
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