Acquisition Research: Creating Synergy for Informed Change; May 13-14, 2015
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Calhoun: The NPS Institutional Archive Reports and Technical Reports All Technical Reports Collection 2015-04-30 Acquisition Research: creating synergy for informed change; May 13-14, 2015 Monterey, California. Naval Postgraduate School http://hdl.handle.net/10945/47664 NPS-AM-15-005 Proceedings of the Twelfth Annual Acquisition Research Symposium Thursday Sessions Volume II Acquisition Research: Creating Synergy for Informed Change May 13–14, 2015 Published April 30, 2015 Disclaimer: The views represented in this report are those of the author and do not reflect the official policy position of the Navy, the Department of Defense, or the federal government. Acquisition Research Program Graduate School of Business & Public Policy Naval Postgraduate School The research presented in this report was supported by the Acquisition Research Program of the Graduate School of Business & Public Policy at the Naval Postgraduate School. To request defense acquisition research, to become a research sponsor, or to print additional copies of reports, please contact any of the staff listed on the Acquisition Research Program website (www.acquisitionresearch.net). Acquisition Research Program Graduate School of Business & Public Policy Naval Postgraduate School Table of Contents Keynote: The Honorable Sean Stackley, Assistant Secretary of the Navy, Research, Development, and Acquisition ............................................................ iii Plenary Panel: Reducing Lifecycle Sustainment Costs ....................................... 1 Panel 12. Management and Resource Allocation of Software Intensive Systems Development and Sustainment ............................................................................... 3 Achieving Better Buying Power Through Acquisition of Open Architecture Software Systems for Web-Based and Mobile Devices ......................................... 4 DoD Software-Intensive Systems Development: A Hit and Miss Process ............ 22 Investing in Software Sustainment ....................................................................... 41 Panel 13. DoD’s Contracting Portfolio: Analysis and Innovations .................... 49 Analysis of Defense Products Contract Trends, 1990–2014 ................................ 50 Contractor Past Performance Information: An Analysis of Assessment Narratives and Objective Ratings .......................................................................................... 69 Panel 14. Factors Influencing Achievement of Affordable Defense Systems in a Constrained Budget Environment ........................................................................ 82 Analytical Tools for Affordability Analysis ............................................................. 83 Government Contractors and Sticky SGA Costs .................................................. 95 Panel 15. In Pursuit of Agile Software Development and Testing ................... 109 Addressing the Barriers to Agile Development in the Department of Defense: Program Structure, Requirements, and Contracting ........................................... 110 Finding the “RITE” Acquisition Environment for Navy C2 Software .................... 127 Use of Automated Testing to Facilitate Affordable Design of Military Systems .. 139 Panel 16. Managing Obligations Rates, Expenditures, and Internal Controls in the DoD ................................................................................................................. 152 OSD’s Obligation & Expenditure Rate Goals: An Examination of the Factors Contributing to the Interference .......................................................................... 153 Contracting Processes, Internal Controls, and Procurement Fraud: A Knowledge Assessment ........................................................................................................ 169 Department of Defense Management of Unobligated Funds for Acquisition Programs ............................................................................................................ 186 Panel 17. Applying Portfolio Techniques to Acquisition Management ........... 200 A Method for Exploring Program and Portfolio Affordability Tradeoffs Under Uncertainty Using Epoch-Era Analysis: A Case Application to Carrier Strike Group Design ................................................................................................................ 201 An Analytic Model for DoD Divestments ............................................................. 228 Acquisition Research Program: Creating Synergy for Informed Change - i - Portfolio Acquisition—How the DoD Can Leverage the Commercial Product Line Model ................................................................................................................. 249 Panel 18. Promoting Secure and Timely Development and Sustainment in Weapons System Procurement .......................................................................... 267 Towards Rapid Recertification Using Formal Analysis ....................................... 269 Panel 19. Factors Influencing the Selection of Contracting Strategies .......... 289 Antecedents and Consequences of Federal Bid Protests .................................. 291 Avoiding Terminations, Single Offer Competition, and Costly Change Orders with Fixed-Price Contracts ......................................................................................... 307 Price Analysis on Commercial Item Purchases Within the Department of the Navy ........................................................................................................................... 326 Panel 20. Understanding the Relevance of Big Data and Predictive Analytics in Business and the Defense Industrial Base ........................................................ 343 Lexical Link Analysis Application: Improving Web Service to Acquisition Visibility Portal Phase III ................................................................................................... 345 Additional Papers ................................................................................................ 364 Evaluating Intellectual Property and Data Rights in Competition Source Selections—Leveraging the “Assertions Process” to a New Level to Foster Open Systems Architecture ......................................................................................... 365 Orchestrating the Development of a Complex System of Systems: Systems Engineering Tools and Methodologies ............................................................... 386 Acquisition Research Program: Creating Synergy for Informed Change - ii - Keynote: The Honorable Sean Stackley, Assistant Secretary of the Navy, Research, Development, and Acquisition The Honorable Sean J. Stackley—assumed the duties of assistant secretary of the Navy for Research, Development, and Acquisition (ASN [RDA]) following his confirmation by the Senate in July 2008. As the Navy’s acquisition executive, Stackley is responsible for the research, development, and acquisition of Navy and Marine Corps platforms and warfare systems, which includes oversight of more than 100,000 people and an annual budget in excess of $50 billion. Prior to his appointment to ASN (RDA), Stackley served as a professional staff member of the Senate Armed Services Committee. During his tenure with the Committee, he was responsible for overseeing Navy and Marine Corps programs, U.S. Transportation Command matters, and related policy for the Seapower Subcommittee. He also advised on Navy and Marine Corps operations and maintenance, science and technology, and acquisition policy. Stackley began his career as a Navy surface warfare officer, serving in engineering and combat systems assignments aboard USS John Young (DD 973). Upon completing his warfare qualifications, he was designated as an engineering duty officer and served in a series of industrial, fleet, program office, and headquarters assignments in ship design and construction, maintenance, logistics, and acquisition policy. From 2001 to 2005, Stackley served as the Navy’s LPD 17 program manager, with responsibility for all aspects of procurement for this major ship program. Having served earlier in his career as production officer for the USS Arleigh Burke (DDG 51) and project naval architect overseeing structural design for the Canadian Patrol Frigate, HMCS Halifax (FFH 330), he had the unique experience of having performed a principal role in the design, construction, test, and delivery of three first-of-class warships. Stackley was commissioned and graduated with distinction from the United States Naval Academy in 1979, with a Bachelor of Science in mechanical engineering. He holds the degrees of Ocean Engineer and Master of Science, mechanical engineering, from the Massachusetts Institute of Technology. Stackley earned certification as a professional engineer, Commonwealth of Virginia, in 1994. Acquisition Research Program: Creating Synergy for Informed Change - iii - THIS PAGE INTENTIONALLY LEFT BLANK Acquisition Research Program: Creating Synergy for Informed Change - iv - Plenary Panel: Reducing Lifecycle Sustainment Costs Thursday, May 14, 2015 9:30 a.m. – Chair: The Honorable David J. Berteau, Assistant Secretary of Defense Logistics 11:00 a.m. and Materiel Readiness Panelists: Scott DiLisio, Director, Strategic Mobility/Combat Logistics Division, Chief of Naval Operations Richard Burke, Director, Operations Analysis & Procurement Planning Division, Office of the Secretary of Defense, Cost Assessment and