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DEFENSE ACQUISITION REFORM: WHERE DO WE GO from HERE? a Compendium of Views by Leading Experts

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DEFENSE ACQUISITION REFORM: WHERE DO WE GO from HERE? a Compendium of Views by Leading Experts United States Senate PERMANENT SUBCOMMITTEE ON INVESTIGATIONS Committee on Homeland Security and Governmental Affairs Carl Levin, Chairman John McCain, Ranking Minority Member DEFENSE ACQUISITION REFORM: WHERE DO WE GO FROM HERE? A Compendium of Views by Leading Experts STAFF REPORT PERMANENT SUBCOMMITTEE ON INVESTIGATIONS UNITED STATES SENATE October 2, 2014 SENATOR CARL LEVIN Chairman SENATOR JOHN McCAIN Ranking Minority Member PERMANENT SUBCOMMITTEE ON INVESTIGATIONS ELISE J. BEAN Staff Director and Chief Counsel HENRY J. KERNER Staff Director and Chief Counsel to the Minority BRADLEY M. PATOUT Senior Policy Advisor to the Minority LAUREN M. DAVIS Professional Staff Member to the Minority MARY D. ROBERTSON Chief Clerk 10/2/14 Permanent Subcommittee on Investigations 199 Russell Senate Office Building – Washington, D.C. 20510 Majority: 202/224-9505 – Minority: 202/224-3721 Web Address: http://www.hsgac.senate.gov/subcommittees/investigations DEFENSE ACQUISITION REFORM: WHERE DO WE GO FROM HERE? A Compendium of Views by Leading Experts TABLE OF CONTENTS I. INTRODUCTION ....................................................... 1 II. BIOGRAPHIES AND ESSAYS PROVIDED BY CONTRIBUTORS ............. 5 1. Brigadier General Frank J. Anderson, USAF (Ret.) ........................... 5 2. The Honorable Norman R. Augustine ...................................... 11 3. Mr. David J. Berteau ................................................... 17 4. Mr. Irv Blickstein...................................................... 23 5. General James Cartwright, USMC, Retired.................................. 30 6. The Honorable Thomas Christie .......................................... 35 7. Mr. Jonathan Etherton.................................................. 43 8. The Honorable Christine H. Fox .......................................... 50 9. Dr. J. Ronald Fox...................................................... 55 10. Mr. Paul Francis....................................................... 62 11. The Honorable Jacques S. Gansler, PhD .................................... 69 12. The Honorable Dr. J. Michael Gilmore ..................................... 76 13. The Honorable Daniel I. Gordon .......................................... 83 14. Mr. William C. Greenwalt ............................................... 89 15. Mr. Todd Harrison ..................................................... 98 16. The Honorable Tina W. Jonas ............................................ 103 17. Dr. Paul G. Kaminski................................................... 107 18. The Honorable Frank Kendall III ......................................... 113 19. The Honorable Dr. John F. Lehman ....................................... 117 20. The Honorable Elizabeth McGrath ........................................ 122 21. Dr. David L. McNicol .................................................. 127 22. The Honorable Dr. Jamie Morin .......................................... 134 23. The Honorable David Oliver ............................................. 141 24. Admiral Gary Roughead, USN (Ret.) ...................................... 147 25. Ms. Katherine Schinasi ................................................. 153 26. General Norton A. Schwartz, USAF (Ret.).................................. 162 27. The Honorable Sean J. Stackley .......................................... 170 28. Mr. Michael J. Sullivan ................................................. 177 29. Vice Admiral David J. Venlet, USN (Ret.).................................. 183 30. Lt. Col. Daniel Ward, USAF............................................. 189 31. The Honorable Dr. Dov Zakheim ......................................... 194 Appendix A: Sample Letter Sent to Contributors of Major Events ..................... 200 Appendix B: Sample Policy Questions Provided to Contributors ...................... 201 Appendix C: Contributor Topic Matrix ........................................... 206 h h h DEFENSE ACQUISITION REFORM: WHERE DO WE GO FROM HERE? A Compendium of Views by Leading Experts I. INTRODUCTION The U.S. Senate Permanent Subcommittee on Investigations contacted over thirty experts from a broad range of backgrounds and solicited their views on a number of subjects relating to the DOD’s acquisition process and how the DOD’s procurement of major weapon systems can be improved.1 In this compendium, the Subcommittee offers no recommendations of its own and endorses no particular expert prescription. Rather, with this project, the Subcommittee intends to publish expert views on defense acquisition reform and help develop a comprehensive record on shortcomings in the acquisition process that may inform congressional deliberations in the future. While the experts who participated in this project offered a variety of views, a few common themes emerged. To help readers navigate their way through this compendium, the Subcommittee includes as an appendix a matrix that describes the specific prescriptions these experts offered regarding those themes. Otherwise, the Subcommittee notes the following: • Nearly half of the experts feel that cultural change is required while over two-thirds believe improving incentives for the acquisition workforce is necessary for reform. • Two-thirds of the contributors feel that training and recruiting of the acquisition workforce must be improved. • Nearly half believe that DOD needs to attain realistic requirements at the start of a major acquisition program that includes budget-informed decisions. • More than half of the submissions noted the need for strong accountability and leadership throughout the life-cycle of a weapon system – with several experts stating the need to further integrate the Service Chiefs into the acquisition process. Theme 1: Incentivization of the acquisition workforce Michael Sullivan, a defense acquisitions expert with over 30 years of government experience, believes that improvements to the acquisition process can best be achieved not by adding or discarding policies but by changing “the incentives that are now built into the system” that work against making the process more efficient. Christine Fox, the Pentagon’s former Director of Cost Assessment and Program Evaluation, observes that “there are no career incentives for acquisition managers to say that their program is not progressing well, it is not worth the money, and should be slowed or cancelled.” Several of the experts consulted report that many program managers in major defense acquisition programs do not remain in their positions long enough to manage the program to its 1 Questions sent to contributors can be found in Appendix A. 2 successful deployment or even to a major milestone. As a result, DOD may be unable to hold program managers accountable for those failures. Dr. Ronald Fox, former Assistant Secretary of the Army responsible for procurement and contracting, states, “As long as defense acquisition is largely in the hands of managers for whom it is merely one step in a career path directed elsewhere, we will continue to see the same quality, cost, and scheduling problems.” Norm Augustine, former CEO of Lockheed Martin, and Dr. Dov Zakheim, former Under Secretary of Defense (Comptroller), also highlight constantly rotating program management as a problem that must be addressed. To combat this shortcoming, in May 2007, the DOD required all top managers of major defense acquisition programs to sign tenure agreements with their respective service acquisition executives (SAE) stipulating that their tenure will correspond to the next major milestone closest to four years. 2 While this initiative was specific to program managers, many contributors including Frank Anderson, former president of Defense Acquisition University, believe that this policy is not being enforced.3 Other contributors believe that tenure agreements should be broadened to include other acquisition executives, which could improve accountability and communication regarding the implementation of approved acquisition strategies. Theme 2: Attracting and training a qualified acquisition workforce About 70 percent of this project’s contributors express the view that although Congress has taken steps to address deficiencies in the Department’s acquisition workforce, more should be taken. Several contributors state that the Defense Acquisition Workforce Development Fund (DAWDF), which Congress established in 2008 to ensure that the acquisition workforce has the skills to ensure the DOD receives the best value for taxpayer dollars, should be continued and strengthened. Former Administrator for Federal Procurement Policy Dan Gordon states that improvements in training through the Defense Acquisition University will help the DOD workforce “buy smarter” in the current budget environment. Dr. Paul Kaminski, former Under Secretary of Defense for Acquisition and Technology, writes that the DOD needs to “attract quality people, and give them the training they need and the opportunity to learn from their mistakes before their mistakes cause major problems.” According to Irv Blickstein, a senior engineer with RAND Corporation, under the current personnel system, careers in acquisitions and contracting are simply not highly sought after as they do not offer the same opportunity for advancement as their operational counterparts. Many contributors believe that the DOD should create a clear career path for acquisition professionals similar to the military promotion system and designate acquisition billets to be on the same level as operational
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