MANAGING DEFENSE PROCUREMENT: THE ROLE OF UNITED STATES SPECIAL OPERATIONS COMMAND, CONGRESS, AND PRIVATE INDUSTRY A Thesis Presented to the Faculty of The Fletcher School of Law and Diplomacy by CAPTAIN THOMAS C. SASS, USN In partial fulfillment of the requirements for the Degree of Doctor of Philosophy JANUARY, 2012 Dissertation Committee PROFESSOR ROBERT PFALTZGRAFF, CHAIR PROFESSOR RICHARD SHULTZ PROFESSOR WILLIAM MARTEL Copyright 2012, CAPT Thomas Sass Thomas C. Sass 172 Claflin Street Belmont, Massachusetts 02478 [email protected] Education Tufts University, Fletcher School 2005 PhD (ABD) and Master of Law and Diplomacy Fields of Study: International Business, International Relations and Negotiation Dissertation: Defense Procurement: Special Operations, Congress and Industry Harvard University, Kennedy School of Government 1998 Master of Public Administration Yale University, Yale College 1984 Bachelor of Arts in American Studies Armed Forces Staff College 2000 Norfolk VA, Joint Military Professional Education Phase II Defense Language Institute 1992 – Italian Publication Sass, Thomas C., ―Finding the Right Balance: Special Operations Forces as an Economy of Force Capability,‖ in Emily Spencer (ed.) Special Operations Forces: A National Capability (Kingston: CDA Press, 2011), 142-170. Career Summary Donovan Special Operations Chair and Military Operations Professor U.S. Naval War College, Newport, Rhode Island 2007 – 2011 Commanding Officer, SEAL Delivery Vehicle Team ONE Pearl Harbor, Hawaii 2005-2007 The United States Navy SEAL Teams are the premier maritime Special Operations Force in the world. Responsive, versatile and effective; they deploy globally to conduct the most important missions for the defense of the United States of America under the most extreme conditions. Multiple Domestic, Foreign and Deployed Operational and Staff Tours as US Navy SEAL Domestic, Foreign and Deployed Assignments, 1988-2005 iii Merchant, Cargill Inc. Minneapolis, Minnesota; Kansas City, Missouri; and Houston, Texas 1984-1987 Honors - US Navy Political-Military Masters and A.S. Moreau Post-Masters Scholarships - Weschler Award for Inspirational Teaching and Innovation, US Naval War College - Honor Man, US Navy Basic Underwater Demolition/SEAL Training, Class # 151 iv Abstract The Nunn-Cohen Amendment to the 1986 Goldwater-Nichols Defense Reorganization Act created the United States Special Operations Command, or USSOCOM. This structural change to the Department of Defense pulled Special Operations Forces, or SOF, out from underneath the purview of the military services and provided it with an institutional organization that could advocate for SOF operational concerns and resource requirements within the defense bureaucracy at the national policy level. Congress provided USSOCOM with unique authorities and resources that enabled it to develop and procure special operations peculiar capabilities within the defense structure that is organized around the military services. Resource Based Theory, a strategic management theory, is introduced into public management as an alternative to traditional capital investment theories in the context of resource constraints. The study tests Resource Based Theory‘s ability as an analytical framework to explain USSOCOM‘s bureaucratic actions while developing and procuring Special Operations peculiar capabilities. It examines the case of the dry combatant submersible and the relationship between USSOCOM, Naval Special Warfare, the maritime Special Operations Forces component, the United States Navy, the Submarine Force naval component, the Department of Defense (DoD), Congress and the defense industry. This study finds that the distinctive competencies of service components linked together across organizational lines serve as the source of competitive advantage. They also serve as potential sources of cooperation, vice competition, in resource allocation. Conversely, the higher level objectives of the principal organizational stake holders inform prioritization of resources and generate organizational conflict within DoD. The study also illustrates the effect of organizational innovation within DoD. USSOCOM expands technological choice and expands the industrial base of the defense industry. Finally, although the military services continue to dominate the defense establishment, when USSOCOM focuses on a distinctive competency and intervenes across the entire decision making process it is effective at leveraging its unique authorities to develop and procure special operations peculiar capabilities. v Acknowledgements This dissertation is dedicated my family, my students, and the warriors of the United States Navy and the United States Special Operations Forces. You inspired me to complete this project. I would like to thank and express my sincere gratitude to all those who helped me along the way. I could have not done this without your help and cooperation. vi Table of Contents Chapter One: Introduction ............................................................................................................................ 1 The Context and Problem ............................................................................................... 2 The Research Questions .................................................................................................. 8 Significance of Research Questions .............................................................................. 10 Methodology and Research Design .............................................................................. 13 Case Study Selection..................................................................................................... 16 Hypotheses .................................................................................................................... 18 Hypothesis one .......................................................................................................... 18 Hypothesis two.......................................................................................................... 19 Hypothesis three........................................................................................................ 19 Brief Literature Summary ............................................................................................. 19 Dissertation Roadmap ................................................................................................... 20 Chapter Two: Literature and Theory Review ............................................................................................. 22 Introduction ................................................................................................................... 22 Military Capabilities and the Defense Establishment ................................................... 23 Industry and Government Relationship ........................................................................ 37 Special Operations Theory and History ........................................................................ 49 The Joint Strategic Planning Process ............................................................................ 54 Theory Review .............................................................................................................. 65 Organizational and Bureaucratic Politics Models ..................................................... 65 Rational Choice Theory ............................................................................................ 76 Innovation ................................................................................................................. 78 vii Strategic Management‘s Resource Based Theory..................................................... 83 Conclusion .................................................................................................................... 93 Chapter Three: Dry Combatant Submersibles ............................................................................................ 96 Introduction ................................................................................................................... 96 The Structure and Process ............................................................................................. 97 The Dry Combatant Submersible: Relevant Historical Context ................................. 100 USSOCOM and Dry Combatant Submersibles .......................................................... 111 The Advanced SEAL Delivery System or ASDS ....................................................... 117 ASDS Phase I .......................................................................................................... 122 ASDS Phase II: Manufacturing and Engineering Development ............................. 125 ASDS Phase III ....................................................................................................... 131 Phase IV: ASDS to JMMS ...................................................................................... 137 JMMS to S301 ........................................................................................................ 143 Summary ..................................................................................................................... 158 Chapter Four: Case Study Analysis .......................................................................................................... 160 Introduction ................................................................................................................