This report is designed to communicate
                      the key elements of the Department of
                      Defense’s vision of its future acquisition and
                      logistics environment, and to outline
                      initiatives underway to accelerate the
                      Department’s progress toward achieving
                      that vision. The report provides highlights of
                      several of the key studies chartered in
                      response to Congress’s direction in Section
                      912(c) of The National Defense
                      Authorization Act for Fiscal Year 1998.
                      Congress directed the Department of
     The Road Ahead   Defense to identify key additional steps the
                      Department could and should take to build
                      on the acquisition reforms of the previous
                      five years. In addition to those highlights,
  Accelerating the    this report provides a range of additional
                      initiatives that have been or will be launched
 Transformation of    by the Department.
                          Taken together, these efforts represent
   Department of      the Department’s vision of the future
                      acquisition and logistics environment. All of
Defense Acquisition   the initiatives are designed to help DoD
                      achieve its vital goals of providing modern,
   and Logistics      high performance weapons systems and
                      support to America’s fighting men and
  Processes and       women in less time, at lower cost, and with
                      higher performance, than has ever before
     Practices        been the case.
                           This critical goal is driven by the well
                      established reality that the nation and the
                      Department find themselves in an era of
                      new highly unpredictable security
                      challenges, the focus of which is not one or
                      two clearly identified nation threats, but,
                      rather, a wide array of rogue nations and
                      transnational actors, regional instability, and
                      unprecedented threats from chemical and
                      biological weapons, in addition to the
                      continued threat of nuclear warfare. The
                      military and strategic requirements
                      associated with battling these new threats
                      are often referred to as the Revolution in
                      Military Affairs, or RMA.
                         Through the RMA, the Department has
                      committed to equip the early 21st century

12/04/11                                                            1
warfighter with the correct equipment to               Goal 1: Field high-quality defense
assure our security and withstand any                  products quickly; support them
potential threat by, among other things:               responsively.
                                                           Objective: Reduce the average
   achieving an integrated, secure, and
                                                           acquisition systems cycle time
    “smart” command, control,
                                                           (measured from program start to
    communications, intelligence (C3I)
                                                           initial operating capability) for all
                                                           Major Defense Acquisition Programs
   developing and deploying long-range,                   (MDAPS) that started since FY 1992
    all-weather, low-cost, precise, and                    by 25 percent (from 132 months to
    “brilliant” Reconnaissance and Strike                  99 months); and by 50 percent (to 67
    weapons;                                               months) for all programs started in
   achieving rapid force projection and                   FY 1999 or later.
    global reach of our military capability;               Objective: Reduce logistics response
   developing and deploying credible                      time from an average of 36 days (in
    deterrents and counter-measures                        FY 1997) to 18 days by FY 2000.
    against the complete range of                      Goal 2: Lower the total ownership cost
    asymmetric weapons; and                            of defense products.
   achieving interoperability among U.S.                  Objective: Minimize cost growth in
    Forces and our Allies.                                 major defense acquisition programs
                                                           to no greater than one percent
The Revolution in Business Affairs                         annually.
    The pre-requisites to achieving the goals              Objective: For fielded systems,
of the RMA are many and cut across all                     reduce the logistics support cost per
facets of the Department of Defense,                       weapon system per year compared
particularly the arena of acquisition, logistics           to an FY 1997 baseline as follows:
and technology. Yet despite the now widely                 seven percent by FY 2000; ten
accepted precepts of the RMA, the                          percent by FY 2001; and a stretch
Department continues to rely on acquisition                target of 20 percent by FY 2005.
processes, organizations and infrastructure                The FY 1997 baseline is $82.5
largely developed in the years following                   billion.
World War II. Moreover, the Department                 Goal 3: Reduce the overhead cost of the
continues to face a limited investment                 acquisition and logistics infrastructure.
budget constrained by a relatively stable                  Objective: Reduce the funding
top-line budget, and squeezed by increased                 required by logistics and other
operations and support costs from aging                    infrastructure from 64 percent of
weapon systems.                                            Total Obligation Authority (TOA) in
                                                           FY 1997 as follows: 62 percent by
       In short, in order to meet the                      FY 2000; 60 percent by FY 2001;
requirements of the RMA, it is equally                     and a stretch target of 53 percent by
important that the Department also wage a                  FY 2005.
successful Revolution in Business Affairs, or
RBA.                                                  DoD has made substantial progress on
                                                   these goals and objectives:
     To be sure, the “RBA” at the Department
has been underway for several years and               The average MDAP cycle time for post
remains among the highest priorities of the            FY 1992 starts is projected to be 97
Department’s civilian and military leadership.         months—two months below the
Its primary focus has been on the following            objective.
three top-level goals and corresponding               DoD has met its 18-day target for the
objectives:                                            average time required to provide spare

12/04/11                                                                                        2
    parts through the logistics system, and           fielded far faster than DoD’s normal 8 to
    improved asset visibility and accessibility       12 years. Most importantly, the first of
    from 50 percent (FY 1996) to 94 percent           these systems to be utilized in wartime--
    (FY 1999). These initiatives have also            -the Joint Direct Attack Munition, which
    had a profound impact on reducing                 was deployed for the first time during the
    supply inventory in the Department by             recent conflict in Kosovo, performed
    $12 billion, from $67 billion (FY 1996) to        flawlessly.
    an estimated $55 billion (FY 1999).             DoD is using credit cards for over 90
   Since FY 1998 (and projected through              percent of its transactions below $2500,
    FY 2001), DoD’s average annual MDAP               resulting in savings and cost avoidance
    cost growth has been .1 percent, -.3              to the Department in the hundreds of
    percent, 3.1 percent, and .9 percent              millions of dollars.
    respectively.                                   The Single Process Initiative, which was
   For FY 2000, weapon system logistics              launched as a means of eliminating
    costs is $77.9 billion, just slightly behind      duplicative processes and introducing
    the $76.7 billion target.                         appropriate, commercial-like processes
   The funding for logistics and other               at defense manufacturing facilities, has
    infrastructure is 60 percent of TOA in FY         enabled the conversion of more than
    2000—two percentage points better than            200 facilities to ISO 9000 standards
    the target.                                       (replacing DoD’s traditional and unique
                                                      quality standards), allowed the
    The achievements are due in part to the
                                                      rationalization of numerous
fact that the three goals interrelate in a
                                                      manufacturing processes, and much
strategic way. They seek to remove the
                                                      more, resulting thus far in savings and
barriers to change and improve the
                                                      cost avoidance of over $500 million.
Department’s ability to be innovative in order
                                                    The Department is pursuing innovative
to improve readiness and accelerate
                                                      acquisition practices to further integrate
modernization. At the same time, the
                                                      the civil-military industrial base. For
reverse is also true: in order to achieve the
                                                      example, as a result of a recent
Department’s readiness and modernization
                                                      manufacturing technology initiative
goals, the same degree of innovation we
                                                      circuit boards for the F-22 are being
see today in our fighting forces must also
                                                      produced on a commercial rather than a
become critical elements of our acquisition
                                                      military line. This kind of practice will
and logistics practices and processes.
                                                      allow us to capitalize on advanced
     In recent years, DoD has done much to            commercial technology and take
improve its acquisition practices and policies        advantage of large production runs.
through acquisition reform, and to transform         DoD, with the help of the Congress, has
its logistics systems to integrated supply            dramatically altered the manner in which
chains driven by modern information                   the Department deals with its suppliers,
technologies and a wide range of best                 creating an environment that fosters
business practices that have been proven in           closer, ongoing communications,
the commercial sector. For example:                   focuses more directly on actual
   The Defense Acquisition Pilot Programs,           performance rather than promises, and
    which include five major weapon                   opens the door to the kind of supplier
    systems specifically identified by                alliances that have become hallmarks of
    Congress to be test beds for many new             excellence in the commercial world.
    acquisition practices, have yielded             DoD has significantly reduced the use of
    savings as high as 50 percent over                detailed military specifications and
    previous, official cost estimates, and            standards in favor of far greater use of
    have been or are on schedule to be                commercial performance standards,

12/04/11                                                                                       3
    thereby reducing costs and enabling            manner, into those areas where reform
    access to a wider array of technologies        initiatives should be most focused.
    and solutions.
                                                       The studies covered a wide range of
   The use of Other Transactions Authority        issues: command, control and
    has enabled DoD to access dozens of            communications; the setting of weapon
    commercial technology providers, that          system requirements; the unique challenges
    were otherwise unable to do business           of acquiring services (as opposed to
    with the Department, in the research and       products); the future of the Research,
    prototyping of new, cutting edge               Development, Test and Evaluation (RDT&E)
    technologies of importance to the              capabilities of DoD; Price Based Acquisition;
    Department.                                    re-engineering product support;
   The Department has begun to                    accelerating, implementing and managing
    aggressively pursue innovative,                change; and much more. And the
    performance-focused logistics support          overarching findings of each study reinforce
    strategies that are resulting in both          the necessity of significant, additional
    improved delivery and response times,          reform. For example,
    while also enabling reductions in
    unnecessary infrastructure in the                 The RDT&E Infrastructure Study Team
    Department.                                        found that we have not reduced
   DoD has reduced its acquisition and                infrastructure by as much as we could --
    technology workforce by nearly 50                  at least 25 percent more could be
    percent over the last ten years and                attained by FY 2005. This will allow
    continues to devote significant resources          DoD to focus its R&D resources on
    to defining the Department’s long term             those critical areas in which DoD’s
    workforce requirements, in terms of both           leadership and involvement is most
    skills and numbers, for the years ahead.           necessary and valuable.
    The Department also has 104,500                   The Product Support Study Team found
    participants (those currently a part of the        that we have not done enough to
    DAWIA workforce, which equates to 72               transform the logistics system. We can
    percent of the newly defined “key                  expand the use of competitively sourced
    acquisition and technology workforce”;             support for both new and legacy
    the remaining 28 percent will be covered           systems; improve reliability,
    under new continuous learning policy to            maintainability, and sustainability
    be issued in FY 2000) engaged in                   through continuous technology
    continuing education programs and                  refreshment; expand the use of prime
    training in FY 1999.                               vendor and virtual prime vendor support;
                                                       reengineer financial processes; better
    These are just a few of the many                   integrate supply chains; and implement
dramatic changes that have taken place,                complementary information systems.
and continue to evolve, in the Department of           The Program Manager Oversight of Life
Defense. Despite the exceptional progress              Cycle Support Study Team identified 30
that has been made; however, the                       pilot programs to serve as platforms to
Department continues to face daunting                  demonstrate these strategies.
challenges in its efforts to truly transform its
                                                      The Training and Tools for Acquisition of
business and logistics practices and to meet
                                                       Services Team found that we do not
the requirements set forth in the Revolution
                                                       have sufficient performance-based
in Military Affairs. The studies conducted
                                                       training for acquisition of complex
pursuant to Section 912(c) of FY 1998
Department of Defense Authorization Act
                                                      The Commercial Business Environment
were conducted to help the Department gain
                                                       Study Team found that DoD has not
insight, in an integrated, across-the-board

12/04/11                                                                                       4
    done enough to accelerate cultural            commercial world, where research and
    change -- we need to adopt an                 development has increased steadily at a
    acceleration change model emulating           rate of about 5 percent per year for more
    best commercial practices.                    than 20 years—while U.S. Government
                                                  spending on research and development has
     This report will focus on the principal
                                                  dropped some 2.5 percent per year during
findings and recommendations of several of
                                                  the same period. It is clear that this trend is
those studies, as well as additional
                                                  NOT going to be reversed, and that the
initiatives, not directly tied to the Section
                                                  Department must improve its ability to be a
912(c) studies, that the Department has
                                                  “player” in the development of new
initiated. Each of the initiatives have benefit
                                                  technology in the commercial world.
in their own right, of course, but at the same
time, the synergy among them is both                   Thus, wherever possible, the
powerful and central to their real success.       Department must adapt its business
Indeed, even as each study team identified        practices and systems to those that have
challenges—and developed action plans for         been proven and are widely relied upon in
meeting those challenges—in its area, it is       the commercial world, and can no longer
clear that no one aspect of the acquisition or    expect that world to adapt its practices to
logistics system can produce the results          us. This can be, and has been, done in
needed if DoD is to meet its most                 ways that fully protect the public dollar and
fundamental missions.                             interest, and the unique needs of America’s
                                                  military. But it is a reality we must face.
    The integrated perspective provided by
the studies conducted under Section 912(c),
more than anything else, makes clear the          The Road Ahead
inextricable links among all aspects of the            As noted earlier, DoD’s top line goals
Acquisition process—from requirements             are clear: reduced cycle times for new
generation, to technology development,            weapons systems (which translates directly
acquisition, and support. Thus, the               to our goal of providing new capabilities and
Department’s ongoing initiatives to               support to the warfighter more quickly than
accelerate change include all aspects of that     ever before); reducing total ownership costs
process.                                          of our weapons systems (which translates
     Moreover, the study process has also         directly to the freeing up of precious dollars
made unmistakably clear the fact that the         for investment in new technologies and
Department is struggling, and will                capabilities); and rightsizing our acquisition
increasingly struggle, to keep pace with or       workforce and infrastructure (which ties
access new, leading-edge technologies.            directly to the Department’s ability to both
Indeed, this finding, perhaps more than any       realize the savings and efficiencies of new
other, speaks to one of the key focus areas       ways of doing business and supporting our
of acquisition and logistics reform and the       troops and systems in a manner that is
overall RBA: in the technology era of today,      optimally efficient).
the Department, and the U.S. Government                Achieving that vision, requires that
at large, are no longer the driving forces        DoD’s acquisition and logistics reform
behind the development of most new                initiatives be built on six focus areas, each
technology, including many critical new           of which has its own set of outcome metrics
technologies required by the Department to        that link each focus area to the
meet its mission.                                 Department’s overall goals. Within the
   That technology development, including         focus areas, DoD has identified a set of
both functional technology and technology         near term actions to be completed within the
designed to support optimal business              next five years. Achievement of the actions
operations and support, is now led by the         identified for each focus area (see the

12/04/11                                                                                        5
attached appendix for specific actions) will         In addition, the Department has already
be measured by a leading indicator of           begun to develop internally a series of policy
change.                                         changes focused on expanding previous
                                                reforms and continuing the Department’s
    1. DoD will increasingly rely on an
                                                efforts to eliminate non-value-added
integrated civil-military industrial base.
                                                government unique processes and policies
The reality is that the two industrial bases
                                                in favor or proven, performance-based,
have already largely merged yet DoD’s
                                                commercial standards. For instance:
business practices have not kept pace with
that fundamental shift. Gaining access to          In October, 1999, the Department
the global commercial industrial base will          launched a comprehensive review of the
enable DoD to take advantage of the                 status and future requirements in the
technology found in world-class commercial          area of specifications and standards
companies that have maintained leadership           reform;
positions in worldwide commerce and, at the        The Department will soon issue new
same time, help to increase competition for         acquisition policy with regard to the
the products and services DoD purchases.            management of government furnished
DoD must position itself to access                  property which will rely on commercial-
commercial technology and to take                   like practices;
advantage of large, commercial production          The Department is currently conducting
runs, thereby reducing costs through                a pilot program to test the application of
economies of scale.                                 commercial packaging specifications to
    Enabled by open systems architecture            military requirements; and
and reprocurement reform, wherever                 The Department will seek to significantly
possible DoD will seek to insert commercial         expand the use of commercial services
technology and products into its new and            contracting, which will enable access to
legacy systems to improve reliability,              proven, commercial strategies that are
maintainability, and sustainability through         largely driven by modern information
continuous technology refreshment. This             and other technologies in both business
means, in addition to other things,                 and supply chain activities. This
expanding military specifications and               strategy will also drive greater use of
standards reform (first launched in 1993) to        competition (including public-private
include legacy systems, with the recognition        competitions) in determining the most
that integrating new solutions into existing        efficient and effective means of service
systems is a complex undertaking.                   delivery.
However, by extending milspec reform to             Each of these initiatives is designed to
legacy systems the Department seeks to          both eliminate unneeded and costly
make the search for new solutions the first     government unique requirements and to
priority.                                       expand the Department’s access to
    To achieve its goal of civil-military       commercial providers who currently are
integration, DoD will again seek the support    often unable to do business with the
of and partnership with Congress that has       Department because of the added costs
been so essential to previous reform efforts.   and systems requirements associated with
The Department plans to submit to               such practices and policies.
Congress, for inclusion in the FY 2001              Leading indicators of change in this area
Department of Defense Authorization Bill, a     include increasing the dollar value of FAR
series of legislative proposals designed to     Part 12 contracts and the dollar value of
overcome statutory obstacles that stand in      firm-fixed price competitive R&D contracts.
the way of the Department’s RBA.                The Department has established FY 2005
                                                stretch targets of doubling current levels for

12/04/11                                                                                       6
the former and a 25 percent increase for the    more. All these changes will need support
latter.                                         from Congress to be effective.
     2. DoD will adopt and rely on a new            Leading indicators of change include the
approach to systems acquisition where           number of MDAPs with cost as a key
price and schedule play a key role in           performance parameter and planned
driving design development and systems          evolutionary acquisition strategies. The
are reviewed by portfolio. The warfighter       Department has targeted a 75 percent
must be in a position to place a dollar value   figure for FY 2005.
on improved capability and choose among             3. DoD will transform its mass
potentially dissimilar alternatives.            logistics system to a highly agile, reliable
Warfighter requirements must be flexible        system that delivers logistics on
and respond to both the needs of the user       demand. Because we spend more than
and the technological state of the possible.    $80 billion annually on logistics but do not,
In the new systems acquisition environment,
                                                however, match performance (such as
key acquisition and long term funding           responsiveness or costs) to the logistics
commitments will not be made until              value chain, logistics reform is the critical
technology is mature and risks are far better   link between modern warfighting and
understood (and strategies to mitigate them     modern business practices. The commercial
better developed) than is currently the case.   marketplace demonstrates that product
By adopting a more time-phased,
                                                support can be optimized and to create a
incremental approach to systems                 strategic advantage by focusing on
development, the Department can and will
                                                customer service, integrating supply chains,
field new technologies more quickly. This       capitalizing on rapid transportation, and
will also enable the acquisition of products    exploiting electronic commerce. When
on the basis of overall price and
                                                applied to Defense, this equates to
performance, which are clearly the most         integrated logistics chains focused on
critical outcome requirements, as is the rule   readiness and rapid service to the warfighter
in the commercial technology world. The         customer. Providers would be selected
end result will be newer technology in the
                                                competitively based on best value. Long-
hands of the warfighter sooner, a wider,        term partnerships would be formed with a
competitive marketplace from which to
                                                subset of preferred providers.
purchase needed solutions, and fewer
dollars idling in the acquisition pipeline.        Instead of continually focusing on
                                                product procurements, our logistics
    To accomplish this goal, the Joint Chiefs
                                                operations will increasingly rely on the
of Staff have already completed a rewrite of    purchase of services, so that the supplier
the Chairman’s “3170 Series” to reflect         has the performance responsibility for
flexible and time-phased requirements,          keeping the product technologically current,
interoperability as a key performance           thus providing the warfighter with
parameter, and affordability in requirements
                                                continuously improved capability and
documents. Currently, the OSD and Service       readiness.
staffs are engaged in a rewrite of the
Department’s “5000 Series”, which set               To accomplish this fundamental
forward DoD’s guidance on systems               transformation, the Department has
acquisition. This rewrite will address          developed a long term logistics reform
evolutionary acquisition, increased technical   strategic plan and begun the process of
maturity before starting acquisition            implementing new business strategies (such
programs, integration of acquisition and        as Prime Vendor Support, electronic
logistics early in the process, increased and   commerce, increased Departmental focus
continuous operational assessments, and         on modern information technology as a key

12/04/11                                                                                    7
tool for improvement in, and reducing the        recent years, and the changing demands on
costs of, the support of the Department’s        its workforce, DoD has also launched
aging weapons systems, and more). The            significant initiatives focused on the
Department has also identified 30 pilot          workforce skills needed for the next century
programs (10 per Service) on which it is         and how best to shape and mold the
testing its initiatives to reduce total          workforce to meet those requirements.
ownership cost.
                                                      DoD is also working on initiatives to
    To make this new vision of modern            upgrade our facilities. One such initiative
logistics a broader reality, however, support    involves creating new housing stock for
from the Congress is needed, particularly in     Service men and women and their families
the area of removing arbitrary restrictions on   either by repairing the current housing,
competitive sourcing and providing               building new housing, or engaging in
necessary flexibility to enable the              creative partnerships with private industry.
Department to optimize its support               In addition, DoD is moving towards
operations. It also requires the clear           privitzation of utilities where that is feasible.
recognition that where such strategies as        Finally, DoD needs another round of BRAC
Prime Vendor Support and similar                 to divest excess capacity. We will need
approaches are employed, the Department’s        help from Congress to achieve our goals in
ability to fully reap the benefits of such       all these areas.
strategies hinges at least in part on a
                                                     RDT&E cost reduction is a leading
concurrent willingness and ability to make
                                                 indicator of change, DoD has targeted a 10
the requisite infrastructure and personnel
                                                 percent reduction by FY 2000 and a 25
                                                 percent reduction by FY 2005.
    Pilot program initiatives will be leading
                                                     5. The DoD workforce will be trained
indicators of change. DoD has established
                                                 with the requisite skills to operate
stretch targets for pilot programs to have
product support strategies in place by FY        efficiently in this new environment and
2001 and associated financial strategies in      will perpetuate continuous improvement.
place by FY 2002.                                In order to operate in this new environment,
                                                 the acquisition workforce must have a
    4. DoD will reduce its acquisition           complete understanding of commercial
infrastructure and overhead functions.           business practices and how to learn about
With increased reliance on the commercial        and acquire both products and services.
products, technology, and competitively          This knowledge will be obtained for both the
sourced products, excess capacity will           individual and his/her work team through
occur. DoD will no longer retain excess          appropriate training via Defense Acquisition
capacity. DoD will streamline its                University courses, the latest technologies
management and financial information             to bring education to the workforce, and an
systems by large-scale adoption of proven        increased emphasis on courses available on
commercial business processes in                 the open market, which will both increase
information technology and financial             the Department’s training throughput and
management.                                      help ensure that the workforce is receiving
    To accomplish these reductions, DoD          the appropriate balance of commercial and
has created a blueprint for restructuring        government-unique training competencies.
labs, research and development centers,          Each practitioner’s knowledge will be
and test facilities to continue to encourage     continually refreshed through continuous
intra-and inter-Service efficiencies. As we      learning as changes in both the environment
face the realities of a “graying” workforce,     and in new processes and practices occur
the challenges posed by the downsizing of        with particular focus on moving from

12/04/11                                                                                             8
transaction-driven work to the management          development program is in synch with its
of processes.                                      future workforce requirements.
     To accomplish this goal, the Department           One leading indicator of change is how
has already instituted a new continuous            much of the acquisition workforce is taking
learning policy for the key acquisition and        continuous education in identified focus
technology workforce. This policy mandates         areas. DoD has targeted that 100 percent
that each member of that workforce receive         of the acquisition workforce should be doing
at least 80 hours of continuous learning           this within one year of the establishment of
every two years. In addition, the                  focus area courses.
Department is expanding the scope of
                                                        6. DoD will institutionalize
coursework available through technology
                                                   continuous improvement or change
based learning (computer based training,
distance learning via the worldwide web,           management throughout the DoD
etc;) through the Defense Acquisition              enterprise to ensure a virtual learning
University and outside sources. During FY          environment. World-class companies have
2000, the Department will also provide to all      adopted systematic change models, which
members of the key acquisition and                 have enabled them to become more
technology workforce both a catalog of             efficient and to continue to maintain their
coursework that is available as well as a          competitiveness in the global marketplace.
“core curriculum”, that is, a series of training   Utilizing a systematic model allows
modules, most of which will be available           companies to implement change initiatives
through distance learning technologies, that       quickly and efficiently across their
focus on key areas of change.                      organizations and to maintain a culture of
                                                   continuous change. DoD will routinely use a
     Significant among these initiatives, are a    proven enterprise change model to rapidly
new web-based course on commercial                 implement the business process changes
supply chain management developed, at no           required to better support the warfighter. To
cost to the Department, by the National            accomplish this goal, the Department and its
Contract Management Association in                 leadership will:
partnership with the National Association of
Purchasing Management (which has now                  Provide commitment and continuing
been taken by more than 2000 members of                advocacy of change. They provide the
the acquisition workforce), and a special              vision, goals, and recognize change
commercial practices “immersion” course                agents;
provided by the Darden School of Business             Establish action acceleration workshops
at the University of Virginia (through the             to identify and train change agents;
Defense Acquisition University), for senior           Initiate rapid improvement teams (RITs)
military and civilian acquisition leaders.             to change specific processes and
Early in calendar 00, the Department will              cultures;
also launch a new offering from                       Create a change management office to
NCMA/NAPM, focused on the acquisition of               sustain endeavors begun under the
services in a performance-based                        change management model; and
environment. The Department has also                  Ensure accountability of the business
launched a full review of its acquisition              unit manager and their teams to
management courses (including a                        implement and achieve bottom line
restructured approach to the Department’s              objectives of the enterprise and
program management training) and has                   business unit.
recently launched a major initiative to define         Enterprise “outcome-driven performance
the future acquisition workforce and develop       scorecards” will be developed for each
a career management strategy designed to           performance outcome goal and used to
help ensure that the Department’s career

12/04/11                                                                                      9
measure progress against established             reform and the direct benefits of
outcome-driven performance baselines. The        accelerating reform progress across the
scorecards will measure:                         Department’s acquisition and logistics
                                                 processes. In many other cases, the
   Attainment of DoD desired performance
                                                 workforce simply has not yet been provided
                                                 the requisite tools with which to effectively
   Customer/supplier/employee                   execute the mission they have been given.
    satisfaction; and
   Achievement of reform targets.                   The “Road Ahead” for the Department,
                                                 therefore, is focused on both additional
     Leading indicators of change in this area   change and a series of initiatives designed
will be measured by the annual acquisition       to provide those tools to the workforce.
reform survey. For the next survey, DoD
has targeted a 50 percent increase in the             Using this report as a baseline, DoD is
extent acquisition reform initiatives are        primed to accelerate its acquisition and
impacting people’s jobs and a ten percent        logistics reform efforts with a new set of
decrease in neutral or negative support for      initiatives designed to produce even greater
reform from management.                          outcome-driven performance improvement
                                                 results well into the next century. Through
Conclusion                                       this report and other ongoing guidance and
                                                 communications within DoD, these initiatives
    Acquisition and logistics reform             will be woven together in a comprehensive
represents a significant cultural change for     integrated plan. To make this happen, DoD
the Department’s acquisition, logistics, and     will become a learning organization that
technology workforce. Given the size and         embraces best practices, empowers its
complexity of the Department, the changes        workforce, and achieves optimal solutions at
that have been realized in just five years are   affordable costs in support of the
remarkable. Moreover, as the results to          warfighters.
date listed earlier indicate, our internal
measures clearly document significant                It will take commitment and hard work
progress as well.                                across the Department’s business
                                                 communities to accelerate progress. The
    Yet, despite the commitment of senior        Department must successfully adopt
management and much of the workforce to          performance-based, commercial business
DoD’s goals and their implementation,            processes and practices to field the most
resistance to change is still too often          technologically advanced, best-equipped,
encountered from the workforce and its           and most mission capable fighting forces in
managers. Too many still cling to traditional    the world to come. Given the progress that
acquisition and logistics practices. Others      has been made to date, there is every
have not become fully knowledgeable about        reason to believe that the Department will
the flexibility of acquisition and logistics     achieve that fundamental goal.

12/04/11                                                                                    10

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