Responses must be a minimum of 150 words and include direct questions.

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Original Discussion Question: Define Best Value Contracting, and briefly describe the contractor's role in an Integrated Process Team (IPT).

Assignment: Respond to the 3 students below. Responses should be a minimum of 150 words and include direct questions.

STUDET 1: Tyler

Good evening class,

We are tasked to define best value contracting and to describe the contractors role in the integrated process team. Best value contracting is used by the Department of Defense to award contracts based on the best overall value. Multiple factors are considered when awarding contracts to determine what would fit best. These factors include cost, performance, quality, and schedule and compares other factors to determine which would be the best fit and best value. Rather than just buying from the lowest possible contractor, DoD analyzes which would best fit overall. This makes sense because in the long run, you get what you pay for. We might have to pay a little bit more for a contractor but the quality of work is better, the overall performance of the contractor is better, and they have proven to keep on time schedules. Losing time and money in quality and performance in the long run would cost more to the DoD if they chose the lowest costing contractor initially.

The contractor's role in an integrated process team is to identify and resolve issues with representatives from the appropriate disciplines that are working together on a project. These representatives will work together to make timely recommendations and decisions for complex development programs. The use of IPT is very vital because all stakeholders are collaborating together to optimize design and manufacturing processes. This allows everyone to be on the same page when working on a project and to ensure that multiple chains' of commands are not dishing out false or inaccurate information.


STUDENT 2: Adam

The best value contracting approach, allows contracting officials to closely examine, evaluate and rate contractors on their respective qualifications and performance capabilities and choose the best qualified contractor who offers the best price. Best value contracting ties all the following initiatives together in order to mane a through quality-based contracting decision. These initiatives are as follows, successful best value contracting requires, early determination of key parameters, time and money are interchangeable at this point and lastly that the development of performance requirements are prioritize in the correct order. BVC is when both the contractors and subcontractors are required to comply individually with pre qualification and active apprenticeship requirements.

An Integrated Product Team (IPT) is a team composed of representatives from appropriate functional disciplines working together to build successful programs, identify and resolve issues, and make sound and timely recommendations to facilitate decision making (AcqNotes). So how does a contractor play a role within the Integrated Process Team (IPT)? A contractor will overall ensure that the government meets its contractual obligations. While doing that they will also monitor the performance and progress of the contract to ensure that all contract requirements have been met within the specified performance period.

Within the Coast Guard we have technical experts who can provide insight into solutions like detection or sensor technologies that are so valuable to law enforcement. These integrated process teams that the Coast Guard provide are the members who understand the challenges as well as members who understand the needed solutions.


STUDENT 3: Samantha

Best Value Contracting refers to the government’s obligation to get the best value out of whatever is being acquired. This includes aspects such as cost, performance, quality, and schedule and it can also mean the government needs to make certain trade offs between cost and non-cost factor. The government cannot just always go with the lowest bidder because that could wind up with a product that has quality issues and end up being more expensive in the long run. They also cannot always go with the most expensive bidder as well because there is an obligation to keep the price of acquisitions reasonable. This is when a Contract Officer would need to weigh the choices together and go for the contract that provides the best overall value for the government at the sweet spot between quality and cost effectiveness in order to avoid going with something with a high initial cost, or going with something that can cost more long term in maintenance costs.


A contractor’s role in the Integrated Product Team would be to collaborate with the other members of the team to ensure proper execution of whatever the team is gathered for. The Integrated Product Team is put together in order to collaborate and build successful programs, identify and resolve issues, and make timely recommendations that will allow for effective decision making. This team would be beneficial for a contractor to be a part of considering that it gives them the opportunity to gather more knowledge about certain aspects of an acquisition from people with years of experience which can allow for a smarter way of working.

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DEFM 311 Program Management Professor Ryan Funkhouser Objectives • Distinguish among program, project and product management terms. • Describe the major tasks performed by a program manager. • Discuss the variables a PM must influence. • Compare the strengths and limitations of matrix and traditional organizations. • Describe 3 reports a PM must submit. • Differentiate between WIPT and OIPT. What is an Acquisition Program? A directed, funded effort that is designed to provide a new, improved, or continuing weapons system or automated information system (AIS) capability in response to a validated operational need. DoD 5000.2-R What Is Program Management? The process of planning, organizing, staffing, controlling, and leading a defense acquisition effort through development, production, deployment/fielding, and disposal. Note: these are the managerial functions! Criteria for Program Management • High dollar value. • Defense urgency - high priority effort. • Service [e.g., Army] or OSD recommendation based on: – Technical involvement. – Organizational complexity. – High level interest. 3 Levels of Project Management TITLE RANK / GRADE ACQUISITION CATEGORY PROGRAM COSTS PMs TENURE Program Manager MDR GEN OFF / SES Project 4 or Manager MDR COL / GS 15 Project or Manager COL / GS 15 Product Manager LTC / GS 14 GS 15 ACAT 1 D (DEFENSE) 1C (SERVICE) 1 AM or (MAIS) 1AC II $365 M RD&TE $2.19 B PROC 4 or $365 M RDT&E $2.19 B PROC $126 M Program Costs $378 M LIFE CYCLE $32M Single Year $140M RDT&E $660M PROC 4 MDR 4 or Program Executive Officer Ground Combat Systems Role of the Program Manager 1. Serves as a materiel developer. 2. Plans and manages acquisition programs IAW policies and procedures. 3. Provides guidance, oversight and control to ensure project is developed IAW charter. 4. Develops and submits resource requirements. 5. Develops and gains support for the APB. Role of the Program Manager 6. Ensures the APB and RFP are complete and implements the ORD. 7. Prepares and submits timely reports. 8. Implements the IPT concept. 9. Coordinate HTI considerations, if applicable. 10. Serves as configuration manager. 11. Reduce program risks whenever possible. Program Manager’s Charter • • • • • • • • Name of the program manager Supporting activities Detail of support being provided Authority of the program manager Reporting channels Program element(s) Special instructions Termination of the PMO SPECTRE PM DoD PM Policies • • • Acquire quality products that satisfy user needs. Implement a robust science and technology program that will ensure a technologically superior force. Ensure operational support for systems – use a total systems approach. DoD PM Policies • Create a long range investment strategy to support military into the future. • Use commercial products when feasible. • Foster competition when feasible. DoD PM Policies • Rely on Best Practices and reduce Government-unique specifications. • Use advance procurement when it makes good business sense. • Develop an acquisition strategy that includes open systems, risk management, M&S, warranties, and environmental considerations. DoD PM Policies • Continuous Acquisition and Life-Cycle Support (CALS) – on-line access to contractor-prepared technical data. • Streamline acquisition programs. • Consider potential for international participation in program. • Encourage joint programs. DoD PM Policies • PEO given program responsibility unless an exception is made. • Maximize use of DCMC personnel at contractor facilities. • Environmental, safety and health considerations included in the acquisition strategy. DoD PM Policies • Modeling and Simulation will be applied throughout the program when appropriate. • Ensure Best Value when planning depotlevel support for the system. • Use warranties when cost-effective. • Maintain control over government property issued to contractors. DoD PM Policies • Integrate DT, OT, LFT&E, and M&S into an efficient continuum. Avoid duplicating tests. Organizing the PMO USD (AT&L) or ASD(C3I) AAE PEO PM FY02 PEO Structure Previous PEO/DSA Structure New PEO Structure PEO, AVIATION PEO, AVIATION PEO, TACTICAL MISSILE PEO, SMART MUNITIONS PEO, AIR AND MISSILE DEFENSE PEO, AIR AND MISSILE DEFENSE PEO, INTELLIGENCE, ELECTRONIC WARFARE AND SENSORS PEO, INTELLIGENCE, ELECTRONIC WARFARE AND SENSORS PEO, GROUND COMBAT & SUPPORT SYSTEMS PEO, GROUND COMBAT SYSTEMS DCG, ACQ, SMDC ALIGN PROGRAMS UNDER BMDO & PEO, AMD PEO, STANDARD ARMY MANAGEMENT INFORMATION SYSTEMS PEO INFO SYS ALIGN ORGANIZATION UNDER PEO, C3P DSA, AVIATION & MISSILE COMMAND ABOLISH DSA, COMMUNICATIONS-ELECTRONICS COMMAND ABOLISH DSA, TANK-AUTOMOTIVE & ARMAMENTS CMD ABOLISH ABOLISH, REMAINS CIO, NGB; PMs TO PEO, C3P JOINT PM, BIOLOGICAL DEFENSE PEO, CHEMICAL/BIOLOGICAL DEFENSE PEO, COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS PEO, COMMAND, CONTROL AND COMMUNICATIONS, TACTICAL PEO, INFORMATION STRUCTURE PEO, COMBAT SERVICE/ COMBAT SUPPORT SYSTEMS PEO, AMMUNITION PEO, SOLDIER Traditional PM Organization Program Manager Logistics Research and Development Training Production Business Management Technical Management PM with Multiple Products Program Manager Product Manager A Product Manager B Product Manager C Matrix Support • PM/PEO responsible for program success. • PM/PEO (as materiel developer) decides on source of program support – either materiel command or contractor. • Use OMB Cir A-76 (cost comparison) for determining best value. PM w/Matrix Support Commodity (Materiel) Command Program Manager Maintenance Materiel Management Functional support to the PM Procurement Production Advantages of Traditional PMO • PM has full line authority. • All members directly responsible to the PM. • Shortened lines of communication. • Maintains a permanent cadre of experts. • Strong and separate identity. • Quick decisionmaking. • Unity of command. • Structurally simple and flexible. • Supports a holistic approach. Advantages of Matrix PMO • The project is the • Better usage of point of emphasis. corporate resources. • Reasonable access to • Maintains consistency a large reservoir of with corporate experts. policies. • Rapid and flexible response to clients. • Less anxiety when the project is completed. Working With Others • Program managers must work with others in order to accomplish the mission. • The most successful program managers have the ability to get others to work with them. Integrated Product and Process Development (IPPD) A management technique that 1. Integrates all acquisition activities through multidisciplinary teams. 2. Optimizes the design, manufacturing and supportability processes. 3. Facilitates meeting cost and performance objectives from concept through production, including field support. 4. Key tenet is multidisciplinary teamwork through Integrated Product Teams (IPTs). Integrated Product Teams • IPT - Integral part of the oversight and review process. - Overarching IPT (OIPT) - top level OSD review. - Working level IPT (WIPT) - focuses on one topic. - Program Office IPT - assists the PM manage day-to-day activities. IPT Authority • The team should be given – Authority – Responsibility – Resources to manage its product and its risk commensurate with the team’s capabilities. Overarching IPT Focus • • • • Strategic guidance Tailoring Program assessment Resolve issues elevated by Working Integrated Product Teams Responsibilities • Program success • Functional area leadership • Independent assessment • Issue resolution Working level IPT Focus Responsibilities • Planning for program success • Opportunities for acquisition reform • Identify & resolve program issues • Present program status • Functional expertise • Empowered contribution • Recommendations for program success • Communicate status and unresolved issues Program IPT Focus • Program execution • Identify and implement acquisition reform Responsibilities • Manages complete scope of program, resources and risk • Integrates Government and contractor efforts • Reports program status and issues Milestone Decision Authority DAB or MAISRC Overarching IPT Oversight & Review Contracting IPT Execution Test IPT Other IPT (As needed) Program IPT WIPT Cost/Performance IPT PM / TSM Relationship • PM with AAE/PEO Charter authority and monetary resources. Has overall responsibility for systems development, acquisition, and fielding. • TSM with TRADOC Charter authority, interfaces with PM throughout development and acquisition processes to ensure user requirements are a major factor in all program decisions. Defends the program against challenges of system need. PM/TSM Interface • Technical feasibility • Acquisition Plan and Strategy • Technical demonstration • Developmental testing • System fielding • Concept definition (MNS) • Operational Requirements Document (ORD) • MANPRINT • User’s operational testing • Force integration Systems Integrator (DCSOPS) • Assigned to ODCSOPS. • Validates QQPRI. • Develops the Army position on proposed MNS. • Identifies and coordinates the system and organization. • Resolves fielding issues. And….. Systems Integrator (DCSOPS) • Coordinates doctrine and organization development. • Monitors development, testing, procurement and fielding activities. • Establishes distribution and redistribution priorities. Acquisition Categories (ACAT) ACAT 1D: Major Defense Acq Pgms ACAT IC: ACAT IAM: Major AIS Acq Pgms ACAT IAC: Major Systems all other systems (except for Army ACAT II:* ACAT III: Navy, USMC) Army Navy USMC ACAT IV: • DAB review • Designated by DAE • Decision by DAE • Component review • Designated by DAE • Decision by Svc Sec/CAE $365M RDT&E or $2.19B Procurement (FY2000 Constant $) • ITOIPT review • Designated by ASD(C3I) • Decision by ASD(C3I) • Component review • Designated by ASD(C3I) • Decision made by Component Chief Information Officer $378M Life Cycle Cost or $126M Total Prog. Cost or $32M Prog. Cost in any single year (FY2000 Constant $) • Does not meet ACAT I Criteria • Designated by Svc Sec/CAE • Decision by Svc Sec/CAE $140M RDT&E or $660M Procurement (FY2000 Constant $) • Does not meet ACAT I, IA or II Criteria • Designated IAW Component policy • Decision at lowest appropriate Level • Not otherwise designated ACAT I, IA, II or III • Designated IAW Component policy • Navy/USMC ACAT IVT/IVM • Decision at lowest appropriate level *Army has an ACAT IIA category for AIS reviewed at Army CIO level No Fiscal Criteria See AR 70-1 (Army) & SECNAVINST 5000.2B (Navy and Marine Corps) Milestone Review Process (Illustrative) • Make ACAT IAM ASD Decisions (C3I) • Signs ADM • Reviews CAE/OIPT MAISRC Recommendations • Finalizes ADM ACAT IAM ACA ID & IAM • Validates Requirement • Assesses Joint Potential ACAT IC/IAC/II CAE Component HQ Review ACAT III PEO PM OIPT • Makes ACAT ID USD Decisions (A&T) • Signs ADM DAB DRB ACAT ID • Issue Resolutio n • Makes ACAT IC, IAC & II Decisions • Signs ADM JROC • Issue Resolution • Makes ACAT III Decisions • Signs ADM Overarching IPT’s (OIPT’s) Working-Level IPT’s (WIPT’s) Program Level IPT’s IPT’s assist in oversite & review Criteria to be a PM • Experience required: – Four years of acquisition experience; of which at least 2 years must have been in a program office or similar organization (defined as dedicated matrix support to a PM or PEO; DCMC Program Integrator. • Experience desired: – Two additional years of acquisition experience Criteria to be a PM (Cont.) • Education desired: – At least 24 semester credit hours from among the following disciplines: accounting, business finance, law, contracts, purchasing, economics, industrial management, marketing, quantitative methods, organization and management. – Master's degree in engineering, systems acquisition management, business administration, or a related field. Criteria to be a PM (Cont.) • Training required: – One Advanced (Level III) DAU Course in program management. Critical acquisition positions may only be filled by members of an Acquisition Corps. PM Selection Criteria Common Criteria • Outstanding performance • 2 years experience in a procurement command • Advanced PMC graduate • 8 years acquisition experience • MS or business degree • Experience in materiel management at DA or higher staff level • Senior service college grad • GO/COL/LTC(P) or civilian equivalent Special Criteria • PM Selection Board List • Branch qualified (military) • Special technical training Tenure of a PM • Four years or until completing a major program milestone. E.g., MDR B and C. • Three years for programs outside the purview of the AAE. • Failure to achieve program objectives. PM Reports • Program managers must submit a number of reports. • Some reports are prepared upon achieving a milestone event while others are calendar-based. Acquisition Strategy • • • • Top level master plan Guides entire program Unique for every program Tailored to meet specific program risks – – – – Performance Cost Schedule Expedites fielding and deployment • Updated at each milestone decision review. Acquisition Program Baseline • Sets goals for a program – Cost – Schedule – Performance (including supportability) • Goals expressed in terms of: – Thresholds – minimum acceptable level – Objectives – best capability • Submitted at each milestone review. Selected Acquisition Report • SAR is prepared and submitted to Congress for all ACAT I programs. • Software called, Consolidated Acquisition Reporting System (CARS) is used. • Provides status of total program (cost, schedule and performance) as well as unit and life cycle cost information. DAES • Defense Acquisition Executive Summary. • Highlights potential and actual project problems to the USD (ATL) before they become significant. • Deviations in APB, vulnerability assessments, etc. Objectives • Distinguish among program, project and product management terms. • Describe the major tasks performed by a program manager. • Discuss the variables a PM must influence. • Compare the strengths and limitations of matrix and traditional organizations. • Describe 3 reports a PM must submit. • Differentiate between WIPT and OIPT. Boston – The new chief of the financially troubled Big Dig construction project has fired six consulting firms, declaring it excessive to spend $439,000 per year on political lobbying and public relations. The firings came under a sweeping employee purge and spending review by Andrew Natsios. His predecessor, James Kerasiotes, was fired after a federal audit charged him with concealing a $2 billion cost overrun. The Central Artery/Third Harbor Tunnel Project will bury three miles of Interstate 93 beneath Boston. Original cost estimated at $2.6 billion, but current estimate is $13.6 billion. Source: Associated Press, 5/7/2000 Navy Anti-Missile Program's Cost Balloons By Almost $2 Billion (Defense Week, August 13, 2001) The Navy's short-range missile-defense program will cost $1.8 billion more than the service said a year ago, an increase of just over 25 percent, according to Defense Department and congressional documents. The Pentagon would not confirm or explain the cost increase, but observers said it probably was related to the fact that the program is two years behind schedule.
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