Competition and the DoD Marketplace

Abstract

The looming budget crisis brings opportunity for improving acquisition performance. Major Department of Defense (DoD) budget cuts are certain, creating an even greater need to rein in costs. From almost every vantage point—including ship, aircraft, space-ground system development, military construction, modernization, and sustainment—acquisition costs have escalated (Ewing, 2012). A new strategy is needed to drive down costs, spur innovation, and improve acquisition performance. It is these authors’ belief that by using an Open Business Model, Open Systems Architecture practices, and simultaneously creating a competitive marketplace, the DoD can significantly reduce the impact of the coming budget cuts. This paper identifies the general aspects of an alternative acquisition model. We will report a relevant example of success that had dramatically better acquisition performance than the current one and will discuss how the DoD can transition to this model to avert the coming crisis for the U.S. DoD Enterprise.