A case study: acquisition reform and the new V-22 OSPREY program

Abstract

This thesis provides background information on the once canceled V-22 program and acquisition reform and then examines the impact of the latter on the former. It analyzes the V-22 program using DoD's ten guiding principles of acquisition reform as a standard and concludes that acquisition reform is having mixed results on this Major Defense Acquisition Program. Much is being accomplished with acquisition reform in the V-22 program. A transformation of the business process from the top down is enabling the program office and its prime contractors to optimize cost, schedule, and performance. Earned value management metrics are actively being incorporated into the program's risk management process. Concurrent contractor Government testing and maintenance reduces test time required by 72 percent Cross functional IPTs, as the backbone of the program, are breaking down stove pipes and facilitating concurrent engineering. Successfully implementing initiatives like CAIV and CLS and focusing on overall cost of ownership are reducing the cost of the program from cradle to grave. Commercial products and processes, like the Allison AE-1107C engine and CATIA software, are providing high quality systems at market controlled prices. Commercial item acquisition and CLS are being used effectively to minimize life cycle costs. Win Win contracting with industry is providing engine reliability that should improve with time and save 30 percent in support costs. Much can be accomplished still. Realistic contingency finding should be included in fiscal budgets to eliminate the migration of funds from R&D and PROC to O&S. SPI should be altered to pass a proportion of any program related savings back to the program office