NDIA Defense Forum Breakfast

NDIA Defense Forum Breakfast

MG JEFFREY SORENSONDeputy for Acquisition & Systems ManagementOffice of the Assistant Secretary of the Army (Acquisition, Logistics and Technology)21 MARCH 2007

Agenda

• “Big A – little a” of Acquisition

• Army Budget Status

• Industrial Base

• Rapid Acquisition Process

• Summary

2

CAPABILITYNEED

ACQUIREDEVELOP

CONTRACTTEST

PRODUCEFIELD

aacquisition

OPERATE/SUSTAIN

UPGRADE/MODERNIZE

FMS

RETIREDEMIL

AACQUISITION

D O T L M P F?

RESOURCES

Doctrine, Organizations, Training, Leader Development, Materiel, Personnel, Facilities

“Big A – Little a”One Process – One Team

3

DoD Budget Authority Since WW II

$ (B

illi

on

s) C

on

stan

t F

Y07

Do

llar

s

0

50

100

150

200

250

300

350

400

450

500

550

600

650

1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

0%

10%

20%

30%

40%

Korea

Vietnam

ReaganBuildup War on

Terrorism

$618B

WW II $567B$480B

$518B $513B

DoD Budget Authority

Do

D %

of

Gro

ss D

om

esti

c P

rod

uct

(G

DP

)

KoreaKorea14.2%14.2%

KoreaKorea14.2%14.2%

VietnamVietnam9.5% 9.5%

VietnamVietnam9.5% 9.5%

Reagan Reagan BuildupBuildup

6.2% 6.2%

Reagan Reagan BuildupBuildup

6.2% 6.2%

3.0% in 2000--Lowest 3.0% in 2000--Lowest since prior to World since prior to World

War II. War II.

3.0% in 2000--Lowest 3.0% in 2000--Lowest since prior to World since prior to World

War II. War II.

GWOTGWOT3.9%3.9%

GWOTGWOT3.9%3.9%

WW IIWW II37.9%37.9%

WW IIWW II37.9%37.9%

4

Current Fiscal Guidance

$90

$95

$100

$105

$110

$115

$120

$125

$130

$135

$140

$145

$150

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

$B

Current Fiscal Guidance (Includes Growth)

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

+$68.9B

FY07 President’s Budget

Revised OctoberFiscal Guidance

Initial April 2006 Fiscal Guidance

+$52.1B

95.9

101.099.2

110.1

130.0

140.7

FY 04-06 Actuals

FY 07 Appropriation

8 Feb 07

5

Army Base + GWOT Funding – FY03-09 ($B)

0

30

60

90

120

150

180

210

240

GWOT 24.6 38.3 58.5 65.6 90.5 83.4 TBD

Base Appn 90.6 95.9 101.0 105.8 110.1 130.0 140.7

Total Army

FY03 FY04 FY05 FY06 FY07 FY08 FY09

• Army FY03-08 Supp Funding = ~ $360B• Army FY03-08 GWOT Growth = $58.8B * Note: FY 07/08 Supp requests pending

?

115.1 159.5 171.4134.2 200.6 213.4

* *

Actuals RequestNote: Figures do not include JIEDDO, ISFF, ASFF

6

Industrial Base – Family Tree

Source: SDC, DACIS DM&A

199019881980 1982 1984 1986 1992 1994 1996 1997 1998 1999

First Wave Second Wave

2000 2001 2002 2003 2004

Fairchild Weston Systems Inc.Loral

Honeywell-Electro-Optics

Ford AerospaceBDM International Inc.

Librascope

IBM–Federal SystemsUnisys Defense

General Dynamics–Ft. WorthMEL

Lockheed

General Electric–Aerospace

Martin Marietta

LTV–Missile Business

Gould Ocean System Division

COMSAT Corp.

Affiliated Computer Services Inc. (ACS)

Loral

BDM (Carlyle)

Aerospace Electronic Systems

Lockheed Martin

Teledyne Ryan Aeronautical

General Dynamics Space Business

LTV–Aircraft OperationsGrumman Corp.

Ryan AeronauticalKistler Aerospace Corp.

Alvis Logistics–EDD Business

Northrop

Logicon

Westinghouse El. Defense

TASC (Primark)PRC (Black & Decker)

General Instruments–DefenseVarian–Solid State Devices

Taratin

Litton IndustriesAvandale Industries

Newport News ShipbuildingTRW

Commercial Aerostructures

Northrop Grumman

Northrop – West Virginia

Federal Data Corp.

Lockheed Martin Defense Sys, Armament Sys

GM DefenseVeridian Corp

Primex Technologies

Computing Devices International, Inc

GTE Government Systems Corp. Units

Motorola Integrated Info Sys

Gulfstream Aerospace

General Dynamics

Lucent Advanced Technology Systems

NASSCO Holdings, Inc.

Galaxy Aerospace

Bath Iron Works Chrysler Defense, Inc

Santa Barbara

General Dynamics

Space PropulsionsSpace SystemsFort

Worth Div.

Electronics Division

Missile Operations

Rockwell

Argo Systems

Litton Precision Gear

Hughes Electronics Satellite

Boeing

McDonnell Douglas

Jeppesen Sanderson Boeing

HughesGeneral Motors

BET PLC's Rediffusion Simulation

MagnavoxREMCO SA

STC PLC–Navigation SystemsTRW-LSI Products Inc.

Corporate JetsE-Systems

Chrysler Techn. AirborneTexas Instr. El. Defense

Raytheon

General Dynamics Missile Division

Eng & Const.

Int’l

Aircraft Integration

Systems Segment

Vertex Aerospace

Hughes ElectronicsRaytheon

Raytheon – Flight Simulation Raython Co-Plant, Quincy

7

Big DoD Contractors Dwarf FieldLo

ckhe

ed M

artin

Boe

ing

Nor

thro

p G

rum

man

Gen

eral

Dyn

amic

s

Ray

theo

n

Hal

libur

ton

Source: DoD Directorate for Information Operations and Reports Procurement Statistics

6 Companies receive50% of payments

to top 100 contractorsFor 2006

$0

$7

$14

$21

$28

$35

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97

20

06 D

ire

ct

Do

D C

on

tra

cts

($

B)

8

Chain of Command (Theoretical)Chain of Command (Theoretical)

ASA(ALT) Mission:Effectively and efficiently develop, acquire, field, and sustain materiel by leveraging domestic, organic, commercial, and foreign technologies and capabilities to meet the Army’s current and future mission requirements.

SVC Program Manager+30 People

PEO

AAE

DAE

9

White House

CongressSecretary

OfDefense

OMBJointStaff

GAO DOTE DAE DoDIG Press

OSD POLAppointees

Press CongressAT&LStaff

OGC SVC Secretary AAE ARSTAFF IDA’S

DCMA Secretariat AAA Staffers DCAA

ATEC AMC PEO LCMC XXXX

Users OTC Staffers MACOMS

SVC Program Manager+30 People

Chain of Command (Realistic)Chain of Command (Realistic)

10

Spiral Development Balancing Act

11

0

10

20

30

40

50

60

70

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Nu

mb

er o

f R

ebas

elin

es o

ver

tim

e p

erio

d f

rom

198

8-20

05

Group A

Group B

Group C

Cumulative

PBDsPDMsAuth. ActApprop. ActDoD Budget

Data over 17 years serves as a heads up!

Is this known occurrence factored into OSDand Joint Staff processes and planning?DoD Budget

OMB

President’sBudget toCongress

ACAT 1 Programs - Cumulative Rebaselines by Month

(Period over 1988-2005)

ACAT 1 Programs - Cumulative Rebaselines by Month

(Period over 1988-2005)

12

Current Process

ONS AR2B DEVELOPMENT/PROCUREMENT

SAFETYRELEASERELIABILITY

FIELDOIF / OEF

Accelerated Process

DoD 5000

13

# of Approved Operation Needs Statements (ONS)

0

200

400

600

800

1000

1200

1400

1600

1800

FY03 FY04 FY05 FY06

Communicate

Shoot

Support

Protect

Move

Other

14

FCS Brigade Combat TeamManned Ground Vehicles (MGV)

Non-Line of Sight Cannon(NLOS-C)

Non-Line of Sight Mortar(NLOS-M)

Medical VehicleTreatment (MV-T)

FCS Recovery and Maintenance Vehicle (FRMV)

Unmanned Aerial Systems (UAS)

Class I UAV Class IV UAV

Unattended Ground Systems (UGS)

Tactical and Urban Unattended

Ground Sensors

Unmanned Ground Vehicles (UGV)

Small UGV (SUGV)

Armed Robotic Vehicle – Assault (Light) (ARV-A-L)

MULE-C MULE-T

Mounted Combat System (MCS)

Infantry CarrierVehicle (ICV)

T-UGS U-UGS

Medical VehicleEvacuation (MV-E)

Non-Line of Sight Launch System

(NLOS-LS)

Multifunction Utility/ Logistics

and Equipment Countermine and

Transport

Reconnaissance And Surveillance Vehicle (RSV)

Command andControl Vehicle (C2V)

Common Chassis

6 Feb 07 15

FCS (BCT) System-of-Systems Schedule

16

Future

Related Advanced Developments

– ARH (2009)– LUH (2008)

– DCGS-A (V3)

(2007)

– Excalibur

(2007)

HeavyInfantry StrykerFCS

HeavyInfantry Stryker

– WIN-T (2014)– JTRS AMF (2011-12)– JTRS (GMR/HMS)

– Apache Longbow Block III (2011)

Lessons learnedOIF and OEF

RAVEN Tactical UAVInterceptor Body Armor (IBA)Counter IED (Warlock, Duke)

Uparmored Vehicles (UAH, AoA)Buffalo mine-clearing vehicle

2004-2006

2006-2010 2010 and

beyond

FCS – System Development and DemonstrationSpin-out 1

FY 2008-10 Spin-out 2

FY 2010-12 Spin-out 3

FY 2012-14 Networked Sensors/ Shooters

- Limited Battle Command

- JTRS (GMR/HMS)

- Unattended ground sensors

- Non-line of sight launch systems

Systems/ Component -APS

- Mast Mounted Sensor

Options: - Small UGV - Class 1 UAV

Network and Ground/ Air Vehicles- ABCS to FCS Battle Command

- ARV-A-L- Small UGV- Class I UAV- Class IV UAV

Core Program Delivery FY 2015

Joint Networked System of Systems

Current To Future Force through Technology Spin Outs

Fielding 6 current force BCTs/yr (70) Fielding 6 current force BCTs/yr (70) Fielding 6 current force BCTs/yr (70) Fielding 6 current force BCTs/yr (70)

Fielding 15 FCS BCTsFielding 15 FCS BCTsFielding 15 FCS BCTsFielding 15 FCS BCTs

Current

17

Current GWOT Support – PEOs/PMs

Military

Government

Contractors

85

38

2870

Total 2493

18

Way Ahead

• “Big A – little a” Acquisition

• Health of Industrial Base Critical to Success

• Rapid Acquisition – Team Sport!

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Bottom LineBottom Line

Program Manager’s Ultimate Decision Tool:

When All Factors Are About Equal,What Is Best For The Soldier?

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