Chapter 2 - High Impact Agencies

To achieve Vice President Gore's goal to restore Americans' trust in government, the National Partnership for Reinventing Government (NPR) established thirty-two High Impact Agencies (HIA) (See Annex D for full listing). The leaders of these "High Impact Agencies" were challenged to commit to a small number of significant, concrete and measurable goals that can be achieved over the next three years that are focused in three specific areas: customer service, partnerships and information technology (Figure 2-1). The Department of Defense is one such agency and its focus is acquisition reform.

On July 9, 1997, Secretary of Defense Cohen forwarded Vice President Gore his three-year acquisition goals for the Department of Defense. Secretary Cohen directed the Secretaries of the Military Departments and the heads of other DoD components to assume responsibility for accomplishing these goals. A cross-functional NPR Integrated Process Team was developed to achieve the NPR- HIA goals listed in Annex D of this report.

Acquisition Reform

As the United States approaches the new millennium, today’s Army faces unprecedented challenges. Simultaneously, the Army must sustain the ability to actively support the U.S. Military's worldwide mission and find a way to do so with dwindling resources. One of the ways the Army is responding to these challenges is through the aggressive implementation of acquisition reform initiatives.

In contrast to the lengthy weapons systems acquisition process of the past, the Army has focused on a strategy that is designed to foster innovation in order to get new technology into the field faster and at a lower overall cost. There is more reliance on commercial practices and using off-the-shelf technology. New ways of thinking are inspiring initiatives such as providing industry with incentives to innovate and devising new rules and policies that give the acquisition workforce the tools it needs to remove barriers and apply good business practices at all levels of decision making.

The overarching strategies that empower the Army to achieve continuous, measurable improvements in acquisition processes and will ultimately allow us to field a technologically superior force for the 21st Century are:

• Defining Desired Outcomes
• Removing Barriers to Business Judgement
• Providing Acquisition Reform Tools
• Using Metrics to Measure Progress
• Empowering Individuals to Use Their Own Judgment for Business Decisions
• Managing for End Results

The Army, in partnership with other defense agencies, has been successful in cutting red tape in the acquisition area. We've eliminated barriers to buying commercial technology, raised the limit on small purchases to $100K and allowed use of simplified procedures up to $200K for contingency contracting. We've supported the Department of Defense (DoD) initiative to return procurement authority for information technology management to service departments and the DoD policy 5000/8000 rewrite. Along the way, we've powered down decision-making, allowing top level contracting officials to delegate authority for waivers and deviations.

Some of Army's streamlining initiatives include:

• Converting from military to performance specifications
• Upgrading weapons systems by modernizing spares
• Adopting commercial practices
• Reducing sample lot testing by using product and process performance
• Using prime vendor contracting
• Emphasizing Cost as an Independent Variable
• Implementing the Single Process Initiative

We've taken the best business practices from Government and industry and put them to work for the Army. Practices adopted include:

• Alternative Disputes Resolution (ADR) to resolve disputes in a fair, timely, cost effective manner.
• Partnering to set the stage for good planning and problem resolution. The Army Corps of Engineers has been recognized for expertise in this area.
• Improved debriefings to reduce the risk of litigation.
• Acquisition Reform Incentives Clause to share savings achieved in the manufacturing and management process 50/50 between Government and industry.
• Maximize the use of Integrated Product/Process Teams to streamline the acquisition process.
• Alpha Contracting to team Government and industry early in the contracting process.
• Oral proposals to encourage an exchange of ideas and promote understanding.

The impact of using new acquisition tools and techniques has been significant. We have saved money and increased efficiency. More importantly, we have been able to get better equipment into the field faster with less risk as a result of these activities. Specifically, the Army is doing things:

Better

• Creating the digitized battlefield
• Incorporating the latest technology

Faster

• Reducing Administrative Lead-Time (ALT) for spare parts by 33%
• Reducing Procurement Administrative Lead-Time (PALT) by 38%

Cheaper

• Total Savings of $10.4B

• $6.3B from major systems
• $2B in non-major programs
• $156 million in testing
• $37 million by using modeling and simulation
• $10 million by using electronic commerce
• $1.7B by cutting overhead
• $184 million in contracting costs
• More than $2B of the total in cost avoidance

The Army proponent for acquisition reform is the Assistant Secretary of the Army for Research, Development and Acquisition (SARDA).

Army's "Single Face to Industry"

The Army needed a solution that would post solicitations, receive proposals and award contracts over the Internet, while providing an Army Single Face to Industry for business opportunities. The Army also needed a solution that could be tested and operational in order to be fielded with the Standard Procurement System (SPS). A World Wide Web (WWW) Integrated Process Team met January 1998 to review and consider several interface solutions. These included the U.S. Army Communication and Electronic Command's (CECOM) Total Operating Paperless System (TOPS), (U.S. Army Armament Research, Development and Engineering Center's (ARDEC) Procurement Network (PROCNET), U.S. Army Materiel Command's (AMC) Web Strategy, and the Navy's Electronic Commerce On-Line (NECO). Based on the team's recommendation, the Acting Assistant Secretary of the Army for Research, Development, and Acquisition decided to use the AMC Web Strategy, in partnership with NECO as the Army's solution for a Single Face to Industry. The Army, committed to meeting the goal of the Defense Reform Initiative (DRI) has already begun to develop the tools necessary for paperless contracting. Among these is a World Wide Web interface for industry to search for and respond to all new business opportunities within the Army, known as the Army's Single Face to Industry: http://www.army-acquisition.net

AMC Places Source Selection Tools on the Web

The U.S. Army Materiel Command (AMC) established a "one stop shop" on the Internet where you can get the latest source selection guidance and quickly find and share lessons learned. The site can be accessed via the "Source Selection Resource center" at http://www.amc-acquisition.net.

CECOM Moves Toward Paperless Contracting

The U.S. Army Communications-Electronics Command's (CECOM) Acquisition Center successfully utilized its Acquisition Center Business Opportunity Page (ACBOP) to facilitate the negotiation process for the Thermal Omnibus Source Selection.

Items For Negotiation (IFNs) were securely disseminated electronically via the World Wide Web to each offeror. The IFNs are encrypted so that only each offeror can view their own respective IFNs. This was the first acquisition to utilize this new feature of the ACBOP. Offeror responses will also be returned to the Government via this secure electronic transmission link. The Thermal Omnibus acquisition is a competitive Best Value Source Selection with an estimated award value of $350 million.

CECOM has been directed to expand this program Army-wide for acquisitions over $100K. Additionally, the U.S. Navy, the State Department, and the Department of Energy have adopted this application.

Sale and Exchange of Non-Excess Personal Property

The Department of Defense (DoD) granted the Army a waiver to DoD policy until August 1, 1999, to allow sale as well as exchange of old or obsolete non-excess property. Without the waiver, existing DoD policy authorizes only exchange authority. In acquiring personal property, an agency may exchange or sell similar items and apply the allowance or proceeds as payments, in whole or in part, for the property acquired. If the sale or exchange authority is not used, old or obsolete equipment is generally declared excess and then screened for possible use by other Government agencies before it is disposed of by either donation or sale. The Army would receive no value for the equipment. With the waiver, sale or exchange permits the Army to receive value by applying the proceeds or exchange credits towards the acquisition of similar items.

An example of the use of the exchange authority is provided by the Army Materiel Command (AMC). The AMC Firefinder Product Manager, with support from the Communications-Electronic Command (CECOM) procurement office, executed an equipment exchange on 26 February 1998 under the DOD provisions for sale and exchange of old or obsolete non-excess personal property.

The government provided two existing AN/TPQ-36 mortar locating radar systems (valued at $1.3M each) to Raytheon Systems, who will sell these systems to a friendly country. In return, the Army receives two new antennas for the Q36 (valued at $2.8M) from Raytheon Systems.

The Product Manager will also receive a prototype capability for the Firefinder digitization effort, which had been unfunded until 1999. The result is a win-win for all. The Army gets a net economic advantage of $3M, new Q36 antennas and an early program start. Friendly countries obtain needed radar systems and Raytheon receives profit from the sale.

Other examples include exchanging old helicopter engines for credit during remanufacturing and systems upgrading and the exchanging of old and obsolete tank turret trainers for new ones.

Army's and the Department of Defense's (DoD) efforts to reduce merchant fees associated with acceptance of the Government Purchase Card for large payments are finally paying off. Master Card and VISA approved new reduced merchant fees for transactions with the Government in the $4,000 - $5,000 ranges. This reduction in the average 2% fee merchants pay on each card purchase will pave the way for increasing the use of the card without additional costs being passed on to the Government.

Boeing determined it could save as much as $100 if they did not have to process the Department of Defense (DoD) unique invoice (DD250) through the Defense Finance Accounting Service (DFAS) for payment. Also, 75% of the value of the purchase would be saved if payment to the contractor were made within 72 hours. Therefore, if the merchant fee was within the .75% and $100, no costs are passed on to the buyer (DoD). Both card association interchange rates are close to this figure, making the card more attractive to wholesale and DoD unique industries which have not previously accepted the card for payment.

AMC Uses Commercial Packing for 5.56mm Ammunition

For the first time, in lieu of metal ammunition cans and wire bound crates, the Lake City Army Ammunition Plant (LCAAP), U.S. Army Industrial Operations Command, packed rounds of the 5.56mm (M855) training ammunition in commercial packaging. The benefits of this alternate packing method for small caliber training ammunition are reductions in five areas: packaging cost (by approximately 50 percent); weight; Government furnished materiel (GFM); warehousing requirements; and disposal costs. The new packing facilitates the Direct Vendor Delivery (DVD) approach and is environmentally friendly. The LCAAP retains the capability to do DVD using standard military packaging for all ammunition manufactured at the facility.

The AN/ARC-210 Aircraft Radio - Modernization Through Spares (MTS) Success Story

The Modernization Through Spares (MTS) initiative is an integral part of the AN/ARC 210 improvement program. Production and spares procurements are linked within the performance based procurement approach. The government and contractor Integrated Product Team shared risk and responsibility, negotiating a contract for a reliability improvement warranty which included a 120 percent Mean Time Between Failure (MTBF) growth. The contract required the government to reduce the level of configuration control and established the contractor as the systems repair depot.

Financial incentives to the contractor included a 5-year fixed price warranty on all units and incentives for exceeding MTBF guarantees. The results include a 25 percent reduction in unit costs; elimination of non-value added military specifications, technology insertion, and an increase in MTBF of more than 120 percent and configuration control by the contractor. Initiative Fielded Upgrades are:

Fort Knox uses the IMPAC Card to Procure Supplies Faster, Cheaper and Smarter

The Fort Knox Director of Contracting (DOC) recently solicited bids for 1800 items using the Federal Acquisition Regulation (FAR) Part 12 Procedures for commercial items. They made multiple awards for one-year using firm-fixed-price Indefinite Delivery/Indefinite Quantity (ID/IQ) contracts to purchase supply items.

Sixteen awards were made to thirteen small and three large businesses. The small business awards represent approximately 96% of the total estimated contract dollar value.

The ordering and payment process of the government purchase card program is consistent with the Army's "paperless contracting" objectives. Order processing time under the old concept averaged three days while the current process averages one day. Through the first two weeks of the contract period, 89.1% of the 275 line items ordered were received within 72 hours.

Overall, Fort Knox customers are procuring supplies faster, cheaper and smarter. The Directorate of Logistics (DOL) inventory levels have been significantly reduced and or eliminated. Contractors are paid faster, interest payments under the Prompt Payment Act have been eliminated, and invoice payments through Defense Finance and Accounting Service (DFAS) are reduced to one transaction a month to reimburse the International Merchant Purchase Authorization Card (IMPAC) Services for vendor pay.

The Fort Knox Directorate of Contracting (DOC) is the first in U.S. Army Training and Doctrine Command (TRADOC) to implement this new acquisition reform initiative to procure the Directorates of Logistics (DOL) and Public Works (DPW) recurring supply items. This concept represents a joint effort by the headquarters TRADOC Directorates for Acquisition and Logistics and the Fort Knox DOC and DOL. Fort Knox was selected as the test site for TRADOC, based on their experience and success in the award and administration of Indefinite Delivery/Indefinite Quantity (ID/IQ) contracts, using the IMPAC purchase card in lieu of hard-copy delivery.

CECOM Capitalizes on Acquisition Reform (AR) Initiatives

Aggressive implementation of Acquisition Reform initiatives certainly produces dramatic results. Within a cycle time of only 61 days, the U.S. Army Communications-Electronics Command (CECOM) Acquisition Center recently awarded two multi-year contracts (split award) for Enhanced Third Generation Night Vision Devices, an ACAT-III program. Collectively, the firm-fixed-price contracts, which provide for aviator and ground night vision goggles and associated spares, could potentially approach a total value of $367M.

The contracts capitalized on the successful use of several acquisition reform streamlining initiatives. The acquisition strategy included using best value procedures, oral presentations, performance specifications as "Information Only," an integrated Statement of Work, and electronic issuance of solicitation and amendments via the Internet based CECOM Acquisition Center Business Opportunities Page (ACBOP) (http://abop.monmouth.army.mil).

Adding to those initiatives, the CECOM Acquisition Center's approach also employed other noteworthy initiatives such as the use of Cost as an Independent Variable (CAIV) pricing threshold; the DCMC-assisted oral past performance presentation; oral Items For Negotiation (IFN); and increased weighting applied towards evaluation of more recent past performance.

Uniquely, a "dollar for dollar" credit was applied towards an offeror's total evaluated price through a trade-in initiative. This "win - win" initiative allowed the government to trade-in excess depot stock of night vision tubes and systems to an offeror for potential commercial applications, and in return apply received credit towards the purchase of newer tubes and systems.

Purchase Card Management System

The U.S. Army Soldier and Biological Chemical Command, Soldier System Center (SBCCOM-SSC) developed the U.S. Army Materiel Command (AMC) Purchase Card Management System. This system involves paperless documentation, approval processing and financial transaction processing of government credit card purchases. The AMC Purchase Card Management System provides a centralized database for recording all credit card purchases.

The document-based system allows all users to submit credit card purchase requests and route them for approvals and purchasing. It also allows credit card holders to record their ordering and payment activities, thus creating financial records (i.e., commitments, obligations, expenses and disbursements) for each purchase. These records are then downloaded to the correct government financial system.

This initiative has numerous benefits to the command:

• Dramatic decreases in processing efforts of small purchases made with Government credit cards.
• Lead time studies have shown a thirty-percent decrease in the time a request for purchase has been placed to the time the order is made.
• No additional personnel are needed to input financial transactions of the credit card purchase.
• Property book officers have more reliable information.
• Purchases are easily tracked and monitored.

Streamlined Acquisition for Army's New Field Laundry Advanced System

The Laundry Advanced System (LADS) is the Army's new field laundry that washes and dries 200 pounds of uniforms per hour in each of its two drums. Each drum performs the wash, extract, and dry cycles, eliminating the need to transfer clothing from the washer to the dryer.

The contract executed for this program is a major departure from the Government's former acquisition process. The statement of work is based on "performance requirements" of the contractor. The acquisition team specified "best commercial practices" instead of using "military standards", and substituted written documentation (statements of compliance) from the LADS contractor in lieu of minor testing wherever feasible. Additionally, contractors participated in "Oral Presentations" versus written proposals thereby significantly reducing the proposal review process.

The system was procured using a "risk management" versus "risk avoidance" approach. By combining a research and development effort with a production contract, the risk of receiving different equipment delivered from alternate contractors was minimized. This process allows the team to minimize verification on the production units while effecting significant savings in cost and schedule. This has resulted in significantly reducing the total acquisition cycle, thereby producing a fully equipped active duty laundry organization seven months ahead of the original schedule.

The U.S. Army Soldier and Biological Chemical Command, Soldier Systems Center (SBCCOM-SSC) achieved a 43% reduction in PALT for large contracts (over $100K) from FY94 through FY97 with a concurrent reduction of 32% for simplified purchases for the same period. This is as much of a reduction in PALT as is possible and practical. With the extensive use of long-term contracts such as Indefinite Delivery/Indefinite Quantity (ID/IQ) orders, PALT is significantly reduced for individual orders.

By implementing and practicing acquisition reform (AR) initiatives, the Natick Soldier Center of Excellence, was able to expedite the procurement, manufacture, and delivery of critical life saving items for use by our troops in Bosnia.

By teaming with industry, the groups formed were able to meet the one common goal of supporting the soldiers. The teams awarded contracts to manufacture 350 Ranger Body Armor (RBA) vests and 180 Body Armor Sets, Individual Countermine (BASIC) within three days of the request and delivered all items to U.S. Army Europe (USAREUR)/Bosnia within 45 days.

Palletized Load System (PLS) Alpha Contracting Success Story

The Project Manager's Office for Heavy Tactical Vehicles used the Alpha Contracting process for the award of the PLS Engineering Mission Module program.

The process covers the concurrent development of the scope of work and the contractor's proposal to meet those requirements with evaluation and negotiation in an Integrated Product Team Environment. The Team establishes minimum requirements and then concurrently develops, evaluates, and negotiates the proposal.

Key benefits realized from Alpha Contracting application on this acquisition are, 50 percent reduction in cycle time (now three months) and in proposal preparation costs; 20% reduction in hardware costs; increased partnership and insight with the contractor and subcontractors; and maximum utilization of current commercial technology.

A STRICOM PM TRADE Success Story

The U.S. Army Simulation, Training and Instrumentation Command (STRICOM) used Alpha contracting process on a recent Foreign Military Sales procurement and saved over $50K in labor costs. Additionally, use of the Alpha contracting process versus traditional procurement procedures shortened procurement time by more than three months.

Upon receipt of government and contractor approval to use this streamlined process, a letter Request for Proposal was issued by the STRICOM Contracting Officer to begin the effort on behalf of the Program Manager, Training Devices (PM TRADE).

A working level Integrated Product Team (IPT) was promptly assembled to develop the statement of work, data requirements, and other portions of the contract. Once IPT agreement was reached on a particular issue or cost element of the contract, that portion was then put aside, and the focus shifted to another part of the contract. A list of open action items was maintained, helping the team to stay "on track".

The U.S. Army IOC Reduces Government Furnished Property at Commercial Sites

Personnel from Headquarters, Industrial Operations Command (IOC) responded admirably to a formidable challenge to streamline the equipment disposal method in the ammunition industrial base at commercial sites. The IOC's efforts are directly attributable to rightsizing production capacity from long war mobilization to replenishment after major regional conflict. Sixty-four percent of the government furnished property (GFP) in the Contractor-Owned Contractor-Operated (COCO) Industrial Base was disposed by the end of 1997. IOC personnel achieved desired cost and schedule goals in a total of 46 plant clearance actions, resulting in a one time cost avoidance of $51.8M and reduced annual retention costs from $10.5M to less than one-half million dollars ($.487M).

IOC used a number of acquisition reform techniques such as Teaming, Partnering, Alpha Contracting and Best Value in meeting this formidable challenge.

USACE Reengineers Its Research and Development Program

The U.S. Army Corps of Engineers (USACE) is reengineering its research and development program and consolidating its four labs under a central command structure, the U.S. Army Engineer Research and Development Center (USAERDC), headquartered at the Waterways Experiment Station (WES) in Vicksburg, Mississippi. The new organization has five major objectives:

• Deliver new technology needed by the Corps to achieve its strategic vision.
• Increase the relevance of the Corps to its customers.
• Increase the focus on priority future operational capabilities of the Army and the nation.
• Comply with the Department of Defense (DoD) and Army Research, Development, Test, and Evaluation (RDTE) Defense Reform Initiatives.
• Sustain world-class research capability in critical mission areas.

The reengineering effort supports current DoD initiatives to reduce costs and increase efficiencies in its research laboratories. The new structure will also reduce the cost of doing business, improve coordination and teamwork among technical experts at the four sites, and provide "one-door" access and increased responsiveness to customers.

These laboratories employ 2,150 people and execute a $450 million annual research and development program that includes combat engineering, infrastructure, and environmental quality under the Corps' military and civil works missions.

In 1998, the Waterways Experiment Station (WES) and Cold Regions Research and Engineering Laboratories earned the titles of Large and Small Army Research Laboratories of the Year, respectively.

The U.S. Army Engineer Research and Development Center (USAERDC) will develop and implement standard business practices for all of the laboratory sites in 1999. All contracting activities and the personnel who perform them will be reassigned to Vicksburg District by the middle of 1999.

Steam Outsourcing at the Detroit Arsenal

The Public Works Division of the U.S. Army Tank and Automotive Command (TACOM) Resource Management Center implemented steam outsourcing at Detroit Arsenal. On December 31, 1997, a commercial vendor commenced at full loads the generation and delivery of steam for heating facilities at Detroit Arsenal.

No investment funds were required from TACOM which eliminated the necessity to operate the Central Heating Plant at the arsenal. Based on the validated government cost/benefit analysis, the anticipated cost avoidance of outsourcing the steam is $35M over a ten-year period.

TACOM-Warren Pioneers use of Electronic Master Solicitation

The Tank and Automotive Command, Warren, Michigan's (TACOM-Warren) Acquisition Center implemented an electronic master solicitation for simplified acquisitions (under $100K) of National Inventory Control Point (NICP) items. This reduces the number of standard clauses that appear in individual solicitation/contracts so acquisitions take less time to produce and edit with no loss of legal sufficiency. Shorter documents download faster, so industry benefits too. Average reduction in automatic clauses is estimated at 68% for solicitations and 90% for purchase orders.

The U.S. Army Tank-Automotive Command, Warren, Michigan (TACOM-Warren) awarded Goodyear a five year Requirements contract for Track Shoes covering all combat vehicles with an estimated value of $208M. The contract consists of three years of basic requirements with two additional option years. For mobilization purposes and to allow competition for the balance of requirements, the contract restricts Goodyear’s supply of Track Shoes to no more than $264,000 shoes per year. TACOM achieved a 5% price reduction and saved six months of administrative lead-time through the use of Alpha Contracting.

Recognizing the enormous amount of time and money that litigation demands, contractors and Government agencies are finding ADR a faster, cheaper and more efficient method of resolving disputes.

The U.S. Army Tank-Automotive Command, Armament and Chemical Acquisition & Logistics Activity (TACOM-ACALA) and Lockheed Martin recently resolved a contract dispute that had lingered for years and appeared headed to litigation. The dispute involved a former Navy production contract for a Conduct of Fire Trainer and centered around two issues: pricing of option units ordered on a ceiling price basis after a major restructuring of option quantities and configuration and calculation of Environmental Protection Agency (EPA) adjustments.

The difference between the parties was over $10M on a $100M+ portion of the contract effort. The issues were further complicated by the age of the disagreement as well as by personnel changes that had occurred over time.

The Alternate Dispute Resolution (ADR) approach used a two-person panel, one from the government and one from the contractor. A final settlement was reached, resolving all open issues under the contract, and establishing the basis for final administrative actions and closeout.

PM CRUSADER: Main Armament Development Challenge

The use of Integrated Product and Process Development (IPPD) arrangement in main armament development is another example of how Acquisition Reform has become an integral part of the Crusader Artillery System acquisition effort.

Large caliber weapons like this are normally considered government furnished equipment (GFE), but the Army directed that the main armament would not be GFE. United Defense Limited Partnership (UDLP), as the prime contractor, has total system responsibility for Crusader development, now in the Program Definition and Risk Reduction Phase.

UDLP's evaluation of potential sources for the main armament led to the selection of the TACOM-ARDEC design based upon the XM297E2 155mm cannon. This is an actively cooled, fully chrome-plated system, including an innovative propellant laser ignition system. Law prohibits the U.S. Army Tank-Automotive and Armaments Command - Armaments Research, Development and Engineering Center (TACOM-ARDEC) from selling its services to a contractor, yet it was critical to be able to bring their experience and expertise in the development of large caliber weapon systems into the program.

Thus, a unique relationship, through a Memorandum of Agreement, had to be established that would allow the command to provide design and development engineering services to the contractor.

FORSCOM Reduces Cycle Time Using Commercial Items Test Program

The U.S. Army Forces Command's (FORSCOM) Atlanta Contracting Center recently used the Commercial Items Test Program to award a $5 million contract for leadership training in 51 days versus the normal 210 days.

The contract leveraged combined buying power of Forces Command, Training and Doctrine Command and the U.S. Army Reserve Command to achieve a 60% reduction in "per student" training costs through innovative partnering with contractor Franklin Covey Client Sales, Inc.

This Command projects savings of $3 million on the contract, which incorporates a tiered pricing structure, streamlined group licensing, cumulative purchase level discounts, and credits for major past customers who buy a group license under the new contract.

Reform Emphasis on Debriefings Works Well for Fort Riley

The acquisition reform influence of comprehensive debriefings largely accounted for the award of the U.S. Army Fort Riley Direct Support/General Support Maintenance contract without protest.

The debriefings facilitated improved communication leading to a greater understanding of the evaluation process. Offerors also gained valuable insight and a broadened perspective on how to strengthen their proposals in future endeavors.

Eight proposals were received in response to the solicitation. Two were dropped from the competitive range and were debriefed prior to award and four of the five other offerors requested debriefings. Each debriefing outlined the Government's view of each proposal in relation to the solicitation proposal and award criteria.

Total Ownership Costs Reduced for 113A2 Armored personnel Carrier Engines

The M113A2 Engine Integrated Product Team (IPT) was successful in reducing the repair cost from $11,999.00 per engine to under $9000.00 per engine through the elimination of unnecessary inspections and the use of rebuilt parts.

Repair of this engine will start during second quarter FY99. This cost savings initiative will save the Army nearly $1M per year. Additionally, reduced repair cost will allow the field to recoup credit for the return of complete unserviceable engines

[Table of Contents] [Chapter 1] [Chapter 2] [Chapter 3] [Chapter 4] [Chapter 5] [Annexes]

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Last revision: 18 Aug 2008