Cohen Reports to Vice President - defense contracts

Program Manager, Sept, 2000

DoD Year 2000 Acquisition Goals

Secretary of Defense William S. Cohen reported to the Vice President Aug. 8 on DoD's progress toward achieving Year 2000 Acquisition Goals. The report, fourth in a series of six semiannual reports, was written in plain language to provide the American public a clear picture of progress in reinventing Defense Acquisition.

In his fourth report, Cohen outlined the Department's three-year goals and actions taken. The three-year goals were founded on the objectives of Delivering Great Service, Fostering Partnership, and Internal Reinvention that the Administration set forth in the Blair House Papers. Cohen's report reflected a Department that is continuing to modernize its forces, use its resources more efficiently, and supply the nation's warfighters and peacekeepers with the goods and services they need - better, faster, and cheaper.

"As requested by our warfighters in 1996, we have enabled the Department to spend $60.3 billion in 2001 to modernize its forces. This funding was made possible by our more efficient use of resources. As we enter the new millennium, we are proud of our achievements and rededicate ourselves to further achievements in the years to come."

These excerpts from the report present only the three-year goals and actions taken to date. To view the accompanying charts that measure DoD's progress, download the entire report at http://www.acq.osd. mil/ar/vpreport800/summaryhtm.

DELIVERING GREAT SERVICE

New Weapons in Less Time

OUR THREE-YEAR GOAL

Deliver new major defense systems to the users in 25 percent less time.

We are delivering major new defense systems to the warfighter in 27 percent less time, exceeding our goal of 25 percent.

During the Cold War, the threat environment was stable and predictable. We often let program schedules slip to spread out system costs or to further enhance system performance. Today the threat environment is more fluid and we have adapted by becoming much more flexible to meet warfighter needs faster. By fielding new systems in less time, we are providing our warfighters with the systems they need, when they need them, and at reduced cost.

To achieve this reduction, we structure programs from their inception for shorter acquisition cycle times (i.e., the time between starting a new program and making initial delivery). We then closely monitor cycle time performance at every stage, from program approval and budgeting to delivery to the warfighters. We emphasize near-term requirements and the availability of proven technologies when authorizing new programs. This allows us to satisfy warfighter needs incrementally infusing new technologies as they become available.

Our goal is to reduce the cycle time of new programs by 25 percent starting from a 1992 baseline of 132 months (the average cycle time of currently active programs started prior to 1992).

Better Logistics Support Services

OUR THREE-YEAR GOAL

To achieve visibility of 90 percent of DoD materiel assets while resupplying military peacekeepers and warfighters and reducing average order-to-receipt time by 50 percent.

We are actively tracking 94 percent of DoD materiel assets and have reduced average order-to-receipt time for new purchases by 61 percent.

Our primary job is to supply the warfighters with the products they need, when they need them. To this end, we have improved our management of logistics information and inventories. We have integrated existing logistics information systems with new information systems. These systems give us access to timely, accurate information on the status, location, and movement of units, personnel, equipment, and supplies.

We are using information systems to reduce delivery times by relying on electronic, rather than paper, transactions with our vendors. We are further reducing delivery times by using commercial practices, such as contracting with vendors to provide direct support, and using faster transportation services to respond more quickly to customer orders. These steps have enabled us to meet the warfighters needs more rapidly, improving military readiness, while reducing inventory and delivery costs.

Simplifying Buying of Goods and Services

OUR THREE-YEAR GOAL

Simplify purchasing and payment through use of purchase card transactions for 90 percent of all DoD micro-purchases while reengineering the processes for requisitioning, funding, and ordering.

We have simplified purchasing and payment through the use of purchase cards for 92 percent of all DoD small purchases, while reengineering our business process for requisitioning, funding, and ordering.

In the past, when we wanted to order a product for less than $2,500 (micro-purchases), we used a form that required several rounds of review and approval. This bureaucratic work added significantly to the real cost of the product and to the time it took to receive the order.

Today, we use the Government Purchase Card in much the same way the public uses commercial bank credit cards to purchase items. Our goal is to increase our use of the Government Purchase Card for micropurchases, thus making our ordering and buying processes more efficient and cost effective.