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Lieutenant General Mark D. "Shack" Shackelford, Military Deputy, Office of the Assistant Secretary of the Air Force for Acquisition, United States Air Force
1. Headquarters U.S. Air Force
Integrity - Service - Excellence
Trends in Defense Aerospace
Lt Gen Mark Shackelford
Military Deputy
Office of the Asst Secretary
of the Air Force (Acquisition)
North Carolina Aerospace Supplier Conference
Aug 24, 2011
1
2. Fiscal Guidance vs. Enacted
Budgets
170
154.1
150 147.4
?
145.4
142.8
130
110 111.7 Enacted
$56.2B
106.7 105.8 difference POM
101.5 102.9
between the
95.4 original fiscal
90 95.0 92.7 guidance for
90.1 1991 and the
82.5 enacted
position
70
50
1987
1988
1989
1990
1991
1992
1993
1994
1995
2011
2012
2013
2014
2015
2016
Note: 2012 budget based on HAC-D Marks
Integrity - Service - Excellence 2
3. Budget Uncertainty
FY 12 AF Budget Request & FYDP FY 2012 Congressional Actions:
50,000 AF Proc, Base – PBR $38.3B
Constant FY12 Dollars (Millions)
HAC/SAC -$838M/TBD
45,000
HASC/SASC +$449M/-$220M
40,000
MILPERS AF Proc, OCO – PBR $3.85B
35,000 O&M HAC/SAC -$15M/TBD
PROCUREMENT HASC/SASC -$72M/-$72M
30,000 RDT&E AF RDT&E, Base – PBR $27.7B
25,000 HAC/SAC -$1.424B/TBD
HASC/SASC -$56M/-$229M
20,000
FY12 FY13 FY14 FY15 FY16 AF RDT&E, OCO – PBR $0.142B
HAC/SAC +$40M/TBD
HASC/SASC PB
Aug 2, 2011 Debt Ceiling Increase impacts DoD spending
Initial $350B reduction in DOD & DOE weapons activity spending
Post Sequestration: Potential for $500B additional security cuts
National fiscal environment driving uncertainty in AF investments
Integrity - Service - Excellence 3
4. Air Force Acquisition Priorities
AEHF
KC-46A Execution
Affordable F-35
Long Range Bomber
F-22 Modernization
ISR in Theater
Space Efficiencies
Vertical Lift
Efficiencies
Integrity - Service - Excellence 4
5. OSD BBP Guidance Roadmap
Targeting Affordability and Cost Growth Improve Tradecraft in Services Acquisition
Mandate affordability as a requirement Create a senior manager for acquisition of services in each
At Milestone A, set affordability target as a Key Performance Parameter component, following the Air Force’s example
At Milestone B, establish engineering trades showing how each key design Adopt uniform taxonomy for different types of services
feature affects the target cost Address causes of poor tradecraft in services acquisition
Drive productivity growth through Will Cost/Should Cost management Assist users of services to define requirements and prevent creep
Eliminate redundancy within warfighter portfolios via requirements templates
Make production rates economical and hold them stable Assist users of services to conduct market research to support
Set shorter program timelines and manage to them competition and pricing
Enhance competition by requirement more frequent re-compete of
knowledge-based services
Incentivize Productivity & Innovation in Industry
Limit the use of time and materials and award fee contracts for
Reward contractors for successful supply chain and indirect expense
services
management
Require that services contracts exceeding $1B contain efficiency
Increase use of FPIF contract types where appropriate using a 50/50
objectives
share line and 120 percent ceiling as a point of departure
Increase small business participation in providing services.
Adjust progress payments to incentivize performance
Extend the Navy’s Preferred Supplier Program to a DoD-wide pilot
Reduce Non-Productive Process and Bureaucracy
Reinvigorate Industry’s independent research and development and
protect the defense technology base Reduce the number of OSD-level reviews to those necessary to
support major investment decisions or to uncover and respond to
significant program execution issues
Promote Real Competition
Eliminate low-value-added statutory processes
Present a competitive strategy at each program milestone
Reduce by half the volume and cost of internal and congressional
Remove obstacles to competition
reports
Allow reasonable time to bid
Reduce non-value-added overhead imposed on industry
Require non-certified cost and pricing data on single offers
Align DCMA and DCAA processes to ensure work is complimentary
Require open system architectures and set rules for acquisition of data rights
Increase use of Forward Pricing Rate Recommendations (FPRRs) to
Increase dynamic small business role in defense marketplace
reduce administrative costs
competition
Integrity - Service - Excellence 5