Better Buying Power 3.0
Introduction
The Pentagon has rolled out its latest program targeted at defense contractors: Better Buying Power 3.0. This is the third iteration of the governments effort to streamline how it purchases defensive programs, following the release of version 1.0 in 2010 and 2.0 in 2012. The policies expected to Defense Departments' acquisition efforts going forward.
4 Major Take Aways
1. Incentive-Based Approach
The idea under version 3.0 is to give companies reasons to innovate and invest more in research and development. The Pentagon's own budget restraints make it less able to do so. The Pentagon wants a lean, capable but creative industry. It means the Pentagon wants more prototyping and experimentation while products and services are developed.
The Pentagon aims to reward companies through the use of incentive-based contracts.
Superior Supply Incentive Program
The Pentagon will also expand it's Superior Supplier Incentive Program across the Defense Department.
2. More Emphasis on Research and Development
The new program stresses research and development above all. The department will make smarter, more targeted investments in areas of technology that matter most.
The Pentagon plans to give companies earlier drafts of technical requirements. By doing so, it hopes to collect feedback from companies and involve them more closely during the shaping of program requirments.
Independent Research & Development
IR&D cost, cost the government $6B annually, and the government will start taking a closer look at IR&D costs. Contractors should expect more oversight on their research projects.
3. Commercial Markets
The Pentagon wants to make the most of existing technology by purchasing Commercial Off-The-Shelf (COTS) items. The purchase of COTS items will result in cost savings. A recent example (2013-2014), is the Army's purchase of tactical radios.
The Pentagon wants to start acting more like a commercial buyer. They plan on removing some of the old barriers under the new program, stepping up regulation that allows for the acquisition of commercial technology with a lesser degree of cost scutiny.
4. Competition
Competition is still a major emphasis in 3.0 as it was in earlier versions. Frank Kendall, Under-Secretary of Defense for Acquisition, Technology and Logistics, is unhappy with the level of competition across defense programs and wants to see it step up.[1]
Related Pages
Files and Attachments
File:20014-09 - Kendall and Interim Release of BBP 30.pdf
References
- ↑ As of September 2014