Lean is common sense and good business sense. As organizations grow and become more
successful, they begin to lose insight into the basic truths of what made them successful.
Organizations have to deal with more and more issues that may not have anything to do with
directly providing products or services to their customers. Lean is a holistic management
approach that brings the focus of the organization back to providing value to the customer.
In August 2002, Mrs. Darleen Druyun, the Principal Deputy to the Assistant Secretary of the Air
Force for Acquisition and government co-chairperson of the Lean Aerospace Initiative (LAI),
decided it was time for Air Force acquisitions to embrace the concepts of lean. At her request,
the LAI Executive Board developed a concept and methodology to employ lean into the Air
Force’s acquisition culture and processes. This was the birth of the “Lean Now” initiative. An
enterprise-wide approach was used, involving Air Force System Program Offices (SPOs),
aerospace industry, and several Department of Defense agencies. The aim of Lean Now was to
focus on the process interfaces between these “enterprise” stakeholders to eliminate barriers that
impede progress. Any best practices developed would be institutionalized throughout the Air
Force and the Department of Defense (DoD).
The industry members of LAI agreed to help accelerate the government-industry transformation
by donating lean Subject Matter Experts (SMEs) to
Acquisition research (Graduate School of Business & Public Policy); This research paper explores the use of the modular open systems approach (MOSA) as a method for implementing an evolutionary acquisition strategy and investigates the implications of using the MOSA on the contracting process. First, a background on evolutionary acquisition is presented from a perspective of current DoD acquisition regulations. Next, basic concepts of open systems are discussed, along with applications of the open systems approach to defense systems development and acquisition. The implications of using a modular open systems approach on the contracting process is then presented, with a focused discussion on the various contracting activities and documents related to each phase of the contracting process. The report uses the generally accepted phases of the contracting process--procurement planning, solicitation planning, solicitation, source selection, contract administration, and contract closeout to discuss the contracting activities and documents that should be affected by using a modular open systems approach. Additionally, a brief highlight of intellectual property issues is provided, along with a review of the applicable major regulatory provisions. The research concludes with the identification of the characteristics of a successful MOSA program procurement and resulting contract and provides areas for further study. p. i.
This research paper explores the use of the modular open systems approach (MOSA) as a method for implementing an evolutionary acquisition strategy and investigates the implications of using the MOSA on the contracting process. First, a background on evolutionary acquisition is presented from a perspective of current DoD acquisition regulations. Next, basic concepts of open systems are discussed, along with applications of the open systems approach to defense systems development and acquisition. The implications of using a modular open systems approach on the contracting process is then presented, with a focused discussion on the various contracting activities and documents related to each phase of the contracting process. The report uses the generally accepted phases of the contracting process--procurement planning, solicitation planning, solicitation, source selection, contract administration, and contract closeout to discuss the contracting activities and documents that should be affected by using a modular open systems approach. Additionally, a brief highlight of intellectual property issues is provided, along with a review of the applicable major regulatory provisions. The research concludes with the identification of the characteristics of a successful MOSA program procurement and resulting contract and provides areas for further study. p. i.
Approved for public release; distribution is unlimited.; The primary purpose of this thesis is to classify contract closeout pathologies, identify the root causes of these pathologies, and provide a series of strategies to regain control of the contract closeout process all within the context of the Organizational Systems Framework Model. Critical pathologies identified include process friction, inadequate information technology, contract complexity, personnel skill level, contract financial issues, management concern, perceptions, timeliness, problematic steps, existing backlogs, inadequate manpower, and poor quality records/documentation. Recommendations included taking the appropriate steps to make contract closeout a command priority throughout the Department of the Navy, developing specialized contract closeout training, taking an immediate look at the four most problematic steps of the contract closeout process and implement immediate measures to alleviate the problems that have historically plagued them, and centralizing the contract closeout function in as many commands as practical.
In 1968, the Foreign Military Sales Act was written with a primary objective of facilitating the common defense by entering into international arrangements with friendly nations. Shrinking defense budgets have shaped an industrial base that is dependent on foreign markets in order to survive. Both the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) provide detailed guidance for negotiating contracts with foreign countries and stipulate that U.S. laws apply regardless of foreign policy. The FAR also provides the procedural requirements for the contract closeout process. Often the process is not completed in a timely or proper manner, resulting in noncompliance with contract closeout time frames, increased backlog, dissatisfied customers and significant monetary ramifications. The primary purpose of this thesis is to review the management of the contract closeout process and analyze it using process innovation tools. The FAR lists 15 specific Administrative Contracting Officer contract closeout steps that must be completed once a contract is deemed physically complete. Those steps are depicted using KOPeR methodology to identify process pathologies and shortcomings. Further, it develops two redesign alternatives that offer good potential to further streamline the process.
MBA Professional Report; The purpose of this MBA Project was to investigate and provide a comprehensive analysis of data based on government service contracts during the six phases of the government contract process (procurement/planning, solicitation planning, solicitation, source selection, contract administration and contract closeout/termination). Primary deficiencies and best practices in contracting will be identified for each government report, and an analysis will be conducted to identify trends within and across the above categories. Specifically, this research will identify common deficiencies and best practices in contracting based on GAO reports, DoD IG reports, and articles based on services acquisition in the commercial sector. This will provide the basis for further study of the subject, as well as material for improvement of DoD contracting practices as compared to commercial best practices in contracting.
The primary objective of this thesis was to review the closeout process within DoD activities and determine how the process might be made more efficient. Secondary objectives include identifying the problems in the current process and determining the impact of failure to close out contracts in the time frame stated in the Federal Acquisition Regulation (FAR). Finally, a Contract Closeout Process Summary has been developed as a by-product of this thesis. This guide can be utilized as a training aid or procedures manual. Contract Closeout, Contract Administration
The Contract Management Maturity Model (CMMM) is a proven tool for contract management process analysis across all phases of the acquisition process. This includes procurement planning, solicitation planning, solicitation, source selection, contract administration, and contract closeout. We intend to use the Contract Management Maturity Assessment Tool (CMMAT) to apply the CMMM to the Space and Missile Systems Center (SMC) and the Air Force Life Cycle Management Center Wright-Patterson (AFLCMCWP) Contract Management processes. The SMC is headquartered at Los Angeles Air Force Base, California, and the AFLCMCWP is at WrightPatterson Air Force Base, Ohio. The primary purpose of this research is to analyze the SMC and the AFLCMCWP contracting processes, to identify key process area strengths and weaknesses, to discuss examples of contract management process tools, and to make recommendations for improvements if necessary. The results will provide the SMC and the AFLCMCWP a snapshot of the maturity level of their contracting processes, allowing them to identify the unique challenges that they are facing and provide an assessment tool to effectively engage and overcome these challenges and potentially improve the organizations contracting process.
Approved for public release; distribution is unlimited; The primary purpose of this thesis is to review the management of the contract closeout process (primarily within the Defense Contract Management Command and selective Department of the Navy contracting activities) and determine if it is performed in an effective and efficient manner. The frequency of occurrence and level of difficulty of the fifteen contract closeout steps listed in the Federal Acquisition Regulation (FAR) were assessed and analyzed. Secondary objectives include identifying the areas that impede the process and/ or are neglected throughout the process and the ramifications thereof. Finally, recommendations are presented for a "streamlined" approach to the contract closeout process that can be applied throughout the entire contract administration cycle.
Byrdsong, Ricardo; Crespo, Luis A.; Holland, George A.; Parker, Christopher D.; Torunoglu, Emine Gulsen; Byrdsong, Ricardo; Crespo, Luis A.; Holland, George A.; Parker, Christopher D.; Torunoglu, Emine Gulsen
MBA Professional Report; Approved for public release; distribution is unlimited; MBA Professional Report; Approved for public release; distribution is unlimited; The Department of Defense (DoD) has tens of thousands of contracts physically completed but not formally closedout. At issue are potentially millions of dollars that are obligated on those contracts, which could be deobligated, thus making them available for use by DoD. At the request of the Deputy Assistant Secretary of the Navy for Research, Development and Acquisition, (Acquisition Management) our team was formed to chart the current contract closeout process and to recommend ways to improve and transform the process while reducing the current backlog of physically completed contracts. This report identifies the steps necessary to affect contract closeout once a contract becomes physically complete. Utilizing data from available DoD and non-DoD sources and interviews from personnel managing and working within the contract closeout process at several Governmental activities involved in affecting closeout, our team (1) identifies the major causes preventing contracts from closing in a timely manner, (2) provides recommended actions to reduce the size of the overaged inventory of physically completed contracts...
Approved for public release; distribution is unlimited.; The purpose of this study is to streamline the contract closeout process through the application of continuous process improvement techniques. A methodology for the identification of procedures involved in the process and problem areas in the process was developed. Available literature was reviewed and personal interviews were conducted to develop a model of the contract closeout process and to identify problems in the contract closeout process. Continuous Process Improvement procedures were applied to the contract model and the problems identified to eliminate the problems and increase the efficiency of the process. Recommendations included: increasing the priority placed on the close out of U. S. Government contracts, development of an automated system for the close out of U. S. Government contracts, development of a training program in the contract closeout process, improvement of communications between organizations involved in the contract closeout process, and application of continuous process improvement procedures to reduce the time required to close out U. S. Government contracts..
Approved for public release; distribution is unlimited; The DOD has had longstanding, and documented, problems in contracting, which include ethical issues, workforce competencies, lack of manpower, and fraud. DOD current remedies include rightsizing the workforce, training, incentivizing performance, reaffirming ethical standards, but these are incremental solutions. What is called for is a review of contract management process capability from a broader perspective, using the Contract Management Maturity Model (CMMM). This research will focus on contract management as an aspect to improve process capability. The purpose of this research project will be to assess the contract management processes at Aberdeen Proving Ground–Army Contracting Command (APG-ACC). Using the CMMM, the research will analyze APG-ACC’s process capability, focusing on the areas of Procurement Planning, Solicitation Planning, Solicitation, Source Selection, Contract Administration, and Contract Closeout. Using analytical data gained from surveys completed by level II and III Defense Acquisition Workforce Improvement Act (DAWIA) personnel at APG-ACC, the data will gauge the maturity of APG-ACC’s contract management processes. Results captured from data will allow the assessment of APG-ACC contracting capability and will help in the formulation of meaningful recommendations to the command.
MBA Professional Report; The Federal Government's preference for the acquisition of commercial items was placed into law under Public Law 103-355, Federal Acquisition Streamlining Act of 1994. Acquisition policies were established that more closely resembled those of the commercial marketplace and the law encouraged the acquisition of commercial supplies and services. This law did not extend to the acquisition of design-build construction. Acquisition policy regarding Government design-build should be analyzed to determine which best commercial processes/practices may be applied to the acquisition of Government design-build. Design- Build (DB) is defined as a project delivery system in which the owner contracts with, and holds responsible, one single entity for both design and construction of a project. This method differs from the traditional design-bid-build (DBB) approach in which the owner contracts with an architect to design the project (prepare drawings and specifications) under a design contract and then competitively bids the project among construction contractors to build the facility. With NAVFAC's mandate, that by the end of Fiscal Year (FY) 07, 75% of capital improvement projects above $7 50,000 will be accomplished by design-build acquisition...
Approved for public release; distribution unlimited.; The purpose of this thesis was to research the financial impact of untimely contract closeouts. The contract closeout procedures at a Navy Contracting Activity and one of its corresponding Paying Activity's were reviewed. The data analysis from a sample of contracts indicated that a possible financial impact does exist. The following reasons for untimely contract closeout were cited: (1) lack of emphasis on the closeout process by management, (2) lack of communication between the contracting and paying activities, (3) non-use of available automation, and (4) lack of knowledge of the adverse financial effects of the closeout process. The thesis provides recommendations to correct these reasons in addition to a final recommendation to develop a Data Base Management System (DBMS). The DBMS recommended requires that it be utilized from the inception to closeout of the contracting process.; Lieutenant Supply Corps, United States Navy
Joint Applied Project; The U.S. Army Contracting Command National Capital Region Contracting Center (ACC-NCRCC or NCRCC) incorporates the Army's Contracting Center of Excellence (CCE) and the U.S. Army Information Technology, E-Commerce and Commercial Contracting Center (ITEC4). CCE proveds contracting support to the Army Secretariat and the Army Staff. ITEC4 provides worldwide information technology contracting support and procures enterprise information technology support and equipment for Army and Department of Defense (DoD) activities (ACC, 2009, n.p.). The purpose of this research is to measure the turnover rate of the NCRCC's contract specialists, asses its contract management capability process maturity and determine if a relationship exists between the two. Research for this study consisted of collecting NCRCC contract specialist statistical data and qualifications from NCRCC Human Resources (HR) for the 12-month period observed and using it to calculate the turnover rate. The research also included deploying survey questions to the NCRCC workforce to assess its contract management process capability maturity.
Approved for public release, distribution unlimited; Joint Applied Project; This Joint Applied Project assesses the maturity levels of the contracting processes capabilities at the Joint Munitions and Lethality (JMandL) Contracting Center, located at Picatinny Arsenal, New Jersey by applying the Contract Management Maturity Model (CMMM). The JMandL Contracting Center is one of the Army's six major contracting commands under the Army Contracting Command As a metric to measure the results of the CMMM, an analysis of the results of recent Procurement Management Reviews has been completed to determine whether the outcomes are consistent with the finding of the CMMM. Additionally, survey participants have been questioned to determine their opinions as to the reasons for reported strengths and weaknesses, as well as, suggested methodologies for improvement. Finally, these responses have been evaluated to provide opportunities to leverage best practices and knowledge sharing at both the JMandL Contracting Center and potentially with other centers within the Army Contracting Command. The successful application of the assessment tool and appropriate analysis provides an effective way to identify unique challenges and expose opportunities to improve the organization's contracting processes.; Outstanding Thesis
Acquisition research (Graduate School of Business & Public Policy); Two short years ago, mentioning the words contract closeout would have drawn a critical eye or a scoffing laugh out of many in the acquisition community, much less trying to convince those same critics that contract closeout was destined to become a priority at the highest levels of the Department of Defense (DOD). Yet, in the past few years we have seen a reversal in the way acquisition professionals view contract closeout as the least important portion of a contract's life and a wholesale transition to a renewed emphasis on closing contracts in a timely manner. DOD has even gone so far as to create specific metrics to track the progress of the Services in closing contracts, and has focused management attention on the issue. So what is it that has created this shift in priorities, what are some of the most glaring problems in tackling contract closeout, and what are some ways of correcting those problems? These are some of the questions this short article will pose to the reader, although a detailed rendering of those issues is better within the source material from which this article was taken.p1s Although this article cannot address all of the findings from a larger study conducted at the Naval Postgraduate School and published as an MBA Project Report and an associated Thesis...
The primary purpose of this thesis is to provide a case analysis of the contract closeout process at DCMC Lockheed Martin (LM). The contract closeout policies and procedures at DCMC Headquarters are analyzed to develop a basis of comparison for DCMC LM. Secondary objectives include analysis of factors affecting untimely contract closeout, both DCMC-wide and at DCMC LM, and comparison of metrics results to analyze DCMC LM's progress in contract closeout. The current DCMC LM initiatives leading to increased contract closeout efficiency are discussed, and alternative closeout metrics are investigated. Finally, recommendations are made on the applicability of the DCMC LM initiatives to other organizations throughout DCMC.; NA; U.S. Army (U.S.A.) author.
MBA Professional Report; In this thesis, we explore the goals and requirements of green procurement in order to assess the Air Force's degree of success with incorporating the Defenses (DoD's) Green Procurement Program (GPP) into its procurement process. This thesis provides an outline of the federal policies and guidance regarding green procurement, including Executive Order 13514 (2009) and relevant parts of the Federal Acquisition Regulations. We examine the Air Force's progress towards a more environmentally friendly process, measured by the metrics set forth in the DoD GPP. To evaluate these metrics, we conducted an analysis to determine if the Air Force is implementing environmental considerations to the maximum extent practical. This analysis relied on the use of the Green Acquisition Gap Analysis (GAGA) model, which is a unique framework that we developed. The GAGA model fuses the personnel, platform, and protocol pillars of the Mandatory Pillars for Integrative Success (Yoder, 2010) framework with the Contract Management Process framework, which dissects the six segments of the contracting process: procurement planning, solicitation planning, the solicitation, source selection, contract administration, and contract closeout or termination (Rendon...
MBA Professional Report; Approved for public release: distribution is unlimited; MBA Professional Report; Approved for public release: distribution is unlimited; This project consists of a Cost Benefit Analysis (CBA) of the costs, issues and effects associated with replacing the F-5E/F Tiger II aircraft with F/A-18A/B. The three alternatives analyzed are (1) continued operation of the F-5E/F, (2) replacement of the F-5 with F/A-18A/B by 2008, and (3) installation of 4th generation pulse-doppler radar in the F-5E/F by 2008. The objective was to compare the three alternatives, choosing the alternative which provides the greatest net benefit and most efficient use of resources. The analysis involved data collection of operational costs per flight hour, total cost over the life of the program, and Contractor supported maintenance. Data for this research project were gathered from the actual maintenance contracts for both the F-5E/F Tiger II and F/A-18A/B aircraft at Fallon, NV, Naval Aviation Systems Command, and OFC-20. Our results suggest that NAVAIR should continue to use the F-5E/F Tiger II aircraft for the VFC-13 adversary training mission through 2014.; Lieutenant Commander, Supply Corps, United States Navy; Lieutenant Commander...