Public-Private Partnerships (PPPs), collaborative agreements between government and industry, are often used to support industries critical to U.S. national security. With projected costs exceeding $79 billion, the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 highlights semiconductor PPPs as a key component of U.S. efforts to invest in defense-critical technologies and strengthen national security. This study uses a Pooled Ordinary Least Squares regression model to analyze the difference in firm-level performance of semiconductor manufacturing firms by their participation in defense-affiliated PPPs. The authors analyzed financial data on returns on assets (ROAs); earnings before interest, taxes, depreciation and amortization (EBITDA) margin; and revenue growth of 39 semiconductor manufacturing firms between 2014 and 2022. They then compared firm-level performance between participants and nonparticipants of eight defense-affiliated PPPs. Results reveal that semiconductor manufacturing firms participating in defense-affiliated PPPs exhibit significantly lower ROA and no significantly different EBITDA margin or revenue growth compared to nonparticipants. These findings suggest that semiconductor manufacturing firms in defense-affiliated PPPs do not outperform nonparticipants.
This study examines the retention challenges faced by Senior Materiel Leaders (SMLs) within the Department of the Air Force (DAF), who are responsible for overseeing Major Defense Acquisition Programs for both the United States Air Force and United States Space Force. Utilizing the Theory of Organizational Equilibrium and the Job Characteristics Model as conceptual frameworks, the research explores the factors influencing SMLs’ decisions to remain or leave their professional roles. Data were collected through a qualitative research study involving a literature review, policy analyses, and email questionnaires with 12 active or retired SMLs, each possessing at least 18 years of acquisition experience. Key findings highlight significant issues such as a lack of authority, challenging work-life balance, frequent relocations, and financial disincentives, all contributing to early retirements and retention difficulties. The study recommends delegating greater authority to SMLs, improving program office structures, enhancing leadership development, and providing targeted incentives to bolster retention. Addressing these areas is essential for maintaining a skilled and experienced acquisition workforce critical to the DAF’s mission success and the effective management of high-stakes defense programs.
To facilitate DoW’s future negotiation strategies in government acquisition, specifically in the application of multi-criteria decision-making and game-theoretic concepts, the authors propose an automated framework to support bid submission, evaluation, and optimal selection in government acquisition. The main objective of the framework approach is to help the government understand potential trade-offs around these negotiation points and efficiently move the bidding vendor into a preferred negotiation point while considering multiple criteria. The approach has shown the potential to expedite the acquisition decision-making process and provide more transparency for each side before negotiation. The authors describe the framework and supporting application in detail and then present results from a live exercise involving participants with acquisition experience from government and industry. During the exercise, participants implemented the approach by leveraging a user interface, developed online, to further demonstrate its main capabilities and areas of impact.
The Modular Open Systems Approach (MOSA) that leverages open architectures and abandons large, monolithic systems is among the prevailing acquisition strategies for cost and schedule management in DoW major acquisition programs. This approach involves the incorporation of reusable, modular packages that can be incrementally added and upgraded throughout a program’s life cycle. Many practitioners throughout the acquisition community find that MOSA enables better opportunities for affordability, rapid acquisition, flexibility, enhanced competition, and innovation. A literature review reveals that few studies examine the interaction between MOSA and the extent to which it influences cost and schedule performance. This research empirically investigates and compares Earned Value Management data for aircraft that do and do not employ open architecture. Overall, findings support that the presence of open architecture is negatively associated with schedule performance around the halfway point for development contracts. The authors theorize that programs adopting open architecture may be overly optimistic when estimating schedule.
Accurate software cost estimation is crucial for budgeting and planning in Department of War (DoW) programs. Using historical data from the Naval Air Systems Command Software Resources Data Report and the Air Force Life Cycle Management Center, the authors develop two Cost Estimating Relationships (CERs) to predict median software cost. One CER incorporates Equivalent Source Lines of Code (ESLOC), while the second incorporates Source Lines of Code (SLOC) as a comparison. Results indicate comparable predictability between these models, suggesting similar performance in forecasting software costs. Additional significant drivers include programming hours, the Electronic/Automated Software commodity, and Fixed Price contract types.
The article provides empirical evidence that long duration programs behave differently than short duration programs. Program managers are cautioned to consider the length of duration when estimating cost at completion up to and slightly beyond the 70% completion point
This qualitative research study engaged 45 DoD acquisition professionals in a comprehensive survey to uncover best practices that could inform the first-ever acquisition doctrine of the U.S. Space Force. Using the blueprint developed in this study, the Space Force can develop acquisition doctrine not as a point of departure but to lead the Service toward reemphasizing the importance of acquisition as a warfighting spacepower discipline.
The author compares and contrasts the various "engine wars" starting with the F-15's engine competition, fifth-generation engine procurements (F-22 and F-35), and finally, adaptive cycle engine technology development. He emphasizes the value of competition and the need for clear requirements to drive technological investments, leading to recommendations including technology roadmaps to facilitate transition pathways and funding technology maturation programs to ensure healthy competition.
This study empirically examines the issue of Defense Industrial Base (DIB) contractor exit with a survey of contractors likely to have exited between Fiscal Years 2015 to 2021 to ascertain if they have left the DIB and, if so, why that was the case. The results offer unique insight into a critical area of concern for the defense acquisition community by identifying the types of contractors that have exited and the specific reasons for doing so, including those reasons that are within DoD’s ability to influence.
The primary purpose of this research is to identify the strengths, weaknesses, and best practices of the Commercial Solutions Opening (CSO) as a solicitation technique leading to a contract award. With their findings, the research team intends to provide DoD Components, Defense Agencies, 4th Estate organizations, and their associated workforces with a consolidated report analyzing available data on the CSO solicitation technique and making recommendations based on the use of CSOs. Working with these DoD-affiliated organizations, the researchers captured extensive direct feedback from CSO Cross Talk meetings among DoD points of contact who previously conducted CSOs or are working to develop CSO policies/procedures at their individual organizations. The DoD and other agencies outside of the department will also be able to use this research to capitalize on the utility of CSOs in requesting their own permanent authority. Further, the research provides an analysis to shape informed decision-making for future solicitation strategies as future requirements owners and contracting offices develop their plans to meet agency needs. Finally, this research can be used as a catalyst to refine CSO reporting requirements, bolstering the data value stream for the department’s executive decision-makers.
In this study, the authors analyze probability distributional fits to Estimate at Completion cost growth for various Work Breakdown Structure elements. Results suggest either the lognormal or Weibull as best fits and a possible underestimating of the Coefficients of Variance and 85th percentiles in a program’s budget.
This Defense Industrial Base case history encourages critical analysis of a DoD project manager responding to typical management oversight questions regarding industrial base planning within defense acquisition. The analysis centers on the capability and capacity of the defense industrial base to develop and produce body armor for Warfighters. The case incorporates the perspectives from key stakeholders to include commercial industry companies, congressional committees, DoD senior leadership, and the program management/acquisition chain of command. Considerations include the balancing of limited resources against competing priorities, sustaining inventory for wartime readiness, managing the demand for increased capability, and balancing surge requirements with industry capacity. The case history reinforces critical thinking in uncertain environments, documents lessons learned for sound project management, and provides exposure to the complexities of public sector acquisition and manufacture of critical warfighting products.
Research publication is often challenging for emerging authors, but necessary for them to introduce their research, contribute to the conversation in their field, and advance their field of study. In this article, editors of Defense Acquisition Research Journal (Defense ARJ) offer advice to defense acquisition professionals aspiring to publish in Defense ARJ and point out some caveats in the research publishing process. The editors also explain what kind of papers the journal publishes and summarize how to produce a strong submission. This article discusses Defense ARJ’s guidelines for contributors in more
Obsolescence is a challenge for Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) systems within the Army. These challenges include lower availability of components in the supply chain, schedule delays, and higher costs. Proactive obsolescence management in lieu of reactive obsolescence management is essential to assist with understanding and mitigating obsolescence challenges. This article presents a visualization tool for evaluating the risk of obsolescence to a system’s components. The tool was developed and deployed using the R statistical software program. The visualization tool focuses on the areas of component design life, procurement lead time, cost growth, and the number of manufacturers producing the component. These obsolescence properties are combined in the visualization tool to measure the level of obsolescence risk exposure from the supply availability of the components. The visualization tool was first demonstrated using simulations of 10 systems based on a mix of risk levels with respect to the obsolescence properties. The visualization tool allows a user to input component level data for their system and compare it with two reference systems: the best case when all variables are low risk (i.e., proactive) and the worst case when all variables are high risk (i.e., reactive). The reference systems are included to help practitioners quickly understand their systems level of obsolescence risk from the supply availability of the components. The visualization tool was then validated with publicly available data for a drone and a user study that demonstrated improved accuracy, duration, and confidence in assessing obsolescence risk.
