ArchiveDEPARTMENT OF THE ARMY
- Quickly obtaining laboratory experimental supplies and equipment needed to satisfy its customers needs for information on advanced technology and risks associated with various acquisition strategies.
- Obtaining and retaining highly qualified engineers and scientists to develop lead-ahead
- Quickly and cost effectively upgrading laboratory facilities in order to react to contingencies such as technological breakthroughs and customer-unforeseen priorities.
- Quickly and efficiently establishing Cooperative Agreements with industry, academia, and international partners in order to leverage diminished DoD funding, designed to generate significant technological advancements and competitive economic advantage as a nation.
Initiatives to use information technology include installation of a 50 gigabyte Superserver for the workstation network, acquisition of portable notebook processors for conducting analysis in the field of operations, CD-ROM technology in publishing data volumes, successful application of graphic used interface to visually assess potential global trouble spots and the introduction of state-of-the-Army ISSN telephone system for data/voice communications.
The historical trend indicates a 78 percent productivity increase over the past five years.
The Missile Command (MICOM) has completed Phase I. A total of 5,387 MICOM employees attended the thirteen two-hour mandatory training sessions. The training consisted of presentations of reinvention certificates to organizations and reinvention licenses to employees by the Command Group, union perspective by AFGE, Local 1858 at Redstone Arsenal, videos on Ethical Decision Making, and Making the Difference, briefing on reinvention, MICOM Reinvention Laboratory Waiver Program, and administering of the Employee Opinion Survey. Training videos have been viewed by 202 employees located worldwide.
Part II of Phase I, the customized organization training is an ongoing effort. The intent of this training is to assist managers in the critical task of building into all employees a clear understanding of the consequences and importance of being accountable for actions in a public service arena.
Part III consists of the Redstone 2000 Institute's High-Performance Skills Course. This course was established to help acquire the skills and competencies needed in the workplace now and into the 21st century. The course includes: Team dynamics and team work, world class customer service, interpersonal skills, ethics and accountability, individual assessment, etc. Phase II is the Generation and Prioritization of Initiatives. The Command utilizes several reinvention tools consisting of re-engineering, benchmarking, and obtaining waiver authorities to develop, understand, analyze and implement initiatives. Some initiatives are being tested as pilot programs. The MICOM Acquisition Center has submitted 34 waiver requests with 14 approved under the OSD/DA Waiver Program and by their acquisition chain of command at higher headquarters.
Phase III is the Full Scale Implementation of initiatives scheduled to begin when the first initiative pilot program is completed and approved by the Missile Command Executive Steering Committee. This implementation phase is expected to begin within the next six months to a year.
The lab is in the process of evaluating over fifty internal processes in the functional areas of human resources, fiscal management, logistics, and procurement. Computer modeling has been applied to these processes to identify areas where efficiencies can be gained. For example, whereas formerly a SF-52, Request for Personnel Action took 36 steps to process, BPR efforts have identified 21 of those steps that can be eliminated.
The lab has already obtained 18 waivers in a variety of areas and more than twice that number are in process. ARL is participating with other DoD Science and Technology Reinvention Laboratories in designing a new personnel system that will be much more flexible and which will allow government laboratories to be operated in a manner more like those labs in the private sector.
AMEC has achieved recognition as a pioneer in the technology of concepts involving multimedia and distance learning and is a recognized leader even by the private sector. With funds provided by a sponsor, AMEC opened its own multimedia production lab in FY 1995. The first major product ("Interactive Customer Assistance CD ROM on the Responsible Use of the Government Wide Purchase Card") has been delivered to GSA. The second major product ("Simplified Acquisition and Federal Acquisition Computer Network") will soon be delivered to DOD's Reform Communications Center.
ARNG Truck Refurbishment Program demonstrated a completely new way for the ARNG to refurbish its tactical wheeled vehicles. The Texas ARNG established a pilot site to demonstrate the ARNG's capability to perform general support (GS) level refurbishment of trucks in FY 94. The demonstration was continued into FY 1995/1996 Demonstration results established a baseline cost of $35K per truck, a savings of $6-$30K over what the ARNG had been paying depots.
- Reengineering Travel. Forces Command established a Process Action Team (PAT) in
April 1994 to look for ways to improve temporary duty (TDY) travel administration. The PAT has tested two software programs and is preparing to purchase a program for implementation. The program will save in excess of $300,000 for the Headquarters over two years and provide faster reimbursement to the traveler and the government charge card vendor. Plans are to offer the program to all FORSCOM activities.
- The Total Inventory Management Program (TIMP). The program focuses on the
reduction of authorized and unauthorized inventory investment and the redistribution of secondary and major-end items. The TIMP implementation plan published in 1993 dramatically changed the way inventories were managed in Forces Command. First year savings were $130M. On-hand inventory was reduced from $1.1B to $727M. Savings for FY 1994 were $1.3M with projected savings of $5M in FY 95 and $3M in FY 1996. TIMP directly led to significant cost reductions in on-hand inventories and to the implementation of other FORSCOM initiatives, such as the FORSCOM Redistribution Center (FRC) and the FORSCOM Excess Prevention Program (FEPP).
- The White Hat Program. The White Hat Initiative focuses on identifying installation
management inhibitors to effective business operations that could result in changes to the regulations, policies and procedures at FORSCOM or higher headquarters. This initiative is also an integral part of the FORSCOM quality effort to involve the work force and gain greater productivity while improving installation management. Based on input from the workforce at FORSCOM installation, over 500 White Hat issues have been developed and are being staffed. Over 200 of these initiatives have been approved; of those sent to Department of the Army, the Command has a 75 percent approval rate. The White Hat program has been tremendously successful, both in the empowerment of the workforce and in demonstrating the Command's desire to use the good ideas of its employees.
Just six weeks after they announced their intentions at the White House, leaders from Ford, General Motors, and Chrysler co-signed a cooperative research and development agreement, or CRADA, with the U. S. Army. But unlike most CRADAs, this blanket-CRADA sets a historic precedent by fast-tracking all future R&D between the auto makers and the Army. The next time any of the Big Three wishes to enter into an agreement, all it needs to do is write a 3 to 4 page "statement of work."
This change in CRADA criteria will allow the Big Three to speed past the labor-intensive CRADA applications process and cut the approval rate forum several months to just a few days. This change to allow the auto makers to be more competitive globally.
As a result of these and other major initiatives, TARDEC is the proud recipient of the 1994 Federal Quality Improvement Prototype Award. TARDEC is the first Army organization to earn this honor and is one of only 22 government organizations to have won the award since its inception in 1989.
Vice President Al Gore presented TARDEC with the prestigious 1995 Presidential Award for Quality on August 2, 1995 in Washington, DC. TARDEC is the first department of the army organization to win this award and is only the fourth federal organization to win since the inception of the President's Quality Award Program in 1989.
- A change to DoD Morale, Welfare and Recreation (MWR) advertising policy now allows
installation MWR activities to generate revenue from the sale of advertising space in their publications. This is expected to earn Army installations approximately $2M annually, and is applicable across DoD.
- A change to Army Regulation 71-13 to allow US Army, Japan to lease eleven non-
tactical vehicles, which will allow the conversion of a buildings and grounds maintenance contract to an in-house operation. This will result in an annual cost savings of $1M.
- DoD Manual 7600.7-M is being changed to remove the requirement to create and
maintain an "auditable entity file" in internal review offices with three or fewer auditors. This will allow the smaller internal review offices to be more efficient in support of their customers.
- Waiver of DoD Directive 7000.14-4 to allow mandatory payroll deduction from soldiers
to pay monthly personal telephone bills. This will result in more efficient finance and accounting operations, and improve quality service to soldiers.
- A waiver of DoD Regulation 4160.21M to allow Fort Hood to donate abandoned
bicycles to a local charity. This initiative saves time and money that would be expended to store and process abandoned bicycles for sale in the normal DRMS process.
- A change to a 1985 OSD Comptroller policy letter outlining the procedures for
accounting of multi-year appropriations. The change saves personnel resources that were used to write down unobligated balances at year end, and re-establish the balances in the next fiscal year.
- A waiver to AR 690-300.355 that will streamline the procedures for making non-
competitive career promotions within an organization. This has improved efficiency of the internal process and save supervisors' time and effort.
- A waiver to the FAR, section 15.803(b) to eliminate the submission of an Independent
Government Estimate (IGE) as part of the contract negotiation and award process. Elimination of the IGE will streamline the process and save time and effort that is expended preparing this non-value added report.
For FY 1995, the office gained enactment of six out of nine legislative proposals. These included increasing the expense investment threshold from $25K to $50K, allowing military museums greater flexibility in trading excess historical artifacts, and removing extensive review requirements on residual value agreements. The office submitted legislative proposals for Congressional consideration for FY 1996. The following provides the status of those proposals that were approved.
- Kuwaiti Reimbursement. Provides authority for DoD to incur obligations up to $350M
in anticipation of contributions from the Kuwaiti Government..
- Permanent Sale and Outlease Authority. Simplifies distribution of funds generated from
the sale of excess real property and outlease of underutilized real and personal property. Funds would be deposited directly to installations rather than to a special Treasury account. Received one-year extension of appropriation authority, but not for simplified process -- resubmitted for FY 1997.
- Expense Investment Threshold. Provides authority for purchases of non-centrally
managed items under $100K with Operations and Maintenance appropriations.
- Acceptance of Non-Government Cash Awards. Allows retention of cash awards from
non-governmental sources. Impetus for this proposal was the "Innovations in Government" award competition. Funds are to be used for MWR (§377 P.L. 104-106).
- Retention of Proceeds from the Sale of Abandoned Personal Property. Allows
installations to sell abandoned personal property and retain the proceeds.
- Printing Services. Provides for greater use of commercial vendors for printing services.
As submitted, installations would use commercial vendors for services under $2500. Partially approved -- allows DPS to use commercial vendors (Section 351 P.L. 104-106).
- Unified Resource Demonstration Project. Provides authority to test a concept for
merging appropriated fund support to MWR with nonappropriated funds (NAF). MWR programs would then operate on a total NAF basis.
- Excess Historical Artifacts. Further expands ability to exchange excess items for
services and equipment.
The Resource Analysis and Business Practices Office (SAFM-RB) is working jointly with the Deputy Chief of Staff for Operations (DCSOPS), the Deputy Chief of Staff for Personnel (DCSPER) and the Personnel Command (PERSCOM), to review the military training open allotment and identify more efficient and less costly alternatives. Three alternatives to the open allotment were identified. The alternatives, all of which decentralize the funds and eliminate the open allotment, are: (1) directly fund the schoolhouse, (2) directly fund the unit, and (3) provide a specific allotment to PERSCOM.
A test of the "schoolhouse" alternative is being conducted at Fort Benning beginning in June 1996, and is scheduled to run for one year. Fort Benning will issue orders for soldiers scheduled to attend Infantry School courses. A Fort Benning fund cite will be included on the orders. During the test, the training open allotment will no longer be used to fund per diem or TDY travel for soldiers attending the Infantry School courses at Fort Benning.
A test of the "unit" alternative is being conducted at Fort Drum beginning in April 1996, and will run concurrent with the "schoolhouse" test. This "unit test" will only impact Fort Drum soldiers attending DA directed training or attending training in conjunction with a PCS from Fort Drum.
A concept paper is being developed by PERSCOM for the PERSCOM alternative. This alternative will not be tested, because much of the automation and related procedures being developed for the "schoolhouse test" will be applicable to the PERSCOM alternative.
The three alternatives will be evaluated against established criteria after completion of the tests. The criteria include cost, show rates, impact on soldiers, impact on readiness, fund control, and impact on training. The Army leadership will be involved in reviewing the test results and determining the best alternative.
To bring this problem under control, the Resource Analysis and Business Practices Directorate, OASA(FM&C) and ODCSPER, with assistance from PERSCOM, worked to identify policy or procedural changes that could make a difference. The primary focus is on debt avoidance by using a comprehensive separation checklist and more rigorous outprocessing procedures. The checklist and new procedures will become standardized across the Army and will require soldiers and their commanders to take a more responsible role in eliminating out-of-service debt problems.
The new separation checklist (DA Form 137-R [Test]) was distributed to the field for testing from November 1995 to May 1996. The new checklist requires a standardized installation clearance process that makes the soldier more responsible for proper clearing and requires unit commanders to validate soldiers' leave records prior to separation. Failure to complete the checklist will result in soldiers receiving 55% of final pay at separation, pending Defense Finance and Accounting Service (DFAS) verification of any outstanding debts. Final payment to the soldier will be made by DFAS within 30 days following separation.
The trend during the test period has shown steady improvement. The percent of soldiers separating in debt dropped from 28.3% in December 1995 to 23.2% in February 1996. During the same period, the dollar amount of debt decreased from $3.1M to $2.3M. Comparing the test period average to the FY 1995 baseline reflects a decrease of .4% of soldiers separating in debt and a decrease of $805K from the FY 1995 average.
The new installation clearance process is good for the Army and good for the soldier. It is expected to dramatically reduce out-of-service debt with no adverse impact on workload or on the soldier. The emphasis on debt avoidance actually benefits the soldier. In the past, many soldiers were surprised to learn months after separation that they owed money to the Army. Alerting them to this situation during outprocessing helps soldiers understand and pay debts prior to separation, thus avoiding credit problems as they transition to civilian life. In addition, this initiative helps us exercise good financial stewardship of the limited dollars available to accomplish the Army mission.
- At Fort Hood, Dental Command partners with the American Red Cross to train
volunteers to be dental assistants. The installation receives free labor and expanded care for soldiers and family members; the volunteer gains skills and experience.
- Fort Riley partners with Kansas State University to obtain journalist interns for the
installation newspaper. The installation receives free labor; the students receive real-world experience and college credit.
- Fort Leavenworth partners with the Kansas State Department of Social and Rehabilitation Services and receives free labor in exchange for work experience.
- The Commonwealth of Kentucky provides spouse abuse victims shelter in the local
community facility without charge. In return, Fort Knox provides training to personnel operating the shelter.
- Installations partner with local Chambers of Commerce and State Employment Offices to
sponsor joint job fairs for transitioning military and civilian personnel and family members.
- Installations enter mutual support agreements with federal and state forestry personnel to
respond to forest fires on the installation and in the local surrounding area.
- Installations developed reciprocal use agreements with schools and universities for
libraries, classroom and auditorium space, audiovisual equipment, and instructors.
- Fort Leavenworth partnered with the local school district to provide a joint sport facility.
The installation provided the land and the school district built the facility. Maintenance is shared.
- Fort Gillem leases unused/underused railroad tracks to Norfolk Southern in exchange for
repair of the rail system and railroad cars.
- Fort Belvoir partnered with the local transportation system to obtain bus service on post.
Travel to work is more convenient and the number of vehicles on-post is reduced.
The Resource Analysis and Business Practices Office is a very active participant in this area. Over the past two years, the office has been involved in a major effort to identify potential Army outsourcing and privatization candidates, and to identify and propose legislative changes to laws and regulations that restrict progress and prevent the DoD from taking full advantage of private sector opportunities.
Significant progress has already been made in changing laws that govern real property. The Housing Revitalization Act of 1996 significantly expanded the flexibility and opportunity for privatization of housing. It enables the establishment of public-private partnerships, creates a Defense Housing Improvement Fund into which funds from housing appropriations can be transferred, and allows the government to enter into various types of guarantees to increase the attractiveness of private investment. An Army team is working to utilize these authorities and improve Army family housing.
Privatization of utilities is another area in which the office has been involved. Currently, about 10 percent of the 465 systems serving Army installations are privatized. The Army is working toward a goal of privatizing 75 percent of the Army owned and operated utility systems by the year 2000.
The Resource Analysis and Business Practices Office is also very involved in identifying for outsourcing administrative functions that are not core tasks. Current law contains many restrictions that preclude outsourcing and are counter to good government and managerial principles. This office listed the restrictions and the required enabling legislation for use by the Army and DoD leadership when discussing outsourcing with the Congress.
The Congress is taking a keen interest in reducing the cost of government through outsourcing and privatization. A DoD legislative package, which requests relief from many of these restrictions, is being prepared for submission to the Congress.
As a result of an Army developed legislative proposal, the FY 1996 Defense Authorization Act directs the DoD to conduct a two-year demonstration project that will test merging MWR APF with NAF. This will effectively allow test sites to conduct all MWR operations under NAF rules. This will provide managers with simplified procurement rules, one type of personnel, and one overall financial system and statement that will give infinite detail on the sources and uses of funds.
Although the concept is designed to operate with a totally NAF workforce, since the concept is being tested rather than implemented, the Services have decided that there will be no conversions of personnel from APF to NAF for this test. Managers will have, however, the opportunity to hire NAF personnel to replace vacant APF positions during the test.
Expected results from the test include reduced costs, greater management flexibility, ability to provide more services, better services for customers, and greater financial visibility for all levels of management. Cost savings should not be limited to direct costs of the programs. Indirect support provided by non-MWR installation activities for personnel, contracting, and finances services should also benefit from this test.
- Reduced "absolute value" unmatched disbursements (UMDs) from $750 million on 30
June 1994 to $368 million in September 1995 -- a reduction of 51 percent.
- Reduced "absolute value" negative unliquidated obligations (NULOs) from $500 million
on 30 June 1994 to $148 million in September 1995 -- a reduction of 70 percent.
- Reduced contingent liabilities associated with the canceling year appropriations from
$539 million in October 1994 to $23 million in September 1995 - a reduction of 96 percent.
Army's major commands report that their experience with the Joint Reconciliation Program has led to improvements in their execution of current year obligation authority. Most important, it has precluded current year funds being diverted from essential expenditures in support of military readiness.
As a result of a FORSCOM Process Action Team's findings and to insure the success of SARSS-O, the Deputy Chief of Staff for Logistics directed that an Independent Verification and Validation (IV&V) team be organized to review SARSS-O and make appropriate recommendations to maximize the efficiency and effectiveness of SARSS-O. The IV&V team was supplemented with a BPR team. There was a perception that different activities were using different business processes to run SARSS-O.
The BPR team was chartered to determine the current processes and procedures and to recommend standard financial information, processes and procedures for use by all SARSS-O users throughout the Army. During the BPR process, team members interviewed users and customers of SARSS-O to ensure customer needs were identified, considered, and appropriately reflected in the recommendations.
As a result of the BPR the financial information needs of the customers are being addressed with the development of the Logistics/Financial (LOGFIN) module of the PC-based program known as the Integrated Logistics Analysis Program (ILAP). The Deputy Assistant Secretary of the Army for Financial Operations secured funding during FY 95 for development of this program. LOGFIN will allow users to access SARSS-O and appropriate financial systems and produce needed reports on a PC. This capability will allow research that is currently being performed by time-consuming manual processes to be performed in a fraction of the time on a PC. As required funding is obtained, it is planned that ILAP and LOGFIN will be fielded at appropriate levels throughout the Army.
Since August 1994, 122 different installation services and their associated output measures have been identified, costed and associated outputs defined at nine Forces Command Installations and 24 Army Materiel Command installations. Based on these results, senior Army leadership has decided to implement SBC Army-wide. Command resource managers now have the necessary information for these services to quickly assess both the cost and related benefits to support alternative levels of services for funding consideration. USACEAC is continuing to refine the definition and number of services covered and support increasing the number of installations using SBC.
SBC supports the objectives of the National Performance Review by providing the local managers with customer oriented decision making cost tools. With established benchmarks for specific services, Army installations managers are better able to establish best business practices, benefit from shared learning, and identify areas requiring greater management attention. Adoption of best business practices will eliminate redundant services or activities, remove non-essential functions, and improve overall productivity.
With a better understanding of SBC, decision makers are able to focus on customer needs. Objective output measures for each service provide Army resource managers with the tools to manage the process output versus the current method of managing the process inputs. Managing the process output empowers all employees to be customer oriented and focused on value.
SBC's greatest benefit is providing decision makers, Army-wide, with the necessary information to effectively and efficiently manage resources, adapt to change, and encourage innovative business practices.
For the Budgeting/Programming Community, OSMIS provides unique input to the Army's Training Resource Model and Flying Hour Program which in turn develops the Major Commands (MACOM) operating tempo (optempo) training budgets.
For the Logistics community, OSMIS provides key historic performance information at the end item perspective to support logistics models such as, the Integrated Logistics Analysis Program (ILAP) and the Revolving Funds Model (REVOLVER). OSMIS supports the building validation of logistics budget documents, measures historic rebuild and washout rates for parts, and supports many special study requests to improve Army logistics management.
One use of OSMIS by the Acquisition community is to identify weapon system Operations and Support Cost Reduction (OSCR) Initiatives. OSMIS identifies the high operating and support cost parts and components of major weapon systems for potential cost reduction programs. After an initiative is implemented, OSMIS can track the actual savings. In the development of new systems, OSMIS data provides the identification of major cost driver components of the prior systems to provide PM focus in the new design.
The US Army Cost and Economic Analysis Center has initiated new OSMIS initiatives supporting the National Performance Review objectives including revising the annual reports to a customer-friendly format with more available information, and broader, cheaper and more timely distribution of the annual report employing the World Wide Web home page of the Assistant Secretary of the Army (Financial Management & Comptroller). A CD-ROM version is also available at customer request. Since 1992, the number of systems tracked has increased from 347 to 414. Customer tailored reports are available. Our customer base expanded from 150 to over 400 clients (Army, DoD and DoD contractors), reflecting continual improvements in the number of systems, the data utility and the quick distribution of products. These OSMIS products and services permit resource managers at all levels to estimate budget demands at all optempo levels.
Some important unique ACEIT features:
- Automatic standard cost estimating structure
- Reduction in errors/omissions
- Facilitation of electronic interchange of in process estimates
- Built in common learning curve equations
- Quick linkage to major cost data bases
ACEIT provides significant savings over traditional cost estimating methods. In a time of team estimating, ACEIT's unique features provide easy integration of the work of a team of independent analysts to effectively develop a single life cycle cost estimate. This capability is particularly useful in the development of complex cost estimates for joint service programs.
ACDB links to ACEIT and will be the most complete, readily available source/repository of Army, Air Force and Navy historic cost and technical data. Currently, the Army, Air Force and Navy are working jointly on the development and fielding of 16 weapon system commodity cost databases.
To further the objectives of the National Performance Review, the joint development of ACEIT has reduced development duplication between the services, improved cost analysis productivity DoD-wide, accommodated for future expansion of ACDB employing direct Electronic Data Interchanges (EDI), and benefited from commonality in training programs (400 analysts trained Army-wide and 1400 government-wide.)
ACEIT has significantly enhanced the Army's ability to meet decision makers needs for quality life cycle cost estimates while experiencing a loss of over 30 percent of its cost analysts workforce.
The guidance in the new manual decreases the total effort required to produce an EA through reductions in the required level of documentation. Required documentation formats were redesigned to capture all appropriate costs and benefits using less time and resources. A typical EA was reduced in size between 25 to 50 percent, saving an estimated 15 to 20 percent man-year effort. The reinvented process provides the pertinent information in an easier to follow, more condensed format.
To further aid the reader, the new manual is structured to facilitate finding information and guidance on a particular area or subject matter. The layout is supported by more effective and more informative graphics that display valuable and well organized information on specific subject areas pertaining to the EA process.
The new manual provides detailed guidance and clarification on specific Army EA requirements. It addresses Capital Budget investment projects which were not addressed in the previous version of the manual, and gives detailed information on preparing these specific EAs. For Defense Business Operating Fund (DBOF) Capitol Budget Investment Projects below a certain threshold, the new manual allows the submission of less rigorous cost comparisons, thereby reducing the time and effort required to prepare for lower value investment decisions. This specific information and guidance gives organizations a head start in preparing justifications for their projects thus adding efficiency to the overall approval process as the projects are reviewed by HQ Army and Office of the Secretary of Defense.
One final feature of the new manual provides the Army Program Managers with a Cost Element Structure (CES) for Automated Information Systems (AIS) reflecting the new standard DoD AIS CES format. This enables Army AIS program managers/proponents to prepare their EAs in a format which will be acceptable to DoD without the extensive reformatting which was often required in the past. This streamlined approach shortens by ten to fifteen days one of the most significant time windows in the process of preparing for a Major AIS Milestone Decision Review.
This new manual supports the objectives of the National Performance Review in a number of important ways -- it was written with the user in mind, it has significantly reduced the volume of paper required while improving the readability of the product, and it has improved analyst productivity Army-wide while maintaining the quality of the analysis.
The ISR provides a consistent estimate of the resource requirements to sustain and improve Army facilities and installations. HQDA uses these estimates to compare resource plans during the Program Operating Memorandum (POM) building process. Later in the process, the ISR supports the Army's defense of resource requirements for its installations before the Defense Department and Congress.
The ISR process is in keeping with the guidelines of the National Performance Review and the Government Performance Review Act. The ISR gives the Commander's overview of the status of facility conditions on an installation, and provides an assessment of conditions measured against a common set of standards. ISR can be used to highlight key, systemic problem areas so Army leadership can focus resources to the areas of most need.
The Resource Analysis Office designed, developed, and implemented the ISR Army-wide, and the US Army Cost and Economic Analysis Center (USACEAC) contributed to this effort by providing valid cost factors for over 200 facility category groups.
In Fiscal Year 1995, over $11 million of analyses were provided with customer funding using USACEAC contract instruments with an estimated workload equivalent of nearly 90 man-years. Outsourcing has permitted work force stability during periods of unpredictable demands. Recent customers include the Office of the Assistant Secretary of Defense for Health Affairs, the Joint Logistics Systems Center, and the Office of the Program Manager for Chemical Demilitarization.
When approached by a government agency requesting assistance, a USACEAC staff analyst reviews the requirement, advises on the selection of the appropriate available contractor, consults on the development of the task order's statement of work, and confers with the customer during the performance of the contract.
In support of the objectives of the National Performance Review, USACEAC uses outsourcing as an effective management tool to address quickly and economically unusual or short-suspense cost and economic analysis requirements while maintaining management control of the product quality. Within its fixed personnel ceiling, USACEAC management can provide, through outsourcing, additional cost and economic analysis support providing quality products tailored to the customer's needs within tight time constraints.
The CRB has conducted over thirty program reviews, totaling over $150 Billion, with remarkable success. Since creation of the CRB about three years ago, acquisition cost estimates in the ACP have differed from OSD Cost Analysis Improvement Group estimates by less than 1%, and life cycle cost estimates by less than 4%. The CRB process has essentially eliminated the time consuming, labor intensive process of finding bill payers and re-prioritizing Army programs to fix shortfalls.
The Cost Review Board takes an Integrated Product Team (IPT) approach to cost analysis by bringing together functional experts from the acquisition, combat developments, and financial management communities. Its review of major weapon and information systems at critical acquisition decision points has raised, and assisted in resolving, a number of very critical issues. For example the CRB recommended a change in the maintenance concept for the Joint Tactical Information Distribution System that resulted in a cost avoidance of $400 million. It also recommended the use of common hardware and software for Combat Service Support Control System training, and standardization of policy toward computer technology replacement for tactical and non-tactical applications. These will result in a substantial additional cost avoidance for the Army.
The USACEAC, the CRB executive agent, is continuously improving the CRB process. Current process improvement initiatives have shortened the time required for the CRB to do its work, saving an estimated 1500 manhours for each Major Program Review, perform cost risk and uncertainty analyses, and support affordability excursions. CEAC recently assembled an Army-wide team to reengineer the cost analysis process. The Army is experimenting with one of its recommendations in the development of an ACP for the Comanche helicopter program. USACEAC and the Comanche Program Office are co-chairing a cost IPT to develop a single cost estimate for the demonstration and validation phases. This has the potential to reduce resource requirements by eliminating duplicate cost estimates, while at the same time increasing the quality of the estimate.
The Cost Review Board has dramatically improved cost analysis support to the materiel acquisition and the PPBES processes. It achieved this success by reducing the variance between Army and OSD cost estimates for materiel and information systems and by providing timely, high quality cost estimates to support the acquisition and PPBES processes.
- Disseminating information. DAQS distribution engine allows HQDA to broadcast messages and send files to its user base around the world.
- Generating standard reports. DAQS is capable of generating several different types of reports. When a request for a report is received, DAQS processes the request, connects to the HQDA's Information Resource Management Information System database (containing current and historical POM and Budget data), generates the report as a Microsoft Word document, and mails the resulting document back to the user. This has allowed DAQS' users access to the same reports formerly only available via the Pentagon mainframe.
- Distributing software. Using DAQS allows users to request HQDA-provided software.
DAQS mails the requested software directly to the user as an attached file along with any instructions necessary for installation and operation of the software.
- Processing program and budget data. During a program or budget cycle, the Army's financial analysts at the major commands can send their POM/Budget data to DAQS via e-mail. Upon receiving this data, DAQS first validates the data. If the data is in error, the data is automatically mailed back to the analyst along with an error report. This allows the MACOM to quickly correct their data, and resubmit to HQDA. Once the data is correct, DAQS interfaces with HQDA's IRMIS database and automatically stores the data. At all times during this process, the current status of a given submission is sent by DAQS to the submitting party and the appropriate managers at HQDA. In addition, DAQS maintains statistics for all POM/Budget submissions which in turn is used to generate several different reports that help HQDA track the overall status of a given POM/Budget cycle. This process has dramatically improved the entire POM/Budget submission process by improving the quality of the MACOM's data, automating time-intensive manual processes, and providing accountability.