AA 1 6 785Q AD-A28 D Ic hEL B Acquisition Review Quarterly Volume I, Number 3 Summer 1994 Sherri W, Goodman THE LEMON JUICE SOLUTION: DoD Acquis~tfon Reform and Pollution Prevention Robert E. Neilson THE ROLE OF INFORMATION TECHNOLOGY IN NATIONAL SECURITY POLICY Paul V. Shebalin SOFTWARE DEVELOPMENT STANDARDS AND THE DOD PROGRAM MANAGER Jeanne C. Sutton MARRYING COMMERCIAL AND MILITARY TECHNOLOGIES: A New Strategy for Maintaining ' -Technological Supremacy (cid:127) oU'Or Michael E, Heberling DEFENSE INDUSTRIAL BASE POLICY: S,,Revisited 1 Richard M. Williams SMALL BUSINESS MANUFACTURING: _= S0 - (cid:127)An Important Component of the U.S. Defense Industrial Base =- W. Glenn ,UMSaINrkG EXPLICIT DEMAND CU DTIC IN AN ACQUISITION STRATE MAY 0 5 1995 Defense Acquisition University Dbu ACQUISITION REVIEW QUARTERLY The Journal of the Defense Acquisition University Interim President, Defense Acquisition University Dr. James S. McMichael Managing Editor Editor Wilbur D. Jones. Jr. Robert W. Ball Layout and Design Bartlett Communications The Acquisition Review Quarterly (ARQ) is published quarterly for the Defense Acquisition Uni- versity by the Defense Systems Management College Press, 9820 Belvoir Road, Suite G38, Fort Belvoir. VA 22060-5565. Second Class Postage rate pending at Fort Belvoir. VA and at additional entir offices. Editorial Board Robert W. Ball Dr. Richard Murphy Defense Systems Manamgenntr Colle,'e Air Force Institute of Techtnolokv Wilbur D. Jones. Jr. Frank Sobieszczyk Defense SCsoenss Managemnt ('llege Defense Acquisition Univerusty Dr. Dave Lamm Dr. Stephen Versace Naval PostgraduateS chool lnfolnation Resources Manageme'n COL Henr W. Meyer. Jr.. USA College Arrni Logistics Management College Dr. Rita Wells hIdustrialC ollege of the Armed F'orces Review Board Dr. Henry S. Bausum ADM James Hogg, USN (Ret.) The Journal of Military Histor" NationalS ecurity industrialA ssociation Walter B. Bergmann Frank Kendall Acting Deputy Assistant Secretary of Director of Tactical Systems* Dte~nse for Production Resources * Martin Meth Brig Gen (Sel) Claude M. Bolton. Jr.. USAF Director. lWeapon .Support Improvement Dtfetse S,:stenus Mana'enlnt Coll(cid:127)ge (;rop* John A. Burt Dr. Diane R. Murphy Director.T est and Evaluation* Procutrenet Automation Institulte Peter DcMayo William H. Recd Martin-Mariettas ('orxration Defense Contract Audit Agency Blair Ewing Eleanor Spector Office of the Department of Defense Director,D efense Procurement* Comptroller Prof. Richard A. Stubbing Dr. J. Ronald Fox Duke Univervity Hlarvard University Kathryn C. Turner Dr. Jacques S. Ganslcr Standard Technology. Inc. TASC office of the Under Secretary of Defense (Acquisition and TechnoloyJ, .ummper 1994 Refereed Journal Acquisition Review Quarterly (ARQ) 6 At(1 T HO R,,S) ..... .. . . .... .. . . . . Numerous Authors 7. PERFO-OMiNG ORGANiZ-\TfON NAME(S) AND ADORESS(ES 8P O] ;G ORGANIZATION Defense Systems Management College 9820 Belvoir Road Suite G38 ATTN: DSMC Press Fort Belvoijr VA 22060 .... ........ ,'3 5 S'C2 N ' z.MCT R iNG AGENCY N A,,. ) AND ,D7Th -K .- C '' : fTO~iNG Defense Acquisition University ACý-ýR7< NUMBER 2001 No. Beauregard Street Alexandria, VA 22311 la,. 0:5TRIBUHION AVAiLABIL1Y SrA I N .,. ,- CODE Distribution Unlimited The primary goal of the Acquisition Review Quarterly (ARQ) is to provide practicing acquisition professionals with relevant management tools and information based on recent advances in policy, management theory and research. The ARQ addresses the needs of professionals across the full spectrum of defense acquisition, and is intended to serve as a mechanism for fostering and disseminating scholarly research on acquisition issues, for exchanging opinions, for communicating policy decisions, and for maintaining a high level of awareness regarding acquisition management, philosophies. 14. SUBJECT TERMS 15. NUMBER OF PAGES The Role of Information Technology in Nat-onal Security Plan; 106 Defense Industrial Base Policy; Small Business Manufacturing; 16 P(cid:127),,E COO( Using Explicit Demand Curves in an Acquisition Strategy 1i SECURITY CIASSIFICATrON 18 SECURITY CLASSIFICATION 19 SECt!KIEY ( I AT'N 2, LI MMAI TION OF ABSTRACT OF REPORT OF THIS PAGE OF ABST9ACT Unclassified Unclassified Unclassified Unlimited ',"N1 !,40-f,: 280 ')"00) ifardlal rm 298 (Rev 2-89) ".d AVN.-Y. ACQUISITION REVIEW QUARTERLY Defense Acquisition University Volume ' .,,. 3 Summer 0994 Articles represent the views of the authors and do not necessarily r(cid:127)flect the opinion of the Defense Acquisition University or the Department of Defense. Whenever feminine or masculine nouns or pronouns appear, other than with obvious reference to named individuals, they have been used for literary purposes and are meant in their generic sense. ýý:.U-T"CTED 5 Postmaster send changes of address to: Editor. ARQ, Defense Acquisition University, 2001 No. Beaurcgard St.. Rm 420. Alexandria, VA 22311-9913. To subscribe, government personnel should submit written requests to the above address. Non government personnel and organizations may subscribe at $12 annually through the U.S. Govcrnment Printing Office, Washington. D.C. 20402. EDITORIAL MISSION The primary goal of the Acquisition Review Quarterly (ARQ) is to provide practicing acquisition professionals with relevant management tools and information based on recent advances in policy, management theory and research. The ARQ addresses the needs of professionals across the full spectrum of defense acquisition, and is intended to serve as a mechanism for fostering and dis- seminating scholarly research on acquisition issues, for exchanging opinions, for communicating policy decisions, and for maintaining a high level of awareness regarding acquisition management, philosophies. In addition to the acquisition professional, the ARQ provides insight to others in the Department of Defense (DoD). Congress, industry and academe who have significant interest in how the DoD conducts its acquisition mission. Acquisition Corps mem- bers and other readers from government, Congress, in- dustry and academe are encouraged to use the ARQ as their professional forum for discussion and exchange of policies, research, information and opinions. Contents Policy 188 - THE LEMON JUICE SOLUTION: Reform and Pollution Prevention Sherri W. Goodman Making modern weapon systems can, and often does, have an ad- verse impact on the environment. But, things are changing. The author focuses on the need to use environmentally sensitive tech- nologies in defending America. We need to do the job with less pollution. Opinion 192 -THE ROLE OF INFORMATION TECHNOLOGY IN NATIONAL SECURITY POLICY Robert E. Neilson National security is a subject of interest to most everyone. The author uses a descriptive model linking governmental information technology policy making processes with capacity building processes that add to the economic and military dimensions of national security. Research 202 - SOFTWARE DEVELOPMENT STANDARDS AND THE DOD PROGRAM MANAGER Paul V. Shebalin A recent policy change removed the requirement for Department of Defense program managers to adhere to a strict framework of military standards and specifications. The necessity remains, how- ever, for applying effectual contractual software development stan- dards. The author believes that the proper applicaiton of any DoD software development standard will continue to be a difficult task for the program manager. 219 -MARRYING COMMERICAL AND MILITARY TECHNOLOGIES: A New Strategy for Maintaining Technological Supremacy Colonel Jeanne C. Sutton, USAF Most of the weapon systems that performed so impressively in Desert Storm were based on 15- to 20-year old technology. But, i -Summer 1994 Acquisition Review Quarterly the past is not a bellwether for the future. The author discusses potential problems in maintaining the technological advantage America has enjoyed since World War 11 and suggests ways to strengthen our science and technology base. 238 -DEFENSE INDUSTRIAL BASE POLICY: Revisited Lieutenant Colonel Michael E. Heberling, USAF A defense industrial policy that accommodates decreasing budgets, changing enemy threats and marketplace realitites is a major re- quirement. The author discusses defense industrial policy goals and suggests that collectively the, may be unobtainable. 250 - SMALL BUSINESS MANUFACTURING - An Important Component of the U.S. Defense Industrial Base Richard M. Williams Small- and medium-sized manufacti.ring businesses have always been an important player in the defense industrial base. The au- thor looks at the contribution of these businesses to the defense industrial base and at challenges facing both large and small U.S. defense industries. Tutorial 269 -USING EXPLICIT DEMAND CURVES IN AN ACQUISITION STRATEGY Mark W. Glenn The authors examines sole- and dual-source production and their cost implications, and suggests the use of explicit demand curves. 281 - GUIDELINES FOR AUTHORS Acquisition Review Quarterly Summer 1994 - ii The Lemon Juice Solution: Pollution Prevention and Acquisition Reform The Lemon Juice Solution: Pollution Prevention and Acquisition Reform Sherri W. Goodman lie Department of Defense (DoD) has a clear duty to clean up after itself and comply with federal environmental laws and regulations. Defense installationsc over tens of millions of square miles ofAmeri- can landscape and impact on its populace, land, water, air and wildlif'e. The Office of the Deputy Under Secretary oJ Defense fr'r Environmental Security is responsiblef or ensuring that all DoD activities protect our natu- ral resources. INTRODUCTION Electronic circuit boards are the nerve system of nearly all modern weapon systems in the U.S. arsenal. But making them and fixing them hurt the environment because we'd relied on chemicals that harm the earth's protective layer of ozone. The Hughes Aircraft Company came up with an answer. It developed a process that relies on a non-toxic soldering flux based on citric acid, which is found naturally in garden variety lemons and oranges. Unfortu- nately, the Department of Defense (DoD) couldn't buy the Hughes product until we completely rewrote the military specification (MILSPEC) for solder, which dictated purchase of the old type. But now, thanks to a significant change in the military acquisition system this summer, DoD will no longer have to hurdle the MILSPEC system in order to seize on new, environmentally sensitive technologies. Mrs. Goodman is the first deputy undersecretary of defense for environmental security. She came to the Department of Defense from the Boston law firm of Goodwin. Proctor and Hoar where she was an environmental litigation attor- ney. She holds a masters degree in public policy and law from Harvard. 188 - Summer 1994 Acquisition Review Quarterly The Lemon Juice Solution: Pollution Prevention and Acquisition Reform Indeed, acquisition reform presents a fresh opportunity to do our job of defending America with less pollution. Changing the Standards On June 29, Secretary of Defense William J. Perry announced a historic change in the way DoD will buy its weapon systems components and supplies. In short, like the Berlin Wall, we are tearing down the MILSPECs system, which required our contractors to follow lengthy detailed instructions to make even the most mundane items. Instead. we are going to rely on performance and commercial standards. "Instead of telling our contractors how to build something," Perry said, "we are going to tell them what we want it to do and then let them build it to achieve that desired result." The Berlin Wall analogy is apt because MILSPECs built a wall in our economy, dividing defense contractors from commercial producers and creating two separate, unique industrial bases. The MILSPECs often forced defense contractors to do business differently, take more steps and do more paperwork. This military-unique system raised our costs, a luxury, we cannot afford. It also cut DoD off from the commercial mar- ket where many of the technological advances that we need to maintain a strong defense and cleaner environment are happening. With com- mercial and performance specifications, DoD can save time and money. broaden our base of suppliers, and tap emerging technology like the Hughes' citric acid soldering flux. Environmental Security The demise of MILSPECs, as well as the acquisition reforms making their way through Congress, will completely change the way DoD does business. These changes will also enhance DoD goals for pollution pre- vention. The Office of the Deputy Under Secretary of Defense for Environ- mental Security, a new leadership post, is responsible for ensuring that all DoD activities-from the design and production of our weapon sys- tems to the maintenance of our numerous installations and ships at sea-piotect the natural resources that are entrusted to us. To make this happen, I directly advise the top defense acquisition executive. Under the Clinton Administration, DoD has placed a new, higher- profile emphasis on protecting the environment. This attention is long overdue. Defense Department installations cover tens of millions of square miles of the American landscape. If you look at a map, it is astonishing how much of the country we cover. Naturally, nearly every- thing we do affects the nation's land, water, air, wildlife and people. Acquisition Review Quarterly Summer 1994 - 189