plished, their role will be expanded to encompass all source selection activities throughout the pre-award period. They will be called Acquisition Support Teams. One of the first areas these new Acquisition Support Teams will address is improving the consistency, quality, documentation, and debriefings of source selections. We will create centers for expertise to conduct Market and Price Analysis in support of priced-based acquisitions. These centers of expertise will enhance the acquisition and sustainment workforce competency in conducting meaningful market research. They will also expand the use of commercial-style, price-based acquisitions and expand access to commercial solutions to our warfighters needs. We will be taking immediate action with another Lightning Bolt to implement Alternate Disputes Resolution (ADR). We will establish procedures with our Industry partners for the use of ADR in acquisition programs to resolve contract disputes at the lowest level possible using the least expensive means. By effectively using ADR we can continue to maintain our partnering relationships by placing controversies outside of the day-to-day management of the program. ADR was successfully demonstrated on a recent C-130 claim. The claim was resolved 2 years before the initial trial date, avoiding some 5-6 years in additional appeals litigation and approximately $250M in further costs. Air Force acquisition has reengineered Air Force Operational Contracting to enhance mission support for the new Aerospace Expeditionary Forces. We have completed a functional review of all peacetime and wartime contracting work processes and organizational structures. This review resulted in a new organizational structure for operational contracting squadrons. A New Lightning Bolt will implement those changes and adopt contracting process improvements. These new mission-oriented operational contracting organizations will be equipped to support the new Aerospace Expeditionary Forces' first deployment. A new Lightning Bolt will address improvements needed in the contract payment process. We will improve the accuracy of payments and reduce the workload and time to pay our contractors. The final area we will address with new Lightning Bolts is the area of product support. We will improve product support to our operational forces by encouraging Product Support Partnerships that use best commercial practices and core capabilities of the public and private sectors to improve performance. Under this initiative we will provide comprehensive guidance on implementing a competitively-sourced Product Support strategy that maximizes public-private partnering. CHALLENGES There are significant challenges in implementing acquisition reform that we will continue to face and need to address in the future. One of the areas the Air Force is beginning to address is cycle time. The Air Force recognizes the impact of long development times on the warfighter, budget, acquisition community, and sustainment community. The time it takes the acquisition community to respond to the needs of the warfighter is a significant measure of our effectiveness. The Packard Commission highlighted many of these problems back in 1986. Today the problem is even more acute as technology maturation is moving faster, and we are trying to do more with fewer resources. The Air Force has taken the lead in researching the issues associated with long development times and has identified a number of actions that will help us reduce development times. The Air Force's Lean Aerospace Initiative has done extensive research in this area and has made a number of substantial recommendations that we are considering. We have a number of teams that are looking at various aspects of this problem. The Air Force has been a leader in the DOD efforts to address these issues. The acquisition community alone can not solve many of the drivers of long development times. They require Air Force and DOD wide actions with the assistance of the Congress. We have had some success as with the Global Broadcast System, which through the use of commercial systems was able to significantly cut the time to develop and field. However, the issue of long development times did not appear over night and will take a consistent and focused effort to address. We believe we have started, but have a long way to go. Finally, we need to continue and expand the emphasis for acquisition reform in our sustainment processes. The Air Force needs to go beyond focusing on our program management processes and continue to look for ways to reform or reengineer our item management and materiel management processes. Continuing the process of acquisition reform is critical in order to provide the warfighters with the effective weapon systems they need in the most efficient manner possible. We thank the Congress for your support and look forward to working with you during the fiscal year 2000 Authorization and Appropriation process to enable further acquisition reforms to bring our acquisition process into the 21st Century. CHART 1-TOPICS • What We Have Accomplished • Success Stories • Where Are We Going Acquisition and Sustainment Process • Reinvention Teams • New Lightning Bolts • Challenges CHART 2-ACQUISITION REFORM WHAT WE HAVE ACCOMPLISHED Program Savings and/or Avoidance of $30 Billion • Government Insight vs. Oversight • Acquisition Workforce Downsizing • Current Workforce -34 Percent Since 1989 CHART 4-LIGHTNING BOLT 1—REQUEST FOR PROPOSAL (RFP) SUPPORT TEAM • Results and Achievements • Being implemented! • Average size of RFPs reduced by 50 percent • Use Statements of Objectives that Allow Industry to Respond with Time- and Cost-saving Solutions Rooted in Commercial Experience • Performance-based RFPs • Reducing Contract Data Requirements CHART 5 OF THE AIR CAFTARY DE Lightning Bolt 4 - One Set of ✪ Results & Achievements ◆ Centralize Policy at HQ - Decentralize Execution CHART 6 LIGHTNING BOLT 7-SINGLE ACQUISITION MANAGEMENT PLAN (SAMP) AUPPR (40,000 units) $42K (BY93$) <$20K (BY93$) CHART 8-ACQUISITION REFORM SUCCESS STORIES • Joint Air-to-Surface Standoff Missile • Implemented Following Reform Initiatives • Gave Contractor Total System Performance Responsibility Incorporated Bumper-to-Bumper Warranty • Aggressively Implemented Cost As an Independent Variable • Results • Reduced Average Production Unit Cost by 57 Percent • Compressed Time Required for Production to Less than 10 years Resulting in $110M Savings over Production Period CHART 9-ACQUISITION REFORM SUCCESS STORIES • Evolved Expendable Launch Vehicle • Implemented Following Reform Initiatives • Innovative Partnering Agreements with Contractors • Development Other Transaction Agreements (OTA) • Share Costs and Risk of Developing New System and Concepts • Exploited Electronic_Commerce to Streamline Acquisition Process and Obtain Contractor Data Electronically • Results • Expected Program Life Cycle Savings of $6 Billion CHART 10-ACQUISITION REFORM WHERE ARE WE GOING • Air Force Acquisition and Sustainment Reinvention Process Hand Selected Leader, Multi-discipline Field Membership Chartered to Look Beyond Tasks, Jobs, and Organizations to Focus on Processes and Process Improvements • Results are Tested and Executable Product Deployed to Workforce and Industry CHART 11-ACQUISITION REFORM • New Lightning Bolts WHERE ARE WE GOING Acquisition Support Team and Center Offices • Improving Support to Program Offices During Pre-award Phase • Superior Source Selections Improving Consistency, Quality, Documentation, and Debriefings • Market Analysis and Pricing Centers of Expertise • Creating Multi-Functional Centers of Expertise • Acquisition Alternative Dispute Resolution (ADR) First · Expanding the Use of ADR in ACAT I and II Programs • Operational Contracting Support to Air Expeditionary Forces (AEF) • Test of Improved Contract Accounting and Payment Processes • Testing New Payment Processes to Improve Accuracy and Timeliness of Contract Payments • Product Support Partnerships Implementing Partnerships that Use Best Commercial Practices and Core Capabilities of Public and Private Sectors to Improve Product Support Performance CHART 13-ACQUISITION REFORM CHALLENGES • Challenges • Cycle Time • Program Stability • Training Acquisition Workforce to Implement Reforms • Commercial Pricing and Market Analysis • Reducing Life Cycle Cost "This is not the end, or the beginning of the end, but it is, I believe, the end of the beginning."-Sir Winston Churchill Senator INHOFE. Thank you, Secretary Druyun. General Glisson. STATEMENT OF LT. GEN. HENRY T. GLISSON, USA, DIRECTOR, DEFENSE LOGISTICS AGENCY General GLISSON. Good morning, Mr. Chairman, Senator Robb. I appreciate the opportunity to be with you today and testify before |