Senate Hearing Highlights Importance of Acquisition Workforce Training and Leveraging Small Businesses for Tech Contracts

By Rebecca Pselos | MSGI Partner 
President of Kite Tail Strategy 

This week the Subcommittee on Readiness, Senate Armed Services Committee held a hearing on acquisition reform to help inform the FY22 National Defense Authorization Act (NDAA). Witnesses were asked to comment on how to achieve a quicker acquisition system while reducing risks. Ms. Stacy Cummings performing the duties of Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)), Department of Defense (DOD); Ms. Shelby Oakley, Director, Contracting and National Security Acquisitions, Government Accountability Office (GAO); and Dr. Raymond O’Toole, Acting Director, Operational Test and Evaluation, DOD (DOT&E) testified as the witnesses. 

Overall, the April 28th hearing highlighted 2021 procurement issues relevant to both defense and civilian agencies - quicker acquisitions, role of small businesses, emerging tech, and cybersecurity. In addition to DOD’s acquisition authorities and policy, the importance of traditional metrics of acquisitions success - cost and schedule - were mentioned. As were new factors to consider, such as value to the end-user and contribution to maintaining a competitive edge against U.S. competitors. DOD alluded to some authorities they’ll likely seek to change in this year’s NDAA - DoD’s Commercial Solutions Opening program and DOT&E authority. 

Ms. Cummings highlighted DoD’s Adaptive Acquisition Framework (AAF) as a recent reform to emphasize speed and agility. The framework established six acquisition pathways. Ms. Cummings added her office is working on improving data analytics to determine the success of the framework. GAO applauded the effort to measure success, but cautioned that the reform may be undermined if acquisitions are not based on sound business cases. Metrics should go beyond cost and schedule to include the value to the end user.    

Additionally, Ms. Cummings said that Defense Acquisition University (DAU) training will be revamped to align with the framework. Historically, the defense acquisition workforce has been taught a one-size fits all approach for acquisitions. The revised training will focus on different AAF pathways. I imagine DAU’s updated training will increase awareness of authorities benefiting non-traditional and small businesses and that awareness will spill over to civil agencies’ procurement shops.    

When asked about engaging with non-traditional and small businesses to leverage technology, Ms. Cummings provided two examples. DOD utilized recent contracting authorities to engage with these entities to respond to Covid-19. The authorities included Commercial Solutions Opening which accounted for roughly $7 billion in obligations related to the pandemic (just under half of the program’s total $16 billion in FY20 obligations). Under AAF, DOD has competed systems’ individual components among non-traditional and small businesses which then partner with Primes to integrate innovation.  

While GAO recognized that one of the key priorities of DOD’s new acquisition framework is to improve its ability to benefit from commercial innovation, GAO found the department has been challenged in developing and integrating innovative technologies into its weapon systems. GAO recommended DOD find the right balance of disruptive and incremental technology solutions and create an environment that attracts businesses that do not typically sell or develop solutions for DOD’s use. DOD will also need to address intellectual property and cybersecurity to fully take advantage of new technology. 

Dr. O’Toole agreed with GAO that focusing on incremental, open systems would allow DOD to speed up delivery for the warfighter. The approach would quickly field minimal viable capabilities which can be upgraded later. Moreover, the approach helps promote innovation and maintain a competitive edge against U.S. competitors. Dr. O’Toole went further to say the incremental approach needed to also be applied to testing. However, a larger concern he raised was cybersecurity. Of the programs DOT&E assessed in FY20, virally none were survivable against relevant cyber threats.