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GAO-12-983R 1 (2012-08-23)

handle is hein.gao/gaobacgkq0001 and id is 1 raw text is: United States Government Accountability Office Washington, DC 20548 August 23, 2012 Congressional Committees Subject: Department of Defense's Waiver of Competitive Prototyping Requirement for Enhanced Polar System Program The Weapon Systems Acquisition Reform Act of 2009, as amended (WSARA), requires that the acquisition strategy for each major defense acquisition program provides for competitive prototypes before Milestone B approval-which authorizes entry into system development- unless the Milestone Decision Authority waives the requirement.1 Competitive prototyping, which involves commercial, government, or academic sources producing early prototypes of weapon systems or critical subsystems, can help Department of Defense (DOD) programs reduce technical risk, refine requirements, validate designs and cost estimates, and evaluate manufacturing processes prior to making major commitments of resources. WSARA states that the Milestone Decision Authority may waive the competitive prototyping requirement only on the basis that (1) the cost of producing competitive prototypes exceeds the expected life-cycle benefits (in constant dollars) of producing such prototypes, including the benefits of improved performance and increased technological and design maturity that may be achieved through competitive prototyping; or (2) but for such a waiver, DOD would be unable to meet critical national security objectives. WSARA also directed us to review and assess DOD's rationale for competitive prototyping waivers.2 On June 18, 2012, DOD notified us that it had waived the competitive prototyping requirement for the Control and Planning Segment (CAPS), a subsystem of the Air Force's Enhanced Polar 1Pub. L. No. 111-23, § 203(a), as amended by the Ike Skelton National Defense Authorization Act for Fiscal Year 2011, Pub. L. No. 111-383, § 813. Specifically, WSARA required DOD to modify its guidance relating to the operation of its acquisition system to incorporate these competitive prototyping provisions. DOD did so through Directive-Type Memorandum (DTM) 09-027, Implementation of Weapon System Acquisition Reform Act of 2009 (Dec. 4, 2009, incorporating Change 3, Dec. 9, 2011). Major defense acquisition programs are those estimated by DOD to require an eventual total expenditure for research, development, test, and evaluation of more than $365 million, or for procurement, including all planned increments or spirals, of more than $2.19 billion in fiscal year 2000 constant dollars. The Milestone Decision Authority for major defense acquisition programs is the Under Secretary of Defense for Acquisition, Technology and Logistics, the head of a DOD component, or if delegated the component acquisition executive. 2Pub. L. No. 111-23 § 203(b)(2). Specifically, WSARA provides that whenever a Milestone Decision Authority authorizes a waiver of the competitive prototyping requirement on the basis of what WSARA describes as excessive cost, the Milestone Decision Authority is required to submit notification of the waiver, together with the rationale, to the Comptroller General of the United States at the same time it is submitted to the congressional defense committees. WSARA further provides that we are to review the rationale for the waiver and submit a written assessment of that rationale to the congressional defense committees. GAO-12-983R EPS Prototyping Waiver Page 1

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