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GAO-13-313R 1 (2013-03-07)

handle is hein.gao/gaobacgye0001 and id is 1 raw text is: J GAO IAccountability *Integrity * Reliability United States Government Accountability Office Washington, DC 20548 March 7, 2013 Congressional Committees Subject: Department of Defense's Waiver of Competitive Prototyping Requirement for Combat Rescue Helicopter Program The Weapon Systems Acquisition Reform Act of 2009, as amended (WSARA), requires the Secretary of Defense to modify guidance to ensure 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. It can also help reduce the time it takes to field a system, and as a result, reduce its acquisition cost. 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 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 no later than 60 days after receipt of a notification of a waiver, we are to review the rationale for the waiver and submit a written assessment of that rationale to the congressional defense committees.2 On November 27, 2012, we received notice from DOD that it had waived the competitive prototyping requirement for the Combat Rescue Helicopter (CRH). The Air Force's CRH 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. DOD modified its guidance related to the operation of its acquisition system 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). GAO-13-313R CRH Prototyping Waiver Page 1

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