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The Under Secretary of Defense (AT&L) Frank Kendall on 9 April 2014 introduced an update to the Better Buying Power Initiative call Better Buying Power 3.0. The goal of the Better Buying Power is to obtain greater efficiency and productivity in defense spending by delivering the warfighting capabilities needed for the money available.

Better Buying Power 3.0: Memorandum

Better Buying Power 3.0: FactSheet


Achieve Affordable Programs
1. Mandate affordability as a requirement
2. Institute a system of investment planning to derive affordability caps
3. Enforce affordability caps
Control Costs Throughout the Product Lifecycle
4. Implement “should cost” based management
5. Eliminate redundancy within warfighter portfolios
6. Institute a system to measure the cost performance of programs and institutions and to assess the effectiveness of acquisition policies
7. Build stronger partnerships with the requirements community to control costs
8. Increase the incorporation of defense exportability features in initial designs
Incentivize Productivity & Innovation in Industry and Government
9. Align profitability more tightly with Department goals
10. Employ appropriate contract types
11. Increase use of Fixed Price Incentive contracts in Low Rate Initial Production
12. Better define value in “best value” competitions
13. When LPTA is used, define Technically Acceptable to ensure needed quality
14. Institute a superior supplier incentive program
15. Increase effective use of Performance-Based Logistics
16. Reduce backlog of DCAA Audits without compromising effectiveness
17. Expand programs to leverage industry’s IR&D
Eliminate Unproductive Processes and Bureaucracy
18. Reduce frequency of OSD level reviews
19. Re-emphasize AE, PEO and PM responsibility and accountability
20. Eliminate requirements imposed on industry where costs outweigh benefits
21. Reduce cycle times while ensuring sound investment decisions
Promote Effective Competition
22. Emphasize competition strategies and creating and maintaining competitive environments
23. Enforce open system architectures and effectively manage technical data rights
24. Increase small business roles and opportunities
25. Use the Technology Development phase for true risk reduction
Improve Tradecraft in Acquisition of Services
26. Assign senior managers for acquisition of services
27. Adopt uniform services market segmentation
28. Improve requirements definition/prevent requirements creep Increase use of market research Increase small business participation
29. Increase use of market research
30. Increase small business participation
31. Strengthen contract management outside the normal acquisition chain- installations, etc.
32. Expand use of requirements review boards and tripwires
Improve the Professionalism of the Total Acquisition Workforce
33. Establish higher standards for key leadership positions
34. Establish stronger professional qualification requirements for all acquisition specialties
35. Increase the recognition of excellence in acquisition management
36. Continue to increase the cost consciousness of the acquisition workforce- change the culture

AcqLinks and References:

The Under Secretary of Defense (AT&L) Frank Kendall on 13 Nov 2013 introduced an update to the Better Buying Power Initiative call Better Buying Power 2.0. The goal of the Better Buying Power is to obtain greater efficiency and productivity in defense spending by delivering the warfighting capabilities needed for the money available. The new update is broken up into 7 main areas and 36 individual objectives. The 36 objectives seek to restore affordability in defense procurement and to improve defense industry productivity. The objectives are listed below:

Better Buying Power 2.0: Pursuit for Greater Efficiency & Productivity in Defense Spending

White Paper: Better Buying Power 3.0

Feedback Forum: Better Buying Power 3.0


Achieve Affordable Programs
1. Mandate affordability as a requirement
2. Institute a system of investment planning to derive affordability caps
3. Enforce affordability caps
Control Costs Throughout the Product Lifecycle
4. Implement “should cost” based management
5. Eliminate redundancy within warfighter portfolios
6. Institute a system to measure the cost performance of programs and institutions and to assess the effectiveness of acquisition policies
7. Build stronger partnerships with the requirements community to control costs
8. Increase the incorporation of defense exportability features in initial designs
Incentivize Productivity & Innovation in Industry and Government
9. Align profitability more tightly with Department goals
10. Employ appropriate contract types
11. Increase use of Fixed Price Incentive contracts in Low Rate Initial Production
12. Better define value in “best value” competitions
13. When LPTA is used, define Technically Acceptable to ensure needed quality
14. Institute a superior supplier incentive program
15. Increase effective use of Performance-Based Logistics
16. Reduce backlog of DCAA Audits without compromising effectiveness
17. Expand programs to leverage industry’s IR&D
Eliminate Unproductive Processes and Bureaucracy
18. Reduce frequency of OSD level reviews
19. Re-emphasize AE, PEO and PM responsibility and accountability
20. Eliminate requirements imposed on industry where costs outweigh benefits
21. Reduce cycle times while ensuring sound investment decisions
Promote Effective Competition
22. Emphasize competition strategies and creating and maintaining competitive environments
23. Enforce open system architectures and effectively manage technical data rights
24. Increase small business roles and opportunities
25. Use the Technology Development phase for true risk reduction
Improve Tradecraft in Acquisition of Services
26. Assign senior managers for acquisition of services
27. Adopt uniform services market segmentation
28. Improve requirements definition/prevent requirements creep Increase use of market research Increase small business participation
29. Increase use of market research
30. Increase small business participation
31. Strengthen contract management outside the normal acquisition chain- installations, etc.
32. Expand use of requirements review boards and tripwires
Improve the Professionalism of the Total Acquisition Workforce
33. Establish higher standards for key leadership positions
34. Establish stronger professional qualification requirements for all acquisition specialties
35. Increase the recognition of excellence in acquisition management
36. Continue to increase the cost consciousness of the acquisition workforce- change the culture

AcqLinks and References:

 

Secretary of Defense Robert Gates on 14 Sept 2010 introduced the Better Buying Power initiative. The goal of the Better Buying Initiative is to obtain greater efficiency and productivity in defense spending by delivering the warfighting capabilities needed for the money available. The initiative is broken up into 5 main areas and 23 individual objectives. The 23 objectives seek to restore affordability in defense procurement and to improve defense industry productivity. The objectives are listed below:

Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending


Target Affordability and Control Cost Growth
1. Mandate affordability as a requirement
2. Drive productivity growth through Will Cost/Should Cost management
3. Eliminate redundancy within warfighter portfolios
4. Make production rates economical and hold them stable
5. Set shorter program timelines and manage to them
Incentivize Productivity and Innovation in Industry
6. Reward contractors for successful supply chain and indirect expense management
7. Increase the use of Fixed-Price Incentive Firm Target (FPIF) contract type where appropriate using a 50/50 share line and 120 percent ceiling as a point of departure
8. Adjust progress payments to incentivize performance
9. Extend the Superior Supplier Incentive Program (SSIP) to a DoD-wide pilot
10. Reinvigorate industry’s independent research and development and protect the defense technology base
Promote Real Competition
11. Present a competitive acquisition strategy at each program milestone
12. Remove obstacles to competition
13. Increase dynamic small business role in defense marketplace competition
Improve Tradecraft in Services Acquisition
14. Create a senior manager for acquisition of services in each component, following the Air Force’s example
15. Adopt uniform taxonomy for different types of services
16. Address causes of poor tradecraft in services acquisition
17. Increase small business participation in providing services
Reduce Non-Productive Processes and Bureaucracy
18. Reduce the number of OSD-level reviews to those necessary to support major investment decisions or to uncover and respond to significant program execution issues
19. Eliminate low value-added statutory processes
20. Reduce by half, the volume and cost of internal and congressional reports
21. Reduce non-value-added overhead imposed on industry
22. Align Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) processes to ensure work is complementary
23. Increase use of Forward Pricing Rate Recommendations (FPRRs) to reduce administrative costs

AcqLinks and References:

 

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