Center for Government Contracting White Papers

No. 12. NASA in the Modern Space Age: A Leader or a Follower?

Charles Dolgas — Fri, 07 Oct 2022 18:25:42 +0000

No. 12. NASA in the Modern Space Age: A Leader or a Follower? Charles Dolgas Fri, 10/07/2022 - 14:25

September 27, 2022 — Since the turn of the twenty-first century, the commercial space launch sector has been thriving after a period of stagnation. The U.S. government has a long history of promoting the industry, most notably with the passing of the Commercial Space Launch Act of 1984. But the National Aeronautics and Space Administration (NASA) and its programmatic priorities have typically shaped both the legislation and the launch industry. But the new market entrants are pursuing goals of affordable and repeatable access to space independent of the space agency. With this context, the paper asks if NASA has been a leader or a follower of the emergence of the modern space age.

The author argues that while the Commercial Space Launch Act (CSLA) legislation keeps pace with the fast-evolving commercial launch sector, NASA is falling behind, both technically and organizationally. Its tendency to preserve a government-owned resource-heavy program posture focuses on how to build it instead of what to build and why. The paper concludes with a recommendation that NASA can make a structural change and right-size itself to be a cutting-edge mission-focused space agency. Bold action is the only way that NASA can restore its place as a leader in the modern space age and leave followership behind.

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No. 11 “Don’t Get Ahead of the Data:” Artificial Intelligence and Predictive Maintenance in DoD

Charles Dolgas — Wed, 29 Jun 2022 20:08:08 +0000

No. 11 “Don’t Get Ahead of the Data:” Artificial Intelligence and Predictive Maintenance in DoD Charles Dolgas Wed, 06/29/2022 - 16:08

June 29, 2022 — The Center for Government Contracting releases its latest White Paper: "Don't Get Ahead of the Data:" Artificial Intelligence and Predictive Maintenance in DoD.

Center Executive Director Jerry McGinn and Senior Fellows Richard Beutel and Benjamin McMartin examine the current state of and future opportunities for predictive maintenance as a case study for the adoption of Artificial Intelligence (AI) and machine learning (ML) as a military capability. Collaborating with the military departments, the Defense Innovation Unit and the Joint Artificial Intelligence Center launched a series of projects starting in 2017 exploring AI/ML predictive maintenance solutions on platforms ranging from the E-3 Sentry and F-16 aircraft to UH-60 and AH-64 rotary wing aircraft to ground vehicles.

The results of these initial projects were generally promising, but the complexity and heterogeneity of maintenance data and numerous other factors made it clear that the utilization of AI/ML techniques in this area would require continued iteration and user feedback. Promisingly, the services have continued their investments to develop better data sets, better algorithms, and better tools towards the predictive maintenance objective.

Based on the pilot efforts examined in this white paper, predictive maintenance is developing into a promising use case for AI technology in DoD. The authors conclude with a number of recommendations on data, metrics, prioritization, building trust across the maintenance enterprise, and other areas to help DoD remain on this promising trajectory.

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No. 10. Implementing Responsible AI: Proposed Framework for Data Licensing

Charles Dolgas — Fri, 29 Apr 2022 17:33:58 +0000

No. 10. Implementing Responsible AI: Proposed Framework for Data Licensing Charles Dolgas Fri, 04/29/2022 - 13:33

In This Story

Benjamin McMartin

The Department of Defense (DoD) faces unique data licensing challenges when acquiring artificial intelligence (AI) solutions from the private sector. This paper provides an alternative framework to the traditional data licensing strategies to better address the unique challenges of acquiring AI solutions.

In a traditional procurement, DoD identifies data and software to be delivered under the effort, which DoD will fund (at least partially), and thus will expect to obtain a license in that data and software. In this traditional context, the ultimate objective of negotiation is to avoid so-called “vendor lock” in the procurement and sustainment of the developed solution. The data (including software documentation) and software deliverables are typically designed to allow for the government’s use in subsequent competitions for further development, production, and sustainment, or, in some situations, for organic testing and modification. The data deliverables are thus meant to provide the information necessary to produce an equivalent part, system, or application.

AI-based solutions present a challenge to this paradigm, however. Cutting-edge AI technologies are largely developed in the commercial sector at private. To achieve the Responsible AI principles, the government customer must understand how a technology works and how the results of the technology are derived, not simply how to produce more units. As a result, the types of data required to assure that delivered AI-enabled technologies are responsible, equitable, traceable, reliable, and governable2 go beyond the delivery of end-solutions. This presents a challenge for companies attempting to enter the Defense market through commercial business models, standard seat or enterprise licenses, or “As–a–Service models.” Providing source code, proprietary datasets, software architecture, or background IP to any entity, let alone the government, is far outside of the norm for these commercial AI firms.

Thus, to attract and integrate cutting-edge AI solutions, while adhering to Responsible AI principles, DoD—specifically DoD acquisition professionals—should implement a framework for assessing license needs, and craft custom use licenses that balance the need for access and use of data and software for RAI purposes against industry partners’ desire to protect their IP and maintain standardized commercial licensing practices.

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No. 9. Advancing Defense Exportability

Marianne Klinker — Fri, 08 Oct 2021 20:51:51 +0000

No. 9. Advancing Defense Exportability Marianne Klinker Fri, 10/08/2021 - 16:51

Most defense community members in government, think tanks, universities, and industry are unfamiliar with the importance of defense exportability (DE) in achieving U.S. national security and defense goals. Broadly defined, DE reflects the level of defense capability and technology a country is willing to cooperatively develop, sell, or transfer to other nations. From a U.S. Government (USG) and Department of Defense (DoD) perspective, DE comprises the various levels of capability and technology in U.S. defense systems and equipment that we have decided to authorize for export to other nations. The breadth and depth of DE’s impact on U.S. political–military, economic, and industrial collaboration with its allies and friends around globe is undeniable. However, establishing specific DE levels in our current and future systems has been, and continues to be, a byzantine process. This white paper explores USG and DoD efforts to achieve DE over the years, highlights current problems that deserve urgent attention, and suggests alternatives to improve performance.

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No. 8. Building Industrial Resilience with a Little Help from Our Friends: Adapting DoD Acquisition Processes to Facilitate Allied and Partner Engagement

Marianne Klinker — Fri, 08 Oct 2021 20:50:11 +0000

No. 8. Building Industrial Resilience with a Little Help from Our Friends: Adapting DoD Acquisition Processes to Facilitate Allied and Partner Engagement Marianne Klinker Fri, 10/08/2021 - 16:50

In This Story

John G. (Jerry) McGinn

This paper outlines specific measures that the Department of Defense and Congress can undertake to help build U.S. industrial resilience through close cooperation with allies and partners. This white paper is particularly timely given the White House Supply Chain 100-day report in response to EO 14017, “America’s Supply Chain,” which came out last week. The report emphasizes the importance of working with U.S. allies and partners, “The United States cannot address its supply chain vulnerabilities alone...We must work with America’s allies and partners to strengthen our collective supply chain resilience...” this white paper outlines some proposals to do just that.

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No. 7. What Future for Remote Work in Federal Contracting?

Marianne Klinker — Fri, 08 Oct 2021 20:47:54 +0000

No. 7. What Future for Remote Work in Federal Contracting? Marianne Klinker Fri, 10/08/2021 - 16:47

At this juncture, we can have some confidence about what the past few decades and the past year have taught us. Remote work has been a long time coming, but remote work mostly works. It is certainly less expensive than commuting to central offices. The COVID-19 crisis has provided a great opportunity, and the broad enthusiasm for remoteness may be developing some permanence. Many contractors are already embracing the practice formally and with lasting effect. What is less clear is what breadth and permanence federal agencies will allow, at least in their on-site contractors, and on contracts where work locations are geographically restricted.

The degree to which remote work will continue depends on the following factors: legitimization, shaping, and timing.

Legitimizing the new practices, even against a backdrop of questionable old practices, means making them “socially, culturally, and politically acceptable,” here within the particular context of federal contracting. Legitimization of a market practice can be seen as a three-step process: unfreezing the current equilibrium, moving it to a new equilibrium, and then refreezing it there, at least for the near-term. Public reaction to the pandemic quickly unfroze the widespread acceptance of tacit discouragement of remote work. The task for contractors enthused about remote workforces is to prevent backsliding by federal contracting officers to old demands.
Shaping the market means inducing transformational learning across the market—learning which changes their organizations’ view of what is possible in the markets—by both customers in government and providers in industry. In business-to-government marketing, shaping the institutional practices of organizationally complex procurement bureaucracies can require great investment of time in creating facts on the ground
In market-shaping, timing can also be important. Office work, airline travel, and mass transit have clearly been affected cyclically, and possibly transformed secularly, at least in the private sector. We may be in a long stretch of a lingering, undulating response to a pandemic that substantially affects the willingness of people to work alongside one another. How quickly that willingness will return, and how much of it will return, after the widespread availability of a presumably efficacious vaccine remains to be seen.

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No. 6. Building Resilience: Mobilizing the Defense Industrial Base in an Era of Great-Power Competition

Marianne Klinker — Fri, 08 Oct 2021 20:45:54 +0000

No. 6. Building Resilience: Mobilizing the Defense Industrial Base in an Era of Great-Power Competition Marianne Klinker Fri, 10/08/2021 - 16:45

In This Story

John G. (Jerry) McGinn

Published in coordination with The Heritage Foundation, this paper provides an expansive review of the U.S. defense industrial base from World War I to today, the vital importance of a robust and secure industrial base, and how that base is being used to face the COVID pandemic.

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No. 5. The DoD Budget Process: The Next Frontier of Acquisition Reform

Marianne Klinker — Fri, 08 Oct 2021 20:43:13 +0000

No. 5. The DoD Budget Process: The Next Frontier of Acquisition Reform Marianne Klinker Fri, 10/08/2021 - 16:43

Behind the flurry of defense management reform in the last half of the 2010s lies the desire for speed and agility. Tremendous change has come to policies on acquisition, contracting, requirements, and workforce. Remaining untouched is the next frontier of acquisition reform: the budgeting process.

The landscape is starting to change.

In May 2020, the Space Force released a report to Congress arguing that it's “most important” recommendation was to consolidate budget line items into capability portfolios.
The FY 2021 budget request also featured the first use of a "colorless" appropriation for software programs.
Impacting these efforts is the specter of the border wall reprogramming, causing Congressional appropriators to move away from budget flexibility.

In this paper, author Eric Lofgren, who researches business, policy, regulatory, and other issues in government contracting, charts a course for the future of budgeting informed by the history of government's financial management. He argues that budget lines should be consolidated by mission-driven organizations, enabling senior leaders to exercise portfolio management. The new scheme should result in greater levels of transparency and accountability.

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No. 4. The Value of Intellectual Property in Government Procurement Auctions

Marianne Klinker — Fri, 08 Oct 2021 20:41:04 +0000

No. 4. The Value of Intellectual Property in Government Procurement Auctions Marianne Klinker Fri, 10/08/2021 - 16:41

The intellectual property (IP) stakes are high, for “if government holds the IP rights too tightly, exercise of power can damage industry’s incentives for innovation, potentially limiting the flow of those innovations to the military.” On the other hand, if the government fails to leverage its rights, it can leave money on the table in follow-on awards for the same materiel.

Where the government owns the IP rights to their designs, even sole-source incumbents might be expected to use limit-pricing—maintaining lower margins than expected—to discourage further competitions, maintaining at least some of that margin.

To test this proposition, author James Hasik, who has been studying global security challenges and the economic enterprises that provide the tools to address them for decades, undertakes a focused comparison of two recent programs by Oshkosh Corporation for military, medium-weight trucks: the Family of Medium Tactical Vehicles (FMTV) for the US Army and the Medium Tactical Vehicle Replacement (MTVR) for the US Marine Corps.

His findings suggest the opposite: prices can rise sharply after competitively awarded contracts expire, whether the government owns the IP rights or not. Thus, securing advantageous pricing over the long-term through IP rights requires a credible threat by government to move away from sole-source, follow-on awards.

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No. 3. The Cost of Saving Money: The Negative Impact of Roller Coaster DoD Funding

Marianne Klinker — Fri, 08 Oct 2021 20:38:48 +0000

No. 3. The Cost of Saving Money: The Negative Impact of Roller Coaster DoD Funding Marianne Klinker Fri, 10/08/2021 - 16:38

In the current configuration, the peaks and troughs of defense procurement obscure the true causes of cost increases and inefficiencies. The current cycle of temporarily cutting defense budgets only to suffer increased costs on the back-end of those cuts is inefficient and shortsighted.

In this white paper, author Jennifer Taylor, a recognized civil–military relations and security sector institutional capacity building expert, details the effect of these budget swings on readiness for Department of Defense operations as well as the impact on the contractors who engage on these efforts.

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