Innovation Success Story In Overcoming Defense Acquisition System Obstacles

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“DEFENSE ACQUISITION UNIVERSITY (DAU) By Matthew Cawley, U.S. Navy Assistant Program Manager, Small Unmanned Surface Vehicles – PMS 420

“A firsthand account of employing innovative thinking and lessons learned to successfully overcome a significant Defense Acquisition System hurdle in the urgent acquisition of small, unmanned surface vehicles (sUSVs)”

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“The defense acquisition system, while designed to ensure accountability and responsible spending, often presents formidable obstacles to rapid procurement, particularly when faced with urgent acquisition requirements. This essay documents a firsthand a count of employing innovative thinking to overcome a significant hurdle in the acquisition of small, unmanned surface vehicles (sUSVs). The task: procure a large quantity of sUSVs, valued at $220 million, within an unprecedented six-month timeframe. This seemingly impossible mission required not only a deep understanding of acquisition pathways but also the courage to challenge conventional wisdom and forge a new path.

The urgency of the requirement precluded the traditional, often lengthy, acquisition processes. The need was immediate, driven by a rapidly evolving operational landscape demanding enhanced maritime domain awareness in the face of national security. Specifically, these sUSVs were needed to fill a critical gap in real-time maritime operations. Although the sUSVs were a defense developmental system; they were also considered a Commercial Off-The-Shelf (COTS) technology readily available to the Department of Defense. The Navy completed a small business contract and successfully delivered a single sUSV prototype through a small business innovative research project.

To successfully transition the sUSV prototype to a production asset, the Navy implemented a two-pronged strategy. First, rapid testing was conducted to ensure the prototype met stringent production standards. This involved rigorous evaluations of the sUSV’s performance, reliability, and maintainability under realistic operational conditions. The tests aimed to identify and address any deficiencies or areas for improvement before full-scale production began. Second, an independent evaluation of the supply chain was undertaken to ensure the timely procurement of critical parts. This involved a thorough assessment of suppliers’ capabilities, lead times, and inventory levels. The evaluation aimed to mitigate potential bottlenecks or delays in the production process by ensuring the availability of essential components when needed.

The challenge lay not in developing the technology, but in navigating the complex bureaucratic landscape to rapidly acquire large quantities of production assets. Initially, the Middle Tier of Acquisition (MTA) pathway seemed like a viable option. MTA, with its focus on rapid prototyping and fielding, is designed for situations like this. However, a closer examination revealed critical roadblocks. The program lacked the necessary prerequisites for MTA initiation. A formal cost estimate, an approved acquisition strategy, Top-Level Requirements (TLRs), and a Life-Cycle Sustainment Plan—all essential elements for MTA—were absent. Developing these artifacts within the six-month window was simply impossible. The clock was ticking, and the operational need remained unmet.

Faced with this dilemma, a thorough exploration of alternative acquisition pathways became paramount. Traditional acquisition processes were too slow. MTA, while promising, was currently out of reach. The search for a solution led to a less-traveled path: the “10 U.SC. §4001: Research and Development Projects” authority. This authority, typically used for research and development efforts, offered a potential avenue for rapid acquisition, provided it could be applied creatively and strategically.

The challenge with using §4001 for this procurement centered on the intended use of the sUSVs. While they were COTS items to the Government, the sheer scale of the procurement and the intent for long-term sustainment blurred the lines between R&D and operational use. Traditional interpretations of §4001 focused on smaller-scale procurements directly supporting specific research projects, not large-scale deployments for operational training and use. This was uncharted territory.

The program office embarked on a deep dive into the Financial Management Regulation (FMR), searching for any provision that might support the proposed approach. The breakthrough came with the discovery of FMR 2.13.3.5.4. This seemingly obscure section addressed the use of Procurement or Operations and Maintenance (O&M) appropriations for articles used in support of approved R&D programs. Crucially, it stated that “Articles of types regularly procured to meet established general requirements such as operational training, operational use, or inventory which are assigned or allocated on a priority basis for use in support of approved R&D programs and which are not consumed in testing, may be financed by Procurement or O&M appropriations using the expense and investment criteria.” 

This passage provided the critical legal justification for using §4001 to procure the sUSVs. The key was framing the acquisition as supporting an approved R&D program, even though the sUSVs themselves were seen as COTS items to the Government. The program office argued convincingly that the integration of these sUSVs into existing fleet architectures and the development of specific tactics, techniques, and procedures (TTPs) for national security reasons constituted a form of research and development. This included experimenting with different sensor configurations, testing their integration with existing command and control systems, and developing new concepts of operation for utilizing unmanned platforms in contested maritime environments. This interpretation, while innovative, was grounded in the existing regulatory framework.

The decision to proceed with this approach was not without its risks. It challenged established precedent and required a significant degree of independent judgment. However, the urgency of the acquisition, coupled with the lack of viable alternatives, justified the calculated risk.

The program manager, recognizing the potential impact of this decision, engaged in extensive consultations with legal counsel, financial managers, and operational users. These discussions included detailed briefings to flag officers and civilian leadership within the Naval Sea Systems command (NAVSEA), explaining the rationale behind the proposed approach and addressing their concerns. Diverse perspectives were considered, including those of experienced acquisition professionals, financial managers, and operational users. This collaborative approach ensured that the proposed strategy was not only legally sound but also aligned with the broader needs of the Navy.

Ultimately, the PM’s innovative approach proved successful. The contract for the large-scale procurement of sUSVs was awarded within the six-month timeframe, a feat previously considered impossible. This marked the first time that NAVSEA had utilized the §4001 authority for such a large-scale procurement and sustainment effort.

Lessons Learned

Embrace Creative Interpretation. Don’t be afraid to challenge conventional wisdom and explore less-traveled paths within existing regulations. A thorough understanding of the FMR and a willingness to think outside the box were critical to the success of this effort.

• Collaboration is Key. Engaging with diverse stakeholders, including legal counsel, financial managers, and operational users, is essential for developing and implementing innovative acquisition strategies. Their input ensures that the proposed approach is not only legally sound but also aligned with the broader needs of the organization.

• Calculated Risk-Taking. Sometimes, taking calculated risks is necessary to achieve urgent acquisition objectives. Carefully weigh the potential benefits against the potential consequences and be prepared to defend your approach with sound reasoning and evidence.

• Documentation Is Crucial. Meticulous documentation of the rationale behind the chosen approach, including legal justifications and supporting evidence, is essential for securing approvals and defending against potential challenges.

This case study highlights the importance of innovation in overcoming obstacles within the defense acquisition system. It demonstrates that rigid adherence to traditional processes is not always the best approach, especially when faced with urgent acquisition requirements. By challenging conventional wisdom, leveraging existing regulations creatively, and engaging diverse perspectives, it is possible to achieve seemingly impossible objectives.

The success of this sUSV acquisition not only will provide the Navy with critical capabilities in a timely manner but it also established a precedent for future rapid acquisition efforts, paving the way for a more agile and responsive defense acquisition system. It underscores the power of independent judgment and innovative thinking in navigating the complex landscape of defense procurement and delivering critical capabilities to the fleet when and where they are needed most. This successful acquisition will directly enable the future of increased situational awareness. The rapid fielding of these sUSVs will provide a tangible demonstration to advance technology to the Navy in a timely manner.”

A Case Study in Rapid sUSV Acquisition

ABOUT THE AUTHOR:

MATTHEW CAWLEY is the assistant program manager for the small Unmanned Surface Vehicles for PMS 420 under Program Executive Office Unmanned and Small Combatantsand has worked for the United States Navy (NAVSEA) for 20 years. He has been a key member of the NAVSEA acquisition workforce, with extensive time supporting Navy Submarines and unmanned surface vehicles.

The author can be contacted at matthew.e.cawley2.civ@us.navy.mil.