Authors: Capt. Robert Farmer, Capt. Keith Nixon, Capt. Brian Jacobs, Cmdr. Craig Owen, Aubrey Dennis, Michael Berkin, Roy Lancaster, Tim Simpson, and Duane Mallicoat
When assessing the strength of today’s Department of Defense (DoD) weapon systems, affordability is just as important as performance. Acquisition leadership is not focused only on determining whether a weapon system is affordable in the development and production phases but, more important, in sustainment, where 70 percent of programs’ life-cycle costs are borne. History has shown that operations and support (O&S) costs are more likely to exceed projections than to come in under their budgeted level. Controlling and reducing weapon system sustainment has proven difficult and is quickly becoming one of Naval Aviation’s top priorities.
Authors: Mindy Rash-Gehres, Jerry Decker, Mike Kotzian, Duane Mallicoat, Tim Simpson, and Robert Landry
Members of the Department of Defense (DoD) acquisition workforce are very familiar with the “S-curve” that describes a weapon system’s life-cycle costs; they also know that approximately 60 percent to 70 percent (or more) of a weapon system’s life-cycle costs are typically associated with day-to-day operations and support (O&S) costs. In other words, O&S costs comprise more than half the total ownership cost (TOC) of most programs, and for this reason O&S costs have become the target of many proposed savings initiatives. One projected savings area within the O&S budget is “better inventory management.” Inventory management is the focus of this article—in particular, the efforts of the Naval Surface Warfare Center (NSWC) Explosive Ordnance Disposal Technology Division (EODTECHDIV), Indian Head, Md.
Authors: Rear Adm. (Select) CJ Jaynes, Tim Simpson, Duane Mallicoat, James Francisco, Worth Mizell, and Daniel Cikovic
For most weapon system program management offices (PMOs), dealing with cost, schedule, and technical trade-offs is a way of life. Although research, development, test and evaluation, and procurement costs tend to garner the attention, 60 to 70 percent of a weapon system’s life cycle costs are associated with day-to-day operations and support (O&S) costs.