"Breaking the Norm": A New Acquisition Approach

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By George Landrith

It may have been easy to overlook, given the steady stream of news coming out of Washington of late, but one of the more significant developments for the defense industry in quite some time is currently unfolding in the acquisition policy sphere.

In the last month, two defense industry giants have pulled out of one of the few major new acquisition competitions the Pentagon currently has running – with an expected business opportunity north of $16 billion. The reason why may surprise you.

Defense Department procurement generally follows a well-worn path: one of the services identifies the need for a new or upgraded platform; contractors pour time and research and development dollars into their offerings without official guidance on the necessary capabilities and requirements expected; the service issues a formal Request For Proposal (RFP) late in the game; and the service eventually settles for whichever one of the offerings most closely resembles what they were actually looking for. Thus wasting a lot of time and money, without necessarily providing the best outcome.

The Air Force, to their credit, has taken a different path for their 2017 T-X trainer competition, which seeks to replace the existing and rapidly aging 1960s-era T-38 trainer fleet with an initial 350 new aircraft and accompanying ground-training systems. The new trainers, with an expected initial operating capability scheduled for 2024, will help future pilots learn to fly the fifth-generation aircraft that now populate fighter wings.

In what is hopefully a harbinger of smarter DoD acquisition practices moving forward, the Air Force has been remarkably transparent on T-X. Contractors were informed three years in advance of the formal RFP about what the Air Force was looking for, and how specifications would be evaluated in the competition. The result – at least in the case of the purpose-built offerings – is a trainer designed from the ground-up with the Air Force’s desired requirements, and future generations of pilots, in mind. And contractors are using the earlier information to assess how well this competition works into their business plan.

President Donald Trump has made it clear he wants to rebuild and update our military. Trump has also left no doubt that he is prepared to break with past practices in Washington — particularly when breaking the norm will benefit the taxpayer with savings, and the military and our warfighters with superior equipment. Late last year, when The Boeing Company unveiled its offering for the T-X competition, they too committed to “breaking the norm.” 

For its part, Boeing – partnered with Saab – has responded with a purpose-built design for the T-X competition. True to their slogan, the Boeing T-X’s end-to-end training system does, in fact, break the norm we have come to expect from industry in these major acquisition competitions.

For one thing, in one year Boeing went from certifying the design of their T-X plane to actually flying it – an unusually efficient timeline in an industry that typically takes years to hit such milestones. In December in St. Louis, the Boeing T-X booked another milestone: a successful, one-hour first flight that proved just how quickly the defense industry could move under the right circumstances.

Sleek and safe, the Boeing T-X is a production aircraft – they have already built two using innovative yet mature manufacturing processes – featuring one engine, twin tails, and stadium seating, as well as an advanced cockpit with embedded training. With initial successful flights complete and ongoing testing expected in the coming weeks, Boeing’s T-X offers the Air Force the low-risk reliability it expects, while also being built from the ground-up with the service’s exact specifications in mind.

Affordability is also a key consideration for any acquisition process, and we have already seen it is a factor that will be top of mind for the Trump administration. Boeing’s purpose-built approach allows the use of the latest technology, tools, and manufacturing techniques – which will create a more affordable and flexible option than older, existing aircraft. The Boeing T-X also boasts a maintenance-friendly design that’s compatible with common U.S. Air Force ground equipment. As an added benefit that further reduces production risk, Boeing is relying on established suppliers to limit supply chain complexity. And Boeing’s T-X is highly capable – some nations may actually want it as a military aircraft, not merely as a trainer. 

As the Air Force works towards selecting a winner for the T-X program later this year, the service should give particular attention to purpose-built designs – like the Boeing T-X – that resulted from the transparent acquisition approach to this competition. In the future, contractors should be rewarded for breaking the norm with new, innovative, and cost-cutting processes, and the Defense Department should seek to emulate this acquisition philosophy for future programs so efficient, affordable, and purpose-built offerings become the norm and not the exception.

George Landrith is the president of Frontiers of Freedom.