Services Face Acquisition, Modernization Challenges

By John C. Marcario, Assistant Editor

Panelists speak on "Acquisition Outlook and Priorities: The Art of the Possible" at the 2009 Navy League Sea Air Space Exposition at the Gaylord National Resort and Convention Center. Left to right on the stage are Rear Admiral Gary Blore, USCG, Assistant Commandant for Acquisition and Chief Acquisition Officer (SPEAKING); Lieutenant General Duane Thiessen, USMC, Deputy Commandant for Programs and Resources; Vice Admiral Bernard McCullough III, USN, Deputy Chief of Naval Operations for Integration of Capabilities and Resources; Dr. Eric Labs, Senior Analyst for Naval Forces and Weapons, Congressional Budget Office; and Vice Admiral David Architzel, USN, Principal Deputy Assistant Secretary of the Navy for Research, Development, and Acquisition.

The Navy is facing a pair of tough challenges: building a larger acquisition work force while continuing to address evolving regional issues, one acquisition official said during a panel discussion on “Acquisition Outlook & Possibilities: The Art of the Possible” May 6 at the Sea-Air-Space Exposition at the Gaylord National Resort and Convention Center, National Harbor, Md.

“We are dealing with an era of extreme finical challenges,” said Vice Adm. Bernard J. McCullough III, deputy chief of naval operations for integration of capabilities and resources. He added that, “the physical challenges the Navy is [currently] facing are probably the greatest in several decades.”

McCullough said the regional challenges the Navy faces have a global impact. “Look at what’s going on in Somalia,” he said. “Who would have ever envisioned a group of teenagers are trying to hold the maritime industry of the entire world at risk?”

Another obstacle the Navy faces how to address less-than-desired numbers in its acquisition work force.

“We have to regrow our work force. It’s recognized and we are doing a lot of initiatives to move that forward,” said Vice Adm. David Architzel, principal deputy assistant secretary of the Navy for research, development and acquisition.

“It’s important to realize that to do the work we have to do we need a healthy acquisition workforce. It’s not just hiring interns,” Architzel said.

Dr. Eric Labs, senior analyst for naval forces and weapons in the Congressional Budget Office, said the need for increased funding in the Navy shipbuilding program budget – an average of $25 billion to $27 billion per year for years – would represent a stark contrast to past budget requests.

“Even during the [Ronald] Reagan buildup we didn’t require a level of shipbuilding resources that the current Navy plan is going to require,” Labs said. He also noted that the average price of ships has increased, but the average number built has decreased over the past few decades.

Marine Corps Lt. Gen. Duane D. Thiessen, deputy commandant for programs and resources, said the service needs a healthy force – in terms of people and assets.

“We want to right size our Marine Corps to the degree that if we have something that is either damaged or lost or worn out, we want to replace it. We will reset that asset and, wherever possible, we will modernize,” Thiessen said.

Thiessen also said amphibious capabilities are needed to protect U.S. interests worldwide. A “reasonable amount of protected amphibious capability” will have an impact in regions of the world in which the United States has interests, he said.

Rear Adm. Gary T. Blore, the Coast Guard's assistant commandant for acquisition and chief acquisition officer, said modernization is not something that should be feared. The service is undertaking a $24 billion, 25-year Deepwater modernization program that until the past few years was widely criticized in Washington.

“I believe, if you have followed us the past few years, you would have seen a tremendous improvement in the way we manage our projects,” Blore said.

During the question-and-answer session, Blore was adamant about industry not being involved in the development of concepts of operations.

“When industry gets involved in developing the concept of operations, the government is inherently giving up something it shouldn’t,” he said.