Introduction
The given analysis will primarily focus advantages and disadvantages of two proposed approaches designed to improve the decision-making contracting processes currently impairing the efficiency of the Department of Defense. It is important to note that the first approach is the streamlined process, which already exists in some programs of DOD, whereas the second approach is mainly centered around other transaction authorities or OTA. On the one hand, the key advantage of the streamlined process is rooted in the fact that it is already being utilized by DOD, which makes it easier to integrate since DOD has already operated under such review measures, but it is still subject to many regulatory requirements of the Federal Acquisition Reform or FAR section 5 (5000.02). The main advantage of the OTA-based approach is manifested in the notion of dismissal of FAR because such contracts do not fit the definition of contract in accordance with FAR, but it has highly limited use, which is for research and development only, and it was not utilized extensively to identify its major pitfalls.
Primary Goals
The primary goal of the streamlined process revolves around making the information review and decision-making process faster by eliminating low-value requirements. It is stated that “the acquisition programs GAO surveyed spent, on average, over 2 years completing numerous information requirements for their most recent milestone decision, yet acquisition officials considered only about half of the requirements as high value” (Sullivan et al., 2015, p. 1). In other words, by implementing the streamlined process, the DOD can achieve at least double the efficiency compared to the current metrics. It is also stated that “DOD’s F-16 aircraft program, some classified programs, and five commercial firms GAO visited use streamlined processes with fewer documents and reviews and offer alternatives to the traditional DOD process” (Sullivan et al., 2015, p. 1). Therefore, DOD already has experience in integrating such measures, which makes the approach implementable and plausible. These factors can be considered as a main advantage of the streamlined process because it has already been utilized, and it reduces inefficiencies by half. However, it still needs to oblige the FAR regulations, which in itself can be inefficient.
In the case of the OTA-based approach, the entire strategy is focused on not being constrained by FAR, which will attract more parties for contracts. It is stated that “OTA is not a FAR-based contract, nor does it fit into the FAR definition of a contract” (Milinarchik & Myers, 2016, p. 70). In other words, FAR regulations do not apply to OTAs. It is also stated that “OTA closes the gap by giving agencies the flexibility to create agreements not subject to the stifling procurement statutes and regulations” (Milinarchik & Myers, 2016, p. 70). It means that OTA will incentivize a higher degree of engagement and improve the pool of available parties to cooperate with for R&D purposes, which are critical for innovation and technological advancements. However, OTA is not described as something that can be used for non-R&D procurements, and it also has not been used as actively as the streamlined processes.
Procurement Laws
The procurement laws of FAR are applicable to the streamlined process, which means that the given approach is only designed to hasten the decision-making and information review processes. Although it can eliminate low-value requirements, it will still be subject to regulations. However, the OTA-based approach is a completely different measure, which redesigns the procurement process by dismissing the procurement laws for the most part. Evidently, it will be more effective than the streamlined process, but the lack of regulations might cause chaos and disorder.
Applicable Government Requirements
In the case of applicable government requirements for the streamlined process, the entirety of FAR is applied. The main difference between the traditional program and the streamlined one is the fact that there are fewer decision-making and information reviewing steps before approval. For example, there are approximately nine levels of decision making and reviewing in the traditional format, whereas primarily four steps in the streamlined process format (Sullivan et al., 2015). Therefore, it offers efficiency improvements without requiring the creation of a new channel of decision-making. In the case of the OTA-based approach, it “falls under the authority of 10 U.S.C. 2371. That statute initially provided the DoD with authority to enter into OTA agreements” (Milinarchik & Myers, 2016, p. 70). In other words, the only applicable government requirements can be found in 10 U.S.C. 2371, and FAR is not applicable to OTA.
Conclusion
In conclusion, the streamlined process is focused on improving the overall efficiency of the key decision-making and information reviewing processes by removing the low-value steps. The OTA-based approach is a novel measure, which fully dismisses FAR regulations and procurement laws, and only falls under the authority of 10 U.S.C. 2371. Therefore, the advantage of the streamlined process is the fact that it is already used, can increase efficiency twofold, and requires minimal procedural changes for shifting from the traditional programs. The OTA is an outstanding approach for improving innovation and technological advancement in DOD by engaging more entities and simplifying the process. However, the streamlined process’s key disadvantage FAR will still constrain the process, and the drawback for OTA is that such an approach has limited use and was not utilized previously in an extensive manner.
References
Milinarchik, C., & Myers, J. (2016). Other transaction authority: Acquiring innovative technology and research by avoiding the regulatory burden of traditional government contracting. Contract Management, 56(10), 68-73.
Sullivan, M. J., et al. (2015). Acquisition reform: DOD should streamline Its decision-making process for weapon systems to reduce inefficiencies. (GAO-15-192). Washington, DC: Government Printing Office.