idga irregular warfare cots deck

28
Trailing Edge Technology Solutions: A paradigm shift for the design and support of COTS products employed in COIN operations By Ron Giuntini Principal, Giuntini & Company, Inc. IDGA Irregular Warfare Conference Monday, May 25, 2010 1 'G&C 2010

Upload: rgiuntini

Post on 14-Jun-2015

304 views

Category:

Business


0 download

DESCRIPTION

Giuntini & Co. presentation at the 1st annual IDGA Irregular Warfare conference from May 2010. Presentation focuses on COTS products used in military equipment.

TRANSCRIPT

Page 1: IDGA Irregular Warfare COTS Deck

Trai

ling

Edge

Tec

hn

olog

y So

luti

ons:

A p

arad

igm

shi

ft f

or t

he

desi

gn a

nd

supp

ort

of C

OTS

pro

duct

s em

ploy

ed in

CO

IN o

pera

tion

s

By R

on G

iunt

ini

Prin

cipa

l, G

iunt

ini &

Com

pany

, In

c.

IDG

A Ir

regu

lar

War

fare

Con

fere

nce

Mon

day,

May

25,

201

0

G&

C 20

10

Page 2: IDGA Irregular Warfare COTS Deck

Pre

sen

tati

on O

utl

ine

�W

hat

Are

Com

mer

cial

Off

The

She

lf (C

OTS

) Pr

oduc

ts

�O

verv

iew

Of

COTS

Pro

duct

s Em

ploy

ed I

n W

eapo

n Sy

stem

s

�CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

�Tr

ailin

g Ed

ge T

echn

olog

y Co

ncep

t 2©

G&

C 20

10

Page 3: IDGA Irregular Warfare COTS Deck

Wh

at A

re C

omm

erci

al O

ff T

he

Shel

f (C

OTS

) P

rodu

cts

��C

omm

erci

al it

em�

as d

efin

ed in

FAR

Par

t 12

;

prov

ides

fra

mew

ork

for

buyi

ng p

rodu

cts

unde

r Fe

dera

l

Acqu

isiti

on S

trea

mlin

ing

Act

�Th

e ov

eral

l goa

l is

to f

ill D

oD r

equi

rem

ents

whe

neve

r pr

actic

al b

y

usin

g pr

oduc

ts w

hose

des

ign

and

conf

igur

atio

n co

ntro

l is

driv

en

by t

he c

omm

erci

al m

arke

t, r

athe

r th

an e

mpl

oyin

g pr

oduc

ts t

hat

are

desi

gned

spe

cific

ally

for

the

mili

tary

; re

ferr

ed t

o as

Dev

elop

men

tal I

tem

s (D

I)

�C

OTS

pro

duct

s ca

n al

so b

e re

ferre

d to

as

Non

-Dev

elop

men

tal

Item

s (N

DI),

or G

over

nmen

t Off

The

Shel

f (G

OTS

) whe

re a

spec

ific

CO

TS p

rodu

ct is

util

ized

in s

ever

al s

yste

ms

G&

C 20

10

Page 4: IDGA Irregular Warfare COTS Deck

Wh

at A

re C

omm

erci

al O

ff T

he

Shel

f (C

OTS

) P

rodu

cts

ACO

TS P

rodu

ct

Man

ager

B C D

DI

Prod

uct

Man

ager

DI

Prod

uct

Man

ager

DI

Prod

uct

Man

ager

Prog

ram

/ Pr

oduc

t O

vers

ight

M

anag

er

Prog

ram

Ex

ecut

ive

Off

ice

ACO

TS P

rodu

ct

Man

ager

B C D

COTS

Pro

duct

M

anag

er

COTS

Pro

duct

M

anag

er

DI

Prod

uct

Man

ager

Prog

ram

/S

yste

m

Man

ager

Prog

ram

Ex

ecut

ive

Off

ice

E

CO

TS L

egac

y

CO

TS E

volv

ing

Syst

em O

f Rec

ord

Prog

ram

/S

yste

m

Man

ager

EAG

FE Prog

ram

/ Pr

oduc

t O

vers

ight

M

anag

er

DG

FE

Rap

id F

ield

ing

Initi

ativ

e

G&

C 20

10

Page 5: IDGA Irregular Warfare COTS Deck

Exam

ples

Of

CO

TS P

rodu

cts

Cu

rren

tly

Empl

oyed

By

The

Serv

ices

�Co

mm

unic

atio

ns &

dat

a�

Com

pute

rs/s

erve

rs (

Del

l, H

P, I

BM)

�D

ata

stor

age

(EM

C)�

Rou

ters

(Ci

sco)

�PD

As (

Palm

, Bla

ckbe

rry)

�N

on-e

mbe

dded

sof

twar

e (M

icro

soft

)�

Dis

play

s (T

rans

-Lux

, Pan

ason

ic)

�G

PS (

Gar

min

, Mag

ella

n)

�Tr

aini

ng s

imul

ator

s (R

ockw

ell C

ollin

s, C

AE)

�M

RAP

(N

avis

tar

whe

elba

se)

�Fi

xed-

win

g sp

ecia

l pur

pose

airc

raft

(G

ulfs

trea

m, B

eech

. Ce

ssna

. Boe

ing)

�O

ff-r

oad

cons

truc

tion

vehi

cles

(Ca

terp

illar

, Ter

ex)

�N

ucle

ar, b

iolo

gica

l & c

hem

ical

sen

sors

(Sm

ith I

ndus

trie

s)C

OTS

Pro

duct

s B

ecom

ing

A P

latf

orm

For

DI

G&

C 20

10

Page 6: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

lAc

quis

ition

Cy

cle

Tim

e Fo

r W

arfig

hter

Sy

stem

D

eliv

ery

Mad

e-To

-Sto

ck o

r As

sem

ble-

To-O

rder

; fr

om

imm

edia

te t

o a

few

wee

ks d

eliv

ery.

Pro

vide

s ab

ility

to

be e

xtre

mel

y qu

ick

in r

eact

ing

to

oper

atio

nal c

hang

es r

equi

red

to f

ight

our

en

emie

s

Mad

e-To

-Ord

er;

with

man

y de

sign

con

figur

atio

n ch

ange

s,

can

take

yea

rs f

or d

eliv

ery

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

Join

t Ca

pabi

litie

s In

tegr

atio

n an

d D

evel

opm

ent

Syst

em (

JCID

S) d

elib

erat

ely

emph

asiz

es a

naly

sis

and

risk

avoi

danc

e at

the

exp

ense

of

spee

d. J

CID

S

norm

ally

tak

es f

ive

to n

ine

year

s, d

epen

ding

on

the

com

plex

ity, f

rom

the

time

a ne

w s

yste

m is

req

uest

ed, u

ntil

a so

lutio

n is

del

iver

ed.

Col

. Tim

oth

y C

hym

a, U

S A

rmy

Acq

uis

itio

n C

orps

,

at 2

010

Broo

king

s In

stitu

te m

eetin

g

G&

C 20

10

Page 7: IDGA Irregular Warfare COTS Deck

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

sM

ore

from

Col

. Tim

oth

y C

hym

a on

acq

uisi

tion

spee

d

�By

com

paris

on, t

he A

rmy�

s R

apid

Equ

ippi

ng F

orce

(R

EF)

can

turn

out

sys

tem

s in

7 t

o

15 m

onth

s; it

can

do

this

bec

ause

it is

sm

all,

has

acce

ss t

o fu

ndin

g w

ithin

the

sam

e

year

it w

ants

to

mak

e a

purc

hase

, and

mos

t im

port

antly

it in

tera

cts

dire

ctly

with

the

units

in t

he fie

ld s

o it

unde

rsta

nds

thei

r ne

eds

far

bett

er t

han

the

trad

ition

al

proc

urem

ent

adm

inis

trat

or. R

EF is

som

ethi

ng t

he A

rmy

shou

ld e

mbr

ace

in it

s lo

ng-

term

mod

erni

zatio

n pr

ogra

ms.

��

.man

y of

the

pro

duct

s em

ploy

ed a

re C

OTS

The

Arm

y�s

Trai

ning

and

Doc

trin

e Co

mm

and

(TR

ADO

C), r

elea

sed

in 2

010

a pl

anni

ng

docu

men

t, �

Ope

ratio

nal A

dapt

abili

ty:

Ope

ratin

g U

nder

Con

ditio

ns o

f U

ncer

tain

ty a

nd

Com

plex

ity in

an

Era

of P

ersi

sten

t Co

nflic

t-20

16 t

o 20

28,�

auth

ored

by

Bri

g. G

en.

H.R

. McM

aste

r.

�We

wan

ted

to e

mph

asiz

e th

e co

ntin

uous

inte

ract

ions

with

an

adap

tive

adve

rsar

y, t

he

need

to

have

tho

se q

ualit

ies

of o

pera

tiona

l ada

ptab

ility

�in

nova

ting

to s

eize

and

ret

ain

that

ada

ptiv

e in

itiat

ive.

��ag

ain

COTS

pro

duct

s w

ill p

lay

a ke

y ro

le

G&

C 20

10

Page 8: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

l

Uni

t Co

st

Hig

h ca

pabi

lity

rela

tive

to c

ost,

due

to

amor

tizat

ion

over

larg

e po

pula

tion

of R

&D

and

CP

I in

itiat

ives

(Le

an, T

QM

, Six

Sig

ma)

; th

ough

CO

TS in

tegr

atio

n co

sts

can

be h

igh

Hig

h co

st d

ue t

o am

ortiz

atio

n of

dev

elop

men

t co

sts

over

sm

all p

rodu

ctio

n po

pula

tion,

as

wel

l as

high

indi

rect

cos

ts

"The

priv

ate

sect

or h

as f

latt

ened

and

str

eam

lined

the

mid

dle

and

uppe

r ec

helo

ns o

f its

org

aniz

atio

n ch

arts

, ye

t th

e D

efen

se D

epar

tmen

t co

ntin

ues

tom

aint

ain

a to

p-he

avy

hier

arch

y th

at m

ore

refle

cts

20th

Cen

tury

hea

dqua

rter

s su

pers

truc

ture

tha

n 21

st C

entu

ry r

ealit

ies,

�S

ecre

tary

Gat

es"G

iven

Am

eric

a's

diff

icul

t ec

onom

ic c

ircum

stan

ces

and

parlo

us f

isca

l con

ditio

n,

mili

tary

spe

ndin

g on

thi

ngs

larg

e an

d sm

all c

an a

nd s

houl

d ex

pect

clo

ser,

har

sher

sc

rutin

y. T

he g

ushe

r ha

s be

en t

urne

d of

f, a

nd w

ill s

tay

off

for

a go

od p

erio

d of

tim

e.�

Sec

reta

ry G

ates

, 201

0

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

Low

-cos

t CO

TS p

rodu

cts,

�fru

gally

eng

inee

red,

�bun

dled

toge

ther

as

a w

eapo

n sy

stem

, will

be

mor

e co

st a

ttrac

tive

than

the

empl

oym

ent o

f hig

hte

ch s

yste

ms

G&

C 20

10

Page 9: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

l

Rel

iabi

lity

Larg

e po

pula

tion

usin

g pr

oduc

t, w

ith e

xten

sive

w

arra

nty

feed

back

. OEM

war

rant

y co

sts

are

3-6%

of

acqu

isiti

on v

alue

of

new

pro

duct

s; h

igh

ince

ntiv

e to

impr

ove

relia

bilit

y�le

ss

failu

res=

high

er p

rofit

s�m

edia

n O

EM P

rofit

Af

ter

Taxe

s (P

AT)

is o

nly

7%, t

hus

war

rant

y co

sts

can

have

mat

eria

l im

pact

on

shar

ehol

ders

The

less

rel

iabl

e th

e pr

oduc

t,

the

grea

ter

the

reve

nue

gene

rate

d du

ring

the

Prod

uct

Supp

ort

lifec

ycle

sta

ge. M

TBF

anal

ysis

aft

er in

itial

ILS

st

udie

s pe

rfor

med

dur

ing

deve

lopm

ent

stag

e ar

e ra

rely

re

visi

ted.

Tech

nica

l D

ocum

en-

tatio

n

Rea

dily

ava

ilabl

e, a

t no

add

ition

al c

ost

in

mul

tiple

med

ias;

ext

ensi

vene

ss o

ften

driv

en b

y co

nsum

er/s

afet

y re

gula

tion.

Als

o ch

ange

s tig

htly

man

aged

due

to

liabi

lity

issu

es

Cum

bers

ome

and

exp

ensi

ve

to m

aint

ain

over

life

of

prod

uct

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

G&

C 20

10

Page 10: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

lFi

eld

Serv

ice

Rep

rese

n-ta

tives

(F

SRs)

Avai

labl

e on

a g

loba

l bas

is, e

ven

in/c

lose

to

com

bat

thea

tres

. 24/

7 co

vera

ge p

rovi

ded

eith

er

on-s

ite o

r vi

a ca

ll/w

eb

Very

exp

ensi

ve;

in t

heat

re

$400

-500

,000

/yea

r pe

r co

ntra

ctor

FSR

. Gov

ernm

ent

FSR

out

of

LCM

C ca

n be

$2

50-3

50,0

00 p

er y

ear

Trai

ning

Use

r fr

iend

ly p

rodu

cts

requ

ire li

ttle

tra

inin

g th

roug

h tr

aini

ng s

choo

ls a

nd O

JT

Exte

nsiv

e de

velo

pmen

t fo

r M

OS

trai

ning

sch

ool a

nd O

JT

due

to le

arni

ng c

urve

and

tu

rnov

er

Supp

lier

Base

Ther

e ar

e us

ually

3-4

glo

bal h

ighl

y co

mpe

titiv

e O

EMs

for

any

cate

gory

of

prod

ucts

; al

l are

hi

ghly

cap

italiz

ed a

nd p

rovi

de p

rodu

cts

to la

rge

cust

omer

bas

e

With

rol

l-up

of D

efen

se

indu

stry

, DoD

con

fron

ted

with

�to

o bi

g to

fai

l�si

tuat

ion;

oft

en o

nly

two

cont

ract

ors

able

to

com

pete

; th

ere

prof

its a

re v

irtua

lly t

he

sam

e, w

hich

mea

ns t

hat

they

ha

ve t

he s

ame

busi

ness

m

odel

s�w

hich

can

be

good

or

bad

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

10©

G&

C 20

10

Page 11: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

l

Tech

nolo

gy

Mat

urity

Larg

e R

&D

(4.

5% o

f sa

les

Cate

rpill

ar, 7

% H

P,

16%

Int

el)

and

prod

uct

test

ed w

ith la

rge

popu

latio

n fe

edba

ck

Due

to

long

dev

elop

men

t cy

cle,

mat

urity

is a

co

nsta

ntly

mov

ing

targ

et

Tech

nolo

gy

Leve

l19

70 D

efen

se/B

usin

ess/

Cons

umer

tec

h hi

erar

chy;

20

10 C

onsu

mer

/Bus

ines

s/D

efen

se t

ech

hier

arch

y

A m

inor

ity o

f #

of

wea

pon

syst

ems

depl

oyed

are

re

quire

d to

be

�ble

edin

g ed

ge,�

thou

gh t

hey

can

be

the

maj

ority

of

acqu

isiti

on

$$$

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

�We

purs

ue t

echn

olog

ies.

The

y ar

e no

t ne

cess

arily

the

mos

t ad

vanc

ed,

but

they

ar

e th

e m

ost

usef

ul,�

Adm

. Eri

c O

lson

, Com

man

der,

S

peci

al O

pera

tion

s C

omm

and

(SO

CO

M)

in 2

010

CO

TS p

rodu

cts

are

very

sop

hist

icat

ed/c

ompl

ex d

ue to

saf

ety,

regu

lato

ry a

nd

cons

umer

dem

ands

/requ

irem

ents

�A lu

xury

aut

o ha

s 10

0 m

illion

line

s of

em

bedd

ed s

oftw

are

code

�A M

erce

des

navi

gatio

nal s

yste

m h

as 2

0 m

illion

line

s�A

For

d ca

r has

10

milli

on li

nes

�A F

-35

has

5.7

milli

on li

nes

�A F

-22

has

1.7

milli

on li

nes

11©

G&

C 20

10

Page 12: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

lIn

terf

ace

With

Co

mm

erci

al

Best

Pr

actic

es

Enab

ler

to s

tay

curr

ent

with

rap

idly

evo

lvin

g co

nsum

er/c

omm

erci

al m

arke

t

Oft

en is

olat

ed f

rom

bes

t pr

actic

es b

ecau

se o

f a

cont

ract

or�s

bus

ines

s m

odel

of

mor

e is

mor

e; c

ost-

plus

co

ntra

cts

Tech

nolo

gy

Fam

iliar

ity

Entr

y le

vel s

oldi

ers

have

use

d m

any

of t

he

prod

ucts

in t

heir

civi

lian

lives

lead

ing

to h

igh

leve

ls o

f pr

oduc

tivity

in m

issi

ons

empl

oyin

g th

ese

prod

ucts

Oft

en n

ot u

ser

frie

ndly

fe

atur

es

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

�We

have

you

ng f

olks

tod

ay w

ho a

re v

ery

expe

rienc

ed w

ith g

amin

g, a

nd

they

�re n

ot g

oing

to

be im

pres

sed

if w

e ha

ve s

imul

atio

ns w

ith p

op-u

p ta

rget

s.

They

exp

ect

trai

ning

sys

tem

s to

sta

ck u

p w

ith t

he la

test

Xbo

x or

Play

Stat

ion

prod

ucts

.�U

SMC

Gen

eral

Jam

es N

. Mat

tis,

Com

man

der

of U

S Jo

int

Forc

es C

omm

and,

at

2010

Def

ense

Gam

eTec

h U

sers

�Con

fere

nce

12©

G&

C 20

10

Page 13: IDGA Irregular Warfare COTS Deck

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

�"M

illen

nium

sai

lors

wer

e bo

rn w

ith la

ptop

s in

the

ir ha

nds.

..but

whe

n w

e ge

t

them

into

the

Fle

et, th

e di

scon

nect

bet

wee

n w

hat

they

wer

e pr

omis

ed a

nd w

hat

they

fin

d w

ill b

e pr

ofou

ndly

dis

appo

intin

g--a

ver

itabl

e ba

it-an

d-sw

itch

sche

me.

They

will

dis

cove

r th

at o

ur "

lead

ing-

edge

-off

-the

-she

lf" a

nd "

stat

e-of

-the

-art

"

tech

nolo

gy is

at

best

anc

ient

....

The

two-

way

com

mun

icat

ion

band

wid

th o

f a

sing

le B

lack

Berr

y is

thr

ee t

imes

grea

ter

than

the

ban

dwid

th o

f th

e en

tire

Arle

igh

Burk

e de

stro

yer.

Loo

ked

at

anot

her

way

, th

e N

avy'

s m

ost

mod

ern

in-s

ervi

ce m

ulti-

mis

sion

war

ship

has

onl

y

five

perc

ent

of t

he b

andw

idth

we

have

in o

ur h

ome

Inte

rnet

con

nect

ion.

...

By t

he t

ime

it ge

ts t

o th

e pe

ople

who

nee

d it,

it is

alre

ady

out

of d

ate.

Vice

Adm

iral M

ark

Edw

ards

, Dep

uty

of N

aval

Ope

ratio

ns fo

r

Com

mun

icat

ions

Net

wor

ks (N

6) in

Apr

il 20

08

13©

G&

C 20

10

Page 14: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

lIn

tegr

atio

n O

f M

ultip

le

Prod

ucts

Int

o A

Solu

tion

US

man

agem

ent

skill

s in

inte

grat

ing

COTS

pr

oduc

ts in

to a

sol

utio

n is

a u

niqu

e st

reng

th

of U

.S.;

diff

icul

t fo

r ou

r en

emie

s to

du

plic

ate

with

sam

e CO

TS p

rodu

cts

Sam

e as

CO

TS

Conf

igur

atio

n Ar

chite

ctur

e

Rap

idly

cha

nges

to

reco

nfig

ured

pro

duct

pl

atfo

rm t

hrou

gh o

pen

arch

itect

ure;

so

ftw

are

and

hard

war

e

Oft

en u

niqu

e co

nfig

urat

ion

that

may

hav

e so

me

open

ar

chite

ctur

e; b

ut c

urre

ntly

sm

all m

inor

ity o

f pr

oduc

ts

Des

ign

Influ

ence

No

pow

er t

o m

ake

chan

ges

to d

esig

ns;

mili

tary

pur

chas

es a

re o

ften

<1%

of

sale

s

Can

focu

s on

spe

cific

mis

sion

re

quire

men

ts t

o op

timiz

e m

issi

on e

ffec

tiven

ess

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

14©

G&

C 20

10

Page 15: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

lD

imin

ishi

ng

Man

ufac

turin

g So

urce

s,

Mat

erie

l Sh

orta

ges

(DM

SMS)

With

rel

ativ

ely

shor

t pr

oduc

t lif

ecyc

les,

su

pply

cha

in c

halle

nges

can

oft

en o

ccur

so

oner

tha

n la

ter;

big

issu

e is

ele

ctro

nic

prod

ucts

whe

re li

fecy

cles

are

onl

y 2-

5 ye

ars

Can

also

be

a ch

alle

nge

whe

n a

prod

uct

is o

ut-o

f-pr

oduc

tion

and

DoD

fun

ding

is

err

atic

Org

anic

Life

Cy

cle

Man

agem

ent

Com

man

d (L

CMC)

Su

ppor

t

No

Nat

iona

l Sto

ck N

umbe

r (N

SN)

assi

gned

to

CO

TS p

rodu

cts;

litt

le I

tem

/Com

mod

ity

Man

ager

pla

nnin

g, n

or d

epot

rep

air

for

repa

rabl

es. O

ften

dep

ende

nt o

n Co

ntra

ctor

Lo

gist

ics

Supp

ort

(CLS

); n

o tig

ht o

vers

ight

, re

sulti

ng in

man

y is

sues

Infr

astr

uctu

re e

stab

lishe

d to

su

ppor

t pr

oduc

t; o

ften

mor

e ef

ficie

nt, b

ut c

an b

e le

ss

effe

ctiv

e th

an C

OTS

CLS

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

CECO

M h

as c

reat

ed a

Com

mon

Har

dwar

e Sy

stem

(CH

S)

Prog

ram

Off

ice,

as

wel

l as

Soft

war

e En

gine

erin

g Ce

nter

(S

EC)/

Post

Pro

duct

ion

Soft

war

e Su

ppor

t (P

PSS)

for

dea

ling

with

sel

ectiv

e CO

TS p

rodu

cts

15©

G&

C 20

10

Page 16: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

l

Fund

ing

Maj

or �

mis

allo

catio

n�of

sup

plem

enta

l, ac

quis

ition

and

O&

S/M

mon

ey in

ord

er t

o ra

pidl

y fie

ld s

yste

ms

�out

side

�of

nor

mal

LC

MC

proc

esse

s; P

M O

ffic

es o

ften

�ow

n�CO

TS p

rodu

cts

into

Pro

duct

Sup

port

lif

ecyc

le s

tage

. Man

y tim

es C

OTS

are

not

pa

rt o

f sy

stem

of

reco

rd

Usu

ally

�cl

eane

r�de

mar

catio

n be

twee

n ac

quis

ition

fun

ds

and

O&

S/M

fun

ds

Enem

y Ac

cess

Sam

e ac

cess

; gl

obal

inte

rnet

and

di

strib

utio

n en

able

s ra

pid

acqu

isiti

on t

o us

e ag

ains

t ou

r W

arfig

hter

sN

ot a

cces

sibl

e

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

With

Joi

nt P

rogr

ams,

the

man

agem

ent

of

COTS

is o

ften

ver

y ch

alle

ngin

g

16©

G&

C 20

10

Page 17: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

Elem

ent

CO

TSD

evel

opm

enta

l

Impo

rtat

ion

Or

Expo

rtat

ion

Can

be v

ery

cum

bers

ome

to o

btai

n CO

TS

prod

ucts

with

dua

l use

into

US,

or

expo

rt

US

prod

ucts

to

our

allie

s; lo

ts o

f in

ter-

gove

rnm

enta

l age

ncy

squa

bblin

g

Rul

es m

uch

mor

e bl

ack

and

whi

te

OPT

EMPO

Ad

apta

bilit

y

Wid

e ra

nge

of e

nviro

nmen

tal d

riven

des

ign

feat

ures

not

incl

uded

; te

mpe

ratu

re r

ange

s,

sand

, hum

idity

and

oth

ers

have

sm

alle

r ra

nge

than

exp

erie

nced

by

mili

tary

. Tho

ugh

new

nic

he p

rodu

cts

bein

g pr

oduc

ed b

y O

EMs

for

�sev

ere�

use

(i.e.

Pan

ason

ic

Toug

hBoo

k an

d Ex

trem

e Ad

vent

ures

em

ploy

men

t)

Can

be d

esig

ned

to a

dapt

to

any

fore

seen

env

ironm

ent

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

17©

G&

C 20

10

Page 18: IDGA Irregular Warfare COTS Deck

Pro

duct

Sou

rce

Type

Com

pari

son

#El

emen

tC

OTS

DI

1U

nit

Cost

+-

2Rel

iabi

lity

+-

3Te

chni

cal

Doc

umen

tatio

n+

-

4Fi

eld

Serv

ice

Rep

rese

ntat

ives

(FS

Rs)

+-

5Tr

aini

ng+

-

6Su

pplie

r Ba

se+

-

7Te

chno

logy

Mat

urity

+-

8Te

chno

logy

Lev

el+

-

9In

terf

ace

With

Co

mm

erci

al B

est

Prac

tices

+-

10Te

chno

logy

Fam

iliar

ity+

-

11In

tegr

atio

n O

f M

ultip

le

Prod

ucts

Int

o A

Solu

tion

+-

12Co

nfig

urat

ion

Arch

itect

ure

+-

CO

TS V

ersu

s D

evel

opm

enta

l Pro

duct

s

Pro

duct

Sou

rce

Type

Com

pari

son

#

Elem

ent

CO

TSD

I13

Des

ign

Influ

ence

-+

14D

imin

ishi

ng M

anuf

actu

ring

Sour

ces,

Mat

erie

l Sho

rtag

es

(DM

SMS)

-+

15O

rgan

ic L

ife C

ycle

M

anag

emen

t Co

mm

and

(LCM

C) S

uppo

rt-

+

16Fu

ndin

g-

+

17En

emy

Acce

ss-

+

18Im

port

atio

n O

r Ex

port

atio

n-

+

19O

PTEM

PO A

dapt

abili

ty-

+

CO

TS p

rodu

cts

hav

e m

any

mor

e fa

vora

ble

attr

ibu

tes

as c

ompa

red

to

Dev

elop

men

t It

ems

(DI)

18©

G&

C 20

10

Page 19: IDGA Irregular Warfare COTS Deck

Ove

rvie

w O

f W

eapo

n S

yste

ms

& C

OTS

Pro

duct

s

Ove

rvie

w E

lem

ent

1980

2000

2010

2015

Impa

ct U

pon

DoD

DoD

ove

rall

spen

ding

as

a %

of

GD

P10

.0%

3.2%

4.0%

3.3%

Less

fun

ding

ava

ilabl

e, a

s w

ell a

s le

ss im

pact

on

over

all e

cono

my

DoD

wea

pon

syst

em

acqu

isiti

on s

pend

ing

as a

% o

f al

l US

capi

tal g

oods

in

vest

men

t

18.0

%8.

0%15

.0%

10.0

%Le

ss in

fluen

ce u

pon

OEM

s

Estim

ated

CO

TS

spen

ding

as

a %

of

over

all D

oD w

eapo

n sy

stem

acq

uisi

tion

$$

<1.

0%1.

0%2-

5%5-

10%

Reco

gniz

e ne

ed t

o sh

ift t

o CO

TS;

DoD

less

tha

n 1%

of

OEM

pro

duct

dem

and

in

2015

Estim

ated

fas

t-tr

ack

equi

ppin

g CO

TS

spen

ding

$$

%1.

0%5.

0%25

-35%

30-5

0%Fu

lly e

mbr

acin

g CO

TS

whe

neve

r po

ssib

le

estim

ate

19©

G&

C 20

10

Page 20: IDGA Irregular Warfare COTS Deck

The

tren

ds a

re f

avor

able

for

CO

TS p

rodu

cts,

but

the

mili

tary

Acq

uisi

tion

orga

niza

tions

mus

t be

com

e �s

mar

ter�

on h

ow t

hey

inte

grat

e CO

TS

prod

ucts

�in

trod

ucin

g �T

raili

ng E

dge

Tech

nolo

gy;�

a co

ncep

t to

be

empl

oyed

by

Prog

ram

Man

ager

Off

ices

in t

he d

esig

n/

prod

uctio

n an

d pr

oduc

t su

ppor

t st

ages

of

the

lifec

ycle

of

wea

pon

syst

ems

The

Trai

ling

Edge

Tec

hnol

ogy

Con

cept

For

CO

TS P

rodu

cts

1.Co

rrec

t af

ter

unpl

anne

d fa

ilure

2.Co

rrec

t be

fore

pl

anne

d fa

ilure

3.Re

set

afte

r de

ploy

men

t4.

Impr

ove

relia

bilit

y5.

Assu

re c

apab

ility

6.Ev

olve

tec

hnol

ogy

7.Re

pair

cata

stro

phic

da

mag

e8.

Stor

e sh

ort/

long

te

rm

Prod

uct

Supp

ort

Proc

esse

s (a

t fie

ld/lin

e or

at

depo

t)

Pro

duct

R

etir

emen

t S

tage

Pro

duct

In

itia

l D

istr

ibu

tion

S

tage

Pro

duct

P

opu

lati

on

LoHi

Pro

duct

Pro

duct

ion

Sta

geP

rodu

ct O

ut-

Of-

Pro

duct

ion

Sta

geP

rodu

ct

Req

uir

emen

ts,

Des

ign

&

Dev

elop

men

t S

tage

s =

Pro

duct

Su

ppor

t St

age

&P

rodu

ct O

pera

te S

tage

Tota

l Pro

du

ct L

ifet

ime

Pro

duct

R

edis

trib

ute

S

tage 20

©G

&C

2010

Page 21: IDGA Irregular Warfare COTS Deck

The

Trai

ling

Edge

Tec

hnol

ogy

Con

cept

Fo

r C

OTS

Pro

duct

s: V

alu

e P

ropo

siti

on�!Fr

eque

ncy

of f

ailu

res

thro

ugh

pigg

ybac

king

upo

n co

ntin

ual r

elia

bilit

y

impr

ovem

ents

by

OEM

�!

Dur

atio

n of

pro

duct

sup

port

pro

cess

es, a

nd in

tur

n "

mat

erie

l

avai

labi

lity,

thro

ugh

impr

oved

mai

ntai

ner/

tech

wor

ker

prod

uctiv

ity d

ue t

o

pigg

ybac

king

upo

n O

EM c

ontin

ual i

mpr

ovem

ents

on:

�Te

chni

cal d

ocum

enta

tion

�D

esig

n-Fo

r-M

aint

aina

bilit

y

�Tr

aini

ng t

ools

�"

Fam

iliar

ity o

f pr

oduc

ts t

hrou

gh p

rogr

amm

ed u

pgra

des

�!

DM

SMS

issu

es t

hrou

gh p

rogr

amm

ed u

pgra

des

�#

/"Ca

pabi

litie

s th

roug

h pr

ogra

mm

ed u

pgra

des;

The

mili

tary

can

not

fal

l beh

ind

wha

t ou

r en

emie

s ca

n re

adily

acq

uire

!TO

C &

"

Mis

sion

Ef

fect

iven

ess

Som

e sa

vin

gs w

ould

be

off-

set

by h

ighe

r in

tegr

atio

n c

ost

for

prog

ram

s21

©G

&C

2010

Page 22: IDGA Irregular Warfare COTS Deck

�CO

TS it

ems

sele

cted

in t

he d

esig

n pr

oces

s an

d em

ploy

ed d

urin

g

the

prod

uctio

n pr

oces

s w

ould

be

in a

not

-new

con

ditio

n:

�R

epai

red,

ref

urbi

shed

, or

over

haul

con

ditio

ns;

this

typ

e of

acqu

isiti

on h

as b

een

done

bef

ore

�R

esul

ting

from

a le

ase

retu

rn o

r w

arra

nty

retu

rn t

o a

supp

lier.

�CO

TS p

rodu

cts

can

lose

as

muc

h as

75%

of

thei

r va

lue

with

in

18 m

onth

s af

ter

bein

g pr

oduc

ed, t

hus

a $1

,000

com

pute

r is

wor

th a

bout

$25

0 af

ter

18 m

onth

s.

The

Trai

ling

Edge

Tec

hnol

ogy

Con

cept

Fo

r C

OTS

Pro

duct

s: D

esig

n/P

rodu

ctio

n

22©

G&

C 20

10

Page 23: IDGA Irregular Warfare COTS Deck

�Th

e pr

opos

ed c

once

pt is

to:

�Ac

quire

18

mon

th o

ld n

ot-n

ew C

OTS

pro

duct

s fo

r $.

25 o

n th

e do

llar

of t

he n

ew c

ondi

tion

acqu

isiti

on c

ost

durin

g th

e pr

oduc

tion

stag

e

�Ta

ke t

he �

extr

a�$.

75 a

nd u

se it

for

fut

ure

not-

new

con

ditio

n

prog

ram

med

upg

rade

s to

be

perf

orm

ed e

very

18

mon

ths

The

follo

win

g is

the

ser

ies

of a

ctio

ns c

ompa

ring

to t

he le

gacy

appr

oach

for

man

agin

g CO

TS b

ased

sys

tem

s ve

rsus

tha

t of

a n

ew

busi

ness

mod

el (

they

are

for

illu

stra

tion

purp

oses

; ea

ch C

OTS

pro

duct

will

hav

e di

ffer

ent

RO

Is f

or t

his

conc

ept

The

Trai

ling

Edge

Tec

hnol

ogy

Con

cept

Fo

r C

OTS

Pro

duct

s: D

esig

n/P

rodu

ctio

n

Pro

gram

med

upg

rade

s ca

n oc

cur

at a

dep

ot o

r in

th

e fi

eld/

line

as a

Lik

e-K

ind

Exch

ange

23©

G&

C 20

10

Page 24: IDGA Irregular Warfare COTS Deck

Lega

cy

Trai

ling

Edge

COTS

(A)

cqui

sitio

n D

ate

$0$500

$100

0

$150

0

$200

0Cu

mul

ativ

e Ac

quis

ition

$$$ A P

A P

P

A P

A P

A P

A P

A P

A P

A P

A

Lega

cy P

rogr

amm

ed U

pgra

de E

very

6 Y

ears

. Ave

rage

Tra

iling

Edg

e is

3.

75 y

ears

�yo

unge

r tha

n Le

gacy

The

Trai

ling

Edge

Tec

hnol

ogy

Con

cept

Fo

r C

OTS

Pro

duct

s: D

esig

n/P

rodu

ctio

n

7/08

1/10

7/11

1/13

7/14

1/16

7/17

1/19

7/20

7/08

1/10

7/11

1/13

7/14

1/16

7/17

1/19

7/20

COTS

(P)

rodu

ctio

n D

ate

COTS

(P)

rodu

ctio

n D

ate

COTS

(A)

cqui

sitio

n D

ate

$100

0

$200

0

24©

G&

C 20

10

Page 25: IDGA Irregular Warfare COTS Deck

The

Trai

ling

Edge

Tec

hnol

ogy

Con

cept

Fo

r C

OTS

Pro

duct

s: P

rodu

ct S

upp

ort

03

-10

Fai

led

COTS

Rep

arab

le L

RU

, 07

-06

Pro

duct

ion

Dat

e

Like

-Kin

d Cu

rren

t R

epla

cem

ent

Valu

e (C

RV)

$1

,00

0

BER/

Was

hout

rat

e 6

5% o

r $

65

0;

repa

ir w

ithin

lim

its f

or

rete

ntio

n

Cost

Of R

epai

r $

40

0

Rep

aire

d an

d fo

rwar

ded

to

mai

ntai

ner

for

inst

alla

tion

Lega

cy A

ppro

ach

COTS

Rep

arab

le L

RU

48

m

onth

sol

d pr

oduc

tion

date

w

ith c

ost

of $

40

0

BER/

Was

hout

rat

e 2

5% o

r $

250;

re

pair

outs

ide

limits

for

ret

entio

n an

d di

spos

ed

09

-08

dat

e of

LRU

pro

duct

ion,

ac

quire

d fo

r $

25

0 in

a r

epai

red

cond

ition

, and

for

war

ded

to

mai

ntai

ner

for

inst

alla

tion

COTS

Rep

arab

le L

RU

18

m

onth

sol

d pr

oduc

tion

date

w

ith c

ost

of $

25

0

Trai

ling

Edge

App

roac

h

Sim

plifi

ed;

typi

cal L

ike-

Kind

Ex

chan

ge

empl

oyed 25

©G

&C

2010

Page 26: IDGA Irregular Warfare COTS Deck

The

Trai

ling

Edge

Tec

hnol

ogy

Con

cept

Fo

r C

OTS

Pro

duct

s: P

rodu

ct S

upp

ort

This

con

cept

can

be

adap

ted

to a

Per

form

ance

Bas

ed

Logi

stic

s/O

utco

me-

Base

d Pr

oduc

t Su

ppor

t Bu

sine

ss M

odel

�Con

trac

tor

can

be p

rovi

ded

with

a f

ee f

or e

xecu

ting

conc

ept

�Con

trac

tor

can

wor

k w

ith d

epot

und

er a

Pub

lic P

rivat

e Pa

rtne

rshi

p

(PPP

) to

exe

cute

con

cept

�A P

rodu

ct S

uppo

rt I

nteg

rato

r (P

SI)

and

a Pr

oduc

t Su

ppor

t M

anag

er

(PSM

) m

ust

wor

k cl

osel

y to

geth

er t

o as

sure

tha

t th

e in

itiat

ive

is

mee

ting

the

War

fight

er r

equi

rem

ents

and

fav

orab

ly im

pact

ing

TOC

26©

G&

C 20

10

Page 27: IDGA Irregular Warfare COTS Deck

�CO

TS p

rodu

cts

are

play

ing

a m

uch

larg

er r

ole

in t

he

desi

gn o

f w

eapo

n sy

stem

s

�D

oD le

ader

ship

sho

uld

cont

inue

to

thin

k ou

t-of

-box

in

orde

r to

ass

ure

that

our

War

fight

ers

have

con

tinuo

us

acce

ss

and

supp

ort

of t

he C

OTS

pro

duct

s th

at t

hey

requ

ire in

ord

er t

o de

feat

our

ene

mie

s;

the

Trai

ling

Edge

Tec

hnol

ogy

busi

ness

mod

el is

one

way

to h

elp

them

lead

tha

t in

itiat

ive

Con

clu

sion

s

27©

G&

C 20

10

Page 28: IDGA Irregular Warfare COTS Deck

Qu

esti

ons?

Ron

Giu

ntin

i, Pr

inci

pal

ron@

giun

tinic

ompa

ny.c

om57

0.52

3.09

92

ww

w.g

iunt

inic

ompa

ny.c

om

28©

G&

C 20

10