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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: October 26, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Issues Revised 5000 Series of Acquisition System Documents

SOURCE: Department of Defense Acquisition Reform Website: http://www.acq.osd.mil/ar

AGENCIES: Department of Defense (DOD)

ACTION: Notice

SYNOPSIS: On October 23, 2000, DOD issued its long-awaited revised 5000 series of documents that address systems acquisition: DOD Directive 5000.1, The Defense Acquisition System; DOD Instruction 5000.2, Operation of the Defense Acquisition System; and DOD Interim Regulation 5000.2-R, Mandatory Procedures for Major Defense Acquisition Programs (MDAPs) and Major Automated Information System (MAIS) Acquisition Programs.

EFFECTIVE DATE: October 23, 2000.

SUPPLEMENTAL INFORMATION: On October 23, 2000, DOD posted on various websites the new 5000 series of acquisition system documents. Over a year in the making, the DOD 5000 series is designed to modernize the way DOD does business. The old policies, which were contained in the old DOD Directive 5000.1 and DOD Regulation 5000.2-R (both dated March 15, 1996, and cancelled), helped to drive the 15 to 20 year development cycles for systems and often caused DOD to spend significant portions of it budget for relatively small increments in performance. The new policies establish an environment that emphasizes flexibility. Requirements will be more flexible and allow for reasonable, thoughtful tradeoffs between cost and performance. Proposed programs may enter the acquisition process at various decision points, depending on concept and technological maturity. Managers at every level are encouraged to tailor their acquisition strategies consistent with the particular conditions of their program and sound business management practice. Consequently, systems will be able to proceed through development more rapidly and improved capability will be fielded in far less time.

The policies also place increased emphasis on interoperability; give priority consideration to the use of commercial products, services and technologies; stress the benefits of competition to innovation and cost reduction; and emphasize the integration of logistics and systems acquisition to produce more reliable systems and maintain them in a more timely and cost-effective way.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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