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Defense Technology Development: Management Process Can Be Strengthened for New Technology Transition Programs

GAO-05-480 Published: Jun 17, 2005. Publicly Released: Jun 17, 2005.
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Highlights

The Department of Defense (DOD) and Congress both recognize that Defense technology innovations sometimes move too slowly from the lab to the field. Three new programs have been recently created in DOD to help speed and enhance the transition of new technologies. A report accompanying the fiscal year 2003 National Defense Authorization Act required GAO to review two of these programs--the Technology Transition Initiative (TTI) and Defense Acquisition Challenge Program (DACP). The first is designed to speed transition of technologies from DOD labs to acquisition programs and the second is designed to introduce cost-saving technologies from inside and outside DOD. We were also asked to review the Quick Reaction Fund, which is focused on rapidly field testing promising new technology prototypes. We assessed the impact the programs had on technology transition and the programs' selection, management and oversight, and assessment practices.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To optimize DOD's growing investment in the Technology Transition Initiative, the Defense Acquisition Challenge Program, and the Quick Reaction Fund, the Secretary of Defense should direct the Under Secretary of Defense (Acquisition, Technology, and Logistics) to develop data and measures that can be used to support assessments of the performance of the three transition programs as well as broader assessments of the return on investment that would track the long-term impact of the programs. DOD could use measures already developed by other transition programs, such as Foreign Comparative Testing, as a starting point as well as the results of its study on performance measurement being conducted by the Naval Post Graduate School.
Closed – Not Implemented
The Quick Reaction Fund (QRF) has developed metrics to gauge the performance of the QRF Program. The fiscal year 2006 QRF data call requested the proposals to identify the technology readiness level (TRL). However, there are no specific rules for technology maturity but, the fiscal year 2006 selection process did consider the TRL as a significant factor in the final selection process. After the final QRF project selections are made, the projects' principal investigator must agree to the following minimum QRF reporting requirements: 1) Monthly updates on the progress of the QRF project via a Director, Defense Research and Engineering (DDR&E) website 2) Quarterly Congressional Report 3) A complete program briefing (required mid-point and at completion of the project) 4) Quad Chart (ad hoc but mandatory at the completion of the project) 5) A "releasable" news article for the DDR&E Newsletter (required at the completion of the project) 6) After action summary (required at the completion of the project) 7) Agreement to complete the project within the stated Period of Performance unless waived by DDR&E. After the principal investigator agrees to the minimum reporting requirements, completes a statement of work and, a financial information sheet, funds are released. No additional metrics have been developed for the TTI or DACP programs.
Department of Defense To complement this effort, the Secretary of Defense should develop formal feedback mechanisms, consisting of interim and after action reporting, as well as project reviews if major deviations occur in a project. Deviations include, but are not limited to, changes in the technology developer, acquirer, or user, or an inability for the technology developer to meet cost, schedule, or performance parameters at key points in time.
Closed – Implemented
The Office of the Secretary of Defense officials have instituted the use of monthly progress reports for Technology Transition Initiative projects. If these reports are not submitted, funding for the project in question is halted until the situation is reconciled. Within the Quick Reaction Fund (QRF) program, the Quick Reaction Special Projects Tracking System is used by the principal investigators to provide monthly status reports on their projects. This tracking system was implemented in April 2005. The monthly status report is an oversight tool to track the performance and completion of each QRF project. Listed below are some of the key information elements collected monthly on each project: 1) funding status, 2) period of performance, 3) schedule, 4) performance metrics, 5) major performers, 6) deliverables, and 7) transition plan. The program manager for the QRF program makes government and contractor site visits to articulate QRF program requirements, attend project kick-off meetings, review program plans, and provide feedback on the progress of the project. As required, the QRF principal investigators brief the Director, Plans and Programs to provide progress of the QRF projects and if corrective actions and/or significant changes are required to complete the project. The QRF program manager provides periodic status reports on each of the QRF projects to the Director, Plans and Programs in the form of briefs, financial reports, and meetings.
Department of Defense The Secretary of Defense should direct the Under Secretary of Defense (Acquisition, Technology, and Logistics) to implement the following, as appropriate, for each of the transition programs: (1) formal agreements to solidify up-front technology development agreements related to cost, schedule, and performance parameters that must be met at key points in time and (2) confirmation of technology readiness levels as part of the proposal acceptance process.
Closed – Implemented
The Technology Transition Initiative program specifies in its project submittal template that a signed technology transition agreement (TTA) will be required for all approved Technology Transition Initiative projects before being funded, and an explanation of what the TTA must include. Within this same template, technology readiness levels (TRLs) are defined and verification of sufficient levels is a mandatory element for acceptance into the program. For the Quick Reaction Fund (QRF) program, the fiscal year 2007 data call is requiring transition agreements for proposals costing $2.5 million or more. Additionally, fiscal year 2005 QRF projects that have completed or are nearing completion are to have letters prepared to be sent to the Services making them aware that these technologies exist and are available for further development and/or fielding. Regarding TRLs, the fiscal year 2006 QRF data call requested the proposals to identify the TRLs. QRF has no specific rules for technology maturity, but the fiscal year 2006 selection process did consider the TRL as a significant factor in the final selection process.
Department of Defense The Secretary of Defense should identify and implement mechanisms to ensure that transition program managers, developers, and acquirers are able to better communicate to collectively identify and resolve problems that could hinder technology transition. There may be opportunities to strengthen communication by improving the structure and content of interim progress meetings and possibly even designating individuals to act as deal brokers.
Closed – Implemented
For the Quick Reaction Fund (QRF), the fiscal year 2007 QRF data call requires transition agreements for proposals costing $2.5 million or more. Fiscal year 2005 QRF projects that have completed or are nearing completion, have letters prepared to be sent to the Services making them aware that these technologies exist and are available for further development and/or fielding. The fiscal year 2006 Appropriations Conference Report requested the Secretary of Defense to provide quarterly reports to the congressional defense committee. This report also increases the communication and oversight of the projects. The report includes project descriptions with their respective schedule and funding requirements, transition plans to the services for further development, and lessons learned from completed projects. For the Technology Transition Initiative (TTI), DoD plans to select an electronic database to help track the status of projects and facilitate program office reporting, which should help improve communications between the TTI office and program managers. No additional steps have been taken for the Defense Acquisition Challenge Program (DACP).
Department of Defense As DOD considers solutions to broader technology transition problems, the Secretary of Defense should direct the Under Secretary of Defense (Acquisition, Technology, and Logistics) to assess how the Technology Transition Council can be better used.
Closed – Not Implemented
Since our recommendation that there be an assessment of how the Technology Transition Council can be better used, the Council has held its first meeting, and efforts are being made to coordinate future meetings based on the success of the initial meeting in November 2005. Ms. Cynthia Gonsalves from the DDR&E Technology Transition Program stated that the senior DOD leadership that attended the first council meeting found it engaging and provided positive feedback. As a result, efforts are being undertaken to schedule the next meeting and better define the role of the council and its meetings.

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Combat readinessBiological agentsDefense capabilitiesDefense cost controlDefense procurementMilitary research and developmentProgram evaluationResearch program managementResearch programsTechnology assessment