Managing Obsolescence: New DoD Instruction for a Chronic Problem
Webinar, December 2, 2020
Post-Webinar Resource Links
It is well known that over 70% of the costs of major defense systems are sustainment costs. With platforms lasting longer than planned for or expected, the military services and their contractor partners are continually looking for replacement parts that are no longer in production.
This problem of obsolescence—referred to in DoD as Diminishing Manufacturing Sources and Material Shortages—is a chronic problem that program managers deal with everyday. Whether it is looking for alternative suppliers or reverse engineering parts to restart production, this is a major and costly challenge for DoD systems. According to one DoD estimate highlighted in the 2017-2018 whole of government review of the defense industrial base, 70% of the electronics installed in DoD systems are obsolete prior to system fielding.
Given this tremendous challenge, Under Secretary of Defense for Acquisition and Sustainment, Ms. Ellen Lord, signed out DoD Instruction (DoDI) 4245.15, DoD DMSMS Management Instruction, on November 5, 2020. This is first DoD-wide policy on obsolescence/DMSMS since 1974 (!) and looks to “establish and implement risk-based, proactive DMSMS management throughout the life cycle of all DoD items.” Join us a timely discussion about the new DoDI and its implications for the entire government contracting community!
Background article: Pentagon acquisition chief signs new policy for managing loss of manufacturing, supply sources, Justin Doubleday, Inside Defense, November 18, 2020.
Panelists | Panelist Biographies
|Jerry McGinn, Ph.D., Moderator |
Center for Government Contracting
|Robin Brown |
Diminishing Manufacturing Sources and Material Shortages Management
Office of the Secretary of Defense
|Stephen Foster |
Branch Chief and Program Manager
DLA DMSMS (Diminishing Manufacturing Sources and Material Shortages)
|Bill Kobren |
Director, Logistics and Sustainment Center
Defense Acquisition University
|Stanley Rogers |
AF/AFMC Enterprise DMSMS
US Air Force
November 5, 2020
The Center is pleased to provide a videorecording of this important discussion on intellectual property (IP) in today’s government contracting marketplace. The proper exercise of IP in government procurement and contracting has become an issue of considerable importance in the Defense Department. When government fails to leverage its IP rights, it may pay more than it must for bespoke materiel from otherwise competitive industries. On the other hand, exercising those rights too strongly can damage industry’s incentives for innovation, potentially limiting the flow of those innovations to the military. These are both negative consequences for national security in a time of tightening military budgets but heightening military competition.
The IP stakes in IP management are thus high. What then is the value of IP to buyer and seller? What determines this value? How can the buyer and seller secure and maintain a value to which both with agree? To examine the value of IP rights, we will begin our discussion with a focused comparison of the Defense Department’s treatment of IP in two recent programs to buy trucks for the US Army and Marine Corps. If you too are thinking about the value of IP in government contracting, or are trying to frame your approach for an IP negotiation, our seminar will offer much-needed insights. Three of our panelists were members of the Section 813 panel created to assess the technical data rights, restrictions, and regulatory mechanisms for their compatibility with national economic and defense interests.
James Hasik, Moderator
Center for Government Contracting
Deputy Director for Intellectual Property
Office of the Under Secretary of Defense for Acquisition and Sustainment
Former Director of Defense Pricing
Section 813 Panel Member and former industry executive
Kelly Kyes [invited]
Senior Policy Analyst
To prepare for the discussion, check out Jim’s recent Center White Paper, “The Value of Intellectual Property in Government Procurement Auctions: The Case of Military Trucks in the United States after the Cold War."
The Secretary of Defense created the Section 813 Panel at the behest of Congress to assess the technical data rights, restrictions, and regulatory mechanisms outlined in US Code Title 10, Sections 2320 and 2321 for their compatibility with national economic and defense interests.
Northern Virginia Chamber of Commerce Events
The Northern Virginia Chamber of Commerce is a partner of George Mason University, with the Center engaged in the Chamber's Government Contracting Council. Here is a link to their Events Calendar.
SECAF, the Small Advisory Contractors Advisory Forum, has numerous events of interest to the GovCon community. See their Events Calendar for further details.
ACG National Capital
Corporate Conversation: Strategic Initiatives for GovCon Growth
October 7, 2020 9 AM - 10 AM EDT
Mark Frantz, General Partner, Blue Delta Capital Partners
Kathryn Freeland, President & CEO of A-TEK, Inc
Doug Gilbert, Partner of DFW Capital Partners
Bob Lohfeld, President & CEO of Sev1Tech
Joe Humphries, Market Specialist, Atlantic Union Bank
An interactive and informative program where growth leaders will share insights how to strategically grow your company in the GovCon space.
Discussion to include:
- Challenges of migrating small business contracts to full and open awards – a road map
- Aligning with a private equity sponsor to help you achieve that goal
- How to position your company / management to take advantage of that strategy
- Other optionsThings to watch out for (checklist)