The Pentagon rolled out its Better Buying Power 3.0 implementation guidelines April 9. Like previous iterations, BBP 3.0 stresses affordability, but it also adds an emphasis on innovation.
The military’s technical edge is being challenged more now than it has in recent decades, Frank Kendall, Under Secretary of Defense for Acquisition, Technology and Logistics, told reporters. “We need to move in a direction of doing more about our products and technical excellence and innovation,” he said.
The Pentagon’s acquisition system must become more responsive to threat changes, he said. To retain its overmatch, the services must conduct longer-range research and development planning and break down the barriers keeping out innovative commercial companies and small businesses.
Products must be designed to incorporate future upgrades, meaning an increased importance on modular, open architecture designs, he said.
“We cannot assume that when we put a system out, it’s going to be fine for the next three or four decades. We’ve got to stay on top of what the threats are doing. They’re moving quickly. They’re responding to us. We have to do the same.”
One key change is increased regulations on corporate internal research and development funding, he said. Industry will be able to choose how to spend its IRAD money, but they must find a government sponsor before starting work and must also file a report at completion.
The guidance calls for the Defense Department to share requirements with industry earlier and to increase the use of incentive contracts when appropriate.
For the first time, BBP also includes cyber guidelines, including ensuring that all products have unclassified technical information protected.