Defense acquisition requires simplicity, collaboration.

• Author: Speakes, Stephen M.
• Position: Viewpoint

The organization and function of the Defense Department is so antiquated that it may well prove unable to deliver the changes that the nation needs. So, even as it focuses on potentially existential threats to the nation, somebody must address the conversion of the "horse and buggy," which is the present-day Pentagon, to make it perform like a modern turbocharged vehicle.

The challenges are many, but if there is focus on simplicity the department could be improved while dramatically reducing the problems faced by small contractors. The payoff for even modest improvement could be felt most by the smaller contractors, as they are most at risk under the current system. The focus should be to enlarge and modernize commercial interaction done by the department to make it less adversarial, more collaborative, transparent, accountable and sensitive to business cash flow needs.

There is a remarkable asymmetry between the government and industry with respect to fundamental contractual and administrative execution.

The first problem is one of predictable communication and consistent government performance. As an example, when processing a government contract for a simple procurement action inexplicably takes nine months versus the three months promised, the impact at the company level is complex and potentially devastating. This problem is exacerbated when the contracting entity does not provide any communication regarding revised performance timelines. Delays such as these put small businesses in a no-win position. Many businesses live in a world without adequate cash flow and little to no backlog. So, in this situation, waiting until contract award means that long-long lead production items from the manufacturing base will not be on hand when work should start. Production lines that go dormant do not come back to life easily or quickly. Workers trained and available today can't be stored on dry ice for the six month delay; they are either laid off or employed elsewhere.

So, for many small firms in this situation, there is no choice but to take risk and begin committing precious resources on an un-awarded contract. This in turn intensifies the dependency of the small contractor on the government who now truly controls their fate.

The government must establish and live with reasonable performance standards and timelines. When it fails to do so, it should pay compensation promptly, just as the contractor is now required to pay "consideration" when...