The Under Secretary of Defense (AT&L) Frank Kendall on 9 April 2014 introduced an update to the Better Buying Power Initiative call Better Buying Power 3.0. The goal of the Better Buying Power is to obtain greater efficiency and productivity in defense spending by delivering the warfighting capabilities needed for the money available.

Better Buying Power 3.0: Memorandum

Better Buying Power 3.0: FactSheet

 

Achieve Affordable Programs
1. Mandate affordability as a requirement
2. Institute a system of investment planning to derive affordability caps
3. Enforce affordability caps
Control Costs Throughout the Product Lifecycle
4. Implement “should cost” based management
5. Eliminate redundancy within warfighter portfolios
6. Institute a system to measure the cost performance of programs and institutions and to assess the effectiveness of acquisition policies
7. Build stronger partnerships with the requirements community to control costs
8. Increase the incorporation of defense exportability features in initial designs
Incentivize Productivity & Innovation in Industry and Government
9. Align profitability more tightly with Department goals
10. Employ appropriate contract types
11. Increase use of Fixed Price Incentive contracts in Low Rate Initial Production
12. Better define value in “best value” competitions
13. When LPTA is used, define Technically Acceptable to ensure needed quality
14. Institute a superior supplier incentive program
15. Increase effective use of Performance-Based Logistics
16. Reduce backlog of DCAA Audits without compromising effectiveness
17. Expand programs to leverage industry’s IR&D
Eliminate Unproductive Processes and Bureaucracy
18. Reduce frequency of OSD level reviews
19. Re-emphasize AE, PEO and PM responsibility and accountability
20. Eliminate requirements imposed on industry where costs outweigh benefits
21. Reduce cycle times while ensuring sound investment decisions
Promote Effective Competition
22. Emphasize competition strategies and creating and maintaining competitive environments
23. Enforce open system architectures and effectively manage technical data rights
24. Increase small business roles and opportunities
25. Use the Technology Development phase for true risk reduction
Improve Tradecraft in Acquisition of Services
26. Assign senior managers for acquisition of services
27. Adopt uniform services market segmentation
28. Improve requirements definition/prevent requirements creep Increase use of market research Increase small business participation
29. Increase use of market research
30. Increase small business participation
31. Strengthen contract management outside the normal acquisition chain- installations, etc.
32. Expand use of requirements review boards and tripwires
Improve the Professionalism of the Total Acquisition Workforce
33. Establish higher standards for key leadership positions
34. Establish stronger professional qualification requirements for all acquisition specialties
35. Increase the recognition of excellence in acquisition management
36. Continue to increase the cost consciousness of the acquisition workforce- change the culture

AcqLinks and References:

• Better Buying Power 3.0: Implementation Guidance Memorandum
• Better Buying Power 3.0: FactSheet
• White Paper: Better Buying Power 3.0
• Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending, 14 Sept 2010
• Implementation Directive for Better Buying Power Obtaining Greater Efficiency and Productivity in Defense Spending, 3 Nov 2010
• Better Buying Power Fact Sheet
• Cost Consciousness Brochure
• Should Cost Management in Defense Acquisitions – 6 Aug 2013
• Website: DoD News Article: Better Buying Power Drives Acquisitions
• Website: DAU Better Business Power

Updated: 7/23/2021

Rank: G1