Accession Number : ADA577372


Title :   Competition Among Near-Substitutable Systems


Descriptive Note : Conference paper


Corporate Author : INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA


Personal Author(s) : Harmon, Bruce R


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a577372.pdf


Report Date : Sep 2012


Pagination or Media Count : 30


Abstract : We define near-substitutable systems as systems that have overlapping capabilities, but are substantially different in some dimensions. Competition between such systems is examined in the context of the dominant Weapon System Franchise model of competition for major defense acquisition programs (MDAPs). Competition between near-substitutes can occur throughout the acquisition cycle. It is most commonly seen in pre-Engineering and Manufacturing Development Analyses of Alternatives (AoAs) where the cost-effectiveness of a variety of concepts as well as legacy systems and potential derivatives are compared. Our primary interest is in competition later in the acquisition lifecycle when the near-substitutes may already exist in some form. We explored the potential for competition between near-substitutable systems through three case studies: C-17 and 747-400F/Non Developmental Airlift Aircraft (NDAA). Joint Air-to-Surface Standoff Missile and Standoff Land Attack Missile-Expanded Response, and KC-X: KC-767 and KC-45. We found that near-substitutes can provide competitive pressure on incumbent systems. The KC-X was exceptional in that it was a formal direct competition between near-substitutes leading to the award of a franchise. AoAs or other cost-effectiveness analyses can be pivotal in bringing attention to near-substitute systems. However, AoAs comparing alternatives to systems already in production tend to be ad hoc in nature. One way to further encourage competition between near-substitutes would be through a rolling cost-effective analysis process where the original AoAs would be updated as material changes become evident in an ongoing program or potential near-substitutes surface.


Descriptors :   *ACQUISITION , *DEFENSE SYSTEMS , CASE STUDIES , COST ANALYSIS , MANUFACTURING , WEAPON SYSTEMS


Subject Categories : Defense Systems


Distribution Statement : APPROVED FOR PUBLIC RELEASE