TOTAL PACKAGE PROCUREMENT CONCEPT, SYNTHESIS OF FINDINGS. LMI TASK-67-3
LOGISTICS MANAGEMENT INST BETHESDA MD
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The Total Package method of procurement offers significant advantages over development-only type contracts for both the Government and industry. Advantages include cost savings, shorter development schedules, design for producibility, long range planning, and from the Governments point of view, increased competition. Disadvantages include greater financial risk, premature program definition, and severe competition and increased proposal expenses from the contractors point of view. TPP should be applied to operational systems development programs and to smaller programs below the DoD Directive 3200.9 threshold criteria. TPP should not be applied to systems where the technology is rapidly changing and responsive to changing military needs or to systems which require an interface application. There is a greater need for an integrated management information system for TPP programs than there is for development-only programs. The Government should disengage from the contractor in TPP programs, and retain visibility but not control unless program redirection is necessary. On balance, the influential factors of cost, schedule, and system performance in the TPP programs studied tend to support rather than constrain technical innovation.
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