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Acquisition and Competition Strategy Options for the DD(X)
The U.S. Navy’s 21st Century Destroyer
As the Navy’s program to build a new family of surface ships enters Phase IV, RAND was assigned to evaluate different acquisition and contracting strategies to achieve the objectives of making the best use of competition, maintaining a strong industrial base, and achieving program cost, schedule, and performance objectives. The authors employed a variety of techniques drawing on the substantial history of competition in various acquisition programs to examine options for the DD(X) program as it existed in 2003. They concluded that competition among prime contractors during detail design and initial production of the system would not be practical, that the 2003 plans for distributing the work should sustain the existing industrial base, and that a mixed strategy employing different contract forms for detail design and serial production would be most appropriate. It should be noted that the program underwent significant changes in 2005, which were not considered in RAND’s study and which might call for different conclusions.
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Contents
Chapter One:
Introduction
Chapter Two:
Applications of Competition in Phase IV
Chapter Three:
Effects of the DD(X) Production Program on the Shipbuilding Industry
Chapter Four:
DD(X) Phase IV Contracting Issues and Options
Chapter Five:
Conclusions
Chapter Six:
Epilogue: July 2005
Appendix A:
DDG 51-Class Case Study
Appendix B:
Competition Effects in Recent Shipbuilding Programs
Appendix C:
Questionnaire for Shipbuilders
The research described in this report was prepared for the U.S. Navy. The research was conducted in the RAND National Defense Research Institute, a federally funded research and development center sponsored by the OSD, the Joint Staff, the Unified Combatant Commands, the Department of the Navy, the Marine Corps, the defense agencies, and the defense Intelligence Community.
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