CVP Business Process Re-Engineering
The objective of the Business Process Re-Engineering task in the NAVAIR CVP study is to identify business practices within the Naval Air Systems Command, the Department of the Navy, the Office of the Secretary of Defense, which inhibit the implementation of the CVP in future acquisitions.
The following quote is from a report by Coopers & Lybrand and TASC prepared for the Secretary of Defense entitled, "The DoD Regulatory Cost Premium: A Quantitative Assessment":
"The Department of Defense and Congress have developed a complex regulatory environment intended to maintain public accountability in defense acquisition and prevent contractor abuses. In recent decades, reported incidents of contractor misdeeds have engendered a further extension of the regulatory web. Indeed, there has been a certain circularity to this evolution: a single alleged violation of the rule begets more legislation, more rules and more oversight, which almost inevitably leads to more accusations of wrongdoing."
"The need to protect against contracting abuses must be balanced by a concern for the cost of this oversight."
A study was conducted for the Office of the Secretary of Defense to examine the top regulatory offenders. The study was based on examining ten firms doing business with DoD. The top ten offenders are listed above. The study concluded that18% of the value added cost of the companies were in regulatory cost premiums. The number one cost driver was the military quality standard MIL-Q-9858A. This regulation accounted for 10% of regulatory costs. This standard will be replaced by a nonmilitary standard per Secretary Perry's memo. However, savings will not be realized until a more effective process is in place that satisfies the quality requirement. The CVP technology, combined with emerging ISO standards used within a unified industrial base, can potentially satisfy the quality requirement at a fraction of the cost.
