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4 Incentivizing Research and Development to Decrease False Alarms in an Airport Setting
Pages 34-44

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From page 34...
... aims to improve the false alarm performance of EDSs for baggage screening, the committee was made aware of no clear plan from the TSA to implement improvements in the performance of fielded systems. Vendors variously heard that they should be working on improvements that ranged from reducing false alarms, to reducing operational costs, and even to increasing time between planned or unplanned maintenance events.
From page 35...
... For the DHS and the TSA, a similar approach could result in a consensus on future requirements. Although incentives for participation would be different from those for the competitive market of private industry, and although priorities in a long-term plan involving EDS equipment would necessarily change on the basis of changing threat environments and other outside influences, a long-term plan developed cooperatively would allow companies to evaluate their risk-and-reward strategy in a more stable investment environment.
From page 36...
... The section below entitled "Performance-Base Logistics" describes the DOD approach in more detail. Finally, the committee believes that the current plan of the TSA to replace all the fielded end-oflife EDSs in a single purchase defeats the goal of continuous improvement and could lock the TSA into years of trying to improve fielded equipment through incremental changes.
From page 37...
... When funding streams are separated in the way that they are in the EDS procurement model, there is little incentive for a vendor to provide equipment upgrades that might improve field performance. From the operational point of view, the TSA does not have money to test and field equipment upgrades that have the potential to reduce false alarm rates or to increase the amount of time between required maintenance events and reduce the failure rate of EDSs -- and ultimately reduce operating costs.
From page 38...
... Overview of Performance-Based Logistics The Office of the Secretary of Defense has defined performance-based logistics as "a strategy for weapon system product support that employs the purchase of support as an integrated performance package designed to optimize system readiness. It meets performance goals for a weapon system through a support structure based on performance agreements with clear lines of authority and responsibility." 4 When employed in the context of the total life cycle of a product, a PBL approach to major system fielding has resulted in superior system performance, operational readiness, and continuous product improvement, which directly impacts incentivized contractor profit.
From page 39...
... A typical DOD major system procurement is driven by a statement of objectives that provides the contractor with threshold operational performance requirements. The PBL contract is a "companion" contract (or set of contract line items)
From page 40...
... TECHNICAL REVIEW BOARD As noted earlier in this chapter, the committee believes that it would be useful for the TSA to establish a review board of members who represent a broad range of interests for the purposes of evaluating potential improvements and outlining testing and fielding requirements, as well as determining cost of implementation versus potential performance gain. Such a review board would enable vendors not only to establish a stake in the outcome of fielded changes but would also enable them to see a clear path to the implementation of improvements.
From page 41...
... Previous Year Investments in System Improvements 1 Operational Reliability Growth Factor = The minimum and maximum fee table can be determined as:2 95-100 15.0% 90-94 13.0% 85-89 10.0% 80-84 7.0% 75-79 5.0% 70-74 4.0% 65-69 3.5% <65 3.0% Results will be indexed in a table specific to the parameter, yielding a score for each: System Readiness (Up Time) = 80 False Alarms = 50 System Maintenance Cost = 75 Reliability Factor = 80 System Manning Cost (including clearing alarms)
From page 42...
... In addition, the PBL program plan includes management planning, executive management summaries, change logs, functional budget allocation, contract data, program schedules, contract line item numbers, work-breakdown structure, control account managers, organizational charts, procurement planning, subcontract planning, facilities and capital equipment planning, a work-breakdown-structure dictionary, cost performance forecasts, cash-flow schedule, engineering planning, post-deployment software support planning, personnel planning maintenance of action item logs, security and safety requirements, project directives, risk management planning, and various program records. Box 4-2 describes how the PBL model might be employed in the aviation security setting.
From page 43...
... APPROACHES OTHER THAN PERFORMANCE-BASED LOGISTICS FOR PRODUCT DEVELOPMENT AND SYSTEM IMPROVEMENT Original Equipment Manufacturer Research and Development Traditionally, original equipment manufacturers have invested corporate profits and/or internal research and development funds for equipment modernization and reliability improvements. This funding is generally very limited, untimely, and difficult to secure.
From page 44...
... Recommendation: The TSA should develop a plan to provide appropriate incentives not only for EDS vendors but also for third parties and researchers in academia in order to improve the overall performance of computed tomography-based EDSs, including their rates of false alarms. Incentives should be provided for both short- and longer-term improvements.


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