Strategic Long-Term Participation by DoD in Its Manufacturing USA Institutes (2019) / Chapter Skim
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4 DoD Long-Term Manufacturing Institutes' Strategy: Business Model Options and Implications
4 DoD Long-Term Manufacturing Institutes' Strategy: Business Model Options and Implications
Pages 50-58
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From page 50... ...
However, from the outset DoD core funding was planned to ramp down after 5-7 years. With these two modes of engagement in mind, the committee developed the following five business model options for evaluation: • Option A: Current model with planned reduction in DoD support for core activities.
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From page 51... ...
Under Option A, institutes will need to find other sources of funding to main tain core activities and cover overhead and administrative expenses. Long-term funding for customer-defined project offerings could come from DoD, other fed eral stakeholders, industry, and foreign sources, but few or none are expected to provide core funding beyond their current membership dues.
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From page 52... ...
3. Maximize value delivery • Reduced DoD support of core activities will reduce influence on the ecosystem and its dual use value to DoD.
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From page 53... ...
OPTION C: TRANSITION TO DOD CUSTOMER MODEL Option C transitions from the current focus on core activities to a new focus on projects driven by DoD needs and sponsored by DoD customers outside of the OSD ManTech office. The committee believes there is a clear opportunity to better TABLE 4.2 Impact of Option B: Current Model with Improvements to Processes, Offerings, and Value-Based Core Funding DoD Goal Implications 1.
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From page 54... ...
In this period, OSD ManTech can ascertain the most effective approach to retain important core functions, such as EWD and technology roadmapping. Option C gives the OSD ManTech office a greatly expanded role to facilitate institute connections to DoD customers, understanding of needs, and program development.
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From page 55... ...
Improve OSD ManTech Same as A, with Same as A, with improvements Core improvements in core in core processes and network processes and network C Shift Service ManTech Facilitate through JDMTP Understand ManTech needs Focus to S&T Facilitate connections Compete for S&T projects Customer – Uses broad agency – S&T communities of – Develop/market relevant Projects announcements, interest, research and capabilities sometimes OTAs engineering top-ten – Use OTA business methods – Front end of TRL/MRL leaders Engage with Program Executive 4-7 – Roadmap matching Offices Acquisition R&D Facilitate connections – Leverage original equipment – Increasing use of OTAs – Create OTA interface manufacturers, understand – Back end of TRL/MRL – Broker transition needs 4-7 agreements – a competitive business, Be Operations and Facilitate connections go fast maintenance and depots – Create rapid Engage with depots – Workforce contracting interface – Understand needs development, – Depots sponsor – Competitive pricing modernization needs projects – Fast, convenient contracting NOTE: DoD, Department of Defense; JDMTP, Joint Defense Manufacturing Technology Panel; MRL, manufactur ing readiness level; OSD, Office of the Secretary of Defense; OTA, Other Transaction Authority; R&D, research and development; S&T, science and technology; TRL, technology readiness level.
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From page 56... ...
NOTE: DoD, Department of Defense; MRL, manufacturing readiness level; OSD, Office of the Secretary of Defense; OTA, Other Transaction Authority; R&D, research and development; TRL, technology readiness level. OPTION D: TRANSFER CORE RESPONSIBILITIES TO THE NATIONAL PROGRAM OFFICE AT NIST This option would phase out DoD core funding for the institutes after 5-7 years (as originally planned)
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From page 57... ...
DoD sponsorship of R&D projects would be contracted directly with the DoD Manufacturing USA institutes, using OTAs or other appropriate contracting mechanisms. Since the federal interface would shift from DoD to NIST, connection to DoD project sponsors would receive less help than Options A or B, and much less than Option C
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From page 58... ...
Impactful R&D • R&D will no longer be focused on DoD requirements. • Loss of DoD influence on DoD Manufacturing USA institute agendas.
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