requirements. Simultaneously, to maximize the use of mature commercial technology, the government allowed bidders to pro- pose justifiable exceptions to requirements not deemed mandatory. This incentivized vendors to leverage their existing, proven commercial off-the-shelf (COTS) designs, preventing costly and risky redesigns while giving the government a clear-eyed view of the trade-offs involved. Furthermore, the team established a clear line of financial responsibility. The Statement of Work (SOW) mandated that all non-recurring engineering costs to incorporate the final PS-ICD requirements had to be included in the vendor’s FFP bid. This strategy encouraged vendors to use the OTA learnings to submit a competitive proposal while providing a fixed engineering rate for the government to address any technical challenges that might arise later. Finally, the program engineered a powerful incentive structure using a Value Adjusted Total Evaluated Price (VATEP) model. This innovative mechanism established a framework where contractors receive specific, pre-defined price discounts for offering enhanced performance, such as superior fuel efficiency. Instead of simply meeting a minimum threshold, bidders were encour- aged to compete on the merits of superior performance. This created a dynamic where the government was able to reward contractor ingenuity with a competitive advantage, representing a strategic shift toward true performance-based acquisition. Engineering the Future:Digitalization as a Strategic Enabler This entire acquisition framework was powered by a deep commitment to digital engineering. Creating a “virtual Power Pod Prototype” was a key exit criterion for the initial OTA phase, integrating digital models directly into acquisition milestones. This digital-first approach allows for extensive analysis and simulation before cutting any metal. “Our current virtual digital prototyping efforts are giving us an opportunity to integrate the engines and other changes to the B-52 before doing any physical modifications. This has allowed us to develop the most cost-efficient solution while reducing the time from concept to production.” 2 — Brig. Gen. John Newberry, Program Executive Officer for Bombers This digital thread, which progressed to a full “virtual System Prototype” using Model-Based Systems Engineering (MBSE), provides the technical backbone to manage the program’s immense complexity. It gave the government and its partners the confidence to proceed with an aggressive contracting strategy, knowing they have the tools to analyze and mitigate integration risks throughout the design process. Ultimately, the ambitious B-52 CERP strategy paid off. The Sept. 2021 award of the $2.6 billion FFP contract to Rolls-Royce was a definitive validation of this innovative approach. The program is now on a clear path to deliver modified engines and aircraft that will enable the B-52 to stay in the fight beyond 2050. More than just a successful modernization, B-52 CERP serves as a powerful and repeatable blueprint. It proves that by strategically layering legal authorities, collaborative partnerships and adap- tive contracting, the Department of Defense can break through bureaucracy and deliver transformative capability at full throttle. References 1 Air Force Global Strike Command Public Affairs, “B-52 CERP engine replacement contract awarded,” U.S. Air Force, September 27, 2021, https://www.afgsc.af.mil/News/Article/2790243/b-52-cerp-engine-replacement-contract-awarded/. 2 Air Force Life Cycle Management Center Public Affairs, “B-52 engine virtual prototyping testing proves successful,” U.S. Air Force, March 4, 2021, https://www.af.mil/News/Article-Display/Article/ 2525695/b-52-engine-virtual-prototyping-testing-proves- successful/. SMITH is a licensed professional engineer with 25 years of professional experience in a combination of private industry and govern- ment civilian engineering roles. He has been an engineer on the B-52 Commercial Engine Replacement Program (CERP) team since April 2018 and was a key contributor to the program accomplishments described in the article. The views expressed in this article are those of the author alone and not the Department of War. Reproduction or reposting of articles from Defense Acquisition magazine should credit the author and the magazine.
JULY – AUGUST 2026 | DEFENSE ACQUISITION MAGAZINE 51
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