CATEGORY: INNOVATION IN OVERCOMING OBSTACLES
Innovation in Overcoming Obstacles: A Case Study in Rapid sUSV Acquisition by MATTHEW CAWLEY, U.S. NAVY The defense acquisition system, while designed to ensure accountability and responsible spending, often presents formidable obstacles to rapid procurement, particularly when faced with urgent acquisition requirements. This essay documents a firsthand account of employing innovative thinking to overcome a significant hurdle in the acquisition of small, unmanned surface vehicles (sUSVs). The task: procure a large quantity of sUSVs, valued at $220 million, within an unprecedented six-month timeframe. This seemingly impossible mission required not only a deep understanding of acquisition pathways but also the courage to challenge conventional wisdom and forge a new path. The urgency of the requirement precluded the traditional, often lengthy, acquisition processes. The need was im- mediate, driven by a rapidly evolving operational landscape demanding enhanced maritime domain awareness in the face of national security. Specifically, these sUSVs were needed to fill a critical gap in real-time maritime operations. Although the sUSVs were a defense developmental system; they were also considered a Commercial Off-The-Shelf (COTS) technology readily available to the Department of Defense. The Navy completed a small business contract and successfully delivered a single sUSV prototype through a small business innovative research project. To successfully transition the sUSV prototype to a production asset, the Navy implemented a two-pronged strategy. First, rapid testing was conducted to ensure the prototype met stringent production standards. This involved rigor- ous evaluations of the sUSV’s performance, reliability, and maintainability under realistic operational conditions. The tests aimed to identify and address any deficiencies or areas for improvement before full-scale production began. Second, an independent evaluation of the supply chain was undertaken to ensure the timely procurement of critical parts. This involved a thorough assessment of suppliers’ capabilities, lead times, and inventory levels. The evaluation aimed to mitigate potential bottlenecks or delays in the production process by ensuring the availability of essential components when needed. The challenge lay not in developing the technology, but in navigating the complex bureaucratic landscape to rapidly acquire large quantities of production assets. Initially, the Middle Tier of Acquisition (MTA) pathway seemed like a viable option. MTA, with its focus on rapid prototyping and fielding, is designed for situations like this. However, a closer examination revealed critical roadblocks. The program lacked the necessary prerequisites for MTA initiation. A formal cost estimate, an approved acquisition strategy, Top-Level Requirements (TLRs), and a Life-Cycle Sustain- ment Plan—all essential elements for MTA—were absent. Developing these artifacts within the six-month window was simply impossible. The clock was ticking, and the operational need remained unmet. Faced with this dilemma, a thorough exploration of alternative acquisition pathways became paramount. Traditional acquisition processes were too slow. MTA, while promising, was currently out of reach. The search for a solution led to a less-traveled path: the “10 U.SC. §4001: Research and Development Projects” authority. This authority, typically used for research and development efforts, offered a potential avenue for rapid acquisition, provided it could be ap- plied creatively and strategically. The challenge with using §4001 for this procurement centered on the intended use of the sUSVs. While they were COTS items to the Government, the sheer scale of the procurement and the intent for long-term sustainment blurred the lines between R&D and operational use. Traditional interpretations of §4001 focused on smaller-scale procure- ments directly supporting specific research projects, not large-scale deployments for operational training and use. This was uncharted territory. The program office embarked on a deep dive into the Financial Management Regulation (FMR), searching for any provision that might support the proposed approach. The breakthrough came with the discovery of FMR 2.13.3.5.4. This seemingly obscure section addressed the use of Procurement or Operations and Maintenance (O&M) appropriations for articles used in support of approved R&D programs. Crucially, it stated that “Articles of types regularly procured to meet established general requirements such as operational training, operational use, or inventory which are assigned or allocated on a priority basis for use in support of approved R&D programs and which are not consumed in testing, may be financed by Procurement or O&M appropriations using the expense and investment criteria.” 1 This passage provided the critical legal justification for using §4001 to procure the sUSVs. The key was framing the acquisition as supporting an approved R&D program, even though the sUSVs themselves were seen as COTS items to the Government. The program office argued convincingly that the integration of these sUSVs into existing fleet architectures and the development of specific tactics, techniques, and procedures (TTPs) for national security reasons
May-June 2025 | DEFENSE ACQUISITION
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