Response to the following questions:
Question 1. "Complex procurement occurs when the specification is difficult or is an innovative or bespoke product or service. Therefore, procurement becomes higher risk to the organization given the degree of competition which is often restricted to a limited market" ("Complex Procurement - The Chartered Institute of Procurement and Supply," n.d.).
Every contract has their issues however it seems like there are some contracts that are more difficult than others.It seems like a lot of the contracts with the planes are complex procurement because they are more difficult because they are high dollar items. I am sure they are also more detailed. The P-8A Aircraft Program Achieves Initial Operational Capability. The year was filled with crucial programmatic milestones for the program office, including the successful completion of Initial Operational Test and Evaluation and the on-going delivery of initial production aircraft in support of the first three P-3 to P-8 squadron transitions.
I read the article about the ACC commander Gen. Mike Hostage declaring initial operational capability for the 552nd Air Control Wing's E-3G Sentry. "This modification represents the most significant upgrade in the 35-plus year history of the E-3 AWACS and greatly enhances our crew members' ability to execute the command and control mission while providing a building block for future upgrades," said Col. Jay R. Bickley, the 552nd ACW commander. Col. Jay R. Bickley statement is frustrating to me because if you know we need an advancement then why wouldn't you push for one. I mean I know it is not as simple as that but still it should not take 35 years to get a mission critical advancement.
Question 2. One of the things that many people will state is that the procurement process is too complex or confusing. They will also say that there should be better solutions to make the procurement process not as complicated. But the real question is why is does it seem complicated. Well, one of the reasons why is shown in the first YouTube video for us to watch. The Generals wanted to keep adding to the design of the Bradley which then provided a higher risk. As a PM, their job is minimizing the risk that would happen with the cost, scheduling, and performance of the weapon system. That will be done by using a risk management plan throughout the acquisition process of the weapon system.
Another example of a complex procurement is the F-35. The F-35 program was a joint program by the Air Force, Marine Corps, and Navy. What I think makes the acquisition of this, so complex is because there are multiple branches of service that are buying the same style of weapon system from one company. Each branch of service has a different role when it comes to the nation's defense. That then comes into the complexity of the design the weapon system for each one's purpose. Not only does that make it complicated but one of the branches of service is going to serve as the lead component, and all other branches are participating components. On the contract that I work on it are a joint program and many times people do not see eye to eye when it comes to developing a weapon system.
Question 3. The procurement process is already a relatively complicated process fraught with common law, administrative laws, government regulations, and policies. Some procurements pose a more significant amount of complexity and risk, which can have them classified as a difficult or complicated procurement. According to the website, www.cips.org, public procurements make up approximately 40 to 50 percent of the developed world economies in respect to procuring services from the private sector. Several factors aid in determining the complexity or complications that result in a complicated or complex procurement. These factors may include, difficulty defining specifications or scope of the requirements, high cost, level of competition, and the level of risk.
The website, www.nextenders.co.uk, contains a list of indicators regarding complex procurements. These indicators include, but are not limited to, clear solutions not being present, long term contracting, necessary innovative approaches that may limit competitiveness, a broad range of risks, integration with existing systems, very few suppliers if any that can provide solutions, and quasi government interest such as private and government partnerships.
A situation where I work involved a procurement for a medical system replacement in the imaging department. The original delivery order consisted of line items that included an extended two-year warranty on the complete turnkey system replacement. During installation a component was added to the system through a contract modification. After one year the contractor stated the added component was no longer under warranty. The contractor contended that since the additional component was not on the primary delivery order it was not covered under the extended warranty. I contended that this was a turnkey project and the delivery order states all equipment is covered by the two year warranty. Negotiations had to take place to allow for six more months of warranty and then procure a service contract for the next six months. Point being that any procurement can start out perfectly fine and become very difficult.