As we enter the 21st Century, the defense community is experiencing profound change. The Department of Defense (DoD) has been working hard to improve its acquisition processes. The changing world environment including the recent events of September 11th, rapid advances in technology, and a declining defense budget have combined to make the existing system insufficient for meeting the new challenges of today. The DoD is determined to develop a new way of doing business and continue its efforts towards improving long-term military readiness.

The catalyst for this new approach occurred in February 1994 when the Secretary of Defense issued a paper entitled Acquisition Reform: A Mandate for Change. This paper provided the conceptual foundation of the DoD's approach to Acquisition Reform. Today, Acquisition Reform (AR) is more than just a plan - it's a way of thinking. That thinking is guided by three objectives that shape the products, processes and practices of Defense Acquisition: better, faster and cheaper.

As AR thinking evolves, the acquisition community develops new strategies, practices and initiatives. These strategies and practices are organized under three core AR objectives:

• Create legislation for streamlining the acquisition process
• Improve the use of Electronic Commerce/Electronic Data Interchange (EC/EDI) in contracting
• Reduce the DoD's reliance on military specifications and standards

One of DoD's goals has been to eliminate DoD-unique products and specifications and standards that inhibit the purchase of commercial products or services. By encouraging dual-use processes and products for both government and industry, they are expanding the industrial base that is capable of meeting defense needs at a lower cost.

To further this effort, the Secretary of Defense signed a memorandum directing that the Department rely on the use of performance specifications. If performance specifications are not practicable, they must use industry standards. Military specifications or standards may be used only with a waiver when no practical alternative exists to meet the user's needs. While not eliminating the use of military-unique specifications, this essentially reversed the existing preference system.

Eventually, the DoD launched an effort to examine the Department of Defense Index of Specifications and Standards (DODISS) and the Acquisition Management System and Data Requirements Control List, and identify and remove obsolete military specifications and standards. As replacements, the DoD adopted existing industry standards or formed partnerships with Standards Developing Organizations (SDOs) to develop new standards.

Acquisition Reform is more than just initiatives, change elements, policy memos, and rule changes. Acquisition Reform is open communications, trust, teaming, partnering, and empowering contractors to manage themselves. By changing the way it does business, the DoD has reduced acquisition costs and fostered the development of a national industrial base composed of companies that can compete in the global marketplace. Through AR, DoD has created an environment for continuous process improvement while supporting the nation's social policies, protecting the public trust, and enhancing national security.

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