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REPORT DOCUMENTATION PAGEIa. REPORT SECURITY CLASSIFICATION 1 b. RESTRICTIVE MARKINGS

Unclassified

2a. SECURITY CLASSIFICATION AUTHORITY 3. DISTRIBUTION / AVAILABILITY OF REPORT

"A" Approved for public release; distribution unlimited.

2b.DECLASSIFICATION / DOWNGRADING SCHEDULE

4. PERFORMING ORGANIZATION REPORT NUMBER(S) 5. MONITORING ORGANIZATION REPORT NUMBER(S)

LMI-AR806B1

6a. NAME OF PERFORMING ORGANIZATION 6b.OFFICE SYMBOL 7a. NAME OF MONITORING ORGANIZATIONLogistics Management Institute (If applicable)

6c. ADDRESS (City, State, and ZIP Code) 7b. ADDRESS (City, State, and ZIP Code)6400 Goldsboro RoadBethesda, Maryland 20817-5886

Ba NAME OF FUNDING / SPONSORING 8b.OFFICE SYMBOL 9. PROCUREMENT INSTRUMENT IDENTIFICATION NUMBERORGANIZATION (if applicable) MDA903-85-C-0139HQ, USA Medical R&D Command SGRD-Z

Bc. ADDRESS (City, State, and ZIP Code) 10. SOURCE OF FUNDING NUMBERSFort Detrick PROGRAM PROJECT TASK WORK UNITFrederick, MD 20710-5000 ELEMENT NO. NO. NO. ACCESSION NO.

11. TITLE (Include Security Classification)

Streamlining the Medical Materiel Acquisition Process: Organizing for Success

12. PERSONAL AUTHOR(S)George L. Slyman, Gilbert L. Goldman

13a. TYPE OF REPORT 13b. TIME COVERED 14. DATE OF REPORT (Year, Month, Day) 15. PAGE COUNT

Final FROM _ TO August 1990 71

16. SUPPLEMENTARY NOTATION

Volume 3 of three-volume report. For a thorough understanding of the medical materiel acquisition process and the changes needed to complete itsstreamlining, we suggest reading all three volumes.

77. COSATI CODES 18. SUBJECT TERMS (Continue on reverse if necessary and identify by block number)FIELD GROUP SUB-GROUP Acquisition Management, Materiel Requirements Identification, Medical Materiel Requirements

Management, Medical Materiel Development

19. ABSTRACT (Continue on reverse if necessary and identify by block number)

The Army Medical Department (AMEDD) can improve acquisition management by effectively integrating the efforts of the organizationsparticipating in the process. One step in that direction is to establish a Deputy Surgeon General for Acquisition [DSG(A)] to provide the central direction,control, and decision authority. That step is only the first; the current AMEDD organizational structure must also be changed. The changes shouldclarify and improve relationships between acquisition process participants - the DSG(A), user, combat developer, materiel developer, and logistician.

Our analysis of relationships reveals a role for the medical research community, and we include that role in the acquisition process. We acknowledgeits participation by modifying our initial recommendation for a DSG(A) to a recommendation that the AMEDD establish a Deputy Surgeon General forResearch and Acquisition (DSG(R&A)I.

Successful acquisition projects display certain characteristics. Correctly realigning roles and responsibilities and restructuring relationships canproduce organizations that demonstrate those characteristics. Such organizations have small, well-trained, and experienced staffs that communicateeffectively; execute a stable program committed to the requirements; report value adding information; operate in short, clear command channels; andfocus on improving system development efforts through more R&D involvement in nondevelopmental item acquisition strategies.

20. DISTRIBUTION / AVAILABILITY OF ABSTRACT 21. ABSTRACT SECURITY CLASSIFICATION03 UNCLASSIFIED/UNLIMITED C] SAME AS RPT. C] DTIC USERS

22a. NAME OF RESPONSIBLE INDIVIDUAL 22b. TELEPHONE (Include Area Code) c. OFFICE SYMBOL

DD FORM 1473,84 MAR 83 APR edition may be used until exhausted. SECURITY CLASSIFICATION OF TH * DAGEAll other editions are obsolete. UNCLASSIFIED

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19. Abstract (continued)The characteristics of success can be embedded in a new acquisition management process if changes: (1) focus organization design on achieving

particular objectives and, (2) clarify responsibilities of acquisition process participants.

The new organizational structure should focus design to:

" Provide assignment patterns to increase staff quality

* Align and assign responsibilities appropriately

" Focus on the user's highest priority needs

* Define and maintain resource and performance baselines

* Manage by exception

* Validate a preference for nondevelopmental item acquisition strategies

* Clarify channels of authority.

To establish a successful acquisition organization, we recommend a structure headed by the DSG(R&A) to provide oversight, validaterequirements, and exercise decision authority. Additionally, we recommend the DSG(R&A) align responsibilities and relationships as follows:

* The user and combat developer provide materiel requirements, nominate potential materiel solutions, and perform user testing andevaluation.

* The researcher surveys technology for potential technology base solutions to requirements and performs clinical research andevaluation.

" The materiel developer conducts market investigations and maintains a repository for product information, performs technical testingand evaluation, develops product modification prototypes, and manages the development and test funding program.

" The logistician plans, tests, and evaluates the sustaining system; manages procurement, revolving, and operations fund programs; andprovides contracting and fielding support.

The organization for medical acquisition management that we recommend is one that can be successful. It is an organization with strong centraldirection, capable of providing better requirements, showing a preference for nondevelopmental items, and structured to emulate the characteristics ofsuccess. Most of all, it places the Army Medical Department fully in control of its own acquisition destiny.

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