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CURRENT ISSUE Volume 4, Issue 6 July 2010 KMI MEDIA GROUP WEBSITES SUBSCRIPTION SERVICES

Is there a magic formula that can determine at what point an existing—legacy—system tips the scale on the cost of sustainment versus the cost of replacing it with something new? The obvious answer is no, and a formula is not likely due to the complexities of trying to get various parties with differing responsibilities to agree on common metrics. For good reasons, end users, R&D types, accountants, acquisition experts and others in between all act in unison to strike the balance between cost, capabilities and requirements. The Air Force’s F-117 entered service in 1983 and was retired last year, while the B-52 entered service in 1955 and is looking forward to many more years of service. Within the last decade there was huge debate over the need and cost-benefit of keeping at least one World War II-era battleship in a state of readiness. No one would ever doubt what a full broadside of its nine 16-inch guns could bring down (about 24,300 pounds), but would the life cycle costs be worth it? Probably depends on your perspective! I think, due in large part to the time it takes to identify a requirement; develop, test and evaluate a solution; and the time it takes to move a solution to production and ultimately into service, that there has been a tendency to keep systems around and grow them incrementally in capability (even beyond the concept of the 80 percent solution) because of the time it takes to get something new. The older systems then become the recipients of O&M, procurement and R&D funding. Careful consideration needs to be given to the growth curve of the O&M monies to watch for that tipping point. Equally important, and seeming the call of the day, is for acquisition reform that will meet every standard and deliver solutions to the end user faster and more efficiently. As always, please feel free to contact me with any suggestions or comments. All the best. Jeff McKaughan, Editor This e-mail address is being protected from spambots. You need JavaScript enabled to view it Back to Top

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