production capacity. Finally, the strategy involved identifying low-risk manufacturers and awarding production orders prior to testing as a way of ramping up production capacity.
From a contracting perspective, the JPO used multiple IDIQ contracts with
production orders and industry participation.
performance incentives to motivate manufacturers and The contracting strategy also included the use of
stepladder pricing to allow manufacturers to mitigate performance risk by charging higher per-vehicle prices for MRAP contracting team employed alpha contracting as negotiations involved with UCAs, ECPs, amendments, and
start-up, production, and smaller orders. Finally, the a way of minimizing the other contract modifications
that were prevalent risk of protest and partnerships for the
in the program. These contracting techniques liability for the Government, but also assisted program.
not only lessened the in creating long-term
From a budgeting and finance perspective, the MRAP program obviously would not have been possible without the tremendous political support of Congress and the President, reflected in more than $22 billion in program funding through FY 2008. This political support also led to the creation of one of the most important fiscal initiatives implemented by the JPO finance office. The special transfer account, known as the MRAP Vehicle Fund, allowed money normally appropriated to specific accounts to be allocated and mixed together without regard to specific appropriation controls at the discretion of the program office, permitted by the underlying support of Congress, OMB and the DoD comptroller. This allowed the JPO to quickly obligate funding from all Services and provided the flexibility needed to quickly react to the changing program requirements.
The aforementioned factors, which by no means represent a comprehensive list of the elements critical to the program success, group into two broad categories. The first is the element of concurrency, which was a key component in the acquisition strategy. Simultaneous execution of the normally sequential acquisition phases, combined with concurrent and continuous activities within those phases, compressed the program
acquisition timeline more than any other single factor. A few examples of concurrency 50