Michael Fischetti is the executive director of the National Contract Management Association.
Innovation is defined as "the introduction of something new…a new idea, method, or device." In business, that description includes "the process of translating an idea or invention into a good or service that createsvalue or for which customers will pay." Within acquisition, innovation might mean two things: wider use of new and innovative technology tools and products; or what could be called a new business (management or human resource) philosophy, government contracting policy, regulation, training initiative, strategy, type, etc. Taken further, "disruptive" innovation helps create new markets and value networks, eventually displacing or replacing existing ones and legacy technology.
Confusion results when it isn't clear what innovation means. No innovation is risk free, of course. Nothing new ever is. A structured, traditionally conservative acquisition community has much to be concerned with. This is justified, since despite contrary rhetoric, everyone from the program customer, senior agency or corporate leadership, oversight officials from GAO, inspector general, DCAA, DCMA, Congress, to media and industry associations, can be quick to highlight failure, but not as prominently promote success. Shortfalls in government's acquisition performance are clear when, by the time government receives new technology, it's already outdated, having long been used in the private sector. This perpetuates criticism mistakenly linked to existing regulations, lack of communication with industry, workforce training, etc.
In a bygone era, the government led technological change. Now it mostly follows. This can have national security implications, as noted by DoD's Better Buying Power 3.0. Today's private sector is changing fast as a result of such new technology. New technology offers lower investment costs and shorter returns. Government isn't able to reap these benefits as quickly, or sometimes at all.
In fact, real examples of true innovation in acquisition, while not prevalent, do exist. What might be considered innovation may in fact be a simple back-to-basics acquisition strategy or common sense ideas that fell out of practice for whatever reason. Rediscovering permissible strategies long available in the Federal Acquisition Regulation (FAR)—combined with strong, committed, and competent leadership—offers creative alternatives to today's requirements.
Many promote government innovation in terms of information technology (IT), which falls under the FAR-authorized policies, processes, and tools as other services and commodities. What is different about IT is its ability to quickly address emerging government requirements; the percentage and significance of IT to many agency budgets; and in offering new ways, if given the opportunity, it might disrupt how the government meets its varied mission. Today much government IT is supplied by traditional government contractors, whether existing integrators or their IT service subsidiaries. Generally not the Silicon Valley start-ups we hear so much about.
So then what do today's acquisition innovation themes really mean—whether in the Department of Defense or other agencies, private sector business strategies, or even the theme of NCMA's World Congress? Are they synonymous with "disruptive technologies" upending many other industries (the new Uber or Airbnb), enabling dramatic replacement of existing government (including their contractor's) operations? I think not. It's about creative acquisition solutions to meeting today's requirements.
So what to do? First, stop expecting a legislative solution. The solutions necessary are already available and within reach, but not generally understood or considered within the acquisition community. Innovation isn't about IT…or a new policy, regulation, program, or class. It also isn't necessarily new. Innovation is a back-to-basics understanding of the many ways to acquire anything a mission might need, using many tools that have been available for a long time. The old adage "anything not expressly prohibited by the FAR is permissible" applies. Innovation occurs through professional competency and commitment. It's first and foremost a people issue. Top leadership, technical/customer, program, and contract managers must all be committed. The same principles (as well as structure) that guided this nation through many wars and challenges, making it the greatest, most advance and strongest nation on Earth, can successfully address today's issues. This includes bringing forth the same technology that's transforming American business and consumer choice, pricing, and convenience.
