DOD Uses a Competitive and Merit-Based Process to Select RIP Projects, with Most Awards Going to Small Businesses

DOD has established a competitive, merit-based solicitation process to  select and award RIP contracts that address military needs. The process  is somewhat lengthy, taking about 18 months to implement and award  contracts, but interest from contractors has been high. Between fiscal  year 2011 and 2015, the military departments and defense components  received more than 11,000 white papers from interested contractors and  will have awarded contracts for about 435 projects when the fiscal year  2014 solicitation is completed, with the vast majority going to small  business. DOD Uses a Variety of Practices and Tools to Manage and Oversee Projects

The military departments and defense components used management  practices and tools to manage RIP projects similar to those they use for  other science and technology projects. ASD/R&E conducted another in- process review in October 2014 and found that 85 percent of the fiscal  year 2011 projects and 78 percent of the fiscal year 2012 projects were  likely to meet 80 percent or more of their key performance parameters or  goals (see figure 4). DOD reported that half of all fiscal year 2011  projects (88 of 175) had funding commitments from military users, which  indicates a likelihood they will transition. We also found that half of the  fiscal year 2011 completed projects we reviewed (22 of 44) had  technology that actually transitioned to an acquisition program, another  military user, a prime contractor, or was commercialized. These  transition rates are lower than what we found in our prior review of other  DOD technology transition programs that reported transition rates ranging  from about 55 to 85 percent.assess the overall success of RIP due to the limited number of completed  projects and lack of established metrics to track whether projects have  successfully transitioned to users. We also found several factors that can  contribute to the transition success of RIP projects, such as user  commitment and mature technology at the beginning of projects, which  were not consistently emphasized by all the defense components in the  program. Half of Completed Projects We Reviewed Successfully Transitioned

To gain additional insights into the range of transition outcomes for RIP  projects, we assessed all 52 fiscal year 2011 projects scheduled for  completion through July 2014, to determine their transition results. In general, however, at the DOD level there has not been an  effort to understand the extent to which these factors may be contributing  to differences in transition and to communicate lessons learned from  military departments or defense components with a higher percentage of  transition success. Technology Maturity

GAO-13-286. DOD components are capitalizing on these  success factors to varying degrees. Recommendations for Executive Action

If Congress re-authorizes RIP then, to improve visibility and management  of DOD’s ability to transition technologies through the program, we  recommend that the Secretary of Defense direct the Under Secretary of  Defense for Acquisition, Technology, and Logistics to take the following  two actions:
Establish an overall technology transition goal for RIP; and  Identify and apply factors that contribute to the likelihood of  technology transition success more consistently across the program. Appendix I: Objectives, Scope, and Methodology

The objectives of this review were to assess the extent to which (1) the  Department of Defense (DOD) has established a competitive and merit  based process to solicit and award Rapid Innovation Program (RIP)  contracts, (2) DOD has established practices to manage and oversee the  execution of RIP projects, and (3) RIP is meeting its objective of rapidly  inserting innovative technologies in defense acquisition programs. To assess whether DOD has established practices to manage and  oversee the execution of RIP projects, we reviewed a nongeneralizable  random sample of 40 RIP projects across DOD that were awarded with  fiscal year 2011 and 2012 funding.
Why GAO Did This Study

DOD relies on technology innovation to maintain superior weapon systems. However, a long-standing challenge has been ensuring that high value technologies are mature and available for military users. The Ike Skelton National Defense Authorization Act for Fiscal Year 2011 required DOD to establish RIP to facilitate the transition of innovative technologies into acquisition programs, and over $1.3 billion has been appropriated to the program since its inception.
Senate Report No. 113-44 included a provision that GAO review the execution of RIP. This report examines the extent to which (1) DOD has established a competitive, merit-based process to award RIP contracts; (2) DOD has established practices to manage the execution of RIP projects; and (3) RIP is meeting its objective of rapidly inserting innovative technologies in defense acquisition programs. GAO reviewed RIP documentation, interviewed DOD and military department officials, and reviewed a nongeneralizable sample of 40 projects awarded with fiscal year 2011 and 2012 funding to assess DOD management practices as well as 52 fiscal year 2011 funded projects scheduled for completion through July 2014 to assess transition outcomes.

What GAO Found

The Department of Defense (DOD) has established a competitive, merit-based process to solicit proposals from interested contractors, review and select projects based on military needs and standardized evaluation criteria, and award contracts to execute Rapid Innovation Program (RIP) projects. To date, the process has been lengthy, taking about 18 months to implement, but interest from contractors has been high. Between fiscal years 2011 and 2015, the military services and defense agency components received more than 11,000 white papers on proposed technologies from contractors and will have awarded contracts for about 435 projects—primarily to small businesses—when the fiscal year 2014 solicitation is completed.
The military services and defense components have practices and tools in place to manage and monitor the execution of projects, which are similar to those they use for other science and technology projects. For example, project officials review contractor reports, conduct system reviews, and engage in regular communications with contractors to determine the progress of projects. Also, DOD's 2014 annual review found that 85 percent of the fiscal year 2011 funded projects and 78 percent of the fiscal year 2012 funded projects were likely to meet 80 percent or more of their technical performance goals.
Some completed projects have successfully transitioned technology to acquisition programs and other military users. DOD officials estimate that 50 percent of all fiscal year 2011 funded projects (88 of 175) have out-year funding commitments from military users, indicating the likelihood they will transition technologies. GAO assessed 44 projects completed in July 2014, and found that 50 percent successfully transitioned to acquisition programs or other users. However, it is too soon to accurately assess the overall success of RIP due to the limited number of completed projects as well as the lack of an overall program transition goal and effective metrics to track the degree to which projects have actually transitioned. GAO found that several factors can contribute to transition success of RIP projects, such as having military user commitment and mature technology when projects are started. However, DOD has not made an effort to understand how these factors may be contributing to differences in transition success from defense components with a higher rate of transition.

What GAO Recommends

GAO recommends that DOD establish a program transition goal, and identify and apply factors that lead to transition success. DOD disagreed on the need for a goal, stating it would impede RIP flexibility, but agreed to identify transition success factors. GAO believes having a goal would improve DOD's ability to transition technologies.