This allows the Army to identify and evaluate  systems without the need for large investments in development programs  and without having to enter into procurement contracts. Past GAO  work has found that the federal government can realize significant cost  savings when awarding contracts competitively. The FAR outlines specific techniques for conducting  market research. Army Utilizing Competition in Various Ways Across Nine Tactical Networking Systems

The Army is incorporating competition in various ways for most of the  nine tactical networking acquisition programs we examined. As the Army  decreases the amount of in-house system development it is doing for  tactical networking equipment, it is using various tools to involve industry  in seeking items that the Army does not pay to develop to meet its needs. One such tool is the agile capabilities life cycle process and the  associated semi-annual Network Integration Evaluations (NIEs), which  serve as market research to identify potential solutions to meet capability  gaps. This includes reaching out to industry to  provide potential solutions, and competing the procurement of individual  components. Eight of the nine systems we reviewed have either completed an  acquisition strategy or have one in draft, and all include language that  pertain to market research and competition as required by DOD policy. The Army has not developed an acquisition strategy for SRW-Appliqué  because it does not meet the requirements of a formal acquisition  program. Rather, the Army has developed a plan to deliver a radio  waveform capability to satisfy a directed requirement, has used market  research, and is seeking competition for this system, as discussed below. Table 2 presents the status of the acquisition strategy for the nine  systems. Army Initiating Two New Systems Predicated on Competition and Off-the- shelf Acquisitions

In two of the cases we examined, the Army is beginning new programs,  structuring the acquisition strategies to focus on competition, and  procuring directly from industry. One of these systems, the Mid-Tier  Networking Vehicular Radio (MNVR), will provide a subset of functionality  the Army intended to get from the Joint Tactical Radio System (JTRS)  Ground Mobile Radio (GMR), which was canceled in 2011. The Army used the  initial delivery order from this contract to procure a limited number of radio  systems to conduct risk reduction and requirements verification. The associated indefinite delivery, indefinite  quantity contracts were competitively awarded in April 2014 to four  vendors. Army Modifying Approaches to Create Opportunities for Competition for Five Legacy Networking Systems

AMF, Rifleman Radio, and Manpack were all part of the restructured  JTRS program, which utilized competition early on to develop software- defined radios that would interoperate with existing radios and increase  communications and networking capabilities. Consequently, the Army is now reaching out to industry for proposed  solutions. For WIN-T Increments 2 and 3, the Army has  determined that competition for the overall system is impractical, although  aspects of competition are still being used on the programs. The Army’s market  research led it to conclude that only one contractor, the incumbent, is  capable of providing the WIN-T capability. Agency Comments

We are not making recommendations in this report. We incorporated these and other technical comments in the  report, as appropriate. Appendix I: Objectives, Scope, and Methodology

Our objective was to examine the Army’s progress in implementing  competitive contracting strategies for its network-related systems, in  particular for its radio capabilities. To address this objective, we selected  nine of the Army’s 25 tactical networking systems as a non-generalizable  sample for review. These systems are the Mid-Tier Networking Vehicular  Radio, Soldier Radio Waveform—Appliqué, Rifleman Radio, Manpack,  Airborne and Maritime/Fixed Station, Joint Battle Command—Platform,  the Nett Warrior, Warfighter Information Network—Tactical Increment 2,  and Warfighter Information Network—Tactical Increment 3. These systems exist on either the  tactical network’s transport or applications level and the Army has  indicated they are critical systems for ensuring soldiers are able to move  mission-critical information between units. These nine programs also cover the breadth of operations from the  warfighter at the tactical edge to the brigade command post. Background

In May 2011, the Army issued a directed requirement for a soldier radio  waveform capability. In response to the synopsis, another  vendor indicated its interest in the acquisition. Program Status

Acquisition category: ACAT ID, as part of HMS program  System development contract award: July 2004  Contractor: General Dynamics C4 Systems Inc.

		Competition History and Plans

The Army continues to receive low rate units from the June 2011 contract;  however, Army officials say that because of the Congressional direction  for full and open competition, the full rate production decision has been  delayed to allow for changes in the program acquisition strategy. According to Army officials,  sole source is planned because the contract cannot be competitively  awarded without unacceptable delays in fulfilling the Army’s  requirements.
Why GAO Did This Study

For nearly 20 years, the Army has had limited success in developing an information network—sensors, software, and radios—to give soldiers the exact information they need, when they need it, in any environment. The Army has declared its tactical network as its top modernization priority and estimated the modernization may cost up to $3 billion per year into the foreseeable future. The Army's current modernization approach is intended to leverage solutions developed by private industry.
Given the costs and importance of the network, GAO was asked to examine aspects of the Army's effort to acquire network capabilities. This is the third report in response to the Subcommittee's requests.
In this report, GAO examines the Army's progress in implementing competitive strategies for tactical networking systems. GAO selected a non-generalizable sample of 9 of these 25 systems that the Army indicated are critical for ensuring soldiers are able to send and receive mission-critical information between units, and that cover the breadth of warfighter operations. GAO reviewed acquisition strategies for evidence that the Army was seeking competition.

What GAO Found

The Army is incorporating competition in various ways for most of the nine tactical networking acquisition programs GAO examined. To achieve the best return on the government's investment, federal agencies are generally required to award contracts competitively. As the Army has decreased the amount of in-house system development it is doing for tactical networking equipment, it is using various tools to involve private industry to meet its needs. One such tool is the agile capabilities life cycle process whereby the Army determines the capabilities it needs and gaps in those capabilities, and uses market research and semi-annual evaluations, among other means, to involve industry. According to the Army, this agile process provides opportunities for enhancing competition. The Army acquisition strategy for eight of the nine systems discusses plans for competition and market research. An acquisition strategy is not required for the Soldier Radio Waveform Appliqué system because it is not a formal acquisition program; however, the Army conducted market research and is seeking competition. GAO grouped the nine systems into three categories based on similarities in the competition strategy. Specifically,
In two of the nine systems GAO examined—Mid-tier Networking Vehicular Radio and Soldier Radio Waveform Appliqué—the Army is beginning new programs and structuring the acquisition approaches to competitively procure non-developmental capabilities directly from industry. The Army competitively awarded a procurement contract for its Mid-Tier Networking Vehicular Radio, providing units for risk reduction and requirements verification. In April 2014 the Army competitively awarded contracts to four vendors to buy the Soldier Radio Waveform Appliqué.
Five of the nine systems GAO studied have been under development for many years. Three of those—the Airborne, Maritime, and Fixed Station radio; the Rifleman Radio; and the Manpack Radio—were part of the Joint Tactical Radio System, which was previously competed and which the Army has restructured. The Army had been developing software-defined radios to interoperate with existing radios. The Army is now seeking non-developmental solutions through competition to provide the needed capability. For the other two systems, the Joint Battle Command–Platform and Nett Warrior, the Army reports that it plans to use full and open competition for individual subcomponents. In both cases, the Army conducted market research to identify vendors or seek feedback on requirements.
The Army deemed competition impractical for the two remaining systems in GAO's review, the Warfighter Information Network-Tactical Increment 2 and Warfighter Information Network-Tactical Increment 3. The Army considered acquisition strategies for more competition in the development and procurement of these systems but determined that only the incumbent contractor could satisfy the requirements without unacceptable delays. Nevertheless, the Army continues using market research to identify interested contractors and has awarded several competitive contracts for subcomponents under these two systems.

What GAO Recommends

GAO is not making recommendations in this report. DOD provided technical comments on a draft of this report, which were incorporated, as appropriate.