Examples Of LSIs

Examples of programs being executed with LSIs include the Army's Future Combat System (FCS) and the Coast Guard's Deepwater acquisition program, both of which are multibillion-dollar SOS acquisition programs. Both of these programs have experienced problems, among them costs and schedule overruns, and have been the subject of multiple congressional oversight hearings. Supporters of LSIs argue that LSI arrangements can promote better technical innovation and overall system optimization. Problems with the FCS and Deepwater programs raised concerns regarding the use of private-sector LSIs for executing large, complex defense acquisition programs. Legislative Activity

On September 30, 2010, the House and Senate conferees for the Fiscal Year 2010 and 2011 Coast Guard Authorization Act ( H.R. 3619 ) resolved their differences and the bill was sent to the President on October 4, 2010. One provision in the bill, Section 564, would prohibit the use of lead system integrators within the Coast Guard for all acquisition contracts awarded, task or deliver orders issued after the enactment of this bill, and require the use of full and open competition for any future acquisition contract. P.L. 111-23 , the Weapons System Acquisition Reform Act of 2009, required the Secretary of Defense to revise the DFARS to reflect any organizational conflicts of interest that may arise from the use of private-sector LSIs.
Some in Congress have expressed concern about the government's use of private-sector lead system integrators (LSIs) for executing large, complex, defense-related acquisition programs. LSIs are large, prime contractors hired to manage such programs. Supporters of the LSI concept argue that it is needed to execute such complex acquisition efforts, and can promote better technical oversight and innovation. Two LSI-managed programs—the U.S. Army's Future Combat System (FCS) and the U.S. Coast Guard's Deepwater program—have been strongly criticized by some observers because of cost and schedule overruns, and the potential for possible conflicts of interest. The Army cancelled the FCS program in 2009 and the replacement programs do not use an LSI. Public Law (P.L.) 111-23, the Weapons System Acquisition Reform Act of 2009, required the Secretary of Defense to revise the Defense Federal Acquisition Regulation Supplement (DFARS) to reflect any organizational conflicts of interest that may arise from the use of private-sector LSIs. On September 30, 2010, the House and Senate conferees for the proposed Fiscal Year 2010 and 2011 Coast Guard Authorization Act resolved their differences and the bill was sent to the President on October 4, 2010. One provision in the bill, Section 564, would prohibit the use of lead system integrators within the Coast Guard, with some exceptions, and would require the use of full and open competition for any future acquisition contract.