The Navy Acquisition Contracting Officer intern program : a past and present NACO view

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(1)Calhoun: The NPS Institutional Archive Theses and Dissertations. Thesis Collection. 1994-06. The Navy Acquisition Contracting Officer intern program : a past and present NACO view Gonzalez, Vidal E. Monterey, California. Naval Postgraduate School http://hdl.handle.net/10945/28392.

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(3) DUDLEY KNOX LIBRARY NAVAL POSTGRADUATE SCHOOL. MONTEREY CA. 93943-5101.

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(6) Approved. for public release; distribution. is. unlimited.. THE NAVY ACQUISTION CONTRACTING OFFICER INTERN PROGRAM: A PAST AND PRESENT NACO VIEW by Lt.. Vidal E./Gonzalez, SC,. BBA, Texas. USN. Christian University, 1983. Submitted. in partial fulfillment. of the requirements for the degree of. MASTER OF SCIENCE. IN. SYSTEMS MANAGEMENT. from the. NAVAL POSTGRADUATE SCHOOL June, 1994.

(7) REPORT DOCUMENTATION PAGE. Form Approved. OMBNo. 0704-0188. hour per response, including the time tor reviewing instructions, searching existing data sources, gathering is estimated to average Send comments regarding this burden estimate or any other aspect of this collection of and maintaining the data needed, and completing and reviewing the collection of information information, including suggetions for reducing this burden, to Washington Headquarters Services. Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway. Suite Budget, Paperwork Reduction Proiect (0704-0188), Washington, DC 20503 the and Office of Management 1204 Arlington, VA 22202-4302. and to Public reporting burden lor theis collection of information. AGENCY USE ONLY. 1.. 1. (Leave Blank). REPORT DATE. 2.. June, 1994 4.. TITLE AND SUBTITLE The Navy Acquisition Contracting Officer. NACO. Present. REPORT TYPE. 3.. Master's Thesis. A. Intern Program:. 5.. FUNDING NUMBERS. 8.. PERFORMING ORGANIZATION. Past and. View. AUTHOR(S). 6.. Gonzalez, Vidal. E.. PERFORMING ORGANIZATION NAMES(S) AND ADDRESS(ES). 7.. Naval Postgraduate School. Monterey,. CA. 93943-5000. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES). 9.. 10.. SPONSORING/MONITORING. AGENCY REPORT NUMBER. 11.. SUPPLEMENTARY NOTES. The views expressed in this thesis Defense or the U.S. Government.. do not. reflect the official policy or position. DISTRIBUTION/AVAILABILITY STATEMENT. 12a.. Approved 13.. are those of the author and. 12b.. DISTRIBUTION. of the Department of. CODE. for public release; distribution is unlimited.. ABSTRACT Maximum (. 200 words. ). This study evaluates the primary program used by the Acquisition Contracting Officer. (NACO). Navy. Intern Program.. Supply Corps officers. to introduce. The. NACO. into the contract. program was evaluated. helping to preserve a cadre of competent military contracting managers.. to. determine. management. how. successful. field, the it. contracting.. NACO. NACO. program. is. The research concludes. program. is. found. to. DAWIA. requirements have not resulted. it. difficult for officers to. in the future.. become. is. Contract Management, 1306 Subspecialty, Specialization,. SECURITYCLASSIFICATION. OF REPORT Unclassified. NSN. 7540-01-280-5500. changes. in the. in. objectives of the. feel that. promotion. management field. Further, the be consensus that more centralized and. necessary.. DAWIA,. 18.. SECURITYCLASSIFICATION. OF THIS PAGE Unclassified. 19.. 16.. PRICE CODE. 15.. NUMBER OF PAGES. Intern. Program 17.. in. Respondents and interviewees. SUBJECT TERMS. NACO,. results. proficient in the contract. be popular with current and former participants, though there seems to. involved program management. 14.. and. program, and identifies specialization as a key issue for the Navy. board discouragement of specialization makes. NACO. The. perceived to be effective in providing junior 1306 subspecialists with instruction and experience that force reduction. in. Surveys from 124 former and current interns, ten telephone. interviews with current interns, and ten personal interviews with senior contracting managers provide the data for this evaluation. indicate that the. Navy. has been. SECURITYCLASSIFICATION. 20.. 205 LIMITATION OF ABSTRACT. OF ABSTRACT Unclassified. UL Standard Form 298 (Rev. 2-89).

(8) ABSTRACT. Navy. This study evaluates the primary program used by the. Corps. officers into the contract. Officer. (NACO). successful. it. Intern Program.. management The. NACO. field,. the. Navy. to introduce. Supply. Acquisition Contracting. program was evaluated. to. determine. how. has been in helping to preserve a cadre of competent military contracting. Surveys from 124 former and current interns, ten telephone interviews with. managers.. current interns, and ten personal interviews with senior contracting managers provide the. data for this evaluation.. effective. in. contracting.. not. resulted. The. results indicate that the. to. The research concludes in. changes. in. the. to. that force reduction. objectives. Navy. of the. and. DAWIA. NACO. is. perceived to be. in the future.. proficient in the contract. management. field.. requirements have. program,. and. identifies. Respondents and interviewees. promotion board discouragement of specialization makes. become. found. program. providing junior 1306 subspecialists with instruction and experience in. specialization as a key issue for the. feel that. NACO. it. difficult for officers. Further, the. NACO. program. is. be popular with current and former participants, though there seems to be. consensus that more centralized and involved program management. in. is. necessary..

(9) M. TABLE OF CONTENTS. I.. II.. INTRODUCTION. 1. A.. GENERAL INFORMATION. 1. B.. OBJECTIVE OF THE RESEARCH. 3. C.. SCOPE AND LIMITATIONS OF THE STUDY. 4. D.. METHODOLOGY. 4. E.. ORGANIZATION OF THE STUDY. 6. THE NAVY ACQUISITION CONTRACTING OFFICER (NACO) INTERN PROGRAM. 7. A.. INTRODUCTION. 7. B.. ORIGIN. C.. NACO SELECTION PROCESS. 10. D.. DETERMINATION OF NACO MANPOWER REQUIREMENTS. 12. E.. DEFENSE NACO (DNACO) PROGRAM. 13. F.. TRAINING REQUIREMENTS. 13. AND PURPOSE. 7. IV.

(10) ... DUDLEY KNOX LIBRARY NAVAL POSTGRADUATE SCHnn.. MONTEREY CA. sfoi'. G.. MANAGEMENT OF THE NACO PROGRAM. 15. H.. THE PROBLEM. 16. I.. III.. 93943. SUMMARY. THE. 1306. SUBSPECIALTY TODAY. A.. INTRODUCTION. B.. THE 1.. 2.. C.. 18. 1306. 19. 19. SUBSPECIALTY TODAY. 19. The Purpose of the 1306 Subspecialty. 1. 20. 306 Manpower Requirements. 21. NACO Program. 21. a.. The. b.. The 815 Program. c.. Other Avenues to the. 22. 1. 306 Subspecialty. WHY AN ACQUISITION SUBSPECIALTY AND NOT A SPECIALTY OR COMMUNITY? 1. 2.. D.. 23. The Mission of the Supply Corps. 23. A. 24. 1. 306 Subspecialty or Community?. THE IMPACT OF DAWIA ON THE 1. 2.. 23. 1. 306. SUBSPECIALTY. Statutory Requirements for Contracting Positions. Acquisition Professional. Community (APC). 25. 25. 27.

(11) .. 3.. E.. Immediate Effects of. DAWIA. 28. THE IMPACT OF FORCE REDUCTIONS ON THE. 1306. SUBSPECIALTY 1. F.. IV.. 29. The Downsizing Effect. 2.. Continuing. 3.. The. 4.. How. loss. Demand. for. 30. 1306 Officers. of Practical Experience. Significant. is. 31. 31. the Shortage?. 32. SUMMARY. 33. DATA PRESENTATION AND ANALYSIS. 35. A.. INTRODUCTION. 35. B.. SURVEYS. 36. C.. FOLLOW-UP INTERVIEWS. 79. Indoctrination/Orientation Programs. 79. 2.. NACO. 80. 3.. Requests for Feedback. 81. 4.. Night Classes. 81. 1. D.. Supervisor Instruction. UV A/BUSINESS MANAGEMENT RESOURCE COURSE (BMRC) SURVEY. 82. VI.

(12) E.. V.. VI.. SUMMARY. 85. PERSONAL INTERVIEWS. 87. CONCLUSIONS AND RECOMMENDATIONS. 108. A.. INTRODUCTION. 108. B.. CONCLUSIONS. 108. C.. RECOMMENDATIONS. 115. D.. RECOMMENDATIONS FOR FURTHER RESEARCH. 118. APPENDIX. A.. SUPPLY CORPS 1306/GENERALIST CAREER PATHS. 120. APPENDIX. B.. NACO/DNACO TRAINING BILLETS. 121. APPENDIX. C.. DAWIA EDUCATION, EXPERIENCE, AND TRAINING. REQUIREMENTS APPENDIX. D.. 122. NAVAL ACQUISITION AND CONTRACTING OFFICER. (NACO) INTERN. PROGRAM SURVEY. 123. APPENDIX. E.. UVA/BMRC SURVEY. 138. APPENDIX. F.. OFFICERS INTERVIEWED. 146. APPENDIX. G.. COMMENTS TO QUESTION. APPENDIX. H.. COMMENTS TO QUESTION SEVEN. 158. APPENDIX. I.. COMMENTS TO QUESTION ELEVEN. 169. vn. SIX. 148.

(13) APPENDIX. J.. PERSONAL INTERVIEWS OF SENIOR OFFICERS. 179. BIBLIOGRAPHY. 192. INITIAL DISTRIBUTION LIST. 193. Vlll.

(14) LIST OF TABLES. TABLE. I.. TABLE. II.. NACO COURSES 1306. 14. CONTRACTING TOURS AMONG SURVEY. RESPONDENTS TABLE. 22. RESPONDENTS CHARACTERIZING THE NACO. III.. PROGRAM AS. "A. REWARDING EXPERIENCE". GRADUATE EDUCATION AMONG RESPONDENTS. TABLE. IV.. TABLE. V.. TABLE. VI.. TABLE. VII.. TABLE. VIII.. RESPONSES TO QUESTION. 10a. RESPONSES TO QUESTION. 10b. RESPONSES TO QUESTION. RESPONSES TO QUESTION. IX. 10c. 1. 50. 68. 72. 73. 75. 83.

(15) LIST. FIGURE. 1. .. 1. 306 BILLETS. OF FIGURES. VS ASSETS. FIGURE. 2.. SURVEY RESPONDENTS BY RANK. FIGURE. 3.. UNDERGRADUATE EDUCATION AMONG SURVEY. RESPONDENTS FIGURE. 4.. 32. 35. 38. SOURCE OF KNOWLEDGE ABOUT THE NACO. PROGRAM. 41. FIGURE. 5.. TIME TO COMPLETE THE NACO PROGRAM. 43. FIGURE. 6.. LOCATION OF PROGRAM ACTIVITY. 45. FIGURE. 7.. SURVEY RESPONDENT CAREER PATHS. 69.

(16) INTRODUCTION. I.. A.. GENERAL INFORMATION One of. the responsibilities of the United States Navy's. the procurement business of the. qualified contracting managers. positions, ranging. civilian personnel. Navy.. who. The Supply Corps must. can function. from small purchases. Supply Corps. in a variety. is to. conduct. therefore provide. of contract management. to multibillion dollar procurements.. Though. form the backbone of the Navy's acquisition workforce, Navy officers. bring unique fleet experience to the procurement process.. A Navy contracting. officer can. be more effective than his or her civilian counterpart in communicating the urgency that a. fleet. requirement brings to the procurement process.. identify with the Fleet's operational tempo, including. Navy. contracting officers can also. sudden changes. in priorities, better. than their civilian counterparts.. There are three ways. management. field.. in. which Navy. officers can be introduced to the contract. The two of the most common. are the graduate education. program. the Naval Postgraduate School (815 program) in Monterey, California, and the. Acquisition and Contracting Officer. graduate education program. The. NACO. is. (NACO). career development intern program.. at. Navy The. usually offered at the ten year point of the officer's career.. program, on the other hand, brings junior officers into the acquisition and. contracting field early in their naval careers, usually after their. first. tour of duty.. The.

(17) third. avenue. to a contract. management. career,. and the. experience gained while assigned to a contracting. When to. augment. officers for. the. NACO program. middle and senior grade contract management. NACO. were expected. to. senior contract. management. With the downsizing one of the challenges procurement system. billets.. Throughout. the objective. was. by preparing junior. Junior officers were to. skills. two tours. by progressing. in contract. their careers, these officers. in a career. path that gave them. management before assignment. effort in full swing,. and accelerated over the. Navy Supply Corps. to. last. two. years,. faces in maintaining the integrity of the. the preservation of a competent, professional cadre of contracting. The drawdown of military personnel, coupled with. experience. through. billets.. that the. is. is. program, where they gain hands-on experience and take. develop contracting. the opportunity to complete. today,. billet.. was introduced twenty-five years ago,. specialized course work, and then return to sea.. and. common. the acquisition and contracting subspecialty (1306). complete the two-year. managers.. least. requirements. mandated. Improvement Act of 1990 (DAWIA), has the of the 1306 subspecialty and the Navy's. by. the. Defense. stricter training,. Acquisition. education. Workforce. potential of significantly affecting the depth. ability to. preserve a professional pool of. contracting managers.. Both the. NACO. program and the graduate education program have. instrumental in maintaining a competent group of contracting managers.. been. While the 815. graduate education program prepares officers for contract management positions that.

(18) require advanced education degrees, the. NACO. program. procurement. trains officers for. positions of lesser responsibility, at the senior lieutenant/junior lieutenant. level,. commander. with the expectation that these officers will eventually complete graduate education. in contract. makes. for a. NACO. Completion of both the. management.. more capable contracting manager.. practical experience with. program and the 815 program. For the Navy, combining. advanced graduate education. in contract. management. is. NACO an ideal. formula for development of contracting managers qualified for future assignment to. middle and senior grade contract management jobs.. While the future middle. number of. NACO. program may provide. a. good. and senior grade contracting managers, there. NACO. graduates. who. are not getting sufficient contracting experience. program and screening. concern over the significant. This. is. partly because these officers. between completion of the. middle and senior grade contract management. however, there remains a question as to whether the. functioning as. it. attempt to answer. B.. for. is. was intended. of. lack the follow-on contracting experience needed to. prepare them for positions of greater responsibility.. this trend,. starting point for the careers. to.. This study investigates the. some of the questions. that. have arisen regarding. NACO. NACO its. billets.. NACO Beyond. program. program. in. is. an. effectiveness.. OBJECTIVE OF THE RESEARCH The purpose of. this research. is. to. determine whether the. NACO. program can. effectively support the Navy's objective of preserving a capable, professional cadre of. military contracting managers..

(19) .. Given. this objective, the. What. 1. following subsidiary questions are also addressed:. NACO. the objective of the. is. program. in today's force. reduction and. procurement reform environment?. What. 2.. are the challenges the. Navy. is. facing in. its. efforts to preserve a cadre. of. professional contracting managers? 3.. What do. 4.. Is. the. past and present. NACO program. steps that can be taken to. NACO participants think about the NACO program?. functioning effectively? If. make. the. it. is. not,. what are some of the. program more effective?. SCOPE AND LIMITATIONS OF THE STUDY. C.. This study conducts a detailed assessment of the two-year. program and the. can have on preserving an adequate number of qualified contracting managers. impact. it. for the. Navy of the. relates to today's. 21st Century.. The study examines. procurement reform environment and. preventing the program from fulfilling graduates and those. program. NACO. is. NACOs. its. objectives.. currently in the. program as. it. it. identifies the factors that. may. Issues of concern to both. NACO. program are also discussed.. not evaluated in this study, even though. the careers of a substantial. the objective of the. be. The 815. has been instrumental in developing. number of contracting managers.. The study concludes by. providing recommendations for improvement, based on the analysis provided.. D.. METHODOLOGY The research data were. collected through written surveys, literature research, and. personal and telephone interviews.. Officers. who completed. through the program.. the. NACO. Surveys were mailed to active duty Supply Corps. program as well. as those. who. are currently going. Interviews were conducted with 1306 Supply Corps Officers in.

(20) senior contract. management. positions at major systems. commands.. These included. personnel from:. The Office of the Secretary of Defense; Office of the Assistant Secretary of the Navy for Research, Development and Acquisition; Bureau of Naval Personnel; Director, Acquisition Career Management (DACM); all major naval system commands; and the Defense Logistics Agency Command Headquarters. The researcher. the purpose of interviewing 25. The. to. conduct interviews and. Darden Graduate School of Business. research, and to the. course of the. DC,. traveled to Washington,. NACO. at the. literature. University of Virginia for. interns currently going through the capstone. NACO program at that institution. of reviewing Navy instructions, notices, training. literature search consisted. records and reports.. Information about. DAWIA training and education requirements. was. obtained from the Defense Logistics Studies Information Exchange (DLSIE) data base.. Data was also obtained on a similar intern program implemented by the. As to. be. a result of the literature review,. conducted. on the. recommendations submitted. by senior. DoD. NACO. became apparent. program.. to the Office. officials, there. it. has been. Besides. US Army.. that this study. was. first. documented comments and. of the Assistant Secretary of the Navy. little. the. (RD&A). formal or documented study of the. NACO. program.. The. central. postulate of this study. is. that. NACO. graduates,. NACO. program. administrators, and senior contracting managers are best able to determine whether the. current objectives and structure of the. NACO. program. are in line with the. Supply Corp's. objective of developing and preserving a professional cadre of contracting managers.. The.

(21) conclusions and recommendations have, therefore, been informed by their points of view.. Analysis of survey responses, as well as subsequent follow-up interviews, has been used. to. E.. develop the conclusions and recommendations of this. thesis.. ORGANIZATION OF THE STUDY Chapter. II. provides. implementation of the identifies. background. NACO. information. program.. It. describes. on. events. the. program's objectives and. that. what are perceived as the major problems of the program. Chapter. the 1306 subspecialty. and looks. at the. challenges facing the. led. III. describes. Navy Supply Corps. attempts to preserve the integrity of the 1306 subspecialty. This chapter also looks. issues that prevent the. community.. Navy Supply Corps from. Problems associated with the. full. the. to. in. its. at the. establishing an internal acquisition. implementation of. DAWIA. and rapid. personnel cuts are discussed as well. Chapter IV presents and analyzes the data collected. from 144 survey respondents.. Chapter. interviews of senior contracting personnel.. this study,. specific. research.. V. details the information acquired. Finally, Chapter. from 10. VI discusses the findings of. draws conclusions based on analysis of collected information, and provides. recommendations.. The chapter concludes by recommending. areas for further.

(22) II.. THE NAVY ACQUISITION CONTRACTING OFFICER (NACO) INTERN. PROGRAM A.. INTRODUCTION This. chapter. provides. implementation of the. NACOs. B.. NACO program.. list. It. information. will describe the. NACO. are selected, discuss the. (DNACO), identify. background. program. training requirements, explain the. some of the problems. that. on. events. that. to. the. NACO program, explain how. in the. Defense Logistics Agency. management of. the program,. and. concern senior contracting managers today.. ORIGIN AND PURPOSE The Navy Acquisition Contracting Officer. by the Navy Supply Corps. at the direction. intern. program was established. of the Secretary of Defense.. Secretary of Defense established a joint military study group to. procurement. positions. in. the. Department. recommendations of the study group was. that. of. Defense.. in. 1969. In 1965, the. make recommendations. about actions necessary to ensure that qualified officers are available to. its. led. One. fill. of. key military the. primary. each military department should ensure that. career development programs provide for the establishment of a broader base of. procurement. billets in the. junior officer grades, to ensure an adequate flow of junior. officers into the field at an early date.. Navy Supply Office. of Personnel. 1. (NAVSUP-OP). Publication..

(23) .. Based on. this. recommendation,. accommodate. Corps Officer end strength. to. Navy responded. the. the. to. program. is. the Navy's. (NACO). Corps. Instruction. the. 1541.1. Navy. to increase. its. a "Procurement Trainee" program.. Career Development Program. 2. most comprehensive program. for a career in acquisition contracting. The objective of. authorized the. Supply. In 1969,. Defense Secretary directive by establishing the Navy. Acquisition Contracting Officer. NACO. DoD. NACO. Today, the. for preparing junior officers. management.. program, as stated. (NAVSUPINST. 1541.1),. in Secretary. is. "To. of the. provide. Navy Supply. NACOs. opportunity to learn the acquisition contracting system through actual contracting. experience and formal training.". A. work. 3. broader objective, based upon data compiled for this thesis,. is. to introduce. grades of lieutenant and lieutenant junior grade into the acquisition. Supply Officers. in the. and contracting. field early in their careers.. timely flow qualified officers to. The. the. NACO program. fill. This. is. necessary to ensure an adequate and. subsequent openings in senior contracting positions.. als^ fulfills. DAWIA's. statutory requirement that each military. department conduct an intern program for purposes of providing highly qualified and talented. individuals. an opportunity. for. accelerated. promotions,. career. broadening. assignments, and specified training to prepare them for entry into the Acquisition Corps.. 4. Secretary of the Navy Supply Corp Instruction (NAVSUPINST 1541.1), Naval Acquisition and Contracting Officer (NACO) Instruction, March, 1994. Ibid.,. End. 1.. Defense Acquisition Workforce Improvement Act, Subtitle Public Law 101 -51 0-Nov. 5, 1 990, p. 1 651. A. of Title 10. USC, Chapter. 87,.

(24) The. NACO. program brings junior Supply Officers. contracting field, usually after their. into. the. division officer tour at sea, and provides. first. with the foundation to build upon a career in contract management.. spend a two-year tour. at a. major system or. field contracting activity,. work. on-the-job training (OJT) and take specialized course. planning, negotiation, and administration.. methods used. in. NACO program. commits the. management. expected to follow.. 6. such areas as contract in the various. tour.. The. officer can elect to. A. can normally expect. to. at least. two tours. assignment to a top acquisition and. presents the career path. NACOs. are. 5. the. NACO. program. Another factor. managers, that the. manage. NACO. Appendix. billet.. NACO. a Naval career.. is. the preferred. management.. officers into the field of contract. requirements.. where they receive. payback obligation.. and a graduate education prior. Presently,. Selected officers. become experienced. payback. officer to a two-year. After completing the program, each. contracting. also. them. purchasing different systems, materials, and services. Completion of the. return to sea to fulfill the. in contracting. They. in. and. acquisition. is. This. primarily because of statutory. the view, widely held. program provides the. NACO. is. vehicle for introducing junior. by senior Navy contracting. flexibility. necessary to successfully. graduates are better positioned to incorporate a broad. array of requirements prior to competing for the rank of Captain (06).. Active and Reserve Supply Corps Flag Officers Conference, Presentation on the Acquisition and Contracting Subspecialty (1306), by RADM E.B. Harshbarger, 19 November 1993. Secretary of the Navy Supply Corp Instruction (NAVSUPINST 1541.1), Naval Acquisition and Contracting Officer (NACO) Instruction, March, 1994..

(25) Assuming. that a junior. Supply Officer's objective. must complete three sea tours and an assignment before screening for. 06. a warfare qualification. By completing better. (see. in at least. to. make. one non-procurement. billet. and receiving a postgraduate degree.. the. NACO. intern. program early. in their careers,. NACOs. have a. chance of completing two procurement tours prior to screening for Captain without. particular field. unfavorably. is. Today, more than ever before, specialization. in a. discouraged by senior Supply Officers, since promotion boards look. at officers. who show an. inclination toward specialization.. NACO SELECTION PROCESS Every year approximately 20 junior Supply Officers are selected. the. Captain, he or she. Appendix A). Other current requirements include obtaining. losing competitiveness for promotion.. C.. is. NACO. assigned to. selection board.. Currently,. Navy commands and. (DLA). Appendix B. lists. there are 42. NACO. program by. 10 are assigned to the Defense Logistics. was convened. quarterly.. 1994. the selection board will convene annually.. Agency. Navy and DLA.. However, beginning. The. 32 are. billets authorized;. the current billet allocation for both the. recently, the selection board. for the. in. Until. March of. selection board consists of five. Supply Corps Commanders (05); four representing each of the four Supply Corps intern. programs and one representing the Defense Logistics Agency four intern programs are the. NACO. DNACO. program.. The. program, the Navy Petroleum Officer Trainee (POL). program, the Business Financial Manager (BFM) program, and the Integrated Logistics. NAVSUP-OP NACO. Detailer,. Telephone Interview, February, 1993.. 10.

(26) Support Manager Trainee (ILS) program. billets for all four intern. program. The. programs, 42 are assigned. a subset of the. is. currently authorized 85. NACO program.. NACO program that is managed by DLA.. Next, the. performance record. The The The The. to the. is. The. 8. NACO. detailer conducts a. officer's fitness reports consistently reflect outstanding. officer has earned a. officer. is. thorough review of the. to verify that:. performance.. Warfare qualification.. in a sea billet.. NACO tour is the second tour in his/her career.. The same requirements apply concerning the. officer's. to the other three intern. performance record, the. NACO. programs.. it. is. a ship's. Once. Supply Officer who can. the initial screening. is. detailer contacts the applicant's. NACO. The. board's selection rate for Fiscal Year 1993. was 25. part, applicants. board. the anticipated. There were. percent.. approximately 100 applicants; 80 made the board and 20 failed the. For the most. fill. most. 9. detailer, the selection. reviews the screened records and selects the best qualified officers to vacancies.. In. clarify ambiguities in the fitness reports.. completed by the. doubt. If there is a. reporting senior or the immediate supervisor to obtain additional information.. cases,. DNACO. selection process starts with the individual officer requesting, in writing, to be. screened for the program.. officer's. The Supply Corps. initial. screening.. 10. only have one opportunity to be selected for the program,. since the screening process usually takes place within six. Ibid. Ibid. Ibid.. 11. moths of the rotation. date..

(27) DETERMINATION OF NACO MANPOWER REQUIREMENTS. D.. An is,. "How many. who manage. question facing those. initial. interns. do we need. source of. manpower used. personnel. who. to. a career. to bring into the. development intern program. program. this year?". Interns are one. meet expanding workload requirements and. to replace those. leave the organization through transfer, retirement, resignation, or death.. Since the number of entrants for the current year must correspond to anticipated losses. two or. three years later, depending. difficult to. answer. this question.". more challenging, since. the. on the length of In the case. number of. of the. NACOs who. should correspond to anticipated losses ten years Surprisingly,. manpower planning. the intern program,. for the. NACO. the 815. program. strictly. are considered the. even. program today. 1306 subspecialty does not take into. NACO program. each year.. Personnel Planning Division (OP3), graduates of. main source of manpower. on the number of NACO. extremely. later.. to support anticipated billet. Therefore, the annual recruiting requirement for the. requirements.. based. Navy Supply. is. this task is. are brought into the. account the number of interns that should be recruited for the Instead, according to the. program. it. billets rotating that year.. It. NACO. program. is. does not correspond to. anticipated losses in later years.. Clearly, the. procurement. NACO. billets to. program meets DoD's objective of expanding the base of. provide junior officers with procurement experience. Whether the. program meets the broader goal of ensuring an adequate flow of junior middle and senior grade contract management. Army Procurement Research and Analysis Command, Department of the Army, August,. Director,. Army. Materiel. billets is not clear.. 12. Office, 1. 978,. A. officers for future. system. to track the. Procurement Intern Program, US. p. 9..

(28) flow of NACOs into senior contracting jobs. program,. intern. the. subsequently placed. E.. officer. in the. is. not in place.. is. simply assigned. 1306 pool. There. is. the. Once. a. NACO completes the. subspecialty. code and. (S). no additional follow up on these. is. officers.. DEFENSE NACO (DNACO) PROGRAM The. DNACO. program was established. in the. mid. 1. 980's after. obtained approval for converting ten procurement trainee billets to. NACO. assignment to. coordinated by the. DLA. DLA. billets is. provides overall program guidance, while a. must be forwarded. to. ASN (RD&A). NACO. requested and. intern billets.. through a contract administration office and. Deputy Director. implements the program within DLA.. DLA. for. DLA. DNACO. in the. Acquisition.. NAVSUPINST. 12. is. 1541.1. instruction, currently being drafted,. Individual. Development Plans (IDPs). same manner and cycle. as. Navy. NACO. IDPs. are to be submitted.. F.. TRAINING REQUIREMENTS Formal training requirements are now driven by. certifications.. Level. 13. II.. Completion of the. The mandatory courses. NACO Navy (RD&A),. NACO. program. DAWIA. Level. I. and Level. qualifies the intern through. are listed in Table. II. DAWIA. I.. Program Coordinator, personal interview, Office of the Assistant Secretary of the January, 1994.. Navy Supply Corp Instruction (NAVSUPINST 1541.1), Naval Acquisition and Contracting Officer (NACO) Instruction, March, 1994. Secretary of the. 13.

(29) TABLE. I.. NACO COURSES.. (APPLIES TO DAWIA LEVEL CERTIFICATION) 1. CON (Management. CON. 101 Contracting Fundamentals Defense Acquisition Contracts). of. 104 Contract Pricing (Principles. 4 weeks. 3 weeks. of. Contract Pricing). (APPLIES TO DAWIA LEVEL. CON. CERTIFICATION) 2 weeks. 201 Government Contract Law (Government Contract Law). CON (Management. II. 21. 1. 3 weeks. Intermediate Contracting. Defense Acquisition Contracts). of. (Advanced)). CON. 3 weeks. 231 Intermediate Contract Pricing (intermediate pricing). NACO CAPSTONE COURSE Business Resource Management. Business Resource Management This course. is. conducted. a year during the. at the. is. 4 weeks. the capstone course of the. NACO. program.. University of Virginia, Graduate School of Business, once. month of January.. It. consists of executive level instruction in the. concepts and practice of business administration, and. is. designed to expose. NACOs. to. current business practices through a combination of faculty experience and the use of case. studies and decision. While. in the. training courses. making. program,. and. 1. 8. exercises.. NACOs. can anticipate spending approximately six months in. months gaining hands on,. practical experience (OJT).. This does. not take into account regular leave periods and travel time, which can cut into the. time.. The. NACO. OJT component. Certification requirement for. is. considered to. fulfill. the. two years of contracting experience. position of increasing complexity and responsibility.". 14. DAWIA in. OJT. Level. II. "an acquisition.

(30) Formal Individual. training, education. OJT. assignments are incorporated into the. Development Plan (IDP), which. The OJT plan. individual organization.. particular contracting activity.. command. and. For. is. developed and maintained by each. this reason, the. experience gained. can differ substantially from that gained. activity. performed by that. tailored to the functions. is. NACO's. at a. major systems. at a field activity.. MANAGEMENT OF THE NACO PROGRAM. G.. The Ships. Parts Control Center. (SPCC) "owns". the 42. NACO. billets.. The Office. of the Assistant Secretary of the Navy (ASN) for Research, Development and Acquisition. (RD&A) manages. the program.. Navy Supply Corps training and. to. Instruction 1541.1, and. development of. IDP. objectives. NAVSUPINST. NACOs offices. is. provides guidance in accordance with the. primarily responsible for monitoring the. and the coordination of. (NACOs. assigned to. progress. is. DLA. monitored via his or her IDP, which. duty and every six months thereafter.. are. the. 1541.1. is. responsibility. in. are. assigned. managed and. the. is. submitted 30 days. Preparation and completion of. of each command.. Accordingly, planned. OJT. those functions carried out by the particular contracting operation.. training. billets. Guidance provided. broad in terms of experience requirements and specific. of formal education requirements.. include. NACO. DLA reporting systems).. accounted for through. after reporting for. all. DLA. Navy Commands and. A NACO's. ASN (RD&A). areas. of contract. 15. terms. objectives reflect only. OJT. management, contract. management, negotiation and contract administration.. in. in. requirements can. policy,. Formal training. is. planning. funded and.

(31) .. sponsored by the Navy Defense Acquisition Career Management Office only exception. sponsored by are assigned. is. the Business Resource. ASN (RD&A).. DACM. by the. Quotas. for the other. IDP. and. prepared. NAVSUPINST. followed. and. 1541.1,. mentor. for, the. accordance. in. NAVSUPINST. command.. the. that. NACO. NACO. intern,. and ensuring. This includes ensuring that the. with. intern. assignments. Furthermore, the instruction clearly states:. NACO. funded and. is. mandatory and recommended courses. program's objectives are fulfilled accordingly.. is. which. Officers, or their designated officer representatives, the. responsibility of serving as, or providing a. that the. course,. office in coordination with each. Commanding. 1541.1 also assigns. Management. (DACM). The. the. is. guidance. rotated. provided. among. in. different. 14. interns are not to be considered as ready resources for use in various. stop-gap situations.. For example,. it. may. be inappropriate to assign a. NACO. to a. position solely to resolve a workload backlog problem. Short term (not exceeding a. of two weeks) rotation, as part of a formal. total. command. orientation program,. is. not precluded.. H.. THE PROBLEM Ongoing screening of. 1306. officers,. in. particular. officers' records is revealing that a substantial. NACOs,. number of. lacking the experience necessary to meet. are. DAWI A. requirements.. NACOs. should be progressing along a career path that would prepare them for positions. This. 1. 541. of concern to senior Navy contracting managers, because. For various reasons, some of the. of greater responsibility.. NAVSUPINST. is. .1. ,. Enclosure. 3,. page. 1. 16. NACOs who. are considered.

(32) for top contract. and the tours. It. is. management. positions have not completed the educational requirements. in contracting that. not clear. why. this. would have gap. qualified. appearing.. is. them. One. management jobs.. for contract. factor. may be. the promotion. opportunities that must be foregone if junior Supply Corps officers specialize too early in. their. Navy. careers.. To. Corps. stay competitive for promotion, junior Supply. officers are. discouraged from specializing, and instead are encouraged to explore additional a recent conversation with a detailer for. The. detailer. added. that the. officers, this. stay. trades.". assignments based on the needs of the Navy. at the. not be assigned a contracting billet so that he can. management. billet.. In a visit to the Naval Postgraduate School in. for Acquisition Policy, Integrity. itself.. time of assignment.. NACO may. fill. Harshbarger asked, "Where are the Postgraduate School?. Are. program may be. NACOs. subspecialty with an adequate. going?. Why. in the right places?". of. draw. For instance,. a critical financial. and Accountability, Rear Admiral Eugene. B.. NACOs. falling short. Officers. September of 1993, the Navy's. Harshbarger, expressed concern over the availability of qualified. NACO. who. long periods of time. In the detailer's words, "officers must. Another factor may be the Navy's detailing system. Deputy. In. view was confirmed.. promotion boards look unfavorably toward officers. in a particular career field for. become jacks of all. Supply Corps. fields.. its. NACOs.. aren't they here at the. The implication. original objective of. is. Naval. that the. augmenting the. number of qualified contracting managers.. 17. Admiral. 1. 306.

(33) As. for the causes of the shortage,. effects of specialization. a factor.. on. RADM. officer promotions.. He. Harshbarger alluded. to the. negative. did not think the detailing system. was. Results of a survey conducted for this thesis support Admiral Harshbarger's. statements.. I.. SUMMARY This chapter briefly touched on the events that led to the implementation of the. NACO program Corps. in 1969.. The. short term goal of the. program. is to. officers the opportunity to gain contracting experience.. ensure an adequate flow of. NACOs. into. There. is. no tracking system. The long term goal. middle and senior grade contracting. Formal training requirements are now driven by requirements.. provide junior Supply. to. Level. monitor the flow of. and senior grade contract management positions.. 18. DAWIA. I. is. billets.. and Level. NACOs. into. to. II. middle.

(34) THE. III.. A.. SUBSPECIALTY TODAY. 1306. INTRODUCTION The previous chapter described. problems with the. NACO. program. the. that. NACO. program and discussed some of the. concern senior contracting managers.. chapter describes the 1306 subspecialty, and looks. Supply Corps reason. why. in its attempts to preserve its integrity.. the 1306. is. challenges facing the. at the. Navy. In identifying these challenges, the. a subspecialty instead of a specialty or. community. is. examined,. as are. problems associated with rapid personnel cuts and the effects of DAWIA.. B.. THE. 1306. This. SUBSPECIALTY TODAY. The 1306 subspecialty. consists of approximately. 500 Supply Corps. officers. who. have gained acquisition and contracting experience and education by completing the 815 program, or the two-year. NACO. intern program, or an acquisition tour. where they. completed mandatory procurement courses and gained significant practical experience.. Both the. NACO. program and the graduate education program. instrumental in supporting the 1306 subspecialty.. The 815 program. 1306 subspecialty, and provides highly educated officers level for senior contract. supplements. the. 1306. management subspecialty. positions.. by. The. been. the core of the. at the lieutenant. NACO. providing. is. have. commander. program, on the other hand,. talented. junior. lieutenants. and. lieutenants junior grade with practical experience for middle grade contracting positions.. 19.

(35) Based on the February, 1994 Office of Naval Personnel data base, there approximately 192 1306 billets are. require. billets,. 130 of which are P-coded. P-coded. S-coded or 1306S.. and. advanced degrees,. billets are contract. reserved. usually. are. billets or. 1306P. The other 62. management. for. are. graduates. positions that. of the. Naval. Postgraduate School (NPS), or in this case, 815 program graduates. In practice, however, continue to be. P-coded. billets. S-coded. billets are. graduates,. procurement jobs. NACOs, and. those. who. usually assigned to 1306S billets.. program, he. 1.. is. also assigned the. The Purpose. with personnel having the 1306S subspecialty.. filled. that. Non-NPS. do not require advanced degrees.. earned the 1306 qualification through experience, are. If. an officer with the 1306S code completes the 815. 1306P code.. of the 1306 Subspecialty. Supply Corps Officers assigned. to. 1306. billets. play a major role in contracting. with private businesses to procure more than $41.5 billion worth of systems, materials,. and services each year. From data provided by officers. were responsible. for. ASN (RD&A),. in Fiscal. executing 2,199,900 contract awards.. Year 1993 these Supply Corps. Officers can be assigned to positions involving negotiation of contract actions, execution. of contract awards, development of contract policy, administration of contract actions,. and management of contracting operations. provide direct waterfront support to the. fleet.. 20. Also, a substantial. number of. 1. 306. billets.

(36) 2.. 1306. Manpower Requirements. The Supply Corps 1306. requirements.. billet. relies primarily. on a large pool of 1306 officers. This large pool. essential. is. for retaining. necessary for Supply Corps officers to rotate to non-contracting training schools, while at the. same time providing manpower. current ratio of officers to billets. is. approximately. 1306. billets. The. billets.. and. 0-5. for. 2:1. 15. and 0-4. billets.. a.. The. NACO Program. The. NACO. 1306 subspecialty.. program graduates approximately 20. With few exceptions, these. officers in their next contracting assignments.. majority. of. NACOs. non-procurement reason,. 0-6. 1.5:1 for. fill. flexibility. support duties or. fleet. to. the. to satisfy. most. elect. billets.. NACOs. to. return. sea. to. officers can function as contracting. However, duty. They attend graduate school. become. officers each year into the. or. for their. to. opt. after the. payback. for. tour, the. assignments. payback. For. tour.. surveyed, had entered contracting billets after completing the intern program.. NACOs. surveyed, 71.6 percent have completed. The. contracting tour in their naval careers.. contracting tours. this. available for assignment to contracting billets five or six. years after they complete the intern program. Only 15 out of 96, or 16 percent of. 27 Lieutenants out of the 96. in. among survey respondents. NACOs. Excluding at least. specific survey results regarding. are listed in Table. one. 1306. II.. Active and reserve Supply corps Flag Officers Conference, Presentation on the Acquisition and Contracting Subspecialty (1 306), by RADM E.B. Harshbarger, 1 9 November 1 993.. 21.

(37) TABLE. II.. Rank. 1306. CONTRACTING TOURS AMONG SURVEY RESPONDENTS. Two. or. More. 1. Combined. 306. Tours. Percentage. 15. 11. 73.3. 29. 6. 16. 75. Commander. 25. 10. 5. 56. Total. 69. 16. 32. 69.6. Captain (06). Commander Lt.. One 1306 Tour. Number Surveyed. (05). Lieutenants were excluded from the above calculation because not expected to have completed a contracting tour until after they have. Lieutenant. Commander. (04), which. At the 05 and. careers.. 06. is. levels,. normally. at the. are. the rank of. eleven year point of their naval. management. NACO. positions.. The 815 Program The number of 815 graduates each year. varies. depends on the number of quotas validated every two years. the. made. approximately 75 percent of active duty. graduates flow into middle and senior grade contract. b.. NACO's. number of 1306. method used. officers. who may be. between 25 and 35.. The quotas correspond. retiring or separating a. for determining future requirements is a. This. few years. manual computation. later.. to. The. that takes into. account anticipated 1306P personnel losses, the demand for 1306P personnel, and current the. 1306P. the. 1. officer inventory.. 16. Unlike. 306 subspecialty, and as such,. NACO. their. graduates, 815 graduates form the core of. numbers. are monitored. by the Office of Supply. Personnel Planning to ensure an adequate flow of officers into 1306P. NAVSUP-OP interviews, February. billets.. Career Development and Training Branch (OP31), telephone and personal and March 1994.. 22.

(38) Other A venues. c.. who. Officers. billets. gain contract. management experience while assigned. group. 1. billets. courses that. NACOs. (AQD). 1306. There are approximately 45 916/917. Nevertheless,. disappearing.. to. 916/917. 916/917 officers. 306 pool of officers. However, with. can receive the 1306S code. procurement. "back door. the. gradually. is. with few restrictions.. billets. who supplement. officers. C.. 1306 Subspecialty. can get the Additional Qualification Designator. can function in 1306. this. to the. if. junior. DAWIA now officers. in place,. assigned. to. they complete the same mandatory. These officers are often called "unofficial NACOs," or. complete.. NACOs.". WHY AN. ACQUISITION SUBSPECIALTY AND NOT A SPECIALTY OR. COMMUNITY? The mission of communities. the. Supply Corps does not lend. that specialize strictly in. one. field. the. formation of. Instead, the. Supply Corps. itself to. of expertise.. allows subspecialization in some areas without subordinating the primary function of a. Supply Corps. officer,. which. functions of the Supply Corps. is. being a Supply Officer. demand. that. each. member. at. sea.. Moreover, the core. officer be capable of. performing. effectively in a variety of shore support billets as well.. 1.. The Mission. Corps. of the Supply. The mission of. the Supply. Corps has always been. mission of sustained, independent operations. Chief of the Supply Corps,. RADM. 17. at sea.. to support the. Navy's unique. This mission remains unchanged.. R.M. Moore, Message from the Chief on the 199th. Birthday of the Corps, Flash from the Chief, 26 January, 1994.. 23.

(39) When. the officer. is. not at sea, fleet support-related jobs, close to the waterfront, are the. With few exceptions, Supply Corps. next best alternative.. fleet. In other words,. support operations.. as ship Supply Officers. affects. how. 2.. A. first. procurement. procurement system. buy. in. fleet. frequently have personal,. will. in a particular field second.. managed and where they. This attitude. fall in priority.. segregate 1306 Supply Corps Officers into a. acquisition and contracting. in. officers think of themselves. 1306 Subspecialty or Community?. To. officers. most Supply Corps. and subspecialists. subspecialties are. officers identify strongly with. would defeat the. the purpose of educating. place.. first. community. Navy Supply Corps. Supply officers bring into the Defense. experience that only they can provide.. first. specializing in. Supply officers. hand experience with the equipment and supplies. that they. as contracting officers.. As Supply. Officers on board. Navy. ships, they experience the frustrations. challenges associated with providing support for sustaining independent operations. They can the. and. at sea.. clearly identify with the consequences of missed delivery dates, or delivery of. wrong. part.. Furthermore,. their. experiences. communicating the urgency of a. fleet. requirement.. For the Supply Corps,. this. experience. acquisition system.. If. is. an acquisition community. at. sea. add. credibility. when. crucial to the success of the Navy's. is. created within the Supply Corps. similar to the medical, civil engineering, and legal communities, the unique and valuable. experience that Supply Corps Officers bring to the procurement system would be. 24. lost..

(40) These. would no longer be Supply Corps. officers. strictly acquisition. D.. and contracting. officers,. Officers,. and instead they would become. with limited sea experience.. THE IMPACT OF DAWIA ON THE. 1306. SUBSPECIALTY. Congress passed the Defense Acquisition Workforce Improvement Act. In 1990,. (DAWIA). 18 This. legislation. acquisition workforce which. intended to create a "rationally and logically structured. is. would serve. acquisition corps of senior executives.". as the foundation for a high quality professional. 19. The. act brings. and more professional development, education,. training,. more. centralized. and career opportunities. Department of Defense acquisition workforce. Full implementation of. was. military services and agencies. impact of. DAWIA. upon. to. be accomplished by. the 1306 subspecialty. is in. management. 1. DAWIA. October 1993.. to the. by. DoD. The major. the form of statutory requirements for. contracting positions, and additional requirements for selection into the Acquisition. Corps. case of the Navy, the Acquisition Professional. or, in the. Navy, the 1.. APC. is. a subset. Community (APC).. In the. of the Department of the Navy (DoN) acquisition workforce.. 20. Statutory Requirements for Contracting Positions. Within the 1306 subspecialty, contracting positions consist of three subsets: contracting officers warranted above the small purchase threshold ($25,000 as of. 1. October 1993); contracting officers conducting small purchase functions or performing. Defense Acquisition Workforce Improvement Act, Public. Law 101-510-Nov. Office. of. the. 5,. 1990,. Assistant. p.. Secretary. Management, Memorandum, Department Requirements, 10 September, 1993, 20. Ibid., p.. Subtitle. A. of Title 10. USC, Chapter 87,. 1638. of. of the. Navy (RD&A), Director, Acquisition Career Navy Interim Procedures for Implementing DAWIA. the. p. 1.. 37. 25.

(41) procurement functions. A. Officials.. that. do not obligate the Government; and Senior Contracting. Senior Contracting Official can be a director of contracting, or a principal. deputy to a director of contracting, serving. in the office. of the Secretary of a military. command. department, the head of a Defense Agency, a subordinate. major systems or. (CAPs) this. Department of Defense. 21. logistics contracting activities in the. Contracting. positions. which are designated. are also subject to specific requirements.. headquarters, or in. Critical. A CAP. is. Acquisition. Positions. any acquisition position,. in. case a contracting position, required to be filled by a person in the grade of. GS/GM-14. or above, or military grade 0-5 or above.. Acquisition. 22. Officers assigned to Critical. must be members of the Acquisition Corps.. Positions. The. statutory. requirements for contracting positions are divided into three levels, determined by the grade of the position. These three levels are:. (GS-5/8 and military 0-1/0-3). Level. I. Level. II. Level. III. (GS-9/12 and military 0-4). (GS/GM. Appendix C that. 23. 13 and above and military. lists. 0-5 and above). education, experience and training requirements for. must be met before an individual can be assigned one of the three. any of the three career levels. appropriate criteria are met.. levels.. Defense Acquisition Workforce Improvement Act, Subtitle. Law 101-510-Nov. Office. of. the. 5,. A. of Title. for. 10 USC, Chapter 87,. 1990, p.1650. Assistant. Secretary. Management, Memorandum, Department requirements, 10 September, 1993, Ibid., p.. been. Waivers can be obtained. at. Public. levels. to a contracting billet that has. designated an acquisition position. if the. all. p.. of. of the. Navy (RD&A), Director, Acquisition Career Navy Interim Procedures for Implementing DAWIA. the. 39. 38. 26.

(42) 2.. Community (APC). Acquisition Professional. DAWIA. requires each military department to establish an Acquisition Corps.. The Acquisition Professional Community the. been. 04. advancement 24 semester. Also, the officer must have. or higher.. certified. education. the Acquisition. Corps of the Department of. For selection into the Acquisition Corps, the officer must be serving. Navy.. grade of. is. ( 1 ). in the. a baccalaureate degree (or have. by the career program board as possessing significant potential for. to a level. of greater responsibility and authority) and (2) completed. credit hours (or equivalent). among. disciplines. the. at least. of study from an accredited institution of higher. of accounting,. business. finance,. law,. contracts,. purchasing, economics, industrial management, marketing, quantitative methods, and organization and management.. in. an acquisition position. industry or Government.. Acquisition Position.. Officers must also have at least four years of experience. in the. APC. Department of Defense, or. membership. is. in a. comparable position. in. a requirement for assignment to a Critical. 24. The promotion statute in the following. rate for officers in the Acquisition. is. addressed by the. manner:. The Secretary of Defense. shall ensure that the qualifications. officers selected for an Acquisition. as a group, to be. Corps. Corps are such. of commissioned. that those officers are expected,. promoted at a rate not less than the rate for all line (or the same armed force (both in zone and below the zone) in. equivalent) officers of the the. same. grade.. 25. Defense Acquisition Workforce Improvement Act, Subtitle A of Public. Law 101-510-Nov. Ibid, p.. 5,. 1990,. p.. 1644.. 1644.. 27. Title. 10 USC, Chapter 87,.

(43) Immediate. 3.. Effects of. The immediate. effect. assignment of 1306 officers. DAWIA of. DAWIA. who do. on the 1306 subspecialty was. not meet the experience requirement to contracting. jobs designated as Defense Acquisition Positions.. fill. Although waivers can be obtained. acquisition positions, few waivers were granted during. to the President. January. 1. FY. Navy. in. granted only nine waivers, none of which were for contracting. 26. For individuals pursuing a program of academic training or education acquisition,. requirement.. DAWIA 27. allows a. maximum. of one year toward. fulfilling. in. an experience. Thus, graduates of the 815 program can only obtain credit for one year of. experience for the time spent. program. to. 1993. In the annual report. and the Congress, submitted by Secretary of Defense Les Aspin. 994, the. personnel.. to restrict the. satisfies. at. graduate school.. However, completion of the 815. most of the mandatory contracting courses needed. to. meet the Level. III. requirements.. The experience requirement practical experience in contracting.. creates a. This. is. problem. 815 graduates. above the small purchase threshold.. assigned to non- warranted contracting positions. Instead these officers can only be. or, as in the. major systems commands,. As. Aspin, Les, Secretary of Defense, Annual Report to the President p.. lack. for contracting officer positions that. trainee type jobs, at least for the first year of their assignment.. 1994,. who. because, after graduation, they do not even. meet the minimum two-year experience requirement are warranted. for. to. a result, the problem. and. the Congress, January,. F13.. Defense Acquisition Workforce Improvement Act, Subtitle Public Law 101-510-Nov. 5, 1990, p. 1642.. 28. A. of Title 10. USC, Chapter 87,.

(44) 5. of unqualified 1306 officers involves not only the. NACOs who. experience requirement but also with the 815 graduates. who. Completing requirements.. Level. the. NACOs. NACO. program. must complete. satisfies. at least. lack the. four-year. lack practical experience.. Level. II,. not. but. one more contracting tour. Level. in order to. requirements. This second contracting tour, following completion of the. III. program,. is. NACOs. what most. meet. NACO. NACOs who. are missing in their career paths.. III,. also. complete the 815 program leave the Naval Postgraduate School with three years of experience to their credit. out of 87. In the. NACOs. with. But there are few such. at least. NACOs. Of those. surveyed, only. 1. 10 years of active duty had completed the 815 program.. 815 program's class of 1994, only 4 of 29, or 14 percent, have completed the. NACO program.. E.. THE IMPACT OF FORCE REDUCTIONS ON THE The accelerated personnel drawdown associated with. the. Navy combined with. officers qualified to. fill. stricter. DAWIA. Senior Contracting. have a significant impact on preserving. Navy of opinion. the 21st century.. is. that the. Among. minimum. the. ongoing restructuring of. Management. a pool. positions.. This shortage can. positions.. of qualified contract managers. for the. today's Senior Contract Officers, the consensus of. The. DAWIA. real challenge,. do not constitute the major. in their eyes,. individuals with extensive contracting experience are available to. Manager. SUBSPECIALTY. requirements to create a shortage of 1306. requirements set by. challenge to the Supply Corps.. 1306. fill. is. to ensure that. Senior Contract. Therefore, pressures arising from downsizing initiatives, specifically. 29.

(45) toward avoiding specialization, are viewed with more concern than the. trend. the. DA WIA.. requirements of. 1.. The Downsizing. Effect. The 1306 subspecialty The downsizing. is. not. immune. efforts are just picking. 1. changes taking place. in the. up steam, and a much smaller Navy. military leaders envision for the 21st century.. on. to the. As. stated. by. is. the Chief of the Supply. Navy.. what Corps. February 1994:. Navy forces will have been reduced by about 170,000 enlisted, 20,000 officers, some 200 ships and 1,500 aircraft from the Navy we had 5 year ago. In 1994 alone we will decommission 66 ships and 5 aviation squadrons.. By. 1999, active. The Supply Corps of 1999 from a 1989. As officers. is. the. level. will consist of approximately 2,900 officers,. reduced. of 4,013.. number of Supply Corps. Officers approaches 3,000, the pool of 1306. not only getting smaller, but competition with other subspecialties for the best. and the brightest among junior Supply Corps officers. is. becoming tougher. as well.. Additionally, the core functions of the Supply Corps are expanding, as restructuring. eliminates personnel faster than jobs.. This affects contracting activities in particular, as. some programs have been eliminated and programs are process.. still. vertical cuts. active and procurement requests continue to feed the procurement. The procurement requests may today be. previous years but the bulk of the work involved the. same whether. have taken place, most major. the. buy. is. for. substantially smaller in dollars than in. in. 50 or 100 missiles.. 30. completing a procurement request. is.

(46) 2.. Continuing. Demand. for 1306 Officers. Senior contracting officers anticipate an increase in the. officers.. This. Work and. is. because the. Justifications. skills. of a 1306. officer,. demand. for. 1306. such as preparation of Statements of. and Approvals (J&A's), evaluation of proposals, conducting. demand. negotiations, and analytical skills are in great. With the anticipated requirements. to. do more with. candidates for a variety of non-contracting the core functions of the Supply. Corps. billets.. in. many. less,. This. is. non-contracting jobs.. 1306 officers are prime. particularly important, since. will continue to focus. on directing a. logistics. pipeline that supports fleet operations around the world. Today, the vision of tomorrow's. leaner,. streamlined Supply Corps presents a challenge to meeting the objective of. preserving. a. discouraged. 3.. group. at the. The. of competent. contract. managers.. junior officer ranks, the predicament has. loss of Practical. With. become. specialization. being. acute.. Experience. For most of the senior officers interviewed by the researcher, maintaining a level. of practical experience commensurate with the requirements of contract management billets is a. major concern.. Just as the lack of practical experience. officers presents a challenge for the future, the loss. occurring as a result of force reduction initiatives. is. is. 31. junior 1306. of practical experience that. having an immediate. and more middle and senior grade officers are selected practical experience in the 1306 subspecialty. among. effect.. is. As more. for early retirement, the level of. gradually eroding..

(47) 4.. How. Significant. The data Harshbarger. November. in. is. Figure. the Active. at. the Shortage?. 1. was obtained from. a presentation. by Rear Admiral. and Reserve Supply Corps Flag Officers Conference, 19. 1993.. 200. 150. 100. Commander. Captain'. Billets. *. Figure. 1.. 32. 1306. of the. Billets. The above billets,. for. 42 0-6. billets. are. Required. DAWIA. Lt.. I. Commander. Assets. critical. versus Assets.. figure identified a total of 192 billets, 367 required officers to. and 302 available. 367 officers accounts. between permanent duty. officers, indicating a shortage. of 65 officers.. fill. the. The requirement. for officers attending schools, rotating to afloat billets, traveling. stations,. and taking regular leave.. 32.

(48) It. difficult to. is. dealing with a. moving. determine the significance of. Downsizing. target.. this shortfall, since the. efforts continue to. make personnel. than billet losses from consolidation and elimination of operations.. acceptable shortage today. two dilemma. How. to. may. not be tomorrow.. Navy. is. cuts faster. What may be an. The Navy Supply Corps. is. now. facing. as:. maintain a high level of expertise. in the. compromising the careers of its officers? How to meet the increasing demand for 306 1. 1306 subspecialty without. officers with a smaller pool. of. officers?. For a Navy Supply Corps Officer, specialization before screening for trouble— possibly early retirement or separation— because there. 06. contract. management. Navy Supply Corps must. no incentive. to. spells. become. For the Navy, developing competent, top notch officers. proficient in a particular field.. for. is. 06. billets is essential.. generalize. requirements. The predicament. is real. its. But, with a shrinking officer pool, the. officers. to. meet. Navy-wide. and there are no easy answers.. How. personnel. can the Navy. develop and maintain a cadre of contracting professionals without specialization?. F.. SUMMARY This chapter provided an overview of the 1306 subspecialty.. reasoning behind having a acquisition subspecialty. community. specialized strictly in contract management.. associated with the. discussed.. in the. The. full. initial. implementation of impact of. shortage of experienced. 1306. DAWIA officers.. DAWIA. It. also explained the. Supply Corps, instead of a Furthermore, the problems. and the downsizing of the Navy were. on the 1306 subspecialty was Although. 33. DAWIA. is. to aggravate the. currently. restricting.

(49) assignment of some 1306. officers, senior contract. managers appear. to. be more concerned. with the loss of practical experience associated with the early retirement of experienced. 1. 306. officers,. and the reluctance of junior officers. 34. to specialize in the field..

(50) IV.. DATA PRESENTATION AND ANALYSIS. INTRODUCTION. A.. This chapter presents and analyzes the information gathered through surveys and. interviews.. NACOs. The researcher mailed an. returned the completed questionnaire. This. percent of the supply corps officers. 1. 991. .. 11 -question. survey to 125. number. who have completed. the. NACO. represents approximately 25. program from. Figure 2 illustrates the breakdown of survey respondents by rank.. Commanders. (05s. —r^\. -—. 30-2%. ... Captains (06s). X. 15.6%. W. 28.1%. Lieutenants (03s) 26.0% Lt.. Figure. 2.. Commanders (04s). Survey Respondents by Rank.. 35. graduates; 96. 1. 969 through.

(51) A. second. of questionnaires was mailed. set. currently in the program.. survey.. Out of. this. group, 21. NACOs. currently going through the program.. Nearly. lieutenants.. half, 13. basically the same.. to. NACO. The survey and. questionnaire was sent to. NACOs. Management Course (BRMC). in. and. E.. interns.. NACOs. some of the. results are provide,. and. 'stions. n. DNACOs. were. were modified. Appendix D.. A. to. third. completed the Business Resource. January of 1994. This survey was specifically designed. BRMC. The researcher. that. DNACOs who. from the most recent graduates; 20 out of 25. or 80 percent, completed this survey.. Appendix. and. All 28 interns in this group are. graduates and current. The only difference was. feedback about the. NACOs. out the 28 interns, were in the second year of the program.. reflect the present tense.. to obtain. DNACOs. completed the. number of. total. Follow up telephone interviews were conducted with ten of these. The surveys mailed. and 10. DNACOs. and 7. These numbers represent about 70 percent of the. DNACOs. NACOs. 30. to. The. of. results. also traveled to. this. Washington. interns,. survey are presented in. DC. to. conduct personal. interviews with ten senior 1306 officers currently assigned to acquisition billets in the. areas of policy, procurement, career development and planning, and detailing.. aggregate listing of all officers interviewed. B.. is. provided. in. Appendix. The. F.. SURVEYS The surveys were designed. program. in the areas. to provide. NACOs. the opportunity to evaluate the. of formal training and on-the-job training.. 36. Other questions were of.

(52) a. general. such. nature,. background. educational. as. and. career. path. information.. Specifically, the questions covered the following:. Question 2. -. How How. Question. Question. -. 1. NACO find out about the program?. did the. long did. it. take to complete the program?. 3. -. Where was. Question 4. -. When. Question 5. -. On-the-job training evaluation (26 areas).. Question 6. -. Was. Question 7. -. Overall program evaluation, six areas (training courses, OJT, job. rotation, workload,. the. program completed?. were the mandatory courses completed?. completing the program a rewarding experience? guidance and supervision/mentor, and stimulating. Question 8. -. Graduate education.. Question 9. -. Career paths.. Question 10. -. Reasons. Question. -. Recommendations. Figure. 1. 3. 1. illustrates. undergraduate educations.. interest).. for seeking other career paths. to. improve the. NACO program.. breakdown of survey respondents. the. See Appendix. D. for a detailed. in. terms. of their. breakdown of non-business. undergraduate degrees.. Among. current. program. participants, the percentage of. NACOs. with non-business. majors has increased by approximately 54 percent (from 37 percent to 57 percent) while the percentage of business majors has declined. This. occurring.. In today's acquisition. are the drivers. interesting,. of reform,. to. 43. because one would think that the opposite would be. percent).. is. by 32 percent (from 63 percent. reform environment, where efficiency and effectiveness. why would. the. Navy. bring non-business majors into the. NACO. program, where a business background can make the training much more effective? This. is. not to say that non-business majors are not capable of fulfilling a successful contract. management. career.. In fact, 7 out of. 1 1. ,. non-business undergraduate degrees, and. or 64 percent, of the captains surveyed have. all. 37. have successfully managed careers. in.

(53) contract. The point. management.. non-business major. may. is. that,. with the short-term. require a longer period of time to fully. NACO. time horizon, a. comprehend. the business. concepts and practices that affect the procurement process of the Department of Defense. Further, a holder of a non-business degree. 24 semester hours. in. may. DAWIA's APC. not meet. advanced business-related. areas.. NACOs who. graduate education are more likely to have met these requirements.. 42.9%. 62.8%. 37.2%. NACO. Graduates. 57.1%. Current. 94 Responses. Business. Figure. 3.. Undergraduate Education. NACOs/DNACOs. 28 Responses. Non-Business. Among Survey Respondents.. 38. requirement for. have completed a.

(54) Among. the. 94. NACO. 82, (or 88 percent), already. graduates,. DAWIA. requirements are not a problem, because. have master's degrees,. in business related fields. while three. intend to attend graduate school and six are scheduled to attend graduate school.. Of those. with no master's degree, eight are lieutenants, three are lieutenant commanders, and one. a. commander. Out of these 12 NACOs, only. three have non-business degrees.. is. Thus, the. NACO graduate group is not really affected by the DAWIA education requirements. However, current to. NACOs. complete the program. may. good number. with non-business degrees. DAWIA. short of satisfying. fall. Because 57 percent of NACOs and a. DNACOs. and. DNACOs meet the. will not currently. who have. yet. education requirements.. have non-business degrees, chances are that. APC. requirement.. Follow-up telephone. interviews revealed that only two out of ten officers were currently attending night school. to. expand. their business education.. classes for the. It. may. same purpose. However, most. are already facing the. demands of. be that more. NACOs. officers should be able to simultaneously take. receiving the. On. maximum. It is. which. is. actually a. compressed. unreasonable to expect that these. on additional educational goals while. benefit of the intern program.. the other hand, if. it. were. to. exclude non-business majors from the. short of education requirements, the. NACO. NACOs who. fall. Navy might wind up with NACOs who meet. the. program, the Navy might not locate suitable substitutes.. APC. are attending night. have just completed a sea tour and. the intern program,. version of the three-year civilian intern program.. NACOs. guidelines, but have performance records that. 39. fall. Instead of. short of the current performance.

(55) Also, with force reductions taking their. standards.. position to be too selective by placing restrictions that. Supply Corps officers from entering the program. each survey question. 1.. How. did you find out about the. junior Supply Corps Officers.. a. is. not in a. would prevent outstanding junior. The following subsections discuss. NACO program? how. the. program has been marketed. to. Figure 4 illustrates responses regarding the source of. knowledge about the program. As detailer as. Supply Corps. in turn.. This question was designed to determine. the. the. toll,. the figure indicates, current. program participants. cite. source of knowledge less than previous graduates, indicating the. declining role of the detailer as a marketer of the program. Seven out of 28 interns, or 25. program through the. percent, learned about the. provided a second response as well.. approximately 14 percent,. if. Out of these seven, three. detailer.. Thus, this percentage could be even lower, or. these respondents. first. learned about the. NACO program via. the second source.. The numbers. also. indicate. influence today than in previous years on junior officers. program.. Ten out of 28. superiors.. This. think highly. may. interns, or. NACO. who. elect to. complete the intern. 36 percent, learned about the program from their. be an indication that most. enough of the. corps officers have greater. senior supply. that. program. responses gained from interviewing both. to. non-NACO. recommend. NACO. 40. and. it. senior supply corps officers. to their subordinates.. non-NACO. The. senior officers reflect.

(56) the. same. positive. feeling about the program.. All officers. interviewed praised the. program.. 36.2%. 21.9% 31.3%. 14.9%. 19.1%. 25.0% 22.3%. 15.6%. 7.4%. NACO. 6. Graduates. Current. 96 Responses. Four Current Figure. 4.. Source. of. Detailer. My Boss. NACO. Other. Graduate. NACOs/DNACOs. the. It's. NACO. NACO. Program.. graduates, and 8 out of 28 (29 percent) of. learned about the program through other sources.. 5. out of 8 responses,. is. this. among NACO's and DNACO's. This indicates a small increase over the years. publication as a vehicle for promoting the program.. publication. Within. Your Career publication had the greater number of responses,. accounting for 14 out of 18 and respectively.. Friend. provided two responses each.. Knowledge about the. NACOs/DNACOs. category,. NACOs/DNACOs. 32 Responses. 18 out of 96 (19 percent) of. current. 3%. more widely read by junior. On. in the effectiveness. the other hand,. it. may. officers today than in prior years.. 41. of. this. be that the.

(57) How. important. researcher believes that. advertised,. many. is. the. the. NACO. extremely important.. is. it. means by which. qualified officers. objective of the selection process. may. program. program. If the. marketed?. who have. The. not properly. is. be foregoing the opportunity of a lifetime.. to select junior officers. is. is. The. established an. outstanding performance record and demonstrated the potential for a successful Naval. To maximize. career.. the effectiveness of this process, a larger pool of applicants. is. There would more qualified officers to choose from and a greater number of. needed.. deserving officers would have the opportunity to apply for and get selected into the. program.. 2.. In. how many months. did you complete or do you anticipate completing the. NACO program? This question was designed to determine the percentage of. completed the program. in. less. requirement needed to achieve less than. DNACOs.. 24 months. is. a. than. DAWIA. 24 months. Level. phenomenon of. II. NACOs who. have. With the two-year experience. certification,. completing the program in. particular concern to current. NACOs. and. Figure 5 illustrates the responses regarding the length of time required to. complete the program.. The numbers. surveyed completed the program current. NACOs. and. significantly greater,. NACO. graduates. the other hand, the. number of. indicate that almost half (46 percent) of the. in 2. DNACOs who. 1. months or. less.. anticipate completing the. 20 out of 28, or 71 percent.. official or verbal transfer orders. On. program. The remaining. in. 24 months. eight interns have. with dates on or before the 21 -month mark.. 42. is. Only one.

(58) out of the 20 interns. who. anticipate completing the. transfer orders with a date at the. program. in. 24 months had. official. 24-month mark.. 1. 12 Months 1. 53. 15 Months P. ^5 16. 18 Months. S J. 20. 120. 21 Months. r. 24 Months f 3. 30 Months P. 20. 10. NACO. Figure. 5.. Time. to. Graduates. Complete the. NACO. Current. NACOs. indicate that the rotation date out of the. billets for. It. not only. NACOs/DNACOs. NACO. program. is. Also,. dependent on the availability. comments made by personnel. this practice.. appears that transferring. common. 60. with official or verbal transfer orders. follow-on department head tours.. from the detailing shop confirmed. 50. Program.. The comments provided by. of sea. 40. 30. NACOs. before the specified two-year requirement. throughout the 1306 subspecialty, but. 43. it. is. also a practice the. Navy. is. sees.

(59) For the most. as necessary.. part,. NACOs. may. the understanding that a similar billet. down the. not be available at a later date if they turn. NACOs. With few exceptions,. the offer.. are offered department head afloat billets with. accept the orders and detach early, before. two year mark. This practice raises a question concerning the original intention behind the. two-year requirement stated. program necessary. in the. NACO. to achieve a specified level. attempt to structure the program in. leave,. the two-year length of the. of practical experience, or was. and holidays take approximately eight months of the is. done. Today, however, the two-year requirement requirements.. no. Was. some organized manner?. detaching before the two-year mark. fill. instruction.. From. billets at sea.. NACO 3.. is. fits. at. Since schools, regular. NACO's. nicely with one of. Whether the. DAWIA. requirements will compel the. did you complete the. program remains. Navy. commands and. at field activities.. of. field activities.. NACO. activity. to ensure that. to be seen.. NACO program?. billets is constant, the billets available. location. experience. the detailer's perspective, the principal concern has always been to. major systems commands or. the. two-year tour,. DAWIA's. This question was designed to determine whether the training. systems. simply an. the expense of practical experience.. rotated before completing the two-year. Where. it. Though. the. is. concentrated. number of assigned. at. NACO. can periodically be reassigned between major Figure 6 shows respondent information regarding. (divided. among Major Systems Commands, Navy. Regional Contracting Centers, Fleet Support Industrial Centers, and other commands).. 44.

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