APPENDIX Statement of Principles for Department of...... RDT&E Program by Budget Category.. RDT&E by Type of Performer.. RDT&E Program by Budget Activity.. RDT&E Program by Mission Area.. RDT&E Program by Services & Agencies... Percentage Distribution by Mission Area.... Percentage Distribution by Component... Percentage Distribution by Type of Work.... Percentage Distribution by Performer (Estimated).... DEPARTMENT OF DEFENSE Washington, D.C. STATEMENT OF PRINCIPLES for DEPARTMENT OF DEFENSE RESEARCH AND DEVELOPMENT ROI CONSCIOUSNESS. We must develop and use a deeper and more explicit consciousness of Return on Investment in management of Defense Research and Development. This return lies in demonstrated deployable capabilities that can be acquired and owned at minimum and affordable cost, and which can be sufficient in performance and numbers to accomplish necessary military and deterrence missions. TECHNOLOGY BASE. Our greatest long-range asset is our Technology Base. It must be nurtured and managed so that it: • gives us great leverage in terms of Return on Investment; • constitutes a fully integrated Department of Defense tri-Service activity; • searches out substantial increases in military capability and consciously uses technology to reduce costs. PROGRAM PLANNING. The success of a program is often established or destroyed in its initial stage by its concept, its request for proposal, the program plan and its funding. We must give this part of the process more explicit attention. VIABLE OPTIONS. It is essential to create viable options which will allow timely low risk development of new systems when the need arises. This can be accomplished by: • Forcing, as appropriate, the development and consideration of alternative paths to the same goal; •Developing and testing "brass board” or experimental configurations, prototypes, advanced development models and advanced components in response to anticipated need but well in advance of the establishment of firm operational requirements. COMPETITION. Controlled competition wherever possible — between technical approaches and developers - is a powerful management tool for maximizing Return on Investment. SELECTIVITY. We must be vigorously selective among competing solutions. In selecting programs, we must insure that: • Technical feasibility is used as a necessary but far from sufficient criterion for proceeding with a program. • Program progress is geared to demonstrated performance milestones rather than arbitrary schedules or contract constraints. We will support a strong Test and Evaluation program, at the component as well as systems level, to insure performance demonstration throughout development. • Unnecessary duplication of equipment designed for similar purposes is eliminated, • Inter-Service developments are used to reduce development, procurement, logistics and support costs. • Greater emphasis is placed on product improvement as a potentially effective alternative to a new development. PROGRAM MANAGEMENT. Improved program management is central to our future and should be recognized and rewarded. We will encourage the building of strong career-oriented technical/business management cadres and will delegate wherever feasible. ASSESSMENT OF NEEDS. Defense R&D goals should be determined by a combination of the potential contribution of the available new technology to specific military needs and the best possible calculated long-term costs. DESIGN-TO-COST. Design-to-Cost must be evolved as a fundamental and flexible approach to our programs — it can be a central management tool and communication channel between Department of Defense and industry. INDEPENDENT RESEARCH AND DEVELOPMENT. A strongly supported IR&D Program is essential. It must be well directed, mostly by industry, and the benefits must be clearly visible. Malabar Currie Malcolm R. Currie Director Defense Research & Engineering Hamon R. Ragartiris Norman, R. Augustine Assistant Secretary of the Army (Research & Development) 15 Potte D. S. Potter Whenken Robert N. Parker Principal Deputy Director WB Ba Walter B. La Berge Assistant Secretary of the Air Force |