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Acquisition Research Program Newsletter

September 9, 2022       —       Issue 116

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Our top story this week brings the next chapter in the semiconductor supply chain saga: the Department of Commerce has prohibited U.S. companies from selling AI-enabling chips to China.

• This bold move follows the CHIPS Act passed in July. 

You're probably well aware of the really big acquisition news story this week: Fat Leonard, notorious for extensive fraud and corruption in Navy contracts, has escaped from home custody, weeks before he was scheduled to testify.

• Leonard's corruption scandal is notable for many things--not least how it brought the obscure business of acquisition to the attention of average Americans. 

In other acquisition news, we're thrilled to note that there is finally a nominee to lead Navy acquisition: Nick Guertin, currently Director, Operational Test and Evaluation--and long-time ARP research contributor.

• You may recall that last week's symposium video showcased Guertin as chair of the panel on machine learning. (If you missed it, head over to YouTube!) Congratulations to Nick and to the Navy on the smart choice!

As we advance toward the end of the fiscal year, details of the expected continuing resolution are being fleshed out.

• Both parties agree on funding through mid-December, but how much funding for contingencies like Ukraine aid and pandemic relief remain TBD. 

In ARP and NPS news, out latest symposium video brings research and insights on defense business processes--including some NPS faculty-student research on the effect of continuing resolutions. 

• We're also sharing a profile of current NPS student in the contract management curriculum, Master Sgt Kade Forrester, who is being recognized as one of the Air Force’s 12 Outstanding Airmen of the Year for 2022. 

Enjoy!

This Week's Top Story 

U.S. officials order Nvidia to halt sales of top AI chips to China
Stephen Nellis and Jane Lanhee Lee, Reuters

Chip designer Nvidia Corp (NVDA.O) said on Wednesday that U.S. officials told it to stop exporting two top computing chips for artificial intelligence work to China, a move that could cripple Chinese firms' ability to carry out advanced work like image recognition and hamper Nvidia's business in the country.

The announcement signals a major escalation of the U.S. crackdown on China's technological capabilities as tensions bubble over the fate of Taiwan, where chips for Nvidia and almost every other major chip firm are manufactured.

The U.S. Department of Commerce would not say what new criteria it has laid out for AI chips that can no longer be shipped to China but said it is reviewing its China-related policies and practices to "keep advanced technologies out of the wrong hands.

ARP and NPS News

Panel #24: Modernizing and Assessing Acquisition Business Processes

Chair: Lieutenant General Thomas H. Todd III, USA, Deputy Commanding General, Acquisition and Systems Management

Papers/panelists:

Leading Practices: Agency Acquisition Policies Could Better Implement Key Product Development Principles

• Erin Carson, Shelby Oakley, Christopher Durbin | Government Accountability Office

Business Models for Innovation in a MOSA Environment

• Gregory Sanders and Alexander Holderness, Center for Strategic and International Studies

An Assessment of the Impact of Federal Continuing Resolutions on the Pre-Approval Stage of Defense Acquisitions

• Spencer Brien, Naval Postgraduate School

Watch now.      Read the papers. 

NPS Foundation delivers collaborative national security research tool to the Naval Postgraduate School
NPS Foundation Press Release

The Naval Postgraduate School Foundation held a ceremony Sept. 6 symbolizing the transfer of Athena, a collaborative research tool, to the Naval Postgraduate School.  Athena empowers researchers, sponsors, and leaders across the Naval Education Enterprise to access and query information currently stored in numerous separate databases by use of keywords, topics of interest, service priorities and other filters. The application is built on Microsoft Azure and Microsoft Teams to assure security, enhance scalability, and deliver content across all devices. Read more. 

Outstanding Airmen of the Year: Master Sgt. Kade N. Forrester
Patrick Reardon, Air Force Magazine

Today, we honor Master Sgt. Kade N. Forrester, the infrastructure flight section chief for the 11th Contracting Squadron at Joint Base Anacostia-Bolling, D.C., one of the Air Force’s 12 Outstanding Airmen of the Year for 2022. Forrester’s acumen was exemplified when he launched a $111 million Simplified Acquisition Base Engineer Requirements (SABER) program. By finding creative solutions to source products and contractors, Forrester’s SABER plan slashed acquisition timelines by 70 percent on 24 highly visible projects and saved more than 1,000 labor hours across the wing. The plan was critical for getting the base to FOC by 2022. 

Forrester is currently on assignment at the Naval Postgraduate School pursuing a master’s degree in business administration and contracts and acquisitions. 

Work with us!

The Department of Defense Management (DDM) at the Naval Postgraduate School (NPS) seeks candidates for non-tenure track positions in defense acquisition management. Responsibilities include teaching graduate courses in program management, advising student theses and projects, conducting defense acquisition-related research, and managing course/curriculum development and administration.  Learn more. 

Acquisition and Innovation

Pentagon’s acquisition chief talks inflation, Ukraine, ‘Vampires’
Joe Gould, Defense News

Defense industry to launch inflation relief push in Congress
Joe Gould, Defense News

White House to Nominate DOT&E Head Nickolas Guertin as Navy Acquisition Chief
Sam LaGrone, USNI News

Space communications node offers DARPA model for rapid acquisition Courtney Albon, Defense News

GSA, CISA turning to AI tools, standards to help secure federal supply chains
Jason Miller, Federal News Network

NDIA Perspective: Energy Efficiency Is a Warfighting Imperative
Arun Seraphin, National Defense Magazine

‘Fat Leonard,’ set to finally be sentenced in long-running Navy bribery scheme, is on the lam
Kristina Davis and Greg Moran, The San Diego Union-Tribune

DOD to roll out new online marketplace to speedily buy AI-aligned tech
Brandi Vincent, Fedscoop

Procurement & the acquisition workforce (audio)
Tom Temin with Jeff Kozes, Federal News Network

Research

Coast Guard Cutter Procurement: Background and Issues for Congress
Congressional Research Service

Defense Primer: RDT&E
Congressional Research Service

The Congressional Budget Process Timeline
Congressional Research Service

Policy and Legislation

DoD Directive 3100.10:  Space Policy

Continuing Resolution Package
Office of Management and Budget

Defense and Federal Government

Pentagon suspends F-35 deliveries over Chinese alloy in magnet
Stephen Losey, Defense News

Naval research boss wants ‘experimentation czar’ powers
Megan Eckstein, Defense News

Dunford: American Innovation Is the Key to Deterring and Winning the Wars of the Future
Gen. Joseph F. Dunford, Jr. (Ret), Military.com

Franchetti sworn in as vice chief of naval operations
Geoff Ziezulewicz, Navy Times

US Army nominates new Futures Command chief
Jen Judson, Army Times

New DoD Space Policy avoids politically loaded language, echoes Obama-era
Theresa Hitchens, Breaking Defense 

Congress

Senate leans toward Dec. 16 stopgap funding bill
Aidan Quigley and Lindsey McPherson, Roll Call

Congress Quietly Debates New Sea-Based Nuclear Weapons amid China Tensions
Kevin Knodell, The Honolulu Star-Advertiser / Military.com

Michelle V. J. Johnson, PhD
Communications Manager, Contractor Support
Acquisition Research Program at Naval Postgraduate School
 e: michelle.johnson.ctr@nps.edu