ART - KEEPING PACE: ORGANIZATIONAL BARRIERS TO COMMERCIAL PRODUCT USE IN DOD 2004

The document is a case study that compares two Earth-orbiting satellite ground control systems, referred to as GAMMA and DELTA. The study aims to understand why commercial-off-the-shelf (COTS) products are not used more often when they provide optimal performance at lower costs. The study involves qualitative, inductive research methods and includes data from two ground control stations, interviews with personnel involved in the acquisition and operations of the systems, and document review and analysis. The document provides background information on the legacy system that was being shut down and the suggestion to replace it with a system built using COTS products. The GAMMA system, which was built using exclusively COTS products and a streamlined management philosophy, was operational within six months, while the DELTA system, built with only a few COTS products and traditional management methodologies, took 32 months to become operational. The study identifies three major empirical themes as the most compelling organizational barriers to COTS use: misaligned reward systems, entrenched networks, and historical precedent. The success of the GAMMA project is attributed to information sharing, a true partnership between the government and contractor teams, and the optimization of commercial products for their use. The document also highlights the financial aspect of using COTS products. It mentions that for traditional systems, contractors receive an award fee (profit) of 10-15% of the costs. However, for COTS systems, the Cost Plus Award Fee (CPAF) approach is used, which allows for more flexibility in cost management. Overall, the document emphasizes the benefits and challenges of using COTS products in government procurement and highlights the importance of appropriate management and organizational factors in successful implementation.