1. CAMELOT Coordination Analysis Motivation Execution Logistics Tracking
The final topic covers some proposed changes to Acquisition Practices that can help to reduce Total Ownership Costs and improve cost effective Supportability. CAMELOT is a recommended process initiative to help manage and reduce costs in acquisitions. CAMELOT emphasizes changes to acquisition practices without changing the acquisition process. The CAMELOT concept supports better Coordination, Analysis, Motivation, Execution and Logistics Tracking in acquisitions. Additionally, some tools that already exist for potential use in the present acquisition process will be shown when discussing each portion of CAMELOT.

2. Why CAMELOT?
Most of the System TOC is not Considered During a Source Selection
TOC is Driven by Early-on Design & Logistics Decisions
Necessary Information to Make Best Value TOC Decisions is not Normally Obtained
TOC must be Managed to be Reduced
This chart explains the need for CAMELOT. Typically, the equipment’s Operating and Support (O&S) Cost portion of the Total Ownership Costs (TOC) are not considered during the source selection of end item procurements. Focusing on just the contract price causes a pay me now syndrome without considering the pay me later part in the acquisition decision. Total Ownership Costs are driven by early-on design and logistics support decisions. Therefore, analyzing the TOC impact of proposals or optimizing supportability before the concepts are frozen will achieve a significant total cost reduction payoff. Also, necessary information to make best value decisions is normally not obtained in our contracts. Without data, the knowledge needed for life cycle cost management is lacking. TOCs must be managed to be effectively reduced. This will make more money available to share for equipment improvements or modernization.

3. Coordination
Transition the Requirements & Key Performance Parameters from the Customer/User Representatives
Discuss TOC or Ao Modeling with Industry
Internally Discuss Contract Requirements & Government Controlled Inputs to Properly Evaluate TOC or Ao
The “C” in CAMELOT stands for Coordination. It is important to transition minimum essential requirements and KPPs from user representatives to industry early. This will help to promote vendor feedback to the requirements. Also, when Performance Based Logistics metrics like TOC or Operational Availability (Ao) are evaluated, it becomes necessary to discuss TOC or Ao modeling with industry during the solicitation development. Additionally, the Government needs to internally discuss the contract requirements and government controlled modeling inputs to furnish for proper evaluation.

4. BUSINESS OPPORTUNITY PAGES
COORDINATION TOOLS
BUSINESS OPPORTUNITY PAGES
COMMERCE BUSINESS
DAILY
DRAFT RFP
APBI
Potential Coordination tools already exist. Some of them include using the Business Opportunity Pages; Commerce Business Daily; a Draft Request For Proposal (RFP) or a Statement Of Objectives (SOO). Informing potential contractors through Advanced Planning Briefings to Industry (APBI) is another coordination tool. Using the Achieving a System Operational Availability Requirement (ASOAR) model during the requirements phase and using Integrated Concept Teams or Integrated Product Teams (ICT/IPT) on projects helps to improve the collaboration among various different communities.
ASOAR
SOO
ICT/IPT

5. Analysis
Utilization of the Right Analytical Tools Throughout the Acquisition Process
Contractors & Government will be Utilizing the Same Tools to Optimize to Availability or Determine the TOC Impact of Proposed Actions
The “A” in CAMELOT stands for Analysis. Analysis emphasizes the utilization of the right analytic tool(s) throughout the acquisition process to support TOC Reduction and readiness related decision making. Contractors and Government should be encouraged to utilize the same tools to estimate the TOC impact of proposed actions, optimize supportability and evaluate the TOC or Ao being proposed with a common baseline. This leads to a modernization success spiral where improvement suggestions can be proposed, measured and cause evaluation decisions to be fed back quickly by both parties.
PROPOSE
IMPROVE
MEASURE

6. CAMELOT Analysis Process TOC Modeling Portion
Contractor Inputs
Proposed
Negotiated
Improved
Actual
Evaluated Baseline
Revised Baseline
Proposed
Realized D D
Expected
This chart summarizes how the LCC estimates evolve over time. In the beginning, TOC are proposed with data estimates. As the contract is being finalized, the negotiated TOC can be based on the bidder’s proposal, but it may be based on what was evaluated or required depending on terms of the contract. The resulting negotiated baseline may be revised if the Government has better data on factors that the Government controls or the contractor is paid an initiative for reducing TOC portion within their control. Finally, actual data from testing or usage in the field becomes the basis for determining the realized TOC.
The intent of the CAMELOT process is to have some incentive in the contract for contractor performance that yields projected TOC savings. During production, there may also be some form of compensation in the contract if contractor performance significantly increases TOC. TOC savings is measured as the Realized TOC minus the Previous TOC Baseline.
Expected
Expected
Actual
Government Inputs
Proposed Savings
Realized Savings/Costs

7. ANALYTICAL TOOLS ACE-IT COMPASS SESAME CWARM LCET SW COST MODELS
Some potential Analytical Tools that exist are shown on this slide. SESAME, COMPASS, ACEIT and LCET tools were already discussed in the course. The CECOM Warranty Model (CWARM) is used to determine if the warranty proposed is cost effective relative to the no warranty option. Software Cost Estimating models promote better software development cost estimates and tailored EXCEL Spreadsheets help to capture the most important cost estimates desired to be analyzed.
The Quantity Discount Economic Order Quantity (EOQ) Pricing Evaluation model uses bidder proposed range and quantity prices to determine the likely buy quantities of items over the length of a re-procurement contract being solicited competitively. This helps to quickly and accurately assess the likely purchase costs for range and quantity buys during the source selection.
QUANTITY
DISCOUNT EOQ
TAILORED
EXCEL SPREADSHEETS

8. Motivation
Contractor’s TOC Evaluated in Source Selection to Stimulate TOC Competition
TOC Management Techniques Proposed & Evaluated in Source Selection
Establishing a Shared Data Environment
Managing TOC Reduction
Contractors Share in the Benefits Associated with their TOC Reduction Efforts by Incentives
The “M” in CAMELOT stands for Motivation. TOC evaluation in source selection stimulates TOC competition. TOC management techniques should also be proposed and evaluated in source selection when feasible. Additionally, the Government would like to know how the bidder proposes to establish a shared data environment and how they plan to manage TOC reduction while still in a competitive environment. Another form of motivation would permit incentives for contractors to share in the benefits associated with their TOC reduction efforts.

9. MOTIVATION TOOLS PERFORMANCE INCENTIVES SHARED SAVINGS COMPETITION
AWARD FEES
Some potential Motivation Tools that exist are shown on this slide. Performance incentives, shared savings and using a Value Engineering program on contracts are quantitatively evaluated incentives. Award Fees associated with TOC Reduction is a qualitatively judged incentive. Competition is the ultimate motivator and evaluating TOC in the Source Selections while still in competition can help to reduce total costs.
SOURCE SELECTION
TOC IN
VALUE ENGINEERING
PROGRAM

10. Execution
TOC Baseline Factors are Determined Through Negotiations Prior to Award
Verification Procedures are Developed with Industry
Remedies to the Government are Clear & Corrective in Nature
Contractor Performance Fed into Performance History Database for Future PRAG
The “E” in CAMELOT stands for Execution of program. If there is a TOC baseline to measure against, the TOC baseline metrics are determined through negotiations prior to award. Verification procedures are developed with industry regarding the TOC factors that they control. Remedies to the Government are clear and corrective in nature when the contractor is to be held to what they negotiate. Another way to hold the contractor responsible is to have their performance fed back into a performance history database for the Performance Risk Assessment Group (PRAG) evaluation in future Source Selections.

11. EXECUTION TOOLS FIXED PRICE CONTRACTS LONG TERM WARRANTIES CONTRACT
BASELINES
PRAG
INPUT
Some potential Execution Tools that exist are shown on this slide. Most of these tools provide an incentive to do well or some form of penalty when performance is not acceptable. The use of Fixed Price Contracts and Long Term Warranties are commonly applied tools. Measuring against a contract TOC baseline or reliability requirement provides the impetus to cancel future options or have corrective actions performed or remedies offered. Using a TOC Reduction Management Program focuses on the formal execution of management to reduce Life Cycle Costs.
TOC REDUCTION
MANAGEMENT PROGRAM

12. LOgistics Tracking
Contractor Maintains Data in Their Own Format Covering All TOC Factors Within Their Control & Responsibility
Update of TOC Estimates Based on Field Returns or Proposed Improvements
Shared Data Environment Between Government & Contractor
The “LOT” in CAMELOT stands for Logistics Tracking. For Logistics Tracking, the contractor should be able to maintain data in their own format, which covers all the TOC factors within their control and responsibility. The logistics tracking would be used to update TOC estimates based on field returns or proposed improvements. A shared data environment between the government and contactor can provide the information needed for updating TOC baselines based on the latest data.

13. LOGISTICS TRACKING TOOLS
CONTRACTOR MGMT
INFO PRACTICES
SHARED DATA
ENVIRONMENT
GOVERNMENT
DATABASES
VIRTUAL
TRACKING
Some potential Logistics Tracking tools are shown on this slide. Making use of Contractor Management Information, Government Databases and a Shared Data Environment helps to provide the data needed to track and measure TOC or TOC drivers. Virtual tracking will help to further promote teaming to promote TOC reduction improvements. System logs in the field can also help to establish usage rate information. Use of a Failure Reporting and Corrective Action System (FRACAS) helps to collect all the information needed to track and correct deficiencies, which is good tool if the power and commitment to allocate resources to fix problems exists.
SYSTEM LOGS
FRACAS

14. CAMELOT Changes to Current Acquisition Practices
Analyze System Reliability and Availability Requirements within Government
Use Govt Ao Driven LCC Models for Best Value Decisions & Encourage Industry to Use Them
Use TOC or Ao as an Evaluation Factor in Source Selection
Provide Incentives to Industry for TOC Reduction
Hold Industry Accountable for Delivering What It Promises
Establish a Shared Data Environment
This chart summarizes how current acquisition practices should change to make supportability a co-equal to cost, schedule and performance. First, system reliability and operational availability (Ao) requirements or goals should be analyzed and established together with the requirements community to help support a Performance Based Logistics (PBL) approach to product support in acquisitions. For LCC analysis, the Government should plan to provide their supportability optimization and LCC estimating models to industry because their use provides a common baseline for making best value decisions, reduces TOC and improves teaming across different communities. Use of TOC or Ao as an evaluation factor in Source Selections should be pursued so that these top level PBL factors are considered in acquisitions and competitively priced. In addition to competition, the Government can consider contract incentives for reducing TOC and employing concepts for holding industry accountable for delivering what it promises. Finally, establishing a shared data environment between the contractor and Government is important for analyzing and managing TOC reduction because both institutions contribute to factors that drive the equipment’s LCC and readiness.