Business Model Wargame II Recap
In partnership with the Additive Manufacturing for Maintenance Activities (AMMO) Working Group and the America Makes Maintenance and Sustainment Advisory Group, the Business Model Wargame II was successfully held on 16 – 17 May at the Lockheed Martin Global Vision Center in Crystal City, VA. Over 100 people attended the event, which included individuals from academia, industry, government, and non-profit organizations. The event was well received by all and deemed a success by the event coordinators.
The Wargame II is a follow-up to the Business Model Wargame that was held at the Lockheed Martin Center for Innovation in April 2016. The purpose of the wargame was to address four business model aspects of additive manufacturing (AM) for sustainment and production and develop the groundwork for future life cycle considerations involving AM capabilities. The Wargame II created a simulation that addressed the AM ecosystem to include partnering, intellectual property, data rights, contract administration, business risks, legal concerns, and liability.
Scenario
The Department of Defense (DoD) issued a request for proposal (RFP) to develop and acquire a reconnaissance light-weight (RLW) drone capable of being deployed by a 2-person team in austere environments. The timeline defined by DoD is aggressive. DoD requires the awardee to produce a prototype within 6 months and the first production unit within a year after contract award (ACA).
Most of the performance capabilities required by DoD can be performed by commercially available systems. However, some of the reconnaissance features will have to be developed jointly by the Government/Industry team while other capabilities will be provided by the Government team, which cannot share the base technology with the drone manufacturer.
Acme Inc., an original equipment manufacturer (OEM), has been awarded a contract to design, develop, and manufacture 1,000 units. Commercial Logistics Support (CLS) from Acme may be negotiated.
Business Models and Teams
#1 Team Buy-out: Traditional government acquisition
Co-Leads: Tom Naguy (Air Force) and Hannah DuMey (Boeing)
#1A – Gov’t purchases 1000 LWR drones and unlimited data rights from Acme.
#1B – Gov’t purchases 1000 LWR drones and government purpose data rights.
#2 Team Loaner: Lease 1000 LWR drones from Acme
Co-Leads: Lt Col Howie Marotto (USMC) and Teresa Clement (Raytheon)
Government completes all integration of reconnaissance capabilities.
Acme provides government purpose data rights to commercial IP.
Government organically sustains LWR drone through life.
#3 Team CLS: Government purchases 1000 LWR drones
Co-Leads: Sam Cooper (Army) and Bill Harris (Lockheed Martin)
Government / Acme work together to integrate reconnaissance capabilities.
Acme provides commercial logistics support for drone thru life.
#4 Team Net-Flix: Government purchases 1000 LWR drones from Acme
Co-Leads: CAPT Armen Kurdian (Navy) and Jim Regenor (Moog)
Government and Acme setup Netflix type of arrangement on “pay as you go” IP arrangement.
Government organically sustains LWR drone through life.
The Wargame II was conducted over two days with a series of five moves. Each move had a deliverable. Move 1 – Compliance Matrix, Move – 2 Technical Approach, Schedule, Statement of Work, Technical Data Package, Acquisition Strategy, Life Cycle Sustainment Plan, Move – 3 Business Model Canvas, Move 4 – Contract and Move 5 – Out-brief presentation. Each of the teams produced outstanding documentation that will be used to guide DoD when transitioning AM technologies within the maintenance and sustainment communities.
A business model study report will be published that captures alternatives, criteria for use, templates, guidance for execution, and recommendations for policy updates.