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Affordability memorandum increases demand for technologies that are ready now

By: mtornetta
I have been working for AGI for 10 years. Over the past decade, we took solace in the fact that the DoD budget was always growing at a pace that could sustain enough business for everyone. There seemed to be an endless amount of time to deliver on requirements, as well. In 2011 that is no longer a reality. Secretary Gates plans to save several billion dollars (78 billion according to this article) by spreading reform across the DoD budget and totally revamping the way they do business at the Pentagon. We are hearing that the Army is going to “buy less more often” and “do more without more.” Tightening the “budget belt” is sure to cause a ripple that will extend out to the contractors and other industry service providers. But what does all this affordability talk really mean? I think it means good news for AGI and other commercial companies. If we all play our cards right, the demand for our products and services will be stronger than ever. If you offer a relevant technology that can be procured and implemented for less money than what it would take to develop from scratch, you will be offering value at dollar one. Being “cheaper” is only part of the solution. The Pentagon is also going to want cutting-edge technology delivered on time. The days of going over budget on both funds and delivery are gone. The primes will be incentivized to build their proposals to reflect these new demands and again, this should open doors for the smaller guys to make a bigger splash than in the past Let me give you a quick example of what I am talking about. The way AGI packages our software today enables engineers and developers to acquire and deploy “chunks” of AGI code tailored to what their specific requirements are. Instead of proposing a solution based 100% on custom code, our customers can rapidly build a framework with our off-the-shelf software, allowing primes to focus on the competitive advantage that spawns from the brilliant people they employ. Oftentimes this is at a price point far less than the home-grown method, and it gets you to market faster, too. Suppose you want to create a mission visualization software application able to pass simple mission data, like aircraft waypoints, sensor fields of regard and context data such as “show me where the Sun is.” This visualization system would accurately portray this information for any desired time, support animation and let you view the situation from any perspective. So how much effort does that take to build? About 25,000 lines of code – we know, we’ve done it. Being very conservative, that translates to a development cost of about $2M. And want to hear something even scarier…if you augment that code and simply modify about 5% of it each year (no new stuff, just improving the existing stuff), it will conservatively cost you almost $100K/year. If you acquire those capabilities from AGI, it would cost you about $1,500/person or about $250K for a large program. Now that’s what I call affordability. Want to learn more? Check out our new efficiency web page and upcoming webinar.
Posted: 2/10/2011 2:46:02 PM