In alignment with PEO’s mission to “accelerate delivery of required capability that is affordable, integrated and interoperable,” over the past ten years, PEO C4I & Space Systems has produced $1.1B in total financial benefits.
The financial benefits come in the form of both time and money; all dollars saved by the PEO are reinvested directly into organization programs that deliver C4I and space system capabilities to enable a more networked and agile fleet.
Since fiscal year 2019, PEO C4I and Space Systems has achieved over $240 million in financial benefits. They have done so by completing 76 continuous process improvement (CPI) should cost initiatives across the program offices in the command. Total financial benefits have consistently exceeded targets that are established by the command’s leadership.
“We’re focused on being good stewards of tax payer dollars and finding innovative ways to deliver our capability affordably,” said John Pope, acting PEO C4I and Space Systems. “The command is focused on empowering the mindset that every dollar matters and that we must be metrics-driven in making decisions. Our programs are finding creative ways, at all levels, to spend less in certain areas so they can achieve more in others and they are far exceeding our initial expectations.”
Fiscal year 2019 achieved a total of $152 million against a set goal of $76 million. Tactical Networks Program Office, PMW 160’s Consolidated Afloat Networks and Enterprise Solutions (CANES) program alone saved $10.3 million in installation costs through increased labor efficiency. Fiscal Year 2020 has, so far, realized $82.1 million of financial benefits, already surpassing its target of $78.4 million. PMW 130’s Navy Crypto program recently achieved $68.8 million in saved costs through analysis and subsequent renegotiation of external mandates.
The PEO C4I and Space Systems cost savings are achieved year-after-year through widely shared programmatic best practices. In fiscal year 2019 PEO C4I’s program offices produced $153.5M in financial benefits, utilizing a wide variety of cost savings techniques. These techniques stemmed from creative ideas by program managers, looking for strategic ways to get more capability for their budgets. Several great examples of the these techniques include pursuing waivers from external mandates, competitive and collaborative procurements, efficient utilization of government labor, contract re-negotiation, equipment consolidation and re-use, analysis of alternatives, bulk procurements, analyses of logistics support, and installation and modernization efficiencies.
“Continuous Process Improvement is ingrained in the way we do business at PEO C4I and Space Systems. We are very fortunate to have program managers who are innovative and take advantage of cost saving opportunities by sharing best practices,” said Scott Gegenworth, PEO C4I and Space Systems’ Director of CPI. “We also have been helping other PEOs establish enterprise metrics and create a CPI and should cost culture based on our ten years of experience.”
PEO C4I and Space Systems continues to reap the benefits of its mature CPI and should cost management program and will continue to do so, even during these challenging times.