Army Reverse Engineering Pilot Program Savings Validation

Abstract

Abstract : The Army Materiel Command (AMC) has been assigned the responsibility to establish and monitor the Army reverse engineering program. AMC has implemented the reverse engineering program through selected AMC Major Subordinate Commands (MSCs). The basic AMC plan was (1) select the replenishment parts for reverse engineering, (2) contract out the reverse engineering task, (3) prepare a guidelines and procedures handbook, (4) use the reverse engineering technical data packages (TDPs) to make competitive reprocurements, and (5) have the Army Procurement Research Office (APRO) validate the cost savings estimates. The results of the Army's reverse engineering efforts have been documented in an Army Reverse Engineering Pilot Program (AREPP) Report that was submitted to the Department of Defense on 3 May 1988. Selected MSCs have identified replenishment parts, secured TDPs, and awarded reprocurement contracts. APRO and AMC estimates for reverse engineering costs, return on investment (ROI), instant savings, 5-year savings, and life cycle savings differ in magnitude only. APRO estimates are more consecutive, but the analysis has shown that savings were achieved from the Army's reverse engineering efforts. The savings achieved from the first procurements after TDPs were developed under the reverse engineering program were almost twice the cost of reverse engineering for those items. In addition the 5-year and life cycle savings estimates show that during the life of these items the savings may be anywhere from 3 to 9 times the cost of the reverse engineering efforts.