George Mason University Publishes New Report on The Value of The Consortia Model to the Defense Acquisition Ecosystem

Key findings: The Consortia Model promotes innovation, expands the industrial base, and accelerates acquisition

FAIRFAX, Va., July 20, 2022 /PRNewswire/ -- The George Mason University Center for Government Contracting today released a new research report examining the value of the consortia model to the Department of Defense (DoD) acquisition process.

Key findings from the report include: the consortia model enhances communication between government and industry via dedicated collaboration events; the consortia model expands the defense industrial base as nontraditional defense contractors make up 77% of the membership for the 12 consortia surveyed and serve as the lead contractor on nearly 70% of awards through those consortia; and in certain circumstances, the consortia model can significantly speed up acquisition timeliness and free up the DoD acquisition workforce to perform other critical tasks.

The report – "The Power of Many: Leveraging Consortia to Promote Innovation, Expand the Defense Industrial Base, and Accelerate Acquisition"– is co-authored by George Mason University Center for Government Contracting Senior Fellow Stephanie Halcrow, and Moshe Schwartz, President of Etherton & Associates. 

"The data paints a clear picture that the consortia model plays a vital and growing role in the defense innovation ecosystem," said report co-author Stephanie Halcrow. "Most significantly, consortia create a space for government-industry collaboration and bring the value of nontraditional contractors and small businesses to the table. Going forward, we see the role of consortia only increasing as the need for innovation and expanding the industrial base continues to be critical for the security of the nation and our warfighters." 

Building on previous research into Other Transaction Agreements (OTAs), the report includes the participation of 12 distinct DoD consortia which provided data and case studies to researchers. Based on the research, interviews, and data analysis, the authors found the consortia model supports government acquisition efforts by:

• Promoting government-industry-academia communication, 
• Facilitating industry partnerships and collaboration, 
• Providing critical surge capacity to government acquisition, 
• Offering a ready, pre-established network of potential suppliers who have expertise in specific areas, 
• Helping government program offices that do not have the requisite skill and experience in executing OTs, and 
• Supporting the expansion of the defense innovation base by bringing nontraditional defense contractors and small businesses into that base.

Additionally, the report emphasizes support for transparency and oversight in order to safeguard the interests of taxpayers and government, but cautions against onerous legislation and regulations that have the potential to undermine the consortia model and OTs. 

To strike the right balance, the authors provide seven specific recommendations to improve the consortia model going forward: improve visibility and transparency; enhance training and develop best practices; focus on transitioning technology to production; avoid additional regulatory burdens; preserve the definition of Nontraditional Defense Contractor; promote collaboration and innovation through flexibility; and expand the use of Other Transaction Authorities.

"The consortia model is an important tool in the acquisition toolbox that provides meaningful benefits to both government and industry," said report co-author Moshe Schwartz, "It is important that the government acquisition workforce understand when and how to use and manage consortia effectively. This report indicates that when done right, consortia expand the industrial base, promote collaboration, and more efficiently deliver the innovative technologies our armed forces require to maintain their edge." 

Moshe Schwartz is President of Etherton & Associates. He served as Executive Director of the congressionally mandated Advisory Panel on Streamlining and Codifying Acquisition Regulations and spent 15 years providing analysis and legislative support to Congress on acquisition policy and industrial base issues, including at CRS and GAO. He has testified before Congress and written extensively on a wide range of acquisition and industrial base issues. He has also served as senior advisor to the Commission on Wartime Contracting in Iraq and Afghanistan, advisor at ISAF headquarters in Afghanistan, and taught at both Carnegie Mellon University' Heinz School of Public Policy and National Defense University's Eisenhower School for National Security and Resource Strategy.

Stephanie Halcrow, Senior Fellow at George Mason University's Center for Government Contracting is also President of The Halcrow Group. She most recently served as a Professional Staff Member on the House Armed Services Committee (HASC) where she led the efforts to develop, position, and implement the HASC Ranking Member's acquisition reform strategies into tangible legislative solutions, garnering bipartisan and bicameral support as well as soliciting industry and federal government input. Stephanie is deep-rooted in the academic and public policy community and currently serves as a Senior Fellow for Defense Industrial Base Health and Resiliency with the National Defense Industrial Association and as an external advisor to the Department of Defense's Acquisition Innovation Research Center.

The Center for Government Contracting is the first-in-the-nation university center to address the business, policy, and regulatory issues in government contracting.The School of Business at George Mason University is uniquely positioned to lead this effort by virtue of the composition of our faculty and students, as well as our geographic co-location with the federal government and many headquarters and major facilities of companies that make up the $500 billion government contracting industry. Activities to implement the Center's vision focus on three lines of effort: Research; Education and Training; and Collaboration. To learn more visit:

https://business.gmu.edu/centers/center-government-contracting/center-government-contracting-research

Contact: Stephanie Halcrow, [email protected]

SOURCE George Mason University Center for Government Contracting