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Contracting processes and structures for systems‐of‐systems acquisition

Author

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  • Rene G. Rendon
  • Thomas V. Huynh
  • John S. Osmundson

Abstract

Acquisition of a system‐of‐systems can be an all new acquisition of multiple systems that are intended to operate together as a system‐of‐systems. Much more common in the U.S. Department of Defense (DoD) is acquisition of one or more new systems that are intended to interoperate with existing systems as a system of systems (SoS) with new capabilities. In either case, successful SoS acquisition necessarily depends on effective contracting structures and processes for SoS acquisition. In this paper, a set of issues that need to be addressed in SoS acquisition are identified, and the current findings discussed. The findings suggest maintaining an extensive systems engineering effort within the SoS acquisition and changes to the existing contracting processes, structures, and organizational structures to maximize the probability of SoS acquisition success. The resulting changes are recommended to current and future DoD SoS acquisitions. ©2012 Wiley Periodicals, Inc. Syst Eng 15

Suggested Citation

  • Rene G. Rendon & Thomas V. Huynh & John S. Osmundson, 2012. "Contracting processes and structures for systems‐of‐systems acquisition," Systems Engineering, John Wiley & Sons, vol. 15(4), pages 471-482, December.
    • Handle: RePEc:wly:syseng:v:15:y:2012:i:4:p:471-482
    DOI: 10.1002/sys.21214
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    References listed on IDEAS

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    1. Williamson, Oliver E., 1987. "Transaction cost economics : The comparative contracting perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 8(4), pages 617-625, December.
    2. Marco Furlotti, 2007. "There is more to contracts than incompleteness: a review and assessment of empirical research on inter-firm contract design," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(1), pages 61-99, March.
    3. Trautmann, Gerhard & Bals, Lydia & Hartmann, Evi, 2009. "Global sourcing in integrated network structures: The case of hybrid purchasing organizations," Journal of International Management, Elsevier, vol. 15(2), pages 194-208, June.
    4. M. Motiar Rahman & Mohan Kumaraswamy, 2002. "Joint risk management through transactionally efficient relational contracting," Construction Management and Economics, Taylor & Francis Journals, vol. 20(1), pages 45-54.
    5. Pin Chen & Jennie Clothier, 2003. "Advancing systems engineering for systems‐of‐systems challenges," Systems Engineering, John Wiley & Sons, vol. 6(3), pages 170-183.
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    Cited by:

    1. Nil Kilicay‐Ergin & Cihan Dagli, 2015. "Incentive‐Based Negotiation Model for System of Systems Acquisition," Systems Engineering, John Wiley & Sons, vol. 18(3), pages 310-321, May.

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