Govini and The Defense Reformation

By
|
Supply Chain

There’s a near-constant call for reforming the system, resolving issues in government, and making processes better for all Americans. But one piece of the larger government pie has mostly been spared of efforts for largescale reform—defense.

That is changing. As Americans fund the world’s largest military budget and a massive network of employees, contractors, and companies, some defense industry leaders have united to call for an overhaul. Govini CEO Tara Murphy Dougherty joined a forum a few weeks ago to discuss  what Palantir’s Shyam Sankar has dubbed The Defense Reformation, laying out what is needed to ensure the American defense industrial base is the envy of the world. 

Here’s a couple of the highlights of Tara’s conversation with Shyam, Palantir’s Mike Gallagher, and Dr. William Greenwalt of the American Enterprise Institute. Watch the full panel here.

Connecting Factories to the Fight

For too long, DoD has looked at Acquisition in a vacuum—disconnected from the battlefield. The kill chain and the resources that power it are completely detached from the supply chains that produce and field those resources. Put another way, the factory is disconnected from the fight.

By decoupling supply and demand, we’re incapable of sufficiently restocking our warfighters in theater. But, as Tara explained, we have the data and technology to connect the supply chain to the kill chain. We’re working on this every single day at Govini.

Flipping the Incentives

Govini has sounded the alarm about inefficiencies in the DoD contracting process for years. At the forum, Tara put things more bluntly, calling cost-plus contracting “the papal indulgences of our system.” They allow entrenched interests to collect checks with no real pressure to innovate or compete. 

Firm-fixed-price models, on the other hand, lead to innovation by forcing contractors to deliver on time and on budget. The status quo is clearly not working. Tara argues that the Pentagon should embrace firm-fixed-price models to jumpstart production and innovation. 

There’s a near-constant call for reforming the system, resolving issues in government, and making processes better for all Americans. But one piece of the larger government pie has mostly been spared of efforts for largescale reform—defense.

That is changing. As Americans fund the world’s largest military budget and a massive network of employees, contractors, and companies, some defense industry leaders have united to call for an overhaul. Govini CEO Tara Murphy Dougherty joined a forum a few weeks ago to discuss  what Palantir’s Shyam Sankar has dubbed The Defense Reformation, laying out what is needed to ensure the American defense industrial base is the envy of the world. 

Here’s a couple of the highlights of Tara’s conversation with Shyam, Palantir’s Mike Gallagher, and Dr. William Greenwalt of the American Enterprise Institute. Watch the full panel here.

Connecting Factories to the Fight

For too long, DoD has looked at Acquisition in a vacuum—disconnected from the battlefield. The kill chain and the resources that power it are completely detached from the supply chains that produce and field those resources. Put another way, the factory is disconnected from the fight.

By decoupling supply and demand, we’re incapable of sufficiently restocking our warfighters in theater. But, as Tara explained, we have the data and technology to connect the supply chain to the kill chain. We’re working on this every single day at Govini.

Flipping the Incentives

Govini has sounded the alarm about inefficiencies in the DoD contracting process for years. At the forum, Tara put things more bluntly, calling cost-plus contracting “the papal indulgences of our system.” They allow entrenched interests to collect checks with no real pressure to innovate or compete. 

Firm-fixed-price models, on the other hand, lead to innovation by forcing contractors to deliver on time and on budget. The status quo is clearly not working. Tara argues that the Pentagon should embrace firm-fixed-price models to jumpstart production and innovation.