Number: RS22631
Title: Defense Acquisition: Use of Lead System Integrators (LSIs) - Background, Oversight Issues, and Options for Congress
Authors: Valerie Bailey Grasso, Foreign Affairs, Defense, and Trade Division 
Abstract: Some in Congress have expressed concern about the government's use of privatesector lead system integrators (LSIs) for executing large, complex, defense-related acquisition programs. LSIs are large, prime contractors hired to manage such programs. Supporters of the LSI concept argue that it is needed to execute such complex acquisition efforts, and can promote better technical oversight and innovation. Two LSImanaged programs - the U.S. Army's Future Combat System (FCS) and the U.S. Coast Guard's Deepwater program - have been strongly criticized by some observers because of cost and schedule overruns, and the potential for possible conflicts of interest. The Duncan Hunter National Defense Authorization Act for 2009 (P.L. 110-417) includes a provision that clarifies the status of the LSI function for the U.S. Army's FCS Program. On September 27, 2008, the House passed H.R. 6999, the Integrated Deepwater Program Reform Act of 2008, and referred the measure to the Senate. The bill would prohibit the Coast Guard from using a private sector entity as the LSI for Deepwater beginning 180 days after bill enactment.
Pages: 6
Date: October 22, 2008