COTS vs. Custom: DoD Software Strategies in Action

By James “Hoss” Cartwright, 8th Vice Chair Joint Chiefs of Staff
Jags Kandasamy, Co-founder & CEO Latent AI. Non-Resident Distinguished Fellow at GNSI, USF Tampa

Introduction

The DoD’s software backbone powers everything from payroll to predator drones. But while commercial off-the-shelf (COTS) solutions keep the lights on, the custom-built, COTS-enabled systems keep warfighters ahead of the enemy.

The Department of Defense (DoD) relies heavily on Software to support its vast and complex operations. This Software can be broadly categorized into two distinct types: Enterprise Software and Operational Software. While Enterprise Software ensures the smooth functioning of the Department’s administrative and logistical functions, Operational Software provides our warfighters with the critical tools and capabilities needed to maintain a tactical edge in various adversarial situations. This white paper outlines the strategic approach for procuring and utilizing these software systems, emphasizing the need for flexibility and rapid adaptability in operational environments.

Categories of DoD Software Utilization

Enterprise Software

Enterprise Software encompasses the array of software systems that support the day-to-day administrative and management functions within the DoD. These systems are crucial for maintaining the efficiency and effectiveness of the Department’s operations. Examples include human resource management systems, financial management software, and supply chain management applications.

Operational Software

On the other hand, Operational Software is designed to directly support a range of military operations (ROMO) and provide a tactical advantage on the battlefield. This Software includes mission planning tools, communication systems, re-supply effectiveness, and various applications that enhance warfighters’ situational awareness and decision-making capabilities.

Acquisition Strategies

Commercial Off-The-Shelf (COTS) for Enterprise Software

The DoD should focus on procuring Commercial Off-The-Shelf (COTS) products for Enterprise Software. These COTS products can be complete end-to-end solutions or components of a solution. These products are pre-built, widely available, and can be configured and/or integrated with other Software to meet the specific needs of different directorates and components within the DoD. The benefits of using COTS products include reduced development time, cost savings, and the ability to leverage existing, proven technologies. The commercial industry has successfully configured and integrated software products that can be easily mimicked within the Department.

Custom Solutions for Operational Software using COTS Tools

Operational Software requires a different approach. Given ROMO’s dynamic and often unpredictable nature, the Department must adopt a strategy that allows for rapidly developing and deploying custom software solutions. These solutions must be reliable and resilient to meet the diverse operating conditions. They must also be scalable and adaptable to the battlefield’s changing conditions and updated swiftly to address emerging threats and opportunities.

Standardizing COTS Tools for Custom Software Development

Imagine a toolkit where engineers can grab validated COTS components—think TensorFlow for AI or ROS for robotics—and spin up a mine-detecting SONAR model in days. That’s the power of standardized COTS architectures.

These tools should enable developers to update and deploy Software and adapt to operational timelines, not acquisition timelines. Both open-source and closed-source vendor software tools have proven their practical applicability in creating applications for various use cases in the commercial world. The DoD’s new game plan? Pre-built COTS architectures—think plug-and-play blueprints—for everything from AI to comms, letting engineers hit the ground running.

The reference architectures should provide optionality in validated tools for each function. The architectures should be published and reviewed periodically to identify new and innovative tools. These architectures should enable rapid test and evaluation of software components for immediate utilization. The Department should draft software deployment policies for both peacetime and wartime scenarios

Case Study: Travel & Expense Management

Every enterprise, whether large or small, utilizes travel and expense management tools to facilitate timely travel planning and reporting for its workforce. A specific category of companies is dedicated to providing these tools for the commercial industry. These companies prioritize enhancing user experience and demonstrating the cost-effectiveness of their tools. In this case study, we explore the customization of an industry-standard tool to align with the Department’s travel policy. By integrating this tool with financial and HR systems, the Department can create a user-friendly, state-of-the-art system continuously developed and maintained by industry leaders competing through innovation.

Case Study: AI Models in Operational Environments

Artificial Intelligence (AI) models are a prime example of the need for rapid adaptability in Operational Software. AI models deployed in the field must be regularly updated to reflect the latest intelligence and operational requirements. Standardized AI development and deployment tools allow the DoD to quickly integrate updates from any vendor’s model, ensuring that warfighters can access the most current and practical capabilities.

Project AMMO, launched as a collaborative effort between DIU, NIWC-P, and NAVWAR, is a fielded proof of the COTS tools-led software acquisition process. The project team built a reference architecture and tool ecosystem with five vendors and provided that to contractors building SONAR-based models for mine detection. This process helped reduce the fielding time of this capability by 97%. It allowed the warfighters to update models while underway in a few days compared to 6+ months using the previous process.

Case Study: New Intel and Multi-Domain Awareness

Ukraine continues offering many opportunities to test modern military strategies and tactics. When Russia rolled its armored columns into Ukraine in February 2022, the symbol ‘Z’ was painted on all Russian vehicles. This new intelligence can be leveraged for a tactical advantage.

Processing and distributing this intelligence to assets across various domains is crucial and time-critical. Warfighters must be able to ingest new data, build models, perform analytics, and create decision matrices in operations. This capability is made possible only through a tools-driven software development approach, enabling our warfighters to rapidly update the Software to adapt to dynamic conditions. The ability to instantly identify enemy formations using ‘Z’ sign detection models on UAVs and from geo-spatial imagery provides the commanders with an additional vector to confirm targets and perform necessary operational adjustments.

Conclusion

The Department of Defense must adopt a dual approach to software procurement and utilization, leveraging COTS products for Enterprise Software and focusing on custom, rapidly updatable solutions for Operational Software. By standardizing tools that enable quick updates and deployment, the DoD can ensure that its software systems provide the necessary support and tactical advantage to our warfighters, keeping them safe and effective in a rapidly changing battlefield environment. COTS isn’t just a buzzword—it’s your edge. Start with the tools in your kit and build something the warfighter can’t live without.

Recommendations

1.   Adopt COTS Products for Enterprise Software: To reduce costs and improve efficiency, utilize readily available commercial solutions for administrative functions.

2.   Use COTS Tools to build custom solutions for Operational Software: Focus on creating adaptable and quickly deployable Software to meet the dynamic needs of military operations.

3.   Standardize COTS Development Tools: Implement a set of standardized tools that allow for the rapid development, deployment, and updating of Operational Software, including AI models.

4.   Streamline Procurement Processes: Reform acquisition processes to support rapidly acquiring and deploying necessary software products and tools.

By following these recommendations, the Department of Defense can enhance its software utilization strategy, ensuring that Enterprise and Operational Software systems are optimized to support the mission and protect our warfighters.