The Army's Program Executive Officer (PEO) Concept Who is in Charge?

In May 1987, the Army implemented a new materiel acquisition management system. It is one of partnership of responsibility between the Program Executive Officer (PEO)/Program Manager (PM) and the supporting organizations of the U.S. Army Materiel Command (AMC). However, the PEO/PM element reports to the Army Acquisition Executive (AAE) within the office of the Secretary of the Army and the AMC reports to the Army Chief of Staff. The PEO and PM accomplish their mission through the use of functional personnel supplied by AMC units. This parallel chain of command causes the acquisition system to be based, in large part on personalities and attitudes of mutual cooperation by those involved instead of organization process. This study will review the legislative and administrative developments that led to the formation of the PEO concept. It will then examine the resulting PEO management system structure and responsibilities, and assess its effectiveness at the point where daily program execution occurs -- PEO, PM and Functional Support Manager (FM) levels. Finally, it will draw conclusions which identify major areas needing improvement and recommends a course of action that should improve the Army's acquisition management.