Ref.: New Acquisition Policy by DAU, 20 May 2003, PMT-352 Review of DoDs New Acquisition Policy and its Impact on Programs and Systems Engineering by Al

Ref.: New Acquisition Policy by DAU, 20 May 2003, PMT-352

Review of DoD’s New AcquisitionPolicy and its Impact on Programs and Systems Engineering

by Al BrunsINCOSE Gateway ChapterWednesday, 30 July 2003

•DoD Directive 5000.1Principles retained; innovation/flexibility

emphasized

•DoD Instruction 5000.2Focused on required outcomes and statutory

requirements and less on regulatory requirements

•DoD Regulation 5000.2-R- Cancelled; becomes “guide” not a regulation

- Provides expectations (TEMP, C4ISP, etc..), best practices and lessons learned

New Acquisition PolicyNew Acquisition PolicyConstructConstruct

New Acquisition PolicyNew Acquisition PolicyConstructConstruct

IOCBAConcept

RefinementSystem Development

& DemonstrationProduction &Deployment

Systems Acquisition

Operations &Support

C

Sustainment

• Process entry at Milestones A, B, or C

• Entrance criteria met before entering phase

• Evolutionary Acquisition or Single Step to Full Capability

FRP DecisionReview

FOC

LRIP/IOT&EDesign

ReadinessReview

TechnologyDevelopment

(ProgramInitiation)

ConceptDecision

New

Pre-Systems Acquisition

Increment IIIncrement II

Increment IIIIncrement III

Technology Opportunities & User Needs

The Defense Acquisition Management The Defense Acquisition Management FrameworkFramework

DoDI 5000.2, May 2003DoDI 5000.2, May 2003


DoDI 5000.2, May 2003DoDI 5000.2, May 2003

Common element is CAPABILITIES • Initial Capabilities Document (ICD) replaces MNS at Milestone A

Describes desired capability. Evaluates multiple materiel approaches. Recommends a materiel approach.

• Capability Development Document (CDD) replaces ORD at Milestone B

Describes the SDD effort and provides KPPs for the increment. Describes program to get to complete solution.

• Capability Production Document (CPD) replaces ORD at Milestone C

Describes the SDD effort to produce materiel solution for the increment and provides KPPs for the production increment.

Details will be implemented by CJCSI 3170.01C & CJCSM 3170.01

New Requirements Documents New Requirements Documents New Requirements Documents New Requirements Documents

Technology Development StrategyTechnology Development Strategy

• Required ACAT I and IA programs. Based on AoA results

• Contents:- Rational for EA or single-step strategy

- For EA, description of how program will be divided into technology spirals & development increments

- Appropriate limits on prototypes produced and deployed during the TD Phase

- Performance Goals and Exit Criteria to be met prior to proceeding into SDD and producing additional prototypes

- Overall cost, schedule and performance goals for the total R&D effort

- Specific cost, schedule and performance goals and exit criteria for the first technology spiral demonstration, and a test plan to ensure that they are met.

New/Revised from previous 5000.2:

DoD Instruction 5000.2DoD Instruction 5000.2 Operation of the Defense Acquisition SystemOperation of the Defense Acquisition System


• “Concept Decision” - new decision point prior to Milestone A

• Analysis of materiel approaches done prior to Concept Decision, and documented in Initial Capabilities Document (ICD). MNS is eliminated.

• New phase prior to Milestone A, “Concept Refinement”

• Analysis of Alternatives (AoA) due at Milestone A vice program initiation (Milestone B). Used to refine the initial concept and provide basis for the Technology Development Strategy.

Oversight & ReviewOversight & ReviewACAT ID/IAM Programs*ACAT ID/IAM Programs*Oversight & ReviewOversight & Review

ACAT ID/IAM Programs*ACAT ID/IAM Programs*

Defense AcquisitionBoard

Defense AcquisitionBoard

C3I OverarchingIntegrated Product

Team (OIPT)

C3I OverarchingIntegrated Product

Team (OIPT)

C3ISR Systems

OverarchingIntegrated Product

Teams (OIPT)

OverarchingIntegrated Product

Teams (OIPT)

Weapon Systems

Director, Defense Systems

OUSD(AT&L)

Defense AcquisitionExecutive

Chief Information

Officer

IT AcquisitionBoard

IT AcquisitionBoard

Major AIS

*Note: Space Programs have been delegated to the Air Force and most missile defense programs to the Missile Defense Agency

The acquisition responsibilities of USD(Intel) vs. ASD(NI2)/DoD CIO are a work in process.

RGS JCIDS

Integrated atDepartment

Systems

Requirements

Bottom Up, Often Stovepiped

National Military Strategy

JointVision

Joint Concept of Operations

Joint ConceptsIntegrated Architectures

Joint Capabilities

Top Down, Born Joint

Transformation to the Joint CapabilitiesTransformation to the Joint CapabilitiesIntegration and Development SystemIntegration and Development System

Increment 2

Increment 3

Evolutionary AcquisitionEvolutionary Acquisition

• Urgency of Requirement

• Maturity of Key Technologies

• Interoperability, Supportability, and Affordability of Alternative Acquisition Approaches

• Cost/Benefit of Evolutionary vs. Single Step Approach

Key ConsiderationsKey Considerations

Single Step to Single Step to Full Capability ?Full Capability ?

OROR

• Two development processes to implement Evolutionary Acquisition Strategy- Incremental Development: End-state requirement is

known, and requirement will be met over time in several increments

- Spiral Development: Desired capability is identified, but end-state requirements are not known at Program Initiation. Requirements for future increments dependent upon technology maturation and user feedback from initial increments

• Evolutionary acquisition strategies shall be preferred approach to satisfying operational needs.

• Spiral development shall be the preferred process.

Evolutionary Acquisition



Evolutionary Acquisition –Evolutionary Acquisition –Incremental & Spiral DevelopmentIncremental & Spiral DevelopmentEvolutionary Acquisition –Evolutionary Acquisition –

Incremental & Spiral DevelopmentIncremental & Spiral Development

Time

- Incremental

- Spiral

Warfighter Capability

Known increment

Known increment

Known increment

Known increment

Partially known

increment

Not known increment

Not known increment

==

First Fielded Capability

Technology Demos

Feedback from warfighter

Time

Cap

abil

ity

Evolutionary Acquisition

Initial O

perationally

Useful Capability

Technology BaseRequirements

Capability

Time

NO CAPABILITY

Cap

abil

ity

Single Step ApproachTechnology Base

Requirements

CapabilityFOCIOC

Evolutionary ApproachEvolutionary Approach

• Time-Phased Requirements

• A Modular Open Systems Approach to facilitate Technology Insertion

• Evolutionary Sustainment Strategies

• T&E Consistent with Evolutionary Approach

• Full Funding

Key EnablersKey Enablers

CR TD SDD PD OS

B CA

B C

Increment 2

B C

Increment 3

Each Increment Must Have…Each Increment Must Have…

• Approved Operational Requirements • Interoperability Key Performance Parameter

• Performance, Cost and Schedule Goals (Acquisition Program Baseline)

• Operational and Live Fire Testing (If Required) • Compliance with Acquisition Oversight Requirements• An Acquisition Strategy that reflects consideration of Logistics

Planning; Manpower, Personnel and Training; Environmental and Security Factors; Protection of Critical Program Information; and Spectrum Management

• Other information tailored to the conditions of the program

Each Increment is Managed as a Unique AcquisitionEach Increment is Managed as a Unique Acquisition

B C

Increment 2

B C

Increment 3

YesYesNoNoMultiple iterations

NoNoNoYesAll capabilities required in initial increment

Preferred process(Previously used mostly in Software development)

Achieves increased capability from predictable maturing technology

Traditional acquisition strategy

Other characteristics

YesYesNoNo

User feedback from earlier iterations used to define final requirement

YesYesYesNoUseful intermediate capabilities

NoYesYesFull requirements defined at outset

Spiral Development **

Incremental Development

Pre-planned Product

Improvement (P3I)

Single Step to Full

Capability Criteria

Acquisition Strategy Comparison TableEvolutionary Acquisition *

Yes

* Preferred strategy ** Preferred process

Often used in hardware development

AcquisitionStrategy

Requirement CommentReference

Spectrum CertificationCompliance

47 USC 305 & 901-904PL 102-538OMB A-11, Part 2DoDD 4650.1

Name changeFormerly – ApplicationFor FrequencyAllocation

ProgrammaticEnvironmental Safety & Health Evaluation

42 USC 4321 FromDoD 5000.2-R

WhenRequired

MS B, orMS C if no B


Statutory Information Requirements Changed/Added

DoD Instruction 5000.2 DoD Instruction 5000.2 Operation of the Defense Acquisition SystemOperation of the Defense Acquisition System

DoD Instruction 5000.2 DoD Instruction 5000.2 Operation of the Defense Acquisition SystemOperation of the Defense Acquisition System

Electronic Warfare T&E Report

Sec. 220, PL 103-160 & Sec. 214, PL 103-337

annually FromDoD 5000.2-R

Requirement CommentReference

Certification of Compliance with Financial Management Modernization Plan (FM acq programs only)

PL 107-249

15 USC 644(e)

WhenRequired

MS A, B, and C


Statutory Information Requirements Changed/AddedContinued…..



NEWFrom

Congress

NEWFrom

Congress

Technology Development Strategy

Sec. 803, PL 107-314

NEWFrom

Congress

MS A, B and C

Benefits Analysis & Determination (applies to bundled acquisitions; part of acq strategy)

Regulatory Information Requirements Added

CommentReference

Initial Capabilities Document (ICD)

CJCSI 3170.01NEW from Joint Staff

Replaces MNS

Capability DevelopmentDocument (CDD)

CJCSI 3170.01 NEW from Joint Staff

Replaces ORDCapability ProductionDocument (CPD)

CJCSI 3170.01

Technology ReadinessAssessment (PM-level)

DoDI 5000.2Revised from DoD 5000.2-R requirement for an Independent Technology Assessment for all programs

WhenRequired

MS A

MS B

MS C

MS B & C

Regulatory Information Requirements Changed/Added

Independent Technology Readiness Assessment (ACAT ID only – as required by DUSD(S&T))

DoDI 5000.2 MS B & C



Earned ValueManagement Systems

FromDoD 5000.2-R

OMB Cir A-11, part 7

See ANSI/ EIA-748-1998

Defense AcquisitionExecutive Summary (DAES) (MDAP & MAIS)

DoDI 5000.2QuarterlyPOM or BES submitUCR breach

FromDoD 5000.2-R

Contractor Cost DataReport (CCDR)

DoD 5000.4-M-1 See the referenceFromDoD 5000.2-R

Report Reference When Required Comment

DoD 5000.4-M-2-180 days prior to contract award-60 days after contract award-60 days after start of subsequent software releases-within 120 days after software release or final delivery

NEW from OSD

Director, PA&E

Other Reports Changed/Added



Software ResourcesData Report (ACAT I/IA programs for all major contracts & sub – contracts for any software development elements with a projected software effort greater than $25M (FY02 constant dollars)

Defense Acquisition ManagementDefense Acquisition Management Framework – Key PointsFramework – Key Points

Defense Acquisition ManagementDefense Acquisition Management Framework – Key PointsFramework – Key Points

• Evolutionary acquisition is the preferred strategy for rapid acquisition of mature technology; spiral development is the preferred process

• MDA may authorize entry at any point consistent with phase-specific entrance criteria and statutory requirements

• Non-mandatory guidance on best practices, lessons learned and expectations are available in the Interim Guidebook (former DoD 5000.2-R)

• Validated and approved ORDs are still required until revised CJCSI 3170.01 is published

Operations & Support

Sustainment

Sustainment

Disposal

FOC

System Development& Demonstration

System Integration

System Demonstration

B

Pre-Systems Acquisition

A

TechnologyDevelopment

Systems Acquisition

IOC

Production & Deployment

CLRIP Full-Rate Prod &

Deployment

FRPDecisionReview



• Process entry at Milestones A, B, or C• Entrance criteria met before entering phases• Evolutionary Acquisition or Single Step to

Full Capability

Relationship to Requirements Process

Initial Capabilities Document (ICD)

Capability Development Document (CDD)

Validated & approved by operational validation authority

Capability Production Document (CPD)

DesignReadinessReview

Concept Refinement

ConceptDecision

User Needs &Technology Opportunities