Review of DoD’s New Acquisition Policy and its Impact on Programs and

Review of DoD’s New Acquisition Policy and its Impact on Programs and Systems Engineering by Al Bruns INCOSE Gateway Chapter Wednesday, 30 July 2003 Ref.: New Acquisition Policy by DAU, 20 May 2003, PMT-352

New New Acquisition Acquisition Policy Policy Construct Construct DoD Directive 5000.1 Principles retained; innovation/flexibility emphasized DoD Instruction 5000.2 Focused 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

The The Defense Defense Acquisition Acquisition Management Management Framework Framework DoDI DoDI5000.2, 5000.2,May May2003 2003 Technology Opportunities & User Needs Process entry at Milestones A, B, or C Entrance criteria met before entering phase Evolutionary Acquisition or Single Step to Full Capability A B (Program Initiation) C Concept Technology System Development Refinement Development & Demonstration Design Readiness Review Concept Decision Pre-Systems Acquisition FOC IOC Production & Deployment LRIP/IOT&E Systems Acquisition Operations & Support FRP Decision Review Sustainment Increment II Increment III New

New New Requirements Requirements Documents Documents 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

Technology Technology Development Development Strategy 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.

DoD DoD Instruction Instruction 5000.2 5000.2 Operation Operation of of the the Defense Defense Acquisition Acquisition System System New/Revised from previous 5000.2: “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 Oversight & & Review Review ACAT ACAT ID/IAM ID/IAM Programs* Programs* Weapon Systems Overarching Integrated Product Teams (OIPT) Director, Defense Systems OUSD(AT&L) Defense Acquisition Executive Chief Information Officer Defense DefenseAcquisition Acquisition Board Board IT ITAcquisition Acquisition Board Board C3ISR Systems Major AIS C3I Overarching Integrated Product Team (OIPT) The acquisition responsibilities of USD(Intel) vs. ASD(NI2)/DoD CIO are a work in process. *Note: Space Programs have been delegated to the Air Force and most missile defense programs to the Missile Defense Agency

Transformation to the Joint Capabilities Integration and Development System JCIDS RGS Integrated at Department Systems Requirements National Military Strategy Joint Vision Joint Concept of Operations Joint Concepts Integrated Architectures Joint Capabilities Bottom Up, Often Stovepiped Top Down, Born Joint

Evolutionary Acquisition Increment 2 Increment 3 OR Single Step to Full Capability ? Key Considerations Urgency of Requirement Maturity of Key Technologies Interoperability, Supportability, and Affordability of Alternative Acquisition Approaches Cost/Benefit of Evolutionary vs. Single Step Approach

DoD DoD Instruction Instruction 5000.2 5000.2 Operation Operation of of the the Defense Defense Acquisition Acquisition System System Evolutionary Acquisition 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 Evolutionary Acquisition Acquisition –– Incremental Incremental & & Spiral Spiral Development Development Warfighter Capability Known increment - Incremental Known increment Known increment First Fielded Capability - Spiral Known increment Partially known increment Not known increment Technology Demos Feedback from warfighter Not known increment Time

Single Step Approach Technology Base Capability NO CAPABILITY Requirements IOC FOC Capability Time Evolutionary Acquisition Technology Base Requirements Capability Capability ally n tio ty a r e bili p l O apa a i t Ini eful C Us Time

Evolutionary Approach CR C B A TD SDD PD B OS C Increment 2 B C Increment 3 Key Enablers Time-Phased Requirements A Modular Open Systems Approach to facilitate Technology Insertion Evolutionary Sustainment Strategies T&E Consistent with Evolutionary Approach Full Funding

Each Increment Must Have B C Increment 2 B C Increment 3 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 Acquisition

Acquisition Strategy Comparison Table Acquisition Single Step Strategy to Full Criteria Capability Full requirements defined at outset Pre-planned Product Improvement (P3I) Evolutionary Acquisition * Incremental Development Spiral Development ** Yes Yes Yes No Useful intermediate capabilities No Yes Yes Yes Multiple iterations No No Yes Yes All capabilities required in initial increment Yes No No No User feedback from earlier iterations used to define final requirement No No Yes Yes Other characteristics Traditional acquisition strategy Achieves increased capability from predictable maturing technology * Often used in hardware development Preferred strategy Preferred process (Previously used mostly in Software development) ** Preferred process

DoD DoD Instruction Instruction 5000.2 5000.2 Operation Operation of of the the Defense Defense Acquisition Acquisition System System Statutory Information Requirements Changed/Added Requirement Spectrum Certification Compliance Programmatic Environmental Safety & Health Evaluation Electronic Warfare T&E Report Reference When Required Comment 47 USC 305 & 901-904 MS B, or PL 102-538 MS C if no B OMB A-11, Part 2 DoDD 4650.1 Name change Formerly – Application For Frequency Allocation MS B, or MS C if no B From DoD 5000.2-R annually From DoD 5000.2-R 42 USC 4321 Sec. 220, PL 103160 & Sec. 214, PL 103-337

DoD DoD Instruction Instruction 5000.2 5000.2 Operation Operation of of the the Defense Defense Acquisition Acquisition System System Statutory Information Requirements Changed/Added Continued . Requirement Certification of Compliance with Financial Management Modernization Plan (FM acq programs only) Benefits Analysis & Determination (applies to bundled When Required Comment MS A, B, and C NEW From Congress 15 USC 644(e) MS B, or MS C if no B NEW From Congress Sec. 803, PL 107-314 MS A, B and C NEW From Congress Reference PL 107-249 acquisitions; part of acq strategy) Technology Development Strategy

DoD DoD Instruction Instruction 5000.2 5000.2 Operation Operation of of the the Defense Defense Acquisition Acquisition System System Regulatory Information Requirements Changed/Added Regulatory Information Requirements Added Reference When Required Initial Capabilities Document (ICD) CJCSI 3170.01 MS A Capability Development Document (CDD) CJCSI 3170.01 MS B Capability Production Document (CPD) CJCSI 3170.01 MS C Technology Readiness Assessment (PM-level) DoDI 5000.2 MS B & C Independent Technology Readiness Assessment (ACAT ID only – as required by DUSD(S&T)) DoDI 5000.2 MS B & C Earned Value Management Systems OMB Cir A-11, See ANSI/ EIA-748-1998 part 7 Comment NEW from Joint Staff Replaces MNS NEW from Joint Staff Replaces ORD Revised from DoD 5000.2-R requirement for an Independent Technology Assessment for all programs From DoD 5000.2-R

DoD DoD Instruction Instruction 5000.2 5000.2 Operation Operation of of the the Defense Defense Acquisition Acquisition System System Other Reports Changed/Added Report Reference Defense Acquisition Executive Summary DoDI 5000.2 (DAES) (MDAP & MAIS) When Required Quarterly From POM or BES submit DoD 5000.2-R UCR breach Contractor Cost Data Report (CCDR) DoD 5000.4-M-1 See the reference Software Resources Data Report DoD 5000.4-M-2 contract award (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) Comment From DoD 5000.2-R -180 days prior to -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

Defense Defense Acquisition Acquisition Management Management Framework Framework –– Key Key Points 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

The The Defense Defense Acquisition Acquisition Management Management Framework Framework User Needs & Technology Opportunities A B C System Integration Concept Decision Concept Technology Refinement Development Pre-Systems Acquisition Initial Capabilities Document (ICD) Process entry at Milestones A, B, or C Entrance criteria met before entering phases Evolutionary Acquisition or Single Step to Full Capability System Demonstration Design Readiness Review System Development & Demonstration IOC LRIP Full-Rate Prod & Sustainment Deployment Disposal FRP Decision Review Production & Deployment Systems Acquisition Capability Development Document (CDD) FOC Capability Production Document (CPD) Relationship to Requirements Process Operations & Support Sustainment Validated & approved by operational validation authority