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GSA Expo 2009 Overview of Major Acquisition Management Bruce W. Moler US Department of Homeland Security.

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Presentation on theme: "GSA Expo 2009 Overview of Major Acquisition Management Bruce W. Moler US Department of Homeland Security."— Presentation transcript:

1 GSA Expo 2009 Overview of Major Acquisition Management Bruce W. Moler US Department of Homeland Security

2 What’s So Special About Major Acquisitions ? Bruce Moler PM, Acquisition Workforce DHS – OCPO

3 06/09/ Big “A” Acquisition (AKA “program acquisition”) encompasses everything a program must accomplish, from requirements analysis, planning, technology development, systems engineering, budgeting, procurement, logistics support, testing, system safety, and maintenance--through production, deployment and planning for disposal. Think “cradle to grave” Think “ procurement” Little “a” acquisition (AKA “stand-alone acquisition”) is, basically, buying stuff. Little “a” may require an Acquisition Plan (subject to thresholds), but don’t confuse Little “a” with Big “A.” Buying stuff that already “exists” Buying stuff that doesn’t exist - yet DHS Acquisition Directive reflects “Big A” acquisition Big “A” and Little “a” Acquisition

4 06/09/09 4 What is a Major Acquisition? “It depends on who you ask” As defined in OMB Circular A–11, Part 7: “Major acquisitions are capital assets that require special management attention because of their importance to the agency mission; high development, operating, or maintenance costs; high risk; high return; or their significant role in the administration of agency programs, finances, property, or other resources. Major acquisitions should be separately identified in the agency's budget. Capital assets are land, (including parklands), structures, equipment (including motor and aircraft fleets), and intellectual property (including software) which are used by the Federal Government and have an estimated useful life of two years or more; and an acquisition cost of $5M or more….”

5 06/09/09 5 What is a Major Acquisition? FAR Part 2 - Definitions “Major system” means that combination of elements that will function together to produce the capabilities required to fulfill a mission need. The elements may include hardware, equipment, software, or any combination thereof, but exclude construction or other improvements to real property. A system is a major system if— (1) The Department of Defense is responsible for the system and the total expenditures for research, development, test, and evaluation for the system are estimated to be more than $173.5 million or the eventual total expenditure for the acquisition exceeds $814.5 million; (2) A civilian agency is responsible for the system and total expenditures for the system are estimated to exceed $1.8 million or the dollar threshold for a “major system” established by the agency pursuant to Office of Management and Budget Circular A-109, entitled “Major System Acquisitions,” whichever is greater; or (3) The system is designated a “major system” by the head of the agency responsible for the system (10 U.S.C and 41 U.S.C. 403).10 U.S.C U.S.C. 403

6 06/09/09 6 What is a Major Acquisition? DHS Acquisition Directive

7 06/09/09 7 ACAT 1D: DAB or DSAB review Designated by USD(AT&L) Decision by USD(AT&L) Component review Designated by USD(AT&L) Decision by Component Head/CAE ITAB review Designated by USD(AT&L) or ASD(NII)* Decision by USD(AT&L) or designee* Component review Designated by USD(AT&L) or ASD(NII)* Decision made by Component Head/CAE Does not meet ACAT I Criteria Designated by Component Head/CAE Decision by CAE or as designed by CAE $378M Life Cycle Cost or $126M Total Prog. Cost or $32M Prog. Cost in any single year (FY2000 Constant $) $365M RDT&E or $2.19B Procurement (FY2000 Constant $) ACAT II: ACAT IAC: ACAT IAM: ACAT IC: $140M RDT&E or $660M Procurement (FY2000 Constant $) ACAT III: Does not meet ACAT I, IA or II Criteria Designated IAW Component policy Decision at lowest appropriate Level Major AIS Acq Programs (MAIS) No Fiscal Criteria ACAT IV: Not otherwise designated ACAT I, IA, II or III Designated IAW SECNAV policy Decision at lowest appropriate level SECNAVINST (Navy and Marine Corps) Major Defense Acq Programs (MDAP) Major Systems all other programs ( except for Navy & USMC) Navy USMC *ASD(NII) when delegated by USD(AT&L) What is a Major Acquisition? DoDI

8 06/09/09 8 What is a Major Acquisition? Common Themes Cost Level of Interest/Decision Review Mission Criticality Risk “Other” as Determined by the Agency If Congress Says So…….. National Security Cutter Secure Border Initiative Joint Strike Fighter Expeditionary Fighting Vehicle

9 06/09/09 9 MDA PEO PM USD(AT&L) Defense Acquisition Executive Component Acquisition Executive (Asst Secretary or Equivalent) Program Executive Officer (General Officer/SES Civilian) Program Manager (Col/LtCol/Civilian Equivalent) ASD(NII) DoD Chief Information Officer Note: some PM’s do not report through a PEO Or, if delegated for ACAT IAM - CAE Who Plays in Major Acquisitions? Program Manager Component Acquisition Executive Acquisition Program Management Division (APMD) Acquisition Decision Authority (ADA) Chief Acquisition Officer Under Secretary for Management Deputy Secretary DoD DHS Level 1 Levels 1 & 2 Levels 2 & 3 (or the HCA)

10 06/09/09 10 Who Plays in Major Acquisitions?  Decision Makers  End User  Project/Program Managers  Contracting Officers  Business; Finance Specialists  Logisticians  Systems Engineers  Cost Estimators and Analysts  Test and Evaluation  Information Technology Specialists  Private Industry  Congress  Tax Payers  Foreign Allies Other Stakeholders

11 06/09/09 11 Cost growth Schedule delays High risk technology Software issues Supportability issues Unclear/evolving requirements Acquisition strategy Test and evaluation highlights/operational effectiveness/suitability Co-development concerns Manpower and training Typical Issues at Milestones/Key Decision Points A Successful Major Acquisition?

12 06/09/09 12 Planning, Programming, Budgeting, Execution Calendar Driven Requirements Need Driven Acquisition Event Driven A Successful Major Acquisition? Decision Loops in Federal Acquisition Acquisition Life Cycle Contracting

13 06/09/09 13 A Successful Major Acquisition? Stay close to your customer Clear; agreed upon requirements Leverage the synergy of people working in teams Manage the “Big Three”: Acquisition; Budget; Requirements Manage Risk: Cost, Schedule; Performance Manage Innovation Use mature technology Be an expert in the “Golden Rule” Pay special attention to software and IT requirements Don’t forget logistics; environmental; producibility; disposal Prudent documentation management Get the cost right – up front Manage your stakeholders; continually communicate Use performance based management approach/metrics Foster competition in the marketplace Lead your people

14 “ People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf. “ George Orwell


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