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Pittsburgh, PA 15213-3890 CMMI Acquisition Module - Page M2-1 CMMI ® Sponsored by the U.S. Department of Defense © 2005 by Carnegie Mellon University This.

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Presentation on theme: "Pittsburgh, PA 15213-3890 CMMI Acquisition Module - Page M2-1 CMMI ® Sponsored by the U.S. Department of Defense © 2005 by Carnegie Mellon University This."— Presentation transcript:

1 Pittsburgh, PA CMMI Acquisition Module - Page M2-1 CMMI ® Sponsored by the U.S. Department of Defense © 2005 by Carnegie Mellon University This material is approved for public release. Distribution is limited by the Software Engineering Institute to attendees. Introduction to the CMMI ® Acquisition Module (CMMI-AM) SM CMM Integration, IDEAL, and SCAMPI are service marks of Carnegie Mellon University. ®Capability Maturity Model, Capability Maturity Modeling, CMM, and CMMI are registered in the U.S. Patent and Trademark Office by Carnegie Mellon University. Module 2: CMMI-AM and Project Management

2 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-2 CMMI ® CMMI-AM and Project Management v0.1 Agenda Introduction to the CMMI Acquisition Module Project Management Process Areas Project Planning Project Monitoring and Control Solicitation and Contract Monitoring Integrated Project Management Risk Management Summary

3 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-3 CMMI ® CMMI-AM and Project Management v0.1 Where Does Process Fit in Acquisition? …at the Project Management Office (PMO) Management of internal PMO activities Management of processes applied to project Oversight of contractors’ processes Integration of contractors’ and PMO processes …at the Contractor Management of internal contractor activities Oversight of subcontractor processes …for integration of PMO, contractor, and subcontractor processes

4 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-4 CMMI ® CMMI-AM and Project Management v0.1 Process and the Roles of the PM Manage process within the PMO Manage process applied to the project Exercise oversight of the contractors’ process management Ensure integration of contractor and PMO processes PMO AND PROCESS

5 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-5 CMMI ® CMMI-AM and Project Management v0.1 The PMO Management Role The PM is responsible for managing internal PMO processes. The PM must take a hands-on approach to Identify, define, and document process needs Communicate and train the PMO staff Support, track, measure, and review the PMO processes PMO AND PROCESS

6 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-6 CMMI ® CMMI-AM and Project Management v0.1 Program Management Role Define the interface between the PMO and the contractor using the RFP and negotiations Project process requirements Project metrics Project communication needs Project risk management needs Manage the interface during contract execution Real-time monitoring of deliverables Keep communication channels clear & open Develop trust with contractor PMO AND PROCESS

7 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-7 CMMI ® CMMI-AM and Project Management v0.1 Contractor Oversight Role 1 Process maturity of the contractor should be a consideration in source selection Obtain process definitions and commitments -Just requiring a CMMI Maturity Level is NOT enough. -You need to ensure that high-maturity processes are applied to YOUR project -Require your bidders to define the processes they will use in their proposals -Evaluate the proposed processes as a part of source selection -Reference the processes in the contract Plan process integration PMO AND PROCESS

8 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-8 CMMI ® CMMI-AM and Project Management v0.1 Contractor Oversight Role 2 After contract award, ensure that contracted process commitments are kept Committed processes are used by the project team Process artifacts are evident Process integration is effective and monitored Consider periodic independent appraisals of key process areas PMO AND PROCESS

9 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-9 CMMI ® CMMI-AM and Project Management v0.1 Subcontractor Oversight Role For many systems, the bulk of the work is done by subcontractors Primary responsibility for oversight of subcontractors lies with the prime contractor PMO role is to ensure that prime is providing adequate oversight to subcontractors Ensure flowdown of project process requirements Ensure integration of prime and subcontractor processes PMO AND PROCESS PM Contractor PMO Suppliers Indirect Oversight

10 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-10 CMMI ® CMMI-AM and Project Management v0.1 Process Integration Role It is the PMO’s responsibility to ensure PMO and Contractor processes are compatible Include any process “must haves” in the RFP -Consider specific compatibility with tools for risk, requirements, schedule, etc. Ensure good communications with contractor(s) regarding process incompatibilities Integration focus needed throughout project PMO AND PROCESS

11 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-11 CMMI ® CMMI-AM and Project Management v0.1 CMMI Acquisition Module (CMMI-AM) Focuses on effective acquisition activities and practices that are implemented by first-level acquisition projects (e.g., System Project Office/Program Manager) Acquisition practices drawn and summarized from existing sources of best practices: - Software Acquisition Capability Maturity Model (SA-CMM) -Capability Maturity Model Integration (CMMI) -FAA Integrated Capability Maturity Model (iCMM) -Section 804 Intended to be used in conjunction with the CMMI as an acquisition “lens” for interpreting the CMMI in acquisition environments CMMI-AM – a tool for the acquirer

12 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-12 CMMI ® CMMI-AM and Project Management v0.1 CMMI Acquisition Module V 1.1 Engineering Support Project Management Project Planning Project Monitor and Control Integrated Project Management Risk Management Solicitation and Contract Monitoring Requirements Management Requirements Development Verification Validation Measurement and Analysis Decision Analysis and Resolution Transition to Operations and Support CMMI-AM Structure Key New for CMMI-AM

13 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-13 CMMI ® CMMI-AM and Project Management v0.1 Structure of CMMI-AM 1 PROCESS AREA 1 PROCESS AREA n Specific Practices Generic Practices Specific Goals For CMMI-SW/SE 12Process Areas 28Goals 246Practices PROCESS AREA 2 … plus 47 self-assessment questions

14 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-14 CMMI ® CMMI-AM and Project Management v0.1 Agenda Introduction to the CMMI Acquisition Module Project Management Process Areas Project Planning Project Monitoring and Control Solicitation and Contract Monitoring Integrated Project Management Risk Management Summary

15 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-15 CMMI ® CMMI-AM and Project Management v0.1 Project Management PAs Project management process areas cover the project management activities related to planning, monitoring, and controlling the project Project Planning PP Project Monitoring and Control PMC Solicitation and Contract Monitoring SCM Integrated Project ManagementIPM Risk Management RSKM

16 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-16 CMMI ® CMMI-AM and Project Management v0.1 Project Planning The purpose of project planning is to establish and maintain plans that define project activities. For acquisition: Project planning starts by setting the acquisition strategy and is followed by planning the acquisition process in ever increasing levels of detail As the acquisition proceeds toward selection of a supplier, the supplier’s planning process should be reviewed for sufficiency The resulting plans should also be reviewed for consistency with the system acquisition plans The acquirer’s and developer’s project planning processes are continuous and the plans evolve to meet the project’s needs

17 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-17 CMMI ® CMMI-AM and Project Management v0.1 Purpose of Acquisition Planning Guide program execution From initiation through re-procurement and during post- production support Systems, subsystems, components, spares, and services Minimize the time and cost of satisfying identified, validated needs in a manner consistent with common sense and sound business practices Planning evolves through an iterative process and becomes increasingly more definitive in describing the relationship of the essential elements of a program Paraphrased from DoD 5000 Interim Guidebook

18 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-18 CMMI ® CMMI-AM and Project Management v0.1 Poor Project Planning … Symptoms Poor estimates lead to cost and schedule overruns An inability to discover deviations from undocumented plans Resources are not available/applied when needed An inability to meet commitments Project failure Why should we care? Customers don’t trust acquirers or suppliers who waste their resources (i.e., loss of future business) No lessons learned for future projects means making the same mistakes on multiple projects Unhappy customers, employees, and stakeholders means a short life for the business “If you fail to plan, then you plan to fail.”

19 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-19 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Strategy vs. Acquisition Plan Acquisition Strategy is high-level “Top-level road map for program execution from program initiation through post-production support.” ITERATIVE – should be updated Level of detail changes as you go through the phases As per DoDI required for ALL programs at: -Program Initiation for Ships -Milestone B -Milestone C -Full-Rate Production Deployment Review Acquisition Plan is typically for one phase Required by the Federal Acquisition Regulation (FAR) Focuses on specifics of the acquisition Concerned with contract type, incentives, etc.

20 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-20 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Planning Cycle Stakeholders Evaluate Incremental Progress Stakeholders MS B Execute Acquisition Strategy Evaluate Incremental Progress Execute Refined Acquisition Strategy Improve Process Refine Acquisition Strategy Develop Acquisition Strategy Acq. Strategy v1.0 Acq. Strategy v2.0 Tech Devel Strat AoA Plan

21 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-21 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Planning Objectives Communicate! Identify risks -Strategies for risk mitigation -Balance risks with cost, schedule, and performance Define expectations for all stakeholders -Role and responsibilities of all parties Determine how to make your program executable within budget and schedule constraints -Expected program changes throughout lifecycle

22 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-22 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Strategy Elements Acquisition Approach Requirements Risk Management Design Considerations Business Strategy Program Management Support Strategy From Interim Defense Acquisition Guidebook, 30 Oct 2002

23 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-23 CMMI ® CMMI-AM and Project Management v0.1 Single-Step and Evolutionary Acquisition 100% Based on AF Program Manager Workshop presented by Mr Little Single-Step Time Known increment ‘Deliverable’ Capability 100% of requirements known at start Known increment Partially known increment Unknown increment Only first increment requirements known at start Incremental Spiral Known increment User, developer, tester, sustainer “use and learn”

24 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-24 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Method MethodReq’tsTechnologyScheduleCommentsExample Single StepAll known at start All Mature at start No need for early deployment Software requirements must also be stable New utility truck Evolutionary - Incremental All known at start Technology for first increment mature May be a need for early deployment Could have incremental software and single-step hardware Missile with improved range over 2-3 increments Evolutionary - Spiral Req’ts for first spiral known at start Technology for first spiral mature May be a need for early deployment Spirals may also be for risk reduction – not deployment A communi- cation system with new interfaces yet to be defined

25 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-25 CMMI ® CMMI-AM and Project Management v0.1 Evolutionary Approach CR TDSDDPDOS B Increment 2 Increment 3 AC BC BC Increment 1 Adapted from dod5000.dau.mil = Contractor Spiral Development = Contractor Incremental Development

26 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-26 CMMI ® CMMI-AM and Project Management v0.1 Evolutionary Approach (Space) Pre KDP-A Phase A Study Phase Phase B Design Phase Phase C (Build, Test Launch) B Increment 2 Increment 3 AC BC BC Increment 1 Adapted from NSS and dod5000.dau.mil = Contractor Spiral Development = Contractor Incremental Development

27 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-27 CMMI ® CMMI-AM and Project Management v0.1 Acquisition & Development Methods = fielded system Acquisition of a New Utility truck Single Step Acquisition, Contractor Incremental Development Increment 1 – Hard to produce brakes Increment 2 – Easier to produce brakes Inc 3 – Develop new interfaces Spiral 1 – Prototype 1 Spiral 2 – Prototype 2 Spiral 3 – Prototype 3 Inc 2–SW radios for existing interfaces Increment 1- Interface 1 Increment 2- Interface 2 Inc 1 – HW Upgrades Single Step Development Evolutionary Acquisition (Spiral), Contractor Mixed Development – Comms System

28 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-28 CMMI ® CMMI-AM and Project Management v0.1 Program Drivers What software and system issues might DRIVE your acquisition strategy due to the risk they pose to successful execution? ScheduleStaffing FundingTest Requirements Requirements StabilityUser Support External InterfacesPolicy Mandates DeploymentSecurity Interoperability (Programmatic and Developmental) System Complexity Precedented / Unprecedented Technology Maturity

29 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-29 CMMI ® CMMI-AM and Project Management v0.1 Dealing with Drivers Determine which present the highest risk exposure to your program Determine how the drivers will influence your acquisition strategy elements Formulate strategies that you believe will deal with the risks posed by the top drivers Analyze the strategies to determine gaps and remaining high risk areas

30 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-30 CMMI ® CMMI-AM and Project Management v0.1 Drivers Example – Requirements Stability 1 REQUIREMENTS ARE: Well defined, stableIncomplete, volatile Acquisition Approach Could consider single step Would need to use evolutionary acquisition Requirements: Management Can baseline the system at the start of the program Must establish baseline for each increment Risk: Mitigation Risk mitigation still needed Robust risk mitigation with PMO oversight Design: Interoperability Should be able to produce stable ICDs Will need tight configuration control of ICDs Driver / Risk Exposure Strategy Element

31 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-31 CMMI ® CMMI-AM and Project Management v0.1 Drivers Example – Requirements Stability 2 REQUIREMENTS ARE: Well defined, stableIncomplete, volatile Business: Competition May be able to use sole source if applicable More competition provides more ideas Program Mgm’t: PMO Staffing Less staffing may be acceptable Will need staff to deal with requirements changes and spiral development Support: Source Depot could be used or CLS negotiated with development CLS may be needed until all increments fielded Driver / Risk Exposure Strategy Element

32 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-32 CMMI ® CMMI-AM and Project Management v0.1 Due to the incomplete requirements, you would prefer an evolutionary acquisition. You prefer multiple solicitation phases, with competition. Due to the tight schedule, you want to limit the total number of solicitation phases. You also would prefer a single step acquisition. Due to the level of technology maturity, especially of the ability to track fired munitions, you will encourage competition, and prefer evolutionary acquisition. Because you know you have limited funding, you want to limit the number of parallel contracts over the life of the program. You would prefer well-defined development phases instead of a spiral development, and limited testing. Because you are deploying to multiple sites, you would at least start out with contractor logistic support (CLS). You would prefer single step acquisition. Acquisition Strategy Development CONFLICT

33 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-33 CMMI ® CMMI-AM and Project Management v0.1 How Do I Get To a Top-Level Strategy? Look at your top 2-3 drivers Try to develop 2-3 strategies you think might work well for the risks posed by those drivers – you must consider the software risks! Consider: Number and timing of solicitations Number of contracts for each phase Sourcing – development or COTS Integration with other programs Any tailoring of phases Deployment and support strategies

34 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-34 CMMI ® CMMI-AM and Project Management v0.1 Example Acquisition Strategy (Simplified) BAC SDDPDTDOSCR Increment 1 COMPETITION: Full and Open Downselect Increment 2 BC Driver 1 - Incomplete Requirements Driver 2 - Schedule Response: 1.Use Evolutionary Acquisition 2.Full and Open Competition 3.Multiple contracts for CR 4.Limit solicitation phases – downselect after CR 5.Use two Increments only 6.Use CLS CLS BC Increment 3

35 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-35 CMMI ® CMMI-AM and Project Management v0.1 You are here…. Middle of Concept Refinement Both contractors have uncovered more requirements challenges than expected – software requirements are unstable May not meet PMO exit criteria for requirements stability at end of Concept Refinement phase Lab efforts on technology to support tracking fired ammunition are not progressing as fast as hoped; communications software is challenging Schedule requirement is still tight Funding is still minimally acceptable What might you do to refine your acquisition strategy?

36 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-36 CMMI ® CMMI-AM and Project Management v0.1 Example Acquisition Strategy (Simplified) BAC SDDPDTDOSCR Increment 1 COMPETITION: Full and Open Downselect Increment 2 BC Response: 1.Change to a full and open competition at the start of TD 2.Let 2 contracts for TD to con- tinue requirements definition with downselect at SDD 3.Let 2-3 Small Business Innovative Research and Development contracts for technology development 4.Continue with 2 increments and CLS CLS Impact May need to deal with schedule increase Will reduce funds for SDD and PD Should increase requirements stability Should increase technology maturity

37 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-37 CMMI ® CMMI-AM and Project Management v0.1 You are here…. Middle of Technology Definition Technology development phase is going well Requirements are becoming more stable SBIR contracts are developing good ideas, but technology may not be ready for second increment Clear that the software architecture will be of critical importance Schedule requirement is still tight Funding is still minimally acceptable What might you do to refine your acquisition strategy?

38 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-38 CMMI ® CMMI-AM and Project Management v0.1 Example Acquisition Strategy (Simplified) BAC SDDPDTDOSCR Increment 1 COMPETITION: Full and Open Downselect Increment 2 BC Response: 1.Continue with downselect at SDD 2.Continue with 1 SBIR contract 3.Include Architecture Evaluation early in SDD 4.Add third increment to allow immature technology to mature before later insertion BC Increment 3 CLS

39 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-39 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Strategy – Final Thoughts You should develop more than one strategy early on – compare them keeping in mind progam risks You should evaluate your strategies against your drivers and important acquisition elements Should be a TEAM effort – need experts in systems, software, contracts, etc. This is HARD WORK – especially in software intensive systems! Unbounded Optimism is NOT an acquisition strategy

40 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-40 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Plan Contents Acquisition background and objectives Statement of needApplicable conditions CostCapability or performance RisksTrade-offs Delivery or performance-period requirements Plan of action (sample) SourcesCompetition Source-selection proceduresAcquisition considerations Budgeting and fundingGovernment-furnished property Make or buyInherently governmental functions Test and evaluationLogistics considerations Security considerationsContractor versus Government performance

41 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-41 CMMI ® CMMI-AM and Project Management v0.1 Project Planning CMMI-AM Goals and Practices 1 Specific GoalSpecific Practice Establish Estimates Estimate the Scope of the Project Establish Estimates of Work Product and Task Attributes Define Project Life Cycle Determine Estimates of Effort and Cost Develop a Project Plan Establish the Budget and Schedule Identify Project Risks Plan for Data Management Plan for Project Resources Plan for Needed Knowledge and Skills Plan Stakeholder Involvement Establish the Project Plan Obtain Commitment to the Plan Review Plans that Affect the Project Reconcile Work and Resource Levels Obtain Plan Commitment

42 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-42 CMMI ® CMMI-AM and Project Management v0.1 Project Planning Goal 1: Establish Estimates 1 Estimates of project planning parameters are established and maintained Establish a top-level WBS 1 to estimate the scope of the project Defines tasks for the ENTIRE project, including efforts of: -The supplier- The acquirer -Other stakeholders (e.g., test community, users) Based upon product architecture Establish estimates of work product and task attributes Provides a basis for cost and effort estimation Software examples – KSLOC, function points, # of objects, # of interfaces, data volume, etc. 1 See MIL-HDBK-881A ( )http://dcarc.pae.osd.mil/881handbook/881A.pdf

43 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-43 CMMI ® CMMI-AM and Project Management v0.1 Project Planning Goal 1: Establish Estimates 2 Define the project life-cycle phases upon which to scope the planning effort Acquisition method -Single-Step - Evolutionary-incremental Evolutionary-spiral Life Cycle phases - Development - Manufacturing-Verification-Training - Deployment - Operation-Support-Disposal Estimate the project effort and cost for the work products and tasks based on estimation rationale Define estimation rationale Estimate cost and effort for each work product and task Consider independent review of estimates

44 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-44 CMMI ® CMMI-AM and Project Management v0.1 Project Planning Goal 2: Develop a Project Plan 1 A project plan is established and maintained as the basis for managing the project Establish and maintain the project’s budget and schedule Identify assumptions, constraints, major milestones Identify task dependencies Identify and analyze project risks Involve stakeholders in identification of risk Analyze impact, timeframe, and probability of occurrence Plan for the management of project data Create master list of data to be managed (formal and informal) -Identify needs for version control and configuration mgm’t Define data content and formats Establish requirements for security and information assurance

45 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-45 CMMI ® CMMI-AM and Project Management v0.1 Project Planning Goal 2: Develop a Project Plan 2 Plan for necessary resources to perform the project Identify and plan for process requirements Identify and plan for staffing requirements Identify and plan for facilities and equipment requirements Plan for knowledge and skills needed to perform the project Identify skills needed Assess available skills Develop a plan to fill the gaps

46 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-46 CMMI ® CMMI-AM and Project Management v0.1 Project Planning Goal 2: Develop a Project Plan 3 Plan the involvement of identified stakeholders Identify relevant stakeholders Plan their involvement Obtain commitments for involvement Establish and maintain the overall project plan content Captures all relevant planning items to enable communication among the project team and stakeholders May be comprised of multiple plans such as -Integrated Master Plan -Integrate Master Schedule -Systems Engineering Management Plan -Software Development Plan Must be maintained throughout the acquisition

47 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-47 CMMI ® CMMI-AM and Project Management v0.1 Agenda Introduction to the CMMI Acquisition Module Project Management Process Areas Project Planning Project Monitoring and Control Solicitation and Contract Monitoring Integrated Project Management Risk Management Summary

48 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-48 CMMI ® CMMI-AM and Project Management v0.1 Project Monitoring and Control 1 The purpose of project monitoring and control is to provide understanding into the project’s progress so that appropriate corrective actions can be taken when the project’s performance deviates significantly from the plan.

49 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-49 CMMI ® CMMI-AM and Project Management v0.1 Project Monitoring and Control 2 For Acquisition, monitoring and control functions are directed within the acquisition project early in the process as the acquisition planning is performed and the strategy is defined. As the acquisition process enfolds, monitoring and control are essential to ensuring that appropriate resources are being applied and that the internal acquisition activities are progressing according to plan. Once a supplier is selected and an award is made, the role of monitoring and control becomes two fold, concerned with both continuing to monitor and control internally while also monitoring and controlling the progress of the supplier’s execution under the supplier’s project plan.

50 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-50 CMMI ® CMMI-AM and Project Management v0.1 Poor Project Monitoring and Control… Symptoms Lots of time is spent in meetings trying to discover project status rather than reporting on it Data needed for management decisions is unavailable when needed Actions that should have been taken early aren’t identified until it’s too late Why should we care? If you don’t know what’s going on, corrective action can’t be taken early when it’s least expensive Lack of management insight/oversight makes project results highly unpredictable, even later in the project If your confidence in the status you give to your customer is low, they probably perceive it

51 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-51 CMMI ® CMMI-AM and Project Management v0.1 Project Monitoring and Control CMMI-AM Goals and Practices Specific GoalSpecific Practice Monitor Project Against Plan Monitor Project Planning Parameters Monitor Commitments Monitor Project Risks Monitor Data Management Monitor Stakeholder Involvement Conduct Progress Reviews Conduct Milestone Reviews Manage Corrective Action to Closure Analyze Issues Take Corrective Action Manage Corrective Action

52 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-52 CMMI ® CMMI-AM and Project Management v0.1 Project Monitoring and Control Goal 1: Monitor Planning Parameters 1 Actual performance and progress of the project are monitored against the project plan Monitor the actual values of the project planning parameters against the project plan Progress against schedule Cost and expended effort Attributes of work products and tasks Resources provided and used Monitor commitments against those identified in the project plan Periodic and documented review of commitments (e.g. outstanding purchase orders)

53 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-53 CMMI ® CMMI-AM and Project Management v0.1 Project Monitoring and Control Goal 1: Monitor Planning Parameters 2 Monitor risks against those identified in the project plan Monitor the management of project data against the project plan Monitor stakeholder involvement against the project plan Periodically review the project’s progress, performance, and issues Review the accomplishment and results of the project at selected project milestones

54 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-54 CMMI ® CMMI-AM and Project Management v0.1 Project Monitoring and Control Goal 2: Manage Corrective Action Corrective actions are managed to closure when the project’s performance or results deviate significantly from the plan Collect and analyze the issues and determine the corrective actions necessary to address the issues Acquirer’s issues and corrective actions are managed independently of the suppliers’ Define schedule and responsibility for corrective actions Maintain documentation of issues and actions Take corrective action on identified issues Monitor corrective action schedule and effectiveness Manage corrective actions to closure Document resolution of issue

55 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-55 CMMI ® CMMI-AM and Project Management v0.1 Agenda Introduction to the CMMI Acquisition Module Project Management Process Areas Project Planning Project Monitoring and Control Solicitation and Contract Monitoring Integrated Project Management Risk Management Summary

56 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-56 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring The purpose of Solicitation and Contract Monitoring is to prepare a solicitation package that identifies the needs of a particular acquisition, to select a supplier who is best capable of satisfying those needs, and to establish the process for monitoring the supplier for the duration of the contract. For Acquisition, the solicitation must comply with the applicable federal, departmental, and service acquisition regulations and policies. The solicitation should address issues appropriate to the product domain or acquisition environment (e.g., supplier process evaluations, operational safety suitability and effectiveness, certifications, architecture evaluations, and interoperability). The representatives responsible for these activities within the project or stakeholder organizations should be consulted for proper inclusion of those activities into the solicitation and contract monitoring process.

57 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-57 CMMI ® CMMI-AM and Project Management v0.1 Poor Solicitation and Contract Monitoring… Symptoms The solicitation package does not include the agreement/ contractual requirements and proposal evaluation criteria The technical and management elements of proposals are not properly evaluated to ensure that the requirements of the agreement/contract will be satisfied The selection official will not select suppliers who are qualified to satisfy the agreement/contract’s requirements for the project’s products Why Do We Care? The project team will have insufficient insight into the supplier’s activities to ensure the effort is managed, controlled, and complies with contract requirements The project team and supplier team will be unable to maintain ongoing communication and commitments

58 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-58 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring CMMI-AM Goals and Practices Specific GoalSpecific Practice Prepare for the Solicitation Designate a Selection Official Establish a Solicitation Package and Evaluation Criteria Establish Cost and Schedule Estimates Validate the Solicitation Package Select SuppliersEvaluate Proposals Use Evaluation Results to Select Suppliers Award ContractsEstablish an Understanding of the Contract and Proposed Approach Establish Communications Processes and Procedures Coordinate Work with Suppliers Monitor Selected Supplier Processes Evaluate Selected Supplier Work Products Revise the Supplier Agreement or Relationship

59 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-59 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring Goal 1: Prepare for the Solicitation 1 The project is prepared to conduct the solicitation Designate a selection official responsible for making the selection decision Establish and maintain a solicitation package that includes the needs of the acquisition and corresponding proposal evaluation criteria Define the required proposal content -Process descriptions and commitments -Proposed development approach (e.g., processes, tasks, activities) -Metrics to be provided to the PMO (including process metrics) -Appropriate plans (e.g., Integrated Mgm’t Plan, Software Development Plan, risk Management Plan)

60 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-60 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring Goal 1: Prepare for the Solicitation 2 Establish and maintain independently reviewed cost and schedule estimates for the products to be acquired Reviewers should not be connected with the acquisition team or the supplier Validate the solicitation package with end users and potential offerors to ensure the approach and cost and schedule estimates are realistic and can reasonably lead to a usable product In a competitive environment, ensure equal access to all potential offerors. Provide a means for reviewers to offer clarifications of ambiguous capabilities. In a sole source or change order environment, ensure that relevant stakeholders recognize the consequences of proposed changes

61 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-61 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring Goal 2: Select Supplier Suppliers are selected based on the solicitation package Evaluate proposals according to the documented evaluation criteria In addition to evaluating the technical approach, evaluate -Management practices-Sufficiency of plans -Process capabilities-Domain experience -Cost-Schedule -Past Performance Use proposal evaluation results as a basis to support selection decisions

62 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-62 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring Goal 3: Award Contracts 1 Contracts are issued based on the needs of the acquisition and the suppliers’ proposed approaches Establish and maintain a mutual understanding of the contract with selected suppliers and end users based on the acquisition needs and the suppliers’ proposed approaches Ensure that contractual commitments are made for factors critical to project success (e.g., process execution, metrics collection and reporting) Maintain mutual understanding for the duration of the contract

63 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-63 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring Goal 3: Award Contracts 2 Establish and maintain communication processes and procedures with suppliers that emphasize the needs, expectations, and measures of effectiveness to be used throughout the acquisition Define ground rules for -communication (e.g., data reported, frequency of reporting) -key decision-making (e.g., rationale, documentation, acquirer involvement) -conflict resolution Monitor process deployment and effectiveness Maintain open lines of communication

64 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-64 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring Goal 4: Coordinate Work 1 Work is coordinated with suppliers to ensure the contract is executed properly Monitor and evaluate selected processes used by the supplier based on the supplier’s documented processes Adherence to plan Timeliness of deployment Effectiveness of process Evaluate selected supplier work products based on documented evaluation criteria Define work products to be evaluated (may include interime products) and evaluation criteria Ensure capacity and capability for timely and accurate evaluation

65 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-65 CMMI ® CMMI-AM and Project Management v0.1 Solicitation and Contract Monitoring Goal 4: Coordinate Work 2 Revise the supplier agreement or relationship, as appropriate, to reflect changes in conditions Address shortfalls in both products and processes Offer relief when needs evolve to invalidate process requirements, documentation requirements, reporting requirements, etc.

66 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-66 CMMI ® CMMI-AM and Project Management v0.1 Agenda Introduction to the CMMI Acquisition Module Project Management Process Areas Project Planning Project Monitoring and Control Solicitation and Contract Monitoring Integrated Project Management Risk Management Summary

67 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-67 CMMI ® CMMI-AM and Project Management v0.1 Integrated Project Management For Acquisition, integrated project management involves establishing project management processes consistent with and tailored from the organizations standard processes. This includes higher level acquisition guidance, regulations, instructions, as well as local practices established to be used across various projects in the local organization. Establishing an integrated project management process incorporating and involving all stakeholders (executive level acquisition offices, users, test organizations, developers, and associated government support organizations) is critical to the successful development of the project. Formal interfaces among project stakeholders take the form of memorandums of understanding (MOUs), memorandums of agreements (MOAs), contractual commitments, associate contractor agreements and similar documents depending on the nature of the interfaces and involved stakeholders.

68 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-68 CMMI ® CMMI-AM and Project Management v0.1 Poor Integrated Project Mgm’t … Symptoms No defined processes for the project Project estimates make no reference to prior projects Plans do not reflect the way the project is executed Project staff does not know what is in the project plans Stakeholders are not identified and involved Why do we care? Without processes, performance is ad hoc Without the history of prior projects, we may make the same mistakes If execution doesn’t follow the plans, what does it follow? Uninvolved stakeholders can provide last-minute surprises Lessons learned are not captured

69 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-69 CMMI ® CMMI-AM and Project Management v0.1 Integrated Project Management CMMI-AM Goals and Practices Specific GoalSpecific Practice Use the Project’s Defined Process Establish the Project’s Defined Process Use Organizational Process Assets for Planning Project Activities Integrate Plans Manage the Project Using the Integrated Plans Contribute to the Organizational Process Assets Coordinate and Collaborate with Relevant Stakeholders Manage Stakeholder Involvement Manage Dependencies Resolve Coordination Issues

70 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-70 CMMI ® CMMI-AM and Project Management v0.1 Integrated Project Management Goal 1: Use the Defined Processes 1 The project is conducted using a defined process that is tailored from the organization’s set of standard processes Establish and maintain the projects defined process Based upon DoD Acquisition Framework ( ), and other inputs from the Service or Component Use the organizational process assets and measurement repository for estimating and planning the project’s activities Use processes that have been effective on prior projects Base your estimates upon prior actuals, not prior estimates Integrate the project plan and other plans that affect the project to describe the project’s defined process The project plan is not an overlay, it is THE WAY you execute the project

71 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-71 CMMI ® CMMI-AM and Project Management v0.1 Integrated Project Management Goal 1: Use the Defined Processes 2 Manage the project using the project plan, and other plans that affect the project, and the project’s defined process Plan your work and work your plan Contribute work products, measures, and documented experiences to the organizational process assets Helpful for the next project

72 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-72 CMMI ® CMMI-AM and Project Management v0.1 Integrated Project Management Goal 2: Coordinate & Collaborate Coordination and collaboration of the project with relevant stakeholders are conducted Manage the involvement of the relevant stakeholders in the project Encourage stakeholder involvement Participate with relevant stakeholders to identify, negotiate, and track critical dependencies Identify critical activities dependent upon stakeholder involvement Negotiate stakeholder involvement Obtain commitments Resolve issue with relevant stakeholders Document resolution

73 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-73 CMMI ® CMMI-AM and Project Management v0.1 Agenda Introduction to the CMMI Acquisition Module Project Management Process Areas Project Planning Project Monitoring and Control Solicitation and Contract Monitoring Integrated Project Management Risk Management Summary

74 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-74 CMMI ® CMMI-AM and Project Management v0.1 Risk Management The purpose of risk management is to identify potential problems before they occur, so that risk-handling activities may be planned and invoked as needed across the life of the product or project to mitigate adverse impacts on achieving objectives. For Acquisition, risk identification and estimation of probability of occurrence and impact, particularly for those risks involved in meeting performance requirements, schedules, and cost targets, largely determines the acquisition strategy. The acquirer has a dual role, first in assessing and managing overall project risks for the duration of the project, and second, in assessing and managing risks associated with the performance of the supplier. As the acquisition progresses to the selection of a supplier, the risk specific to the supplier’s technical and management approach becomes important to the success of the acquisition.

75 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-75 CMMI ® CMMI-AM and Project Management v0.1 Poor Risk Management … Symptoms Risks are being ignored Known risks to project staff are a surprise to management Every time a new problem manifests, a new management technique is tried Why should we care? The project may escape some of the “bullets”, but not all of them No lessons learned for future projects means making the same mistakes on multiple projects Repeated project failures due to unforeseen (but predictable) risks costs you and your organization

76 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-76 CMMI ® CMMI-AM and Project Management v0.1 What Makes Software-Intensive System Acquisition “Riskier”? Computer software and hardware technology is evolving faster than any other Few program managers — the key decision-makers — have in-depth understanding of software technology Software project management, particularly task duration and effort estimation, is still immature Reuse has potential benefits but also potentially complicates the development process Software misconceptions: “you can fix any design shortfalls in software” and “software is free”

77 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-77 CMMI ® CMMI-AM and Project Management v0.1 RSKM Principles Defining principles Forward-looking view Shared product vision Global Perspective Sustaining Principles  Integrated Management  Teamwork  Continuous Process SHARED PRODUCT VISION Teamwork Continuous Process Integrated Management FORWARD- LOOKING VIEW GLOBAL PERSPECTIVE Open Communication

78 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-78 CMMI ® CMMI-AM and Project Management v0.1 RSKM Paradigm Identify – Look for risks BEFORE they become problems Analyze – Extract decision- making information Plan – Translate into decisions and mitigating actions Track – Monitor risk indicators and mitigation plans Control – Correct deviations from mitigation plans Control Track Plan Analyze Identify Communicate Communicate! Widely disseminate data and feedback 1 1 Van Scoy, Software Development Risk: Opportunity, Not Problem. SEI, 1992

79 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-79 CMMI ® CMMI-AM and Project Management v0.1 Context Condition Risk Statement Consequence A “standard” format for risk statements provides: Clarity Consistency A basis for future risk processing Source A good risk statement is: Fact-based Actionable Brief The SEI “Risk Statement”

80 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-80 CMMI ® CMMI-AM and Project Management v0.1 Sample Risk Statements Good example: This module must be coded in Java, but we don’t have enough Java programmers; the module may not be completed on time Bad example: Unclear requirements may increase costs -Not a fact-based condition -Not specific -Not actionable Condition Consequence

81 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-81 CMMI ® CMMI-AM and Project Management v0.1 Risk Management CMMI-AM Goals and Practices Specific GoalSpecific Practice Prepare for Risk Management Determine Risk Sources and Categories Define Risk Parameters Establish a Risk Management Strategy Identify and Analyze Risks Identify Risks Evaluate, Categorize, and Prioritize Risks Mitigate RisksDevelop Risk Mitigation Plans Implement Risk Mitigation Plans

82 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-82 CMMI ® CMMI-AM and Project Management v0.1 Risk Management Goal 1: Prepare for Risk Management Preparation for risk management is conducted Determine risk sources and categories Risk sources and categories may include -Uncertain requirements-Unprecedented efforts -Unfeasible design-Schedule / cost constraints -Technology immaturity-Staffing and skill issues Define the parameters used to analyze and categorize risks and the parameters used to control the risk management effort Probability of occurrence (e.g., 5-level, High/Medium/Low) Impact (e.g., 5-level, Catastrophic/Critical/Marginal/Negligible) Timeframe (e.g., Near/Midterm/Far, 30/90/360 days) Management Action Threshold Establish and maintain the strategy to be used for risk management

83 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-83 CMMI ® CMMI-AM and Project Management v0.1 Risk Management Goal 2: Identify and Analyze Risks Risks are identified and analyzed to determine their relative importance Identify and document risks Typical risk identification methods include -Brainstorming-Periodic risk reporting -TBQ 1 questionnaire-TBQ interview -Voluntary risk reporting Evaluate and categorize each identified risk using the defined risk categories and parameters, and determine its relative priority Analyze probability of occurrence, impact, timeframe Prioritize -Comparison risk ranking- Multi-voting -Pareto Top N 1 Taxonomy-based questionnaire, available at

84 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-84 CMMI ® CMMI-AM and Project Management v0.1 Risk Management Goal 3: Mitigate Risks Risks are handled and mitigated, where appropriate, to reduce adverse impacts on achieving objectives Develop a risk mitigation plan for the most important risks to the project, as defined by the risk management strategy Disposition ALL identified risks -“Keep”, “Delegate”, or “Transfer” it -“Research”, “Accept”, “Mitigate”, or “Watch” it Monitor the status of each risk periodically and implement the risk mitigation plan as appropriate Continuously monitor status of both risk and mitigation plan Maintain risk database -Identify new risks, close invalid risks Use Risk Management as a means of controlling your project

85 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-85 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Risk Management 1 What Can Acquisition Program Offices Do? — A Few Ideas Start a risk management program on Day 1 of the program Ensure that PMO staff have appropriate risk management training Use multiple methods to identify risk sources: -Periodic risk reporting-Brainstorming -Voluntary risk reporting-Risk report forms -Taxonomy-based questionnaire (TBQ)-TBQ interviews

86 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-86 CMMI ® CMMI-AM and Project Management v0.1 Acquisition Risk Management 2 What Can Acquisition Program Offices Do? — A Few Ideas Add language to RFPs and contracts that specify how risks are to be reported to the PMO Encourage decentralization of risk identification and analysis following an organizationally defined process Establish and maintain a schedule of joint risk reviews with all contractors throughout the program, including joint prioritization of the most important risks to the program Find ways to reward contractors for early identification of issues and risks Define a process and criteria for escalating risks to the next higher level

87 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-87 CMMI ® CMMI-AM and Project Management v0.1 Summary 1 PM roles include PMO management, project management, supplier oversight, indirect subcontractor oversight, and process integration CMMI-AM is a tool intended to help the acquirer achieve success Development of a suitable acquisition strategy is a key component of project planning Principal goals of Project Planning Establish estimates Develop a project plan Obtain commitment to the plan Principal goals of Project Monitoring and Control Monitor Project Against Plan Manage Corrective Action to Closure

88 © 2005 by Carnegie Mellon University CMMI Acquisition Module - Page M2-88 CMMI ® CMMI-AM and Project Management v0.1 Summary 2 Principal goals of Solicitation and Contract Monitoring Prepare for the Solicitation Select Suppliers Award Contracts Coordinate Work with Suppliers Principal goals of Integrated Project Management Use the Project’s Defined Process Coordinate and Collaborate with Relevant Stakeholders Principal goals of Risk Management Prepare for Risk Management Identify and Analyze Risks Mitigate Risks


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