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New Acquisition Policy and Its Impact on Programs from a Systems Engineering Perspective Systems Engineering Summit March 4, 2009 Sharon Vannucci Assistant.

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Presentation on theme: "New Acquisition Policy and Its Impact on Programs from a Systems Engineering Perspective Systems Engineering Summit March 4, 2009 Sharon Vannucci Assistant."— Presentation transcript:

1 New Acquisition Policy and Its Impact on Programs from a Systems Engineering Perspective Systems Engineering Summit March 4, 2009 Sharon Vannucci Assistant Deputy Director for SE Policy and Guidance Systems and Software Engineering Office of the Deputy Under Secretary of Defense (Acquisition and Technology)

2 2 DoDI : 2003 vs New Policy Directed by Congress New or Revised Regulatory Policy Impact on Programs and Systems Engineering – A Discussion Topics Backup (for hardcore policy wonks!): Statutory and Regulatory Information Milestone Requirements New/Revised Enclosures to DoDI

3 3 IOC Technology Development Production & Deployment Operations & Support FRP Decision Review FOC Materiel Solution Analysis Materiel Development Decision User Needs Technology Opportunities & Resources Defense Acquisition Management System Program Initiation IOC B Concept Refinement System Development & Demonstration Production & Deployment Operations & Support C FRP Decision Review FOC Technology Development Program Initiation Design Readiness Review Concept Decision User Needs and Technology Opportunities BA C A Defense Acquisition Management Framework Comparison of 2003 vs. 2008: Subtle, But Substantial Changes Focus of major changes Engineering & Manufacturing Development Post-CDR Assessment 3 PDR or Post PDR Assessment

4 4 Policy flowing from numerous new/revised sections of Public Law since 2003 (some with multiple requirements) Approved policy appearing in over 25 policy memos and DoD responses to the GAO, IG, and Congress Reference to ten updated or newly issued DoD publications Consideration of over 700 Defense Acquisition Policy Working Group (DAPWG) comments Sources of Change

5 5 Operations & Support In the beginning... Incremental Development A Production & Deployment O&S Technology Development Engineering & Manuf Development JCIDS Acquisition Process B C Following the Materiel Development Decision (MDD), the MDA may authorize entry into the acquisition management system at any point consistent with phase-specific entrance criteria and statutory requirements. CDD CPD User Needs Joint Concepts Capabilities - Based Assessment OSD/JCS COCOM FCB Strategic Guidance Materiel Solution Analysis ICD MDD Technology Opportunities & Resources A

6 6 IOC B A Technology Opportunities & Resources Materiel Solution Analysis FRP Decision Review FOC Materiel Development Decision Changes to Decision Points User Needs Old (2003)New (2008)Change from 2003 Concept Decision (CD)Materiel Development Decision (MDD) MDD required prior to entering the acquisition lifecycle at any point Design Readiness Review (DRR) Post-CDR AssessmentMDAs assessment of PMs Post- CDR Report PDR CDR CDD CPD ICD AoA Pre-Systems AcquisitionSystems Acquisition Sustainment Post-CDR Assessment PDR Technology Development Production & Deployment Operations & Support Engineering and Manufacturing Development Post-PDR AssessmentMDAs assessment of PMs PDR Report (if PDR is after MS B) N/A C or Post-PDR Assessment

7 7 Changes to Phases Old (2003)New (2008)Change from 2003 Concept Refinement (CR) Materiel Solution Analysis More robust AoA (result of changes to JCIDS) Technology Development (TD) Competitive prototyping Systems Development & Demonstration (SDD) Engineering & Manufacturing Development (EMD) More robust system engineering IOC B A Technology Opportunities & Resources FOC User Needs CDD CPD ICD Materiel Solution Analysis Technology Development Production & Deployment Operations & Support Engineering and Manufacturing Development FRP Decision Review Materiel Development Decision Post CDR Assessment PDRCDRAoAPDR Pre-Systems Acquisition Systems Acquisition Sustainment C or Post PDR Assessment

8 8 Mandated Milestone A for MDAPs Mandates Milestone A approval prior to technology development for a major weapon system Requires MDA Certification prior to Milestone A for MDAPs Changed Milestone B Certification Requirements Mandates reporting and notification of program cost changes

9 9 PDR Before Milestone B Planned in Technology Development Strategy (TDS) PDR Report provided to MDA at MS B Includes recommended requirements trades B Engineering & Manufacturing Development C Technology Development PDRCDR CDD CPD Post CDR Assessment PDR Preliminary Design Review or PDR After Milestone B Planned in Acquisition Strategy (AS) PDR Report provided to MDA before the Post-PDR Assessment Reflects requirements trades At Post-PDR Assessment, MDA considers PDR Report; determines action(s) required to achieve APB objectives, and issues ADM Post PDR Assessment

10 10 Engineering and Manufacturing Development BC PDR CDR CDD CPD Post-CDR Assessment PDR or Integrated System Design System Capability and Manufacturing Process Demonstration Old (2003)New (2008)Change from 2003 System Design Integrated System Design At CDR, PM assumes control of the initial product baseline for all Class 1 Configuration Items. System Demonstration System Capability and Manufacturing Process Demonstration Manufacturing processes effectively demonstrated; production-representative article(s) demonstrated in intended environment; T&E assesses improvements to mission capability and operational support based on user needs. Post PDR Assessment

11 11 Military Equipment Valuation (accounting for military equipment) MDA Certification at Milestones A & B Cost type contract for EMD Phase requires written determination by MDA Lead Systems Integrator Restrictions Replaced System Sustainment Plan Configuration Steering Boards (CSBs ) New Policy Directed by Congress

12 12 New MAIS Reporting Requirements Time-Certain IT Business Systems Development Defense Business Systems Oversight MDA assessment of compliance with chemical, biological, radiological, and nuclear survivability (CBRN) requirements at Milestones B and C Data Management Strategy New Policy Directed by Congress Continued…

13 13 Detailed Acquisition of Services Policy Independent management reviews (Peer Reviews) for supplies and services contracts Interim Beyond-LRIP Report DOT&Es Role in Testing Force Protection Equipment / Non-Lethal Weapons Nunn-McCurdy breach / APB Revision Procedure Cost of energy in AoA and resource estimate New Policy Directed by Congress Continued…

14 14 New or Revised Regulatory Policy Contract Incentives Strategy Program Support Reviews (PSRs) Integrated Developmental and Operational Test and Evaluation Restricted use of performance requirements that do not support KPPs Comparison with current mission capabilities during OT&E Assessment of Operational Test Readiness (AOTR) Detailed Systems Engineering Policy RAM Strategy

15 15 New or Revised Regulatory Policy Continued… Contracting for Operational Support Services Approval of Technology Development Strategy prior to release of final RFP for TD Phase Configuration Management policy Approval of Acquisition Strategy prior to release of final RFP for EMD or any succeeding phase Life-Cycle Sustainment Plan (LCSP) Review and assessment of new or modified communications waveforms Evolutionary Acquisition Revised

16 16 From two processes To one process Evolutionary Acquisition Capability is delivered in increments, recognizing up front need for future capability improvements. Each increment: depends on mature technology is a militarily useful and supportable operational capability Successive Technology Development Phases may be needed to mature technology for multiple increments. Incremental Development: End- state is known; requirements met over time in several increments Spiral Development: End-state is not known; requirements for increments dependent upon technology maturation and user feedback No spirals!

17 17 Policy Enabling Systems Engineering Technical Reviews Preliminary Design Review (PDR) – Required Before MS B: PDR Report to the MDA for MS B After MS B: PDR Report to the MDA Post-PDR Assessment and ADM Critical Design Review (CDR) – Required Post-CDR Report to the MDA Post-CDR Assessment and ADM

18 18 Preliminary Design Review When consistent with Technology Development Phase objectives, associated prototyping activity, and the MDA approved TDS, the PM shall plan a Preliminary Design Review (PDR) before Milestone B. PDR planning shall be reflected in the TDS and shall be conducted for the candidate design(s) to establish the allocated baseline (hardware, software, human/support systems) and underlying architectures to define a high- confidence design. All system elements (hardware and software) shall be at a level of maturity commensurate with the PDR entrance and exit criteria. A successful PDR will inform requirements trades; improve cost estimation; and identify remaining design, integration, and manufacturing risks. The PDR shall be conducted at the system level and include user representatives and associated certification authorities. The PDR Report shall be provided to the MDA at Milestone B and include recommended requirements trades based upon an assessment of cost, schedule, and performance risk. OR

19 19 Preliminary Design Review Post-PDR Assessment. If a PDR has not been conducted prior to Milestone B, the PM shall plan for a PDR as soon as feasible after program initiation. PDR planning shall be reflected in the Acquisition Strategy and conducted consistent with the policies specified in paragraph 5.d.(6). Following PDR, the PM shall plan and the MDA shall conduct a formal Post-PDR Assessment. The PDR report shall be provided to the MDA prior to the assessment and reflect any requirements trades based upon the PMs assessment of cost, schedule, and performance risk. The MDA will consider the results of the PDR and the PMs assessment, and determine whether remedial action is necessary to achieve APB objectives. The results of the MDA's Post-PDR Assessment shall be documented in an ADM.

20 20 DAG* PDR Report Guidance Preliminary Design Review (PDR) Report. The PDR Report shall be provided as a memorandum to the MDA. 1. When consistent with Technology Development Phase objectives, associated prototyping activity, and the MDA-approved TDS, the PM shall plan a Preliminary Design Review (PDR) before Milestone B. PDR planning shall be reflected in the TDS with details in the SEP and shall be conducted consistent with the policies specified in paragraph 5.d.(6). Additionally, the Report should address: a. A comprehensive list of the systems engineering products that make up the allocated baseline (to include the preliminary design specifications for all configuration items) and that were subject to review; b. A list of the participants in the review including the PDR chair, applicable technical authorities, independent subject matter experts, and other key stakeholders; c. A summary of the Action Items from the review and their closure status/plan; d. A risk assessment using the PDR risk assessment checklist (https://acc.dau.mil/TechRevChklst) or similar to determine readiness to commit to full detail design; andhttps://acc.dau.mil/TechRevChklst e. A recommendation from the PDR as to the approval of the program's system allocated baseline to support detail design. Note: Blue text is guidance, black is policy. * Defense Acquisition Guidebook

21 21 DAG PDR Report Guidance Continued… The PDR Report shall be provided to the MDA at Milestone B and include recommended requirements trades based upon an assessment of cost, schedule, and performance risk. 2. If a PDR has not been conducted prior to Milestone B, the PM shall plan for a PDR as soon as feasible after program initiation. PDR planning shall be reflected in the Acquisition Strategy and conducted consistent with the policies specified in paragraph 5.d.(6). 3. For programs whose MDA is the USD(AT&L), the PDR Report should be a memorandum to the USD(AT&L) through the Director, Systems and Software Engineering and the OIPT lead. Note: Blue text is guidance, black is policy.

22 22 DAG Post-PDR-A Guidance Post-Preliminary Design Review (PDR) Assessment. When the system-level PDR is conducted after Milestone B, the PM shall plan and the MDA shall conduct a formal Post-PDR Assessment. The MDA shall conduct a formal program assessment and consider the results of the PDR and the PMs assessment in the PDR Report, and determine whether remedial action is necessary to achieve APB objectives. The results of the MDA's Post-PDR Assessment shall be documented in an ADM. The Post-PDR assessment shall reflect any requirements trades based upon the PMs assessment of cost, schedule, and performance risk. Note: Blue text is guidance, black is policy.

23 23 Post-CDR Report The PM shall provide a Post-CDR Report to the MDA that provides an overall assessment of design maturity and a summary of the system-level CDR results which shall include, but not be limited to: a. The names, organizations, and areas of expertise of independent subject matter expert participants and CDR chair; b. A description of the product baseline for the system and the percentage of build-to packages completed for this baseline; c. A summary of the issues and actions identified at the review together with their closure plans; d. An assessment of risk by the participants against the exit criteria for the EMD Phase; and e. Identification of those issues/risks that could result in a breach to the program baseline or substantively impact cost, schedule, or performance. The MDA shall review the Post-CDR Report and the PM's resolution/ mitigation plans and determine whether additional action is necessary to satisfy EMD Phase exit criteria and to achieve the program outcomes specified in the APB. The results of the MDA's Post-CDR Assessment shall be documented in an ADM. Successful completion of the Post-CDR Assessment ends Integrated System Design and continues the EMD Phase into System Capability and Manufacturing Process Demonstration.

24 24 Post-CDR Assessment Post-CDR Assessment. The MDA shall conduct a formal program assessment following system-level CDR. The system-level CDR provides an opportunity to assess design maturity as evidenced by measures such as: successful completion of subsystem CDRs; the percentage of hardware and software product build-to specifications and drawings completed and under configuration management; planned corrective actions to hardware/software deficiencies; adequate developmental testing; an assessment of environment, safety and occupational health risks; a completed failure modes and effects analysis; the identification of key system characteristics;, manufacturing feasibility, and the maturity of critical manufacturing processes; and an estimate of system reliability based on demonstrated reliability rates.

25 25 DAG Post-CDR-A Guidance Post-Critical Design Review (CDR) Assessment. The MDA shall conduct a formal program assessment following system-level CDR. 1. The PM shall provide a Post-CDR Report as a memorandum to the MDA that provides an overall assessment of design maturity and a summary of the system- level CDR results which shall include, but not be limited to: a. The names, organizations, and areas of expertise of independent subject matter expert participants and CDR chair; b. A description of the product baseline for the system and the percentage of build-to packages completed for this baseline; c. A summary of the issues and actions identified at the review together with their closure plans; d. An assessment of risk by the participants against the exit criteria for the EMD Phase; and e. Identification of those issues/risks that could result in a breach to the program baseline or substantively impact cost, schedule, or performance. The CDR risk assessment checklist is designed as a technical review preparation tool, and should be used as the primary guide for assessing risk during the review. This checklist is available on the SE COP (https://acc.dau.mil/TechRevChklst).https://acc.dau.mil/TechRevChklst Note: Blue text is guidance, black is policy.

26 26 DAG Post-CDR-A Guidance Continued… 2. For programs whose MDA is the USD(AT&L), the Post-CDR Report should be a memorandum to the USD(AT&L) through the Director, Systems and Software Engineering and the OIPT lead. 3. The MDA shall review the Post-CDR Report and the PMs resolution/ mitigation plans and determine whether additional action is necessary to satisfy EMD Phase exit criteria and to achieve the program outcomes specified in the APB. The results of the MDAs Post-CDR Assessment shall be documented in an ADM. Note: Blue text is guidance, black is policy.

27 27 Codifies OSD SE Role in Program Oversight Program Support Reviews (PSRs). PSRs are a means to inform an MDA and Program Office of the status of technical planning and management processes by identifying cost, schedule, and performance risk and recommendations to mitigate those risks. PSRs shall be conducted by cross-functional and cross-organizational teams appropriate to the program and situation. PSRs for ACAT ID and IAM programs shall be planned by the Director, Systems and Software Engineering (SSE) to support OIPT program reviews, at other times as directed by the USD(AT&L), and in response to requests from PMs. Enclosure 6: The DUSD(A&T) shall conduct an independent Assessment of Operational Test Readiness (AOTR) for all ACAT ID and special interest programs designated by the USD(AT&L). Each AOTR shall consider the risks associated with the systems ability to meet operational suitability and effectiveness goals. This assessment shall be based on capabilities demonstrated in DT&E and OAs and criteria described in the TEMP. Where feasible, the AOTR shall be performed in conjunction with the program's review and reporting activities as described in subparagraph 4.a.(1) of this Enclosure. The AOTR report shall be provided to the USD(AT&L), DOT&E, and CAE. The CAE shall consider the results of the AOTR prior to making a determination of materiel system readiness for IOT&E.

28 28 Enclosures to DoDI References 2. Procedures 3. ACAT and MDA 4. Statutory and Regulatory Information and Milestone Requirements Table 5. EVM Implementation Policy Table 6. APB Policy Table 7. Unique Decision Forums 5. IT Considerations 6. Integrated T&E 7. Resource Estimation 8. Human Systems Integration 9. Acquisition of Services 10. Program Management 11. Management of Defense Business Systems 12. Systems Engineering New Tables Updated, More User Friendly

29 29 New Systems Engineering Enclosure Codifies three previous SE policy memoranda Codifies a number of SE-related policies and statutes since 2003: Environmental Safety and Occupational Health Corrosion Prevention and Control Modular Open Systems Approach Data Management and Technical Data Rights Item Unique Identification Spectrum Supportability Introduces new policy on Configuration Management

30 30 Other Important Statutory and Regulatory Policy Changes

31 31 Other Major Policy Changes Continued… Acquisition of Services Replaces, and adds structure and discipline to, former policy Implements Independent Management Reviews, required by Sec. 808 of the 08 NDAA, as Peer Reviews Defines Senior Officials and Management Thresholds Requires: Performance-Based Requirements; identifiable and measurable cost, schedule, and performance outcomes; a strategic, enterprise-wide approach for both planning and execution; and formal executive review before contract initiation Assessment of Operational Test Readiness Complements the DoD Components Operational Test Readiness Process Considers the risks associated with the systems ability to meet operational suitability and effectiveness goals Based on capabilities demonstrated in DT&E and OA and TEMP criteria Report provided to the USD(AT&L), DOT&E, and CAE AIS Reporting FY 09 NDAA §811 Establishes pre-MAIS reporting requirements No longer need to Certify CCA compliance to Congress FY 07 NDAA §816 SAR-like and DAES-like reporting §816 (Nunn-McCurdy-like) Assessment and Certification §811 Time-Certain IT Business System development FY 06 NDAA §806, MAIS Cancellation/Reduction in Scope: Notify Congress before any MDA cancels or significantly reduces the scope of a MAIS program that has been fielded or has received Milestone C approval APB Policy Clarifies when and on what basis the APB will be updated Provides statutory basis for Nunn-McCurdy reporting

32 32 Other Major Policy Changes Continued… Changes to the Technology Development Strategy Statutory requirement for Test Plan in TD Phase is now accomplished in T&E Strategy (TES) Now requires a summary of the CAIG-approved Cost and Software Data Reporting (CSDR) Plan(s) for the Technology Development phase Data Rights PMs assess the long-term technical data needs of their systems The assessment reflected in a Data Management Strategy (included in the Acquisition Strategy) Addresses the merits of including a priced contract option for the future delivery of technical data Considers the contractors responsibility to verify any assertion of restricted use and release of data Enhanced Focus on Manufacturing Readiness Fully-Burdened Cost of Energy The Analysis of Alternatives considers Alternative ways to improve the energy efficiency of DoD tactical systems with end items that create a demand for energy The fully burdened cost of delivered energy shall be used in trade-off analyses conducted for all DoD tactical systems with end items that create a demand for energy Incentives PM required to describe how incentives will be used to achieve required cost, schedule, and performance outcomes Captured in Acquisition Strategy Institutionalizes current incentive fee policy Institutionalizes Program Management Agreements (PMAs)

33 33 Other Major Policy Changes Continued… Lead Systems Integrator MDA ensures that the LSI does not have, nor is expected to acquire, a financial interest in development or construction PM stresses appropriate checks and balances; insists the government performs inherently governmental functions Milestone Requirements FY07/08/09 NDAAs Mandate Milestone A approval prior to technology development for an MDAP Require MDA Certification prior to Milestone A for MDAPs with Technology Development Phase efforts Mandate reporting and notification of program cost changes Changed Milestone B Certification Requirements FY06 NDAA Requires MDA Certification prior to Milestone B for MDAPs MDA Determination of Contract Type Consistent with level of program risk: fixed price or cost contract Cost-type only upon written determination that (1) the program is so complex and technically challenging that it would not be practicable to reduce program risk to a level that would permit the use of a fixed-price contract; and, (2) the complexity and technical challenge of the program is not the result of a failure to meet the requirements of the MDA Milestone B Certification Modified Enclosure 3 Tables Now Enclosure 4 Clarifies Applicability by program type and ACAT New Challenges Addresses Waveform, Electromagnetic Spectrum, and Life-Cycle Signature Management Requires early consideration of Data Assets, Critical Program Information, and the workforce mix

34 34 Other Major Policy Changes Continued… New Enclosure 11, Management of Defense Business Systems Describes the Defense Business Systems Management Committee (DBSMC) Certification Approval Process DBSMC Certification Approval required for all defense business systems funded over $1,000,000 Investment Review Boards (IRB) assess programs and advise the DBSMC Enclosure details the business process supporting IRB and DBSMC activity New Enclosure 12, Systems Engineering Requires the Systems Engineering Plan and Technical Reviews Also covers Corrosion Control Configuration Management Pre-Award Peer Reviews Recognizes Unique Decision Forums for Space, Missile Defense, and Joint Intelligence Performance-Based Life-Cycle Product Support (PBL) Document performance and sustainment requirements in performance agreements specifying objective outcomes, measures, resource commitments, and stakeholder responsibilities Program Support Reviews On-site review of program information before each milestone and release of the RFP Assesses technical planning and management processes Assists in identifying and mitigating cost/schedule/performance risk Informs decision making Reliability, Availability, and Maintainability (RAM) Requires a strategy that includes a reliability growth program RAM integrated with Systems Engineering processes; assessed during technical reviews, T&E, and Program Support Reviews (PSRs)

35 35 Other Major Policy Changes Continued… Replaced-System Sustainment Plan DoD Component plan to sustain the system being replaced if the capability provided by the existing system remains necessary and relevant during fielding of and transition to the new system The plan must provide for the budgeting to sustain the existing system until the new system assumes the majority of mission responsibility Requests for Proposal Technology Development Strategy or Acquisition Strategy must be approved before release Small Business Innovation Research (SBIR) Directs consideration of SBIR technologies Updated EVM Policy Cost/Incentive Contracts: At PMs discretion, based on cost-benefit analysis Firm Fixed-Price Contracts: Limited. Requires MDA approval based on a business case analysis Workforce Considerations Manpower mix Inherently governmental PM tenure PM / PEO shall be experienced and certified

36 36 Implications for Systems Engineering

37 37 CBA Joint Concepts MS CMS B Strategic Guidance MS A ICD Technology Development CDD Engineering and Manufacturing Development CPD Production and Deployment O&S MDD Materiel Solution Analysis CDR Increased Focus on Early Acquisition Materiel Development Decision (MDD) Full Rate Production Decision Review JCIDS Process Competing prototypes before MS B PDR and a PDR report to the MDA if pre-MS B or PDR and Post-PDR report and assessment if post-MS B Early Acquisition What are the implications of these changes for programs? How can systems engineering enable the program during this early phase? PDR or PDR

38 38 Full Rate Production Decision Review CBA Joint Concepts MS CMS B Strategic Guidance MS A ICD Technology Development CDD Engineering and Manufacturing Development CPD Production and Deployment O&S New Opportunities for Systems Engineering – Starting Programs Right MDD Materiel Solution Analysis Pre-MDD SE Touch Points Initial Capabilities Document (ICD) Analysis of Alternatives study plan Pre-Milestone A SE Touch Points Systems Engineering Plan Technology Development Strategy Test and Evaluation Strategy Analysis of Alternatives CDRPDR * PDR – Preliminary Design Review * CDR – Critical Design Review * MDA - Milestone Decision Authority Whats relevant: Mandatory Materiel Development Decision Mandatory Milestone A for all major weapon systems Mandatory PDR* and CDR* with reports to the MDA* JCIDS Process PDR OR

39 39 Full Rate Production Decision Review CBA Joint Concepts MS CMS B Strategic Guidance MS A ICD Technology Development CDD Engineering and Manufacturing Development and Demonstration CPD Production and Deployment O&S New Opportunities for Independent Reviews MDD Materiel Solution Analysis * PDR – Preliminary Design Review * CDR – Critical Design Review * OTRR – Operational Test Readiness Review Whats relevant: Mandatory Milestone A for all major weapon systems MS B after system-level PDR* and a PDR Report to the MDA EMDD with Post-CDR* Report and MDA Assessment PSR and AOTR in policy OTRR Potential Independent Technical Reviews - PSRs and AOTRs Program Support Reviews (PSRs) All ACAT ID and IAM To inform the MDA on technical planning and management processes thru risk identification and mitigation recommendations To support OIPT program reviews and others as requested by the MDA Non-advocate reviews requested by the PM Assessments of Operational Test Readiness (AOTRs) All ACAT ID and special interest programs To inform the MDA, DOTE, & CAE of risk of a system failing to meet operational suitability and effectiveness goals To support CAE determination of materiel readiness for IOT&E

40 40 New Challenges for Programs PM skill-sets after MDD and prior to MS A Increased importance of the Technology Development Strategy (TDS) at MS A PM skill-set and PM organization for TD phase Funding implications (shifting resources from EMD to TD) Possible contracting strategies – constraints, competitive prototyping, data rights, etc. Early engagement with industry Tailoring the process to specific domains and/or complexity Others?

41 41 New Challenges for SEPs Explicit technical planning for the Technology Development phase at Milestone A including: Technology maturation Competitive prototyping Manufacturing maturity Critical Program Information in design Item Unique Identification (IUID) Mandatory system-level PDR with rationale for its placement before or after Milestone B PDR Report to the MDA either side of MS B Post-PDR Assessment by the MDA with ADM if after MS B Mandatory system-level CDR Post-CDR Report to and Assessment by the MDA followed by an ADM IUID Implementation Plan as SEP Annex at Milestones B and C

42 42 Why is this hard? Programs have very little experience with current pre- Milestone B SE activities – makes it difficult to know what to adjust given changes. The current DAG guidance is voluminous – online resource with over 500 printed pages of information without hotlinks. PMOs have limited understanding about interdependencies within the this Guidance. For SE to be an effective enabler, Systems Engineers need to understand the activities, products, and their integration with the program, particularly in the unfamiliar realm of pre-Milestone B.

43 43 CBA Joint Concepts MS CMS B Strategic Guidance MS A ICD Technology Development Engineering and Manufacturing Development O&S MDD Materiel Solution Analysis CDRPDR Review of Policy Changes Mandatory Materiel Development Decision (MDD) Mandatory competing prototypes before MS B Mandatory PDR and a report to the MDA (the sliding PDR) [PDR Report to MDA if before MS B; formal PDR Assessment by MDA if after MS B] Configuration Steering Boards at Component level to review all requirements changes Renewed emphasis on manufacturing during system development: Re-titles SDD phase to EMD with two sub phases: Integrated System Design and System Capability and Manufacturing Process Demonstration Establishes consideration of manufacturing maturity at key decision points Mandatory system-level CDR with an initial product baseline and followed by a Post-CDR Report to the MDA Post-CDR Assessment by the MDA between EMD sub phases Full Rate Production Decision Review JCIDS Process PDR Production and Deployment CPD CDD or

44 44 Completed Design Program Initiation Make acquisition decisions when you have solid evidence and acceptable risk Uncertainty Agreement to pursue a material solution Materiel Solution Analysis Technology Development Selection of a proposed materiel solution System Level Specs Preliminary Design AoA Business Decisions Engineering Support Proposed Materiel Solution Materiel Solution Analysis Technology Maturation and Prototyping MDD MS A MS B PDR CDR In Conclusion... PDR OR P-PDR Assessment P-CDR Assessment

45 45 SE Planning for Milestone A and Technology Development Phase Documents / activities / data requiring technical input from the Systems Engineer BEFORE Milestone A: Analysis of Alternatives Technology Development Strategy Critical Program Information Technology maturation plans Competitive Prototyping plans Net-Centric Data Strategy Market Research Data Management Strategy Component Cost Estimate Systems Engineering Plan Test and Evaluation Plan The Systems Engineers Challenge: Where to find the data!?

46 46 Call Me… Sharon Vannucci (703)

47 47 Backup

48 48 Material Solution Analysis MDD MS A Materiel Solution Analysis Conduct AoA Initial user assessment of capability needs ICD Study Efforts Engineering Analysis of Potential Systems Solution(s) SEP TDS JCIDS AoA Guidance AoA Plan AoA Report TES Technical Planning for TD Material Solution Options Program Planning For TD Program Office

49 49 MSA Starting & Closing Conditions JROC Approved ICD Understanding of capability gaps Successful MDD Agreement by MDA to proceed MDA Approved AoA Guidance Direction for initial scoping of solution Technology Development Strategy (TDS) Understanding of risks – technology, design, manufacturing, security, etc. Plans for competitive prototyping and initial design (to PDR) Plans for SE and T&E for technology development Materiel Solution Analysis (MSA) Starting Conditions Closing Conditions

50 50 MSA – Materiel Development Decision MDD MS A Materiel Solution Analysis Conduct AoA Initial user assessment of capability needs ICD Study Efforts Engineering Analysis of Potential Systems Solution(s) SEP TDS JCIDS AoA Guidance AoA Plan AoA Report TES Technical Planning for TD Material Solution Options Program Planning For TD Program Office Materiel Development Decision New in Provides early visibility to MDA and opportunity for better upfront guidance

51 51 MSA – Analysis of Alternatives MDD MS A Materiel Solution Analysis Conduct AoA Initial user assessment of capability needs ICD Study Efforts Engineering Analysis of Potential Systems Solution(s) SEP TDS JCIDS AoA Guidance AoA Plan AoA Report TES Technical Planning for TD Material Solution Options Program Planning For TD Program Office No major changes in Increased visibility at MDD Recommends important considerations be addressed at the outset in AoA Guidance Risk is that if driving issues are not addressed in the AoA they will cost more in time and funds when identified later in the process

52 52 MSA – Engineering Analysis MDD MS A Materiel Solution Analysis Conduct AoA Initial user assessment of capability needs ICD Study Efforts Engineering Analysis of Potential Systems Solution(s) SEP TDS JCIDS AoA Guidance AoA Plan AoA Report TES Technical Planning for TD Material Solution Options Program Planning For TD Program Office Early engineering analysis by emerging program office Based on results of the AoA, translated into option(s) for acquisition Provides technical basis for planning for next steps including the best technical approach for the TD phase Includes assessment of technical risks including technology maturity, design, assurance, integration, manufacturing Provides technical foundation for MS A products and decisions

53 53 MSA – Material Solution Options MDD MS A Materiel Solution Analysis Conduct AoA Initial user assessment of capability needs ICD Study Efforts Engineering Analysis of Potential Systems Solution(s) SEP TDS JCIDS AoA Guidance AoA Plan AoA Report TES Technical Planning for TD Material Solution Options Program Planning For TD Program Office Recommended solution or solution set Reviewed by stakeholders Provides scoping for planning for next phase

54 54 MSA – Planning for TD Phase Conduct AoA MDD MS A Materiel Solution Analysis Initial user assessment of capability needs ICD Study Efforts Engineering Analysis of Potential Systems Solution(s) SEP TDS JCIDS AoA Guidance AoA Plan AoA Report TES Technical Planning for TD Material Solution Options Program Planning For TD Program Office Evolutionary vs. single step approach (programmatic and technical) Acquisition increments objectives Total R&D program cost, schedule, performance goals TD Phase risk reduction/ technology maturation objectives Competitive prototyping and PDR plans TD Phase-specific cost, schedule, performance goals and exit criteria Contract strategy and RFP preparation Program Office organization, responsibilities, and time-phased workload assessment

55 55 MSA –Planning for TD Phase Continued… Conduct AoA MDD MS A Materiel Solution Analysis Initial user assessment of capability needs ICD Study Efforts Engineering Analysis of Potential Systems Solution(s) SEP TDS JCIDS AoA Guidance AoA Plan AoA Report TES Technical Planning for TD Material Solution Options Program Planning For TD Program Office Major products Technology Development Strategy (TDS) Plan for the TD phase Systems Engineering Plan (SEP) Plan for engineering for TD activities T&E Strategy Test plans and criteria for TD and long lead time test elements

56 56 MSA – PM Questions MDD MS A Materiel Solution Analysis Conduct AoA Initial user assessment of capability needs ICD Study Efforts Engineering Analysis of Potential Systems Solution(s) SEP TDS JCIDS AoA Guidance AoA Plan AoA Report TES Technical Planning for TD Material Solution Options Program Planning For TD Program Office Increased importance of AoA? When is Program Office formation? Role of industry? Coordination with S&T community? Who vets the PMO assessments in the TDS?

57 57 Technology Development

58 58 TD Starting & Closing Conditions Milestone A decision Selected materiel solution(s) Clear direction in ADM including funding matched to TD plan (in approved TDS) Cost, schedule, solution(s) maturity objectives Cost certification Approved Technology Development Strategy (TDS ) TD phase acquisition strategy and RFPs Detailed phase implementation plan with resources Approved Systems Engineering Plan (SEP) and T&E Strategy (TES) Technical management and implementation plan Testing objectives and criteria Knowledge-based decision on establishing a program of record including cost, schedule, and performance based on: Approved CDD and systems requirements Demonstrated mature solution(s) technologies Initial end-item design maturity (if PDR before B) EMD phase full funding EMD plan and objectives (AS) based on acceptable level of risk to Sponsor, CAE, and PM Supporting programmatic, technical, and test planning for EMD execution Technology Development (TD) Starting Conditions Closing Conditions

59 59 TD – Major Thrusts Technology Maturation Initial End Item Design

60 60 TD – Technology Maturity Implementation based on MS A products TDS identified CTE and provided technology risk reduction plans SEP defined how risk reduction and prototypes will be technically managed and reviewed TES provided T&E criteria for evaluation of technology risk reduction and prototype efforts Reviews TDS assessment of technology maturity and its identified Critical Technology Elements CTEs Confirms/ revises CTEs functional and performance baselines; the as is and required Matures CTEs in relevant environments Competitive prototypes or other technology risk reduction activities Uses RFPs/ task orders with industry and government labs/ agencies

61 61 TD – Engineering Analysis Develops technical baseline for CARD and program estimate (Certification requirement) Results… Drive the technical aspects of program: Systems Requirement Document, SEP and TEMP Provide the technical foundation for draft Acquisition Strategy, Initial end-item RFP, cost estimates, and APB Assesses CTE/ prototyping results against required requirements Refines system requirements based on technology maturation results Collaborates with Users to balance CDD requirements with solutions technology maturity

62 62 TD – Interim Products Interim products provide basis for initial end item design Sponsor-approved CDD Updated TEMP Initial Acquisition Strategy and cost estimates Preliminary APB Preliminary program total ownership costs and plan for evolutionary acquisition increments

63 63 TD – Initial End Item Design(s) Multiple design competitors including prototypes (as required) Technical reviews products per SEP (e.g.: requirements tradeoffs, trade studies, design alternatives, and prototyping results) Greater understanding of achievable system performance Risk reduction via HW and SW design maturation (engineering and manufacturing) Engineering oversight and insight via IPTs Interaction with user community and stakeholders to ensure shared understanding of technical feasibility

64 64 TD – Products PDR Report to MDA (new in ) PM Assessment Final CDD reflecting a feasible, affordable increment of development Acquisition Strategy, next increments APB & CARD, and full funding requirement Business Case Analysis EMD RFP or post PDR contract(s) execution Technical plans: SEP, TEMP, Information Support Plan (ISP), etc. Design results inform final Milestone B products:

65 65 TD – PM Questions Role of industry in TD? Relationship to JCIDS? PDR before B Impact of time delay between PDR and MS B? Contracting implications for EMD? What requirements are in the RFP for initial designs? Timing and basis for Source Selection?

66 66 Requirement CommentReference Data Management Strategy 10 USC 2320 Military Equipment Program Valuation PL & Statement of Federal Financial Accounting Standards, No 6 When Required MS A, B, C, & FRPDR MS C & FRPDR (or equivalent) Part of TDS or Acq Strategy Part of Acquisition Strategy Enclosure 4, Table 2-1 Statutory Requirements Added For MDAPs & MAIS Analysis of Alternatives (AoA) 10 USC 2366a Title 40, Sec III MS A, B, C, & Program Initiation for Ships Updated as necessary at MS B and C

67 67 Requirement CommentReference MDA Program Certification 10 USC 2366 a & b When Required MS A & B MS C (if program initiation) Nunn-McCurdy Assessment and Certification 10 USC 2433When Service Secretary reports an increase in cost that equals or exceeds the critical cost threshold Increase of 25% over current PAUC or APUC APB values; Increase of 50% over original PAUC or APUC APB values Replaced System Sustainment Plan 10 USC 2437 MS B; Program Initiation for Ships Requires cost estimate at MS A Statutory Requirements Added For MDAPs Only Enclosure 4, Table 2-1

68 68 Requirement CommentReference When Required Notification of a Significant Change to the Defense Committees 10 USC 2445cNLT 45 days after receiving MAIS Quarterly Report indicating a Significant Change Schedule change of more than 6 mos, but less than 1 year; increase in development cost or life cycle cost of at least 15% but less than 25%; or significant adverse change in expected performance Assessment and certification of a Critical Change to the Defense Committees 10 USC 2445cNLT 60 days after receiving a MAIS Quarterly Report indicating a Critical Change Failed to achieve IOC w/in 5 years after funds were first obligated; schedule change of 1 yr or more; increase in dev cost or life cycle cost of 25% or more; or a change in expected performance that undermines ability of sys to perform anticipated functions Enclosure 4, Table 2-1 Statutory Requirements Added For MAIS Only DoD CIO Confirmation of CCA Compliance Sec 811, PL MS A, B, C, & Full Deployment Decision Review MS C if program initiation or equiv to Full Deployment Decision Review

69 69 Requirement CommentReference Notice of MAIS Cancellation or Significant Reduction in Scope Sec 806, PL When Required 60 days prior to MDA decision to cancel or significantly reduce scope of fielded or post- MS C MAIS program MAIS Annual Report to Congress 10 USC 2445bAnnually, after first occurrence of any of the following events: MDA designation, MS A or MS B MAIS Quarterly Report10 USC 2445cQuarterly following initial submission of a MAIS Annual Report DBSMC Certification for Business Systems Modernization 10 USC 2222 Prior to obligation of funds See Encl. 11, DoDI Enclosure 4, Table 2-1 Statutory Requirements Added For MAIS Only, continued… Due 45 days after the Presidents Budget is submitted to Congress

70 70 Statutory Requirements Added For ACAT II and Below Programs (unless otherwise noted) Requirement CommentReference Analysis of Alternatives (AoA) – all IT including NSS 40 USC Subtitle III When Required MS A, B, & C Data Management Strategy (ACAT II only) 10 USC 2320 Military Equipment Program Valuation PL & Statement of Federal Financial Accounting Standards, No 6 MS B, C, & FRPDR MS C & FRPDR (or equivalent) Part of Acq Strategy Part of Acquisition Strategy LRIP Quantities (ACAT II only) 10 USC 2400MS B Enclosure 4, Table 2-2 Updated as necessary at MS B and C

71 71 Regulatory Requirements Added/Revised For All Programs (unless otherwise noted) Requirement CommentReference When Required Corrosion Prevention Control Plan DoDI MS B & CPart of Acq Strategy for ACAT I only Life Cycle Sustainment Plan DoDI MS B, C, & FRPDR Part of Acq Strategy Acquisition Info Assurance Strategy DoDI MS A, B, C, & FRPDR or FDDR All IT including NSS Life-Cycle Signature Support Plan DoDD MS A, B, & C Enclosure 4, Table 3 Analysis of Alternatives (AoA) DoDI MS A, B, & C FDDR for AIS Updated as necessary at MS B and C AoA Study GuidanceDoDI MDD Component Cost Estimate DoDI MDAP: MS A & B & FRPDR MAIS: whenever an EA is required Mandatory for MAIS; optional for MDAP Updated as necessary for MS C

72 72 Regulatory Requirements Added/Revised For All Programs (unless otherwise noted) Requirement CommentReference When Required Post-Critical Design Review (CDR) Report DoDI Post-CDR Assessment & ADM Systems Engineering Plan (SEP) DoDI MS A, B, & C DoDI MS A, B, & CIUID Implementation Plan Preliminary Design Review (PDR) Report DoDI MS B after System-level PDR Enclosure 4, Table 3 Net-Centric Data Strategy DoDD MS A, B, C, & PI for Ships May be after MS B – requires a Post-PDR Assessment & ADM After system- level CDR Annex to the SEP at MS B and C Summarized in TDA; detailed in the ISP

73 73 Requirement CommentReference System Threat Assessment Report (STAR) DoDI DoDD DIA Dir DIA Inst When Required Program Deviation Report DoDI Immediately upon a program deviation Systems Threat Assessment (STA) MS B & C DoDI MS ATest and Evaluation Strategy (TES) MS B & C & Program Initiation for Ships ACAT I and all DOT&E Oversight List Programs DoDI DoDD DIA Dir DIA Inst ACAT II Regulatory Requirements Added/Revised For All Programs (unless otherwise noted) Enclosure 4, Table 3 APB breaches Spectrum Supportability Determination DoDD MS B & C

74 74 Enclosure 5: IT Considerations... changes Title 40/CCA replaces term CCA. Subtitle III of Title 40, US Code was formerly known as Division E of the Clinger-Cohen Act Table 8 slightly modified for readability: Added: Investment Review Board (IRB) role as OIPT for MAIS and MDAP business systems Time-Certain Acquisition of IT Business Systems (No MS A approval unless can achieve IOC within 5 years) Defense Business System Management Committee (DBSMC) Certification for business systems with modernization funding over $1 million – prior to any milestone or FRP approval DoD CIO notification to Congress 60 days before any MDA cancels or significantly reduces size of MAIS fielded or post-MC C MAIS program Revised: Eliminated requirement for DoD CIO certification of CCA compliance.

75 75 Enclosure 6: Test and Evaluation... changes PM, in concert with user and test community, must provide safety releases to developmental and operational testers prior to any test using personnel Systems that provide capabilities for joint missions must be tested in joint operational environment Embedded instrumentation must be developed to facilitate training, logistics support, and combat data collection Joint Interoperability Test Command (JITC), regardless of ACAT will provide interoperability test certification memoranda to J-6 At test readiness reviews, PM must ensure impact of all deviations and waivers is considered in decision to proceed to next phase of testing

76 76 Enclosure 6: Test and Evaluation... changes Continued… OUSD(AT&L), Director, Systems Software and Engineering, will conduct an independent Assessment of Operational Test Readiness (AOTR) for ACAT ID and special interest programs designated by USD(AT&L). CAE will consider AOTR prior to making determination of materiel readiness for IOT&E OSD T&E Oversight List categories: developmental testing, operational testing, or live fire testing. Programs on list designated for OT or live fire testing will be considered same as MDAPs or covered programs and subject to all provisions of Title 10, US Code, and DoDI Force protection equipment (including non-lethal weapons) will be identified as a separate category on OSD T&E Oversight List

77 77 Enclosure 7: Resource Estimation... changes PMs must use Cost and Software Data Reporting System to report data on contractor costs and resource usage CARD must reflect program definition achieved during TD phase, be in sync with other program documents, and if PDR is before MS B, the final CARD at MS B must reflect results of the PDR Fully burdened cost of delivered energy must be used in trade-off analyses for all tactical systems with end items that create a demand for energy Following areas of assessment added to AoA: Alternative ways to improve the energy efficiency of DoD tactical systems consistent with mission and cost effectiveness Appropriate system training to ensure that training is provided with the system

78 78 Enclosure 8: Human Systems Integration... changes Mix of military, DoD civilian, and contractor support to operate, maintain, and support (including training) a system must be determined based on Manpower Mix Criteria and reported in the Manpower Estimate Economic analyses to support workforce mix decisions must use tools that account for all variable and fixed costs, compensation and non-compensation costs, current and deferred benefits, cash, and in-kind benefits Details on Environment, Safety, and Occupational Health (ESOH) moved to new Enclosure 12, Systems Engineering

79 79 Enclosure 9: Acquisition of Services... changes Planning for acquisition of services must consider: Requirements development and management Acquisition planning Solicitation and contract award Risk management Contract tracking and oversight Performance evaluation Special procedures for IT services that cost over $500M, all services that cost over $1B, and special interest programs designated by ASD(NII), USD(AT&L), or their designees: Senior officials/decision authorities must be notified prior to issuing final solicitation (briefing or written) ASD(NII)/DoD CIO notifies USD(AT&L) of any proposed acquisition of IT services over $1B Review by ASD(NII)/USD(AT&L) initiates review of acquisition strategy – final RFPs cannot be released until approval

80 80 Enclosure 9: Acquisition of Services... changes Continued… Policy extended to services acquired after program achieves Full Operational Capability (FOC), if those services were not subject to previous milestones Policy does not apply to R&D activities or services that are approved as part of an acquisition program managed IAW DoDI Senior Officials and decision authorities may apply policy to R&D services at their discretion SAEs are Senior Officials for acquisition of services USD(AT&L) is Senior Official for acquisition of services for Components outside of military departments – he may delegate decision authority to commanders/ directors of these components Independent management reviews (Peer Reviews) required for contracts of $1B or more

81 81 Acquisition of Services Categories (Table 9) All dollars in FY 2006 constant year dollars CategoryThresholdDecision Authority Acquisitions > $1B IT Acquisitions > $500M Special Interest Services Category I Services Category II Services Category III Any services acquisition with total estimated cost of $1B or more USD(AT&L) or designee IT services with total estimated cost of $500M or more ASD(NII)/DoD CIO or as designated Designated by USD(AT&L), ASD(NII)/ DoD CIO, or any Military Department Senior Official Services estimated to cost $250M or more Services estimated to cost $10M or more, but less than $250M Services estimated to cost more than simplified acquisition threshold, but less than $10M USD(AT&L) or Senior Officials Senior Officials or as designated Enclosure 9: of Services... changes Enclosure 9: Acquisition of Services... changesContinued…

82 82 10: Program Management... changes Enclosure 10: Program Management... changes Requires PMs for ACAT II and other significant non- major programs to be assigned for not less that 3 years Program Management Agreements (PMAs) implemented to establish contract between PM and acquisition and resource officials Provides that waivers for PM/PEO experience and certifications should be strictly avoided Provides for USD(AT&L) waiver for PEOs to assume other command responsibilities Adds US-ratified materiel international standardization agreements to consideration for international cooperative programs

83 83 11: Management of Business Systems (New) Enclosure 11: Management of Business Systems (New) Applies to defense business system modernizations with total modernization or development funding exceeding $1 million Defines Defense Business System as an information system, other than a national security system, operated by, for, or on behalf of DoD, including financial management systems, mixed systems, financial data feeder systems, and IT and information assurance infrastructure Defense Business Systems support activities such as acquisition, financial management, logistics, strategic planning and budgeting, installations and environment, and human resource management

84 84 Enclosure 11: Management of Business Systems (New) Continued… Funds cannot be expended until the Defense Business System Management Committee (DBSMC) approves Investment Review Board Certification (IRB) that the system: Is in compliance with the enterprise architecture; or Is necessary to achieve a critical national security capability or address a critical requirement in an area such as safety or security; or Is necessary to prevent a significant adverse impact on a project that is needed to achieve an essential capability

85 85 Program Manager (PM) Component Pre-Certification Authority (PCA) Investment Review Board (IRB) Defense Business Systems Management Committee (DBSMC) Milestone Decision Authority (MDA) Certification Authority (CA) Business Systems Certification and Approval Process 1. PM completes economic viability review & other plans/analysis as requested by the PCA 2. PCA Validates info from PM, forwards certification request to appropriate IRB 3. IRB reviews request, IRB chair recommends appropriate approval authority sign certification memo and request DBSMC approval 4. CA sends signed certification memo to DBSMC for approval 5. DBSMC Chair approves certification and sends decision to the PM through the PCA 6. PM requests MDA conduct milestone review Enclosure 11: Management of Business Systems (New) Continued…

86 86 Enclosure 12: Systems Engineering (New) Systems Engineering Plan (SEP) required at each milestone MDA is approval authority for the SEP For programs where USD(AT&L) is MDA and for programs on the DT-only portion of OSD T&E Oversight List, SEPs must be submitted to Director, Systems and Software Engineering 30 days prior to DAB/ITAB review PEOs must have lead systems engineer – oversees SE across PEOs portfolio; reviews SEPs; assesses performance of subordinate systems engineers with PEO and PMs Event-driven technical reviews required – with SMEs independent of program, unless waived by the MDA Requires configuration management to establish and control product attributes and the technical baseline; at completion of the system-level CDR, PM assumes control of the initial product baseline for all Class 1 configuration changes Spectrum Supportability determination required

87 87 Enclosure 12: Systems Engineering (New) Continued… ESOH risk management required to be integrated with overall SE process; Programmatic ESOH Evaluation (PESHE) required of all programs regardless of ACAT NEPA and EO (Environmental Effects Abroad of Major Federal Actions) analyses required of PM, approved by CAE Addresses PM support of Mishap Accident Investigations Requires Corrosion Prevention Control Plan for ACAT I programs at MS B and C Requires PMs to employ a modular open systems approach to design Data Management Strategy (DMS) required to assess long- term technical data needs of the system – included in Acquisition Strategy


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