Materiel Development Decision (MDD) to Milestone A Requirements Management Activities July 12, 2016

Lesson Objective Determine the key requirements management activities and the role of the ICD in support of the Materiel Development Decision (MDD), during the Materiel Solution Analysis (MSA) phase, and Milestone A. Explain the inputs to the MDD Explain the outputs from MDD -- decisions and approvals Summarize the purpose, major activities, and links that take place during the MSA phase Explain Milestone A decisions and approvals

Materiel Development Decision (MDD) The MDD is mandatory for ALL programs, regardless of Acquisition Category (ACAT) Development RFP Release CDD Validation FRP/FD A B C MDD ICD Draft CDD CDD CPD Strategic Guidance Joint Concepts Capabilities - Based Assessment Materiel Solution Analysis Engineering & Manufacturing Development Production & Deployment Operations & Support Technology Maturation & Risk Reduction Sustainment Disposal President SECDEF CJCS Joint Community JCIDS DAS CDD: Capability Development Document CPD: Capability Production Document FRP/FD: Full-Rate Production/Full Deployment ICD: Initial Capabilities Document MDD: Materiel Development Decision RFP: Request for Proposal

Pre-MDD Activities CBA, or other study, results in a validated ICD recommending a materiel solution approach. Approved Analysis of Alternatives (AoA) Study Guidance & AoA Study Plan. Conduct Market Survey to inform the AoA on potential commercial-off-the-shelf (COTS) and non-developmental item (NDI) solutions. Requirements sponsor works with Milestone Decision Authority’s (MDA) staff to ensure information is available to help the MDA make an informed decision on where to enter the acquisition process Determines next phase and potential program model. For ACAT I and IA programs, the Office of the Secretary of Defense (OSD), Director, Cost Assessment and Program Evaluation (CAPE) must approve the AoA Study Guidance and Plan. For other ACATs, Component policy applies.

MDD Inputs and Outputs Inputs: Outputs: Validated ICD Initial Threat Environment Assessment (required for ACAT I and IA, optional for others) Approved AoA Study Guidance and Study Plan Market Survey results Any Component analysis supporting preliminary conclusions to narrow range of alternatives Plan to staff and fund actions leading to next decision point (usually Milestone A) Tentative affordability, cost & inventory goals to scope AoA Outputs: Entry into the acquisition process MDA’s Acquisition Decision Memorandum (ADM): Designates lead DoD Component Determines acquisition phase entry Directs conduct of an AoA Identifies initial review milestone AoA Study Guidance and Study Plan (attached)

Materiel Solution Analysis Phase MSA phase may include concept definition studies by industry to provide solutions to inform the AoA Purpose: Conduct analysis and other activities to support a Milestone A decision Appoint PM; establish program office Conduct AoA Prepare RFP for TMRR Phase: Acquisition Strategy (AS), Systems Engineering Plan (SEP), Test & Evaluation Master Plan (TEMP), Life Cycle Sustainment Plan (LCSP) and other milestone documents Activities: Requirements Management Ensure AoA reflects solution to satisfy the validated ICD; Support AoA briefing for FCB Translate ICD operational attributes into performance attributes (KPP/KSA/APA) Develop DRAFT CDD and Operational Mode Summary/Mission Profile (OMS/ MP) Update CONOPS Support PM with writing the AS, TEMP, SEP, LCSP and other milestone documents Support initial estimates for Affordability Goals (constraints) and Life Cycle Cost

Example 1: Post-MDD Analysis, Single MOE Which does not meet threshold? Which meets threshold? Which far exceeds threshold? Which is close to threshold? Which has the least cost risk? Which has the most technical risk? Which has the lowest overall risk? Which has the most overall risk?

Example 2: Post-MDD Presentation For more information on the AoA, browse CLR 151

Milestone Documents and the RM Milestone Documents the RM is responsible for, and must be coordinated with the program management office (PMO): ICD, draft CDD, CDD and CPD Concept of Operations (CONOPS) Operational Mode Summary/Mission Profile (OMS/MP) Milestone Documents the PMO should provide to & coordinate with the RM: Acquisition Strategy (Market Research results at Milestone A) Acquisition Program Baseline (APB) Cyber Security Strategy Reliability, Availability and Maintainability Cost Rationale (RAM-C) Report Test and Evaluation Master Plan (TEMP) Life Cycle Sustainment Plan (LCSP) System Threat Assessment Report (STAR) Technology Readiness Assessment (TRA) results (Milestone B – CDD entry); Manufacturing Readiness Assessment (MRA) results (Milestone C – CPD entry) Cost Documents: PMO Life Cycle Cost Estimate, Component Cost Estimate (CCE), Should-Cost Estimates. MDAPs and MAIS: Component Cost Position (CCP), and Independent Cost Estimate (ICE); Affordability Analysis: Initial goals to inform the AoA: MDD; Production and Sustainment Goals: Milestone A; Production and Sustainment Caps: Milestones B and C. Other: AoA Report; Acquisition Decision Memos (ADMs); Request for Proposal (RFP); Contract

Reliability Analysis Planning, Tracking, and Reporting PM formulates a comprehensive Reliability and Maintainability (R&M) program in support of Milestone A. Reliability growth curves are included in SEP at MS A, Development RFP Release Decision Point, and in the SEP and TEMP beginning at MS B. For ACAT I programs, PM prepares a Reliability, Availability, Maintainability and Cost Rationale (RAM-C) Report: Documents the quantitative basis for the elements of the sustainment KPP Attached to the Systems Engineering Plan (SEP); updated in support of the Development RFP Release Decision Point, Milestone B, and Milestone C Programs other than ACAT I develop RAM-C Reports IAW Component policy See DoD Reliability, Availability, Maintainability, and Cost Rationale Report Manual, June 1, 2009 and Encl. 3, DoDI 5000.02

Milestone A PM Presents: MDA Approves: Component Presents: Acquisition Strategy (AS) Business approach Framing assumptions Risk assessment Should cost management targets MDA Approves: Materiel solution Acquisition Strategy Release of final RFP and source selection for TMRR contract(s) Exit criteria to complete TMRR and Enter EMD. 10 USC Section 2366a Determination (ACAT I only) ADM (with approved affordability goals) Component Presents: Affordability analysis and proposed affordability goals (production and sustainment costs) Component Cost Estimate (CCE) Evidence of Full funding in FYDP A favorable Milestone A decision does not mean initiation of a new acquisition program – exception: ship programs

Title 10, Section 2366a (as revised by NDAA 2016) §2366a. Major defense acquisition programs: determination required before Milestone A approval (a) RESPONSIBILITIES.—Before granting Milestone A approval for a major defense acquisition program or a major subprogram, the milestone decision authority for the program or subprogram shall ensure that— (1) information about the program or subprogram is sufficient to warrant entry of the program or subprogram into the risk reduction phase; (2) the Secretary of the military department concerned and the Chief of the armed force concerned concur in the cost, schedule, technical feasibility, and performance trade-offs that have been made with regard to the program; and (3) there are sound plans for progression of the program or subprogram to the development phase. (b) WRITTEN DETERMINATION REQUIRED MDA must submit the basis and determination to Congress (IF requested by any of the congressional defense committees…)

10 USC 2366a Written Determination at Milestone A (with NDAA 2016 revisions) The MDA certifies determines in writing, after consulting the Joint Requirements Oversight Council (JROC) on matters related to program requirements and military needs that: (1) the program fulfills an approved initial capabilities document; (2) the program is being executed by an entity with a relevant core competency function as identified by the Secretary of Defense; the program has been developed in light of appropriate market research; (3) if the program duplicates a capability already provided by an existing system, the duplication provided by such program is necessary and appropriate; (4) with respect to any identified areas of risk, there is a plan to reduce the risk; (5) That a determination of applicability of core depot-level maintenance and repair capabilities requirements has been made; the planning for sustainment has been addressed and that a determination of applicability of core logistics capability requirements has been made (6) an analysis of alternatives has been performed consistent with the study guidance developed by the Director of Cost Assessment and Program Evaluation; (7) a cost estimate for the program has been submitted, with the concurrence of the Director of Cost Assessment and Program Evaluation, and the level of resources required to develop, procure, and sustain the program is consistent with the priority level assigned by the JROC sufficient for successful program execution; and, (8) the program or subprogram meets any other considerations the milestone decision authority considers relevant.

Takeaway: ICD, AoA, draft CDD, & Contract(s) for TMRR Phase Materiel Development Decision Milestone A Strategic Direction Joint Concepts CONOPS Feedback from field Cost Estimate & $$ Full Funding in FYDP Component approved Final RFP for TMRR Phase Contract(s) Draft CDD ICD SPECs Preliminary CBA AoA operational attributes MOEs/ MOPs KPPs/ KSAs/APAs TMRR Materiel Solution Analysis Phase

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Useful Links: ADM - AT&L - AAS with AoA Guidance, 24 Aug 2009.pdf Memo - JS, JROCM 015-13, KPP Relief, 23 Jan 2013.pdf Briefing - DAS Evolution, Star Wars, 1971 to 2008, v3, Cochrane, Jan 2009.pps