Business Capability Lifecycle (BCL) and Title 40/Clinger-Cohen Act (CCA) Requirements

Why is BCL Needed? BCL addresses long-standing challenges that have impacted the delivery of business capabilities The DepSecDef directed increasing the speed of business capability delivery Three separate governance bodies result in fragmented oversight JCIDS and DoD 5000 primarily designed for Major Weapon Systems acquisition (> 5 years on average) Decision-makers need access to better, more thorough information Transition from problem to program too quickly Program Managers spending time justifying the program, not managing it Focus on Systems vice DOTMLPF spectrum Milestone Decisions are not tied to Implementation Plans Fielding IT applications within the Department’s business mission area in a timely manner has been challenging in the past. DoD has tried for years to improve its acquisition processes: Packard Commission – 1985 – evaluated DAS, organization and decision-making as well as Congressional Oversight Defense Reorganization Act – 1986 – Established the Service Acquisition Executive and consolidated acquisition decision-making in the hands of the civilian leadership; codified many Packard Commission recommendations Section 800 Report – 1993 – Focused on streamlining and simplifying acquisition laws National Performance Report – 1993 – emphasized commercial standards Federal Acquisition Streamlining Act – 1994- consolidated and simplified hundreds of laws into unified procurement code Rumsfeld’s Challenge – 2001 – highlighted that : bureaucratic inertia was stopping crucial initiatives; DoD’s planning, programming, budgeting process is outdated; technology moving faster than DoD causing DoD to deploy outdated technology Defense Acquisition Performance Assessment (DAPA) Report - 2006 – highlighted that: Complex acquisition processes do not promote program success – they increase costs, add to schedule and obfuscate accountability IT technology for business systems advances rapidly, replacing older versions of systems every 2 years or less. To keep pace, the Department is adopting BCL to establish a decision process that fits the right solution to the problem, and then puts that solution into the hands of the user quickly. Better informed investment decisions and faster delivery of business capability needed!

USD(AT&L) Memo Dated May 18, 2007 Key implementation activities: Migration from JCIDS to BCL process Candidates for problem statement and business case processes 6 ERAMs executed CY07 Alignment of major DoD processes New IRB/DBSMC roles defined Formal BCL policy guidance Revised/updated IRB/DBSMC charters New milestone decision authority process approved by AT&L within 60 days BCL Concept Refinement Completed by October 2007

Business Capability Lifecycle Consolidated Governance Framework DBSMC “BIG A” DepSec “little a” Defense Acquisition Executive PSA / Certification Authorities USD(C) USD(P&R) USD(AT&L) ASD/NII Investment Review Boards Financial Management (FM) Human Resources Management (HRM) Weapon Systems Lifecycle Management/Material Supply & Services Management (WSLM/MSSM) Real Property & Installations Lifecycle Management (RPILM) Enterprise Information Environment Mission Area (EIEMA) INPUTS DoD and Component CIOs Component PCAs Portfolio Managers Component Acquisition Executives Program Managers ERAM The IRB evaluates the information provided as justification for an investment, which includes evidence that the proper due diligence has been performed, and makes a recommendation to the DBSMC Chair (Deputy Secretary of Defense) and Vice Chair (Under Secretary of Defense of Acquisition, Technology and Logistics), who is also the Defense Acquisition Executive (DAE) and Milestone Decision Authority (MDA). If it is determined that all criteria have been met and approval is granted throughout the governance structure, investment in a business system can proceed. Enterprise or Component Functional Sponsor Statutory Requirements under Title 10, U.S. Code BCL Leverages Tiered Accountability

BCL Principles Better Investment Decisions, Faster Capability Delivery Consolidated Governance Framework Throughout the Lifecycle Uses a “Business Case” as the Basis Single Document for Capability, Investment, and Execution decisions Establish lifecycle performance expectations “up-front” Enterprise Risk Assessment Methodology (ERAM) (when USD(AT&L) is MDA) Measures internal & external risk throughout the lifecycle Expertise to mitigate program & enterprise risk Leverage “Lessons Learned” from other ERAMs Integrated Management Information Environment (IMIE) Integrates Policy, Process, and Enterprise Architecture Requirements Automated approach for satisfying enterprise information needs Common information network Enterprise Assistance Support & facilitation of enterprise transformation efforts Leverage “Lessons Learned” from other efforts Timeline Facilitates Technology Insertion & Innovation Given that most business solutions are variations on proven commercial off-the-shelf (COTS) software, BCL will shift the focus in business acquisition from technology development to technology application. The military service or defense agency that will be the primary user will be responsible for first analyzing the root cause of its business problem, then weighing all solution options, including non-materiel options, such as policy changes or business-process re-engineering. The BCL process will increase the likelihood that Department decision-makers receive the “right” information they need to decide whether the IT solution will bring the right kinds of capabilities to the defense business mission area before granting funding for the investment. Once funding is approved, the BCL approach provides for periodic Enterprise Risk Assessment Methodology (ERAM) examinations to ensure the investment remains on track toward delivering the expected capability. Under BCL rules, all business investments should reach initial operating capability and begin delivering capability into the hands of the users within 12-18 months of contract award and no more than 24 months or face termination. 12-18 months from Contract Award to Delivery, no more than 24

12-18 months from Contract Award to Delivery The Business Capability Lifecycle Better Informed Investment Decisions, Faster Business Capability Delivery The Business Capability Lifecycle (BCL) is an efficient business capability acquisition approach that emphasizes rigorous analysis of requirements and consideration of all feasible solutions prior to funding a business information technology (IT) system. This approach enables well-informed investment decisions and faster delivery of capability to the user at acceptable cost and risk. 12-18 months from Contract Award to Delivery

BCL / Clinger-Cohen Act Integration IRB/DBSMC Review & Approve Problem Statement Conduct Analysis (Process, Metrics Views) Develop & Validate Outcomes Guidance, Assumptions Priority Gap, Problem, Strategic Question Definition Analysis of Alternatives Economic Analysis Program Performance Measures GIG Architecture & Standards Information Assurance Strategy Modular Contracting System Registration Business Case Validation, Assess Risk & Monitor Metrics IRB/DBSMC Annual review, Acquisition Decisions Execute Program Continue to Execute Program or END Lessons Learned Execution Measures of Effectiveness (Post-Implementation Review) Core Function Determination/Strategic Link Outcome-based Performance Measures (or measures of effectiveness) Business Process Reengineering Post Implementation Review (PIR) Plan Conduct Solution Analysis* Recommend Solution Package** Program Definition IRB/DBSMC Business Case Approval, MS A Decision Investment

Integrating CCA Elements into Fundamental Phases of BTA’s Business Capability Lifecycle Process Permission to Complete Business Case CAPABILITY DEFINITION Has root cause of problem been identified? Authority to Obligate Funds Authority to Execute Continue Execution EXECUTION Did the IT project deliver what was expected? INVESTMENT MANAGEMENT How is project being managed to achieve desired results? Permission to Execute Business Case CAPABILITY DEFINITION CCA Elements: Core Function, Strategic Link, Outsourcing, Business Process Reengineering/Improvement, Measures of Effectiveness (Post-Implementation Review Plan) INVESTMENT MANAGEMENT CCA Elements: Alternatives Analysis, Economic Analysis, Program Performance Measures, Global Information Grid Architecture & Standards, Information Assurance Strategy, Modular Contracting, System Registration EXECUTION CCA Element: Measures of Effectiveness (Post-Implementation Review)

CCA Certification for Business MAIS PM and sponsoring DoD Component identify areas of documentation that comply with Title 40/CCA requirements and document this compliance in a CCA report template. DoD Component CIO reviews CCA report and confirms compliance to Component Acquisition Excusive (CAE) and the DoD CIO. DoD CIO certifies Title 40/CCA compliance to the Milestone Decision Authority (MDA) and the Congress as required.

BCL Helpdesk CCA Information Questions? Ask BTA at: www.dod.mil/bta Click on Contact Us Click on BTA Questions Select BCL from the drop down list Questions on Clinger-Cohen? Information resources at: https://acc.dau.mil/it Follow the CCA links