1. Competitive Prototyping – the New Reality
Sharon Vannucci
Assistant Deputy Director Systems Engineering Policy and Guidance
Systems and Software Engineering
Office of the Secretary of Defense
Program Managers’ Skills Course, PMT 403
June 18, 2009

2. Technical Acquisition Excellence for the Warfighter
Bottom-line Upfront
DoD changes emphasize early stages of pre-systems acquisition - prior to Milestone B (MS B)
Reduce risk before making business commitment
Improve likelihood of being able to meet commitments
Prototyping means new challenges for the program during this early period
Pre-Milestone B prototyping is required by USD(AT&L) policy
. . . and now it’s the law!
Technical Acquisition Excellence for the Warfighter

3. First – Competitive Prototyping Policy
“Evolutionary acquisition requires Technology development preceding initiation of an increment shall continue until the required level of maturity is achieved, prototypes of the system or key system elements are produced, and a preliminary design is completed . . .”
“The TDS and associated funding shall provide for two or more competing teams producing prototypes of the system and/or key system elements prior to, or through, Milestone B.”
Technical Acquisition Excellence for the Warfighter

4. Second – DoDI 5000.02 Prototyping and Competition
MS A
MS B
MS C
Materiel Solution Analysis
Technology Development
Engineering & Manufacturing Development
Production & Deployment
Operations & Support
MDD
P-PDR-A
P-CDR-A
FRP DR
“The Technology Development Strategy and associated funding shall provide for two or more competing teams producing prototypes of the system and/or key system elements prior to, or through, Milestone B. Prototype systems or appropriate component-level prototyping shall be employed to reduce technical risk, validate designs and cost estimates, evaluate manufacturing processes, and refine requirements . . .”
Technical Acquisition Excellence for the Warfighter 4

5. Now – Competitive Prototyping Legislation
PL (“Acquisition Reform”), Section 203:
Requires the Secretary of Defense to modify acquisition policy to require each MDAP’s acquisition strategy provides for competitive prototypes prior to a MS B decision
Allows prototyping to occur at the system or subsystem level
Includes provision for Milestone Decision Authority (MDA) waiver only on the basis that the cost of producing the competitive prototypes exceeds the expected life-cycle benefits (in constant dollars) of producing the prototypes or for critical national security objectives
Programs receiving a waiver must
still produce a prototype before MS B
be reported in writing by the MDA to the congressional defense committees and the Comptroller General of the US
Weapon Systems Acquisition Reform Act of 2009 (May 22, 2009)
Technical Acquisition Excellence for the Warfighter

6. Acquisition Reform Thumbnail
New legislation, Public Law , Weapon Systems Acquisition Reform act of 2009 (May 22, 2009)
Strong bipartisan Congressional support
Heavy focus on “starting programs right”
Renewing focus on systems engineering early in a program’s life
Requiring completion of competitive prototypes for all Major Defense Acquisition Programs (MDAPs)
Requiring completion and MDA assessment of a system-level Preliminary Design Review before MS B
Strengthening developmental test and evaluation capability
Technical Acquisition Excellence for the Warfighter

7. Technical Acquisition Excellence for the Warfighter
Reform Objectives
“The key to successful acquisition programs is getting things right from the start with sounds systems engineering, cost-estimating, and developmental testing early in the program cycle. The bill that we are introducing today will require the Department of Defense to take the steps needed to put major defense acquisition programs on a sound footing from the outset. If these changes are successfully implemented, they should help our acquisition programs avoid future cost overruns, schedule delays, and performance problems.” –Senator Carl Levin (D-MI), Chairman, Senate Armed Services Committee
“The Weapon System Acquisition Reform Act of 2009 is an important step in efforts to reform the defense acquisition progress. This legislation is needed to focus acquisition and procurement on emphasizing systems engineering; more effective upfront planning and management of technology risk; and growing the acquisition workforce to meet program objectives.” –Senator John McCain (R-AZ), Ranking Member, Senate Armed Services Committee
Technical Acquisition Excellence for the Warfighter

8. Summary of Legislation
The Weapon Systems Acquisition Reform Act of 2009 contains provisions that will:
Address problems with unreasonable performance requirements by requiring DoD to reestablish systems engineering organizations and developmental testing capabilities; make trade-offs between cost, schedule and performance early in the program cycle; and conduct preliminary design reviews before giving approval to new acquisition programs;
Address problems with unreasonable cost and schedule estimates by establishing a new, independent director of cost assessment to ensure that unbiased data is available for senior DoD managers;
Address problems with the use of immature technologies by requiring the Director of Defense Research and Engineering to periodically review and assess the maturity of critical technologies and by directing the Department to make greater use of prototypes, including competitive prototypes, to prove that new technologies work before trying to produce them; and
Address problems with costly changes in the middle of a program by tightening the so-called “Nunn-McCurdy” requirements for underperforming programs.
Excerpts from Bill Signing Ceremony Press Release – May 22, 2009
Technical Acquisition Excellence for the Warfighter 8 8

9. Impact of Acquisition Reform Legislation on Early Acquisition Policy
Establishes Director, Systems Engineering (D, SE) and Director, Developmental Test and Evaluation (D, DT&E) as principal advisors to the Secretary of Defense and the USD(AT&L) on systems engineering and development planning and on developmental T&E, respectively
Mandates documented assessment of technological maturity and integration risk of critical technologies for MDAPs during the Technology Development (TD) phase
Establishes D, DT&E and D, SE joint tracking and Congressional reporting on MDAP achievement of measurable performance criteria
Mandates competitive prototyping and MDA completion of a formal Post-Preliminary Design Review Assessment for all MDAPs before MS B; additional MDA certification to both at MS B
Strengthens technical analysis of cost and schedule breaches during the Technology Development (pre-MS B) and the Engineering and Manufacturing Development (post-MS B) phases
Technical Acquisition Excellence for the Warfighter

10. Acquisition Lifecycle Comparisons
Defense Acquisition Management System, May 12, 2003 A B C
(Program Initiation)
System Development and Demonstration
Concept Refinement
Technology Development
Production and Deployment
Operations and Support
Design
Readiness Review
Full-Rate
Production Decision
Review
Concept Decision
Defense Acquisition Management System, December 8, 2008 A B C
(Program Initiation)
Materiel Solution Analysis
Engineering and Manufacturing Development
Production and Deployment
Technology Development
Operations and Support
FRP Decision
Review
PDR
PDR
CDR
Materiel Development Decision
PDR after B w/ Post-PDR Assessment
Post-CDR Assessment Or
Defense Acquisition Management System, May 22, 2009 A
Technology Development B C
(Program Initiation)
Technological Maturity and Integration Risk Assessment
Materiel Solution Analysis
Engineering and Manufacturing Development
Production and Deployment
Operations and Support
FRP Decision
Review
Competitive
Prototyping
PDR
CDR
Tech
Materiel Development Decision
Post-PDR Assessment
Post-CDR Assessment 10

11. What this means for Program Managers
Systems engineering is now recognized in law as inherently necessary in requirements definition, development planning, and early acquisition
Need for and focus of all engineering in the “pre-acquisition” phases (Materiel Decision Analysis and Technology Development) is dramatically altered:
Earlier engineering involvement (well before Milestone A)
More government expertise to plan for and oversee requirements definition, technology maturation, and competitive prototyping leading to fully expressed system design (the allocated baseline)
More informed, “knowledge-based” decision making at MS B
Technical Acquisition Excellence for the Warfighter

12. DoD 5000.02 and McCain-Levin Change the Early Acquisition Landscape
PDR
CDR
Materiel Development Decision (MDD)
Renewed emphasis on manufacturing across the lifecycle
PDR, PDR Report to the MDA, and Post-PDR-Assessment
System-level CDR with an initial product baseline and a Post-CDR Report to the MDA
Competitive
Prototypes
Post-CDR Assessment by the MDA between EMD sub- phases
What are the implications of these changes for programs?
How can systems engineering enable the program during this early phase?
Technical Acquisition Excellence for the Warfighter

13. 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 Strategy
The Program Manager’s Challenge: Where to find the data!?
Technical Acquisition Excellence for the Warfighter

14. In Conclusion . . . MDD MS MS A B Business Decisions Engineering
Agreement to pursue a materiel solution
Business Decisions
Selection of a preferred solution
Preferred System Analysis
Program
Initiation
Uncertainty
Preferred System Concept
Engineering
Support
Technology Maturation
and Prototyping
P-PDR-A
System Level Specs
PDR
PDR
AoA
Preliminary Design
CDR
CDR
Final slide-
So why am I here welcoming you?
We have recognized the important of early SE to provide the technical basis for our acquisitions and
PDR has traditionally been a technical review and within the SE lane.
However, SE is only effective when it supports the work in other areas and is informed by those areas
With the changes PDR has taken a new role and it is critical that SE work in tandem with the other areas for acquisition sucess
Completed
Design
Materiel Solution Analysis
Technology Development
“Knowledge-based” Decision Making . . .
making acquisition decisions when you have solid evidence and
acceptable risk
Technical Acquisition Excellence for the Warfighter