1. 804s What we know… so far
Dan Procopio
Bill Bowley
28 Mar 2019

2. Agenda What is 804 Authorization Process Documentation Requirements
Types of 804s
How we fund 804s
Technical Requirements
Phases of 804s
Examples
MTA Cost Requirements
What does this mean for you

3. Middle Tier Acquisition Interim Authority and Guidance
What is 804
2016 NDAA - SEC Middle Tier of Acquisition (MTA) for Rapid Prototyping and Rapid Fielding
“The guidance required by subsection (a) shall provide for a streamlined and coordinated requirements, budget, and acquisition process that results in the development of an approved requirement for each program in a period of not more than six months from the time that the process is initiated. Programs that are subject to the guidance shall not be subject to the Joint Capabilities Integration and Development System Manual and Department of Defense Directive , except to the extent specifically provided in the guidance.”
Middle Tier Acquisition Interim Authority and Guidance
USD (A&S) Memo (16 Apr 18)
Middle Tier of Acquisition (Rapid Prototyping/Rapid Fielding) Interim Authority and Guidance (USD(A&S)) 16 Apr 2018
“This memo provides to DOD Components the authority to implement Section 804 on an interim basis until September … DOD Components are encouraged to immediately further implement the Section 804 authority by developing rapid prototype and fielding processes and procedures.”

4. Authorization Process
Seven Steps to Incorporating Rapid Prototyping into Acquisition SAF/AQ Memo (10 Apr 18) 1
Have an aggressive goal – over & above min requirements, or new opportunity – no requirements yet 2
Bound your risks - one X-factor (major risk); laser focus on that factor; Agile is an X-factor 3
Be aggressive, but not greedy – traditional IOC (if X fails) & rapid IOC (if X is completely achieved) 4
Constrain time and budget – do NOT constrain final performance; avoid min acceptable rqmts for prototype 5
It takes a team to go fast – mutually agreeable 80-90% solution is knee in curve 6
Get MDA signature – follow ACAT MDA authorities, Acquisitions Strategy Document (ASD)/804 Request Memo 7
GO FAST – keep your MDA in the loop
What 804 allows us to do
Shave years off programs
Streamline metrics, decisions and reporting
Take risks and explore options
What 804 does NOT do
Sacrifice safety or quality. Speed = greater rigor!
Skip essential reviews – we are accountable
Keep info from us – generate tri-yearly reports
804 is preferred USAF starting point
AFI Compliant Life Cycle Cost Estimate is required to determine ACAT Equivalency and subsequently MDA

5. Documentation Requirements
AF Guidance Memorandum for Rapid Acquisition Activities SAF/AQ Memo (13 Jun 18)
PM Propose at program initiation (get approved by MDA/document in ASD):
Required Program Documentation
Decision Points
Metrics
Guardrails (thresholds that trigger a notice to and/or review by the MDA)
Timing & Scope of Decision Reviews
Cost, Schedule, Risk, & Performance Objectives
Validated Requirements
Previously approved doc or subsequently coordinated doc
System Specification sheet attached when available
Minimum Tailored Documentation to Consider (while complying w/statutory requirements & FAR/DFAR/AFFARS):
Tailored Acquisition Baseline & Tailored IMS
Tailored Acquisition Strategy Document (ASD)
Tailored Concept Analyses
Cyber (CCA, RMF, Cybersecurity Strategy)
Environment (PESHE, NEPA/EO Compliance Schedule)
Frequency Allocation Application (DD 1494)
Program Protection (CPI, SCRM, Anti-Tamper)
Intel/Threat (LCMDP)
ASD will describe:
Acquisition & Funding Requirements, including how applicable competition requirements will be met
Prototype demo & evaluation in ops environment within 5 years
“Upgradeable & Sustainable” Design Considerations
Risk Management
Transition planning for prototypes to new or existing acquisition programs
Life Cycle Costs, Sustainment, Logistics Support, & System Interoperability (if fielding, may be addressed in tailored LCSP)
Test Planning (may be addressed in tailored TEMP)
Intellectual Property Strategy
Software Development Strategy (where applicable)
“Throw away pens and carry pencils.”
Tailor, tailor, tailor! Apply Critical Thinking and rigor! Transparent & Accountable!

6. Types of 804s
AF Guidance Memorandum for Rapid Acquisition Activities SAF/AQ Memo (13 Jun 18)

7. How We Fund 804s
NDAA 2016 established a Middle Tier Acquisition Fund to add flexibility to the process
To date there is no actual funding in this account
Programs can use available funding and the PPBE process for requesting changes
Existing Program Elements (PE) with existing R-docs are leveraged so the effort must fall within the Purpose, Time and Amount of the already established accounts

8. Technical Requirements
SAF/AQ Section 804 Requirements Process (Approved by Gen Goldfein 23 Aug 2018)
Rapid Prototyping w/Existing Requirements
(ICD/dCDD/CDD)
Validated
Requirements
Document
804
Request Memo
SAF/AQ
Rapid
Prototyping
Rapid Fielding w/Existing Requirements (CPD)
Validated
Requirements
Document
804
Request Memo
SAF/AQ
Rapid
Fielding
Fielded
to the
Warfighter
Rapid Prototyping
Requirements Document (RPRD)
Rapid
Prototyping
Document
10 Day GO
Staffing
SAF/AQ
14 Days Comment
Adjudication
9 Days CSAF/VCSAF
Signature/
Validation
Rapid Fielding
Requirements Document (RFRD)
Rapid
Fielding
Document
10 Day GO
Staffing
SAF/AQ
Prototyping
14 Days Comment
Adjudication
9 Days CSAF/VCSAF
Signature/
Validation
Fielded
to the
Warfighter
An approved requirements document is needed before proceeding with 804

9. Phases of 804s (SAF/AF Memo 13 Jun 2018)
Alpha: Prototyping
Prudent risk-taking encouraged (unless mission criticality or ops urgency mandate lower risk approach)
Risk/reward balance addressed/documented in Acquisition Strategy Document (ASD)
Additional Design goals--those that “enable easier capability improvement and sustainment”
Schedule/budget should be considered relatively fixed--performance tradeoffs to maintain sched/budget
Successive rapid prototypes acceptable—strive to overachieve early on & fallback as reality intervenes
Beta: Fielding & Initial Production
Beta Decision of paramount importance
Becomes “Program of Record” on entering Beta Phase
C/S/P-driving risks aggressively tackled in prototyping (Alpha phase); capability verified in ops relevant environment before rapid fielding decision
Gamma: Modernization & Follow-on Production
Gamma Decision based on balancing needed quantities, purchasing efficiencies, & upgrade options
Smart modernization preferred over sustaining older less-effective systems
Delta: Operations & Sustainment
End of production, but not improvement—improved vice replaced or refreshed components, esp software
Per SAF/AQ Memo 13 Jun 2018

10. Phases of 804s (Cont.) ACAT Program vs Middle Tier Acquisition
During Guardrail breach MDA may redirect effort
Middle Tier Acquisition
5 years
5 years A
ROC B CA Γ
IOC
FOC
Rapid Prototype
Rapid Fielding
ICD or
RPRD
CPD or
RFRD
Residual Operational Capability (ROC) MDA may redirect effort
ACAT Program
MDD A
CDD
RFP B C
FRPDR
IOC
FOC
MSA Phase
TMRR Phase
EMD Phase
P&D Phase
ICD
Draft CDD
CDD
CPD
AoA
Prototypes
Design
Develop
Produce

11. Example – AWACS Mode 5 AWACS Mode 5
Mode 5 is a IFF mode that is used to provide more trusted and accurate aircraft identification and is mandated for all military aircraft by 2020
AWACS had this upgrade as part of the DRAGON program originally but the modifications for DRAGON is scheduled for completion in FY27
By taking a new approach, which includes buying GOTS solution for Mode 5 and performing installations on the ramp so the aircraft does not have to wait until depot maintenance, AWACS can complete the effort by FY22 which dramatically cuts the amount of time they would be non-compliant with the mandate 

12. Example – B-52 CERP
B-52 Commercial Engine Replacement Program 804 effort includes Virtual Prototypes used to down select the design and then a follow on Physical Prototype that will be used for testing
This will help cut significant time in the source selection process while also helping the AF make a better selection as this is a virtual fly off of the design

13. MTA Cost Requirements
(Insert table regarding CSDR Reporting or verbiage from memo requiring reporting)
804 Programs are still on the NACA list
POE that is in compliance with AFI Still Required to support Budgeting and Authorization to Proceed with program
A POE that is in compliance with AFI is Still Required to support the Budgeting Process and Authorization to Proceed for the program

14. What Does this Mean for the AFLCMC Cost Community?
Given SAF/AQ’s emphasis on implementing the rapid acquisition strategies whenever possible, we should expect:
An increase in the number of rapid prototype projects, thus an increase in demand for our high quality cost estimating products and services
A faster turn-around time to get these products to our customers on time
Updating existing estimates to account for changes in Phasing/transition timelines, increased risk/uncertainty, increased capabilities and overall strategy
Supporting requirements trades and other programmatic decisions
Ensuring bona fide need and other financial laws are followed
INCREASED EMPHASIS ON RISK
AND COST ASSESSMENTS