Programming and Budgeting Policies for Acquisition Programs

Programming and Budgeting Policies for Acquisition Programs
Professor Gerry Land CPA, CDFM-A Defense Acquisition University Capital & Northeast Region Fort Belvoir, VA (703) ; DSN 2010 PDI – June 2010

Funding Policies Workshop Topics
Budgeting Building Blocks Funding Policies - Annual Funding - Incremental Funding - Full Funding - Advance Procurement - Multiyear Procurement (economic order quantity) Exceptions to Full Funding - Communications and Information Systems - LRIP Articles - Product Improvements Funding Policies for Unique Items

Resource Management Flow from Identification of
Capability Need to Achieving Operational Capability Cost Analysis Life Cycle ICE Fiscal Environment POE CCE A o A CAIV Planning, Programming, Budgeting and Execution Process Estimate Annual Funding Incremental Policies Full Funding (Exceptions) MBIs FYDP GDF POM FOL CP MFP JPG BES PDM PBD Congressional Enactment President’s Budget SAC SASC SBC HAC HASC HBC Budget Resolution Authorization & Appropriation Laws Operational Capability Force Structure Modernization Readiness Sustainability Acquisition Program Baseline Operational Capability Need Budget Authority Obligation Reprogramming Feedback Commitment Expenditure Outlay Capabilities- Based Assessment Capability Docs Budget Execution

What is Needed to Build a Program Budget?
Program Direction: A statement of what the program manager is expected to do – the Acquisition Program Baseline (APB) Work Breakdown Structure (WBS): A translation of the program direction into a statement of the tasks required to achieve the program objectives Schedule: The sequence of tasks in the WBS – Showing when each task begins and ends How tasks are related to each other How workload/cost for each task is distributed within the time period

Appropriation Categories
vs. Appropriation Accounts Appropriation Categories Definition: Broad, generic terms pertaining to general “types” of Federal Government funds. Examples of interest to Acquisition Community: Research, Development, Test and Evaluation (RDT&E) Procurement Military Construction (MILCON) Appropriation Accounts Definition: Specific designation of Federal Government funds as contained in an Appropriations Act passed by Congress and signed into law by President. Each account has a unique four digit code preceded by a two digit prefix. Examples of interest to Acquisition Community: Research, Development, Test and Evaluation (RDT&E), Army (2040) Aircraft Procurement, Navy (1506) Operations & Maintenance (O&M), Air Force (3400)

DoD Appropriation Account Codes
RDT&E Procurement Aircraft Missiles Weapons W&TCV Ammunition SCN Other USMC MILPERS O&M MILCON Army 21 - 2040 2031 2032 2033 2034 2035 2010 2020 2050 Navy 17 - 1319 1506 1507 1508 1611 1810 1453 1804 1205 USMC 17 - 1109 1105 1106 Air Force 57 - 3600 3010 3020 3011 3080 3500 3400 3300 DoD Wide 97 - 0400 0300 N/A 0100 0500

Underlying Assumptions in Budgeting
“Color of money” (i.e., Appropriation) requested in the budget is based on type of work to be performed Normally, funding is requested for a 12 month fiscal year (1 October – 30 September of following year) Correct level of funding requested (i.e., budgeted) for a fiscal year is based on required level of work effort plus application of proper funding policy for that Appropriation Funding is requested (i.e., budgeted) for the fiscal year when the organization honestly “requires” the funds in accordance with proper funding policy Application of proper funding policy implies that funds will be obligated during the first year of availability

“Notional” Example of Preparing Input for
FY 2012 Budget - Applying Escalation Year Budget Prepared Target Fiscal Year FY FY11 FY12 FY13 FY14 TOTAL Price Today (Base Yr $ ) Outlay Rate ( % ) Cumulative Inflation ( % ) Dollar “Value” ( $ ) When Outlaid “Required Budget” Estimate (Current/Then Yr $ ) $$ $$$ To go from “Price Today” to “Required Budget”, multiple “ Price Today” by proper Weighted (Composite) Index of Appropriation Account Budget Estimate = “Price Today in Base Yr $” plus inflation plus economic effects of outlays occurring in future years

Major Appropriation Categories
Period Available for Obligation Appropriation Category Funding Policy Control Level (Budgeting) Scope / Type of Work Effort Program Element R&D Activities and Expenses 2 Years RDT&E Incremental Useable End Items >= $250K system unit cost; Centrally managed items; Initial Spares; Labor for certain production-related functions (e.g., item assembly, quality assurance) Procurement Full 3 Years Line Item (5 Years) (SCN) Replenishment Spares; Fuel; Civilian Pay; Travel; Construction Projects <$750K; Non-Centrally managed end items <$250K system unit cost O&M Annual 1 Year Sub-Activity Group Military Personnel Expenses MILPER Annual 1 Year Budget Activity Major Construction Projects >$750K MILCON Full 5 Years Project

Annual Funding Policy Appropriations: Budgeting Policy:
Operations and Maintenance Military Personnel Budgeting Policy: Annual budget request will be limited to obligation authority necessary to cover all expenses during a 12 month budget period (usually the fiscal year). What appropriations fall under the Annual Funding Policy? Annual funding simply requires that you budget only the dollars that you need to spend to operate, maintain, or pay the forces in a given year. Estimate those dollars that you will expend in a given year. What is O&M used for? Civilian & contractor labor, rental charges, food, clothing, fuel, maintenance, repair & overhaul of equipment (except when funded by investment), assemblies, spares and repair parts, real property maintenance, and other items of equipment that are not centrally controlled and have system unit cost of less than $100K How would we budget for one of these expenses? Estimate what the requirements will be for that fiscal year. What is MILPERS used for? Pay, Allowances, special pays, PCS, retirement accrual How would we budget for one of these expenses? We don’t! TRANS: Now, lets look at how to translate the requirements into a budget

Service Contract Exception to Annual Funding Policy
Exception to budgeting for “Fiscal Year” period U.S. Code, Title 10, Section 2410a provides authority for DoD to budget for and obligate funds for severable service contracts for periods crossing fiscal years --provided the contract period does not exceed 12 months Funding policies can be thought of as tied to the criteria of EXPENSE and INVESTMENT - Expenses are costs incurred to operate and maintain the organization, such as personal services, supplies and utilities. - Investments are costs that result in the acquisition of, or an addition to, end items. These costs benefit future periods and generally are of a long-term character such as real property and personal property. (from DoD R B & C) DoD considers O&M and MILPERS to be EXPENSE appropriations, while Procurement and MILCON are considered INVESTMENT appropriations. RDT&E appropriations cover both expenses and investments. Thus we have three general classifications of the appropriations categories, and therefore, three funding policies. Annual funding simply means that you request only the dollars that you need to spend to operate, maintain, or pay the forces in a given year. O&M examples: Civilian & contractor labor; rental charges; food, clothing, fuel; maintenance, repair & overhaul of equipment (except when funded by investment); assemblies, spares and repair parts, and other items of equipment that are not centrally controlled and have system unit cost of less than $100K; real property maintenance. MILPERS: Pay, allowances, special pays, PCS, retirement accrual, etc.

Annual Funding Policy $ 645 K $ 585 K $ 585 K $ 600 K
Simple Application – O&M Appropriation Expenses by Fiscal Year FY FY FY FY 4 Expense Civ Pay $ 500 K $ 510 K $ 520 K $ 525 K $ 35 K $ 25 K $ 30 K $ 35 K Supplies $ 30 K $ 40 K $ 35 K $ 40 K TDY $ 40 K $ 50 K Service Contract 12 Month Budget Request $ 645 K $ 585 K $ 585 K $ 600 K Period when expenses are being incurred

Incremental Funding Policy
Appropriation: Research, Development, Test & Evaluation (RDT&E) Budgeting Policy: Annual budget request will be limited to budget authority necessary to cover all costs expected to be incurred during that fiscal year Incremental Funding Policy provides flexibility to the government in the uncertain environment of RDT&E What appropriation(s) fall under the Incremental Funding Category? Congressional intent behind this policy is that programs should budget annually only for the amount of work scheduled and expected to be performed in a particular fiscal year. -- Gives flexibility in case R&D effort is not successful. This may look similar to the annual funding policy described previously, and in many ways, it is the same. The major differences are: - You may budget for more than 12 months effort in certain cases: (1) Contractor-performed R&D expected to be completed within 18 mos (task not logically divisible, unfeasible to limit contract length to shorter period, or no takers if not fully funded) (2) Educational institution research may be funded for up to 36 months initially - Some carryover funding is possible (max 3 months into next FY) - need DEPT head approval on case-by-case basis. “period to be financed for major weapon systems may extend up to 3 months beyond FY for which funds are requested.” So, why is it 2 year money??? Two-year life of appropriation provides flexibility in case of legal, technical, admin delays (e.g., test delays, funding delays, etc.) It was only recently that I understood WHY we only had the first year to spend the funds. RDT&E should be annual funding due to the nature of the work (largely LOE), but the high risk nature of R&D requires the safety net of one year.

Purposes of the Incremental Funding Policy
Allows Congress to review progress of every R&D project – each year – and decide if the project should continue and, if so, at what dollar amount Does not require one Congress to “tie the hands” of a future Congress Provides DoD flexibility to fund R&D projects on a year-by-year basis

18 Month Exception to Incremental Funding Policy
For requirements with no logical way to divide the work to limit contract to a shorter period, or If the planned technical effort is such that no responsible contractor will accept a contract for less than completion of the total requirement For these types of efforts that take longer than 12 months, but less than 18 months, the Service or Defense Agency Comptroller may approve financing the total requirement in one fiscal year

How does a Program Office Prepare its Budget under Incremental Funding ?
Create a good estimate of expected future costs to be incurred (even though system design may be unstable and contractor may not be chosen) Use 9-months or less of effort for first year increment of a “new start” program (due to nature/timing of budget approval) For second and succeeding yearly increments, budget for entire year, taking into account any changes (slippages) that may have occurred from previous budget submission Note: Service or Agency comptroller may approve up to 15 months of costs for second and succeeding fiscal years (i.e., 3 months beyond end of fiscal year)

Incremental Funding Policy
Simple Application – RDT&E Appropriation Cost Incurred by Contractor by Fiscal Year FY FY FY FY 4 Task Cost $ 100 K $ 50 K $ 50 K TASK 1 $ 300 K 36 month effort $ 100 K $ 25 K TASK 2 $ 150 K 18 month effort $ 10 K $ 50 K $ 40 K TASK 3 $ 100 K 24 month effort Budget Request $ 50 K $135 K $250 K $ 115 K Planned Period of Performance (i.e, planning for costs to be incurred)

Full Funding Policy Applies to Procurement and Military Construction Appropriations Annual budget request must cover the total cost to deliver a given quantity of complete, militarily usable end items in a 12 month funded delivery period Governing Concepts Usable End Items - Piecemeal procurement of systems is not permitted Funded Delivery Period - 12 month period starting with projected delivery of first item Exceptions to Policy Advanced Procurement (For Long Lead Items) Economic Order Quantity (With Multiyear Procurement)

Purposes of Full Funding Policy
Allows Congress to understand the full cost of a complete weapon system through budget process Does not require one Congress to “tie the hands” of a future Congress Avoids purchase of a large number of partially completed systems, followed by the need for more money to complete these systems Achieves better program stability - but on a year by year basis

Concept of “Usable End Items” Which Program is Correct Under Full Funding?
Program A Program B Year 1 Year 1 Year 2 Year 2

Full Funding Policy Conceptual - Procurement Category
FY 1 FY 2 FY 3 FY 4 Contract Award Date Production Lead Time 10 Items LOT 1 ($400K) Start Up Costs: ($400K) How We Expect the Contractor to Incur Cost by FY $ 40 K $ 30 K $ 0 K $140 K $ 0 K $140 K $ 0 K $ 50 K Recurring Production Costs: $ 70 K $140 K $140 K $ 50 K Budget Request:

Full Funding Policy Simple Application - Procurement Appropriation
Lot Cost FY 1 FY 2 FY 3 FY 4 $ 400 K LOT 1 10 ITEMS = 10 $ 600 K LOT 2 20 ITEMS = 20 $ 900 K = 18 LOT 3 40 ITEMS 8 10 + 22 Budget Request $ 400 K $ 600 K $ 900 K - 0 -

Application of Funded Delivery Period Policy
“Requirement” is for 48 Tanks Delivered by End FY 5 FY FY FY FY FY 5 Proposed Deliveries Funded Delivery Period Contract Award X X X X X X Defer to Later Fiscal Years LOT 1 QTY 10 Production Lead Time 12 Months of Deliveries 8 10 Contract Action LOT 2 QTY 20 Production Lead Time 12 Months Of Deliveries Contract Action LOT 3 QTY 18 Deliveries Production Lead Time

Advance Procurement Long Lead-time Items
Exception to Full Funding Policy Explanation why an exception: the PMO is not buying usable end items Shown in Acquisition Strategy Approved in Milestone Decision Circumstances that justify use: When necessary to maintain (protect) planned production schedule Lead-time of component greater than life of the appropriation Lead-time of component significantly longer than remainder of end item Budgetary Implications: Minimum amount budgeted = termination liability of total cost of long lead-time items being procured Budgeted amount generally requested one fiscal year in advance of related end item contract Budgeted amount is shown as a separate line entry on various budget exhibits (e.g., P-1, P-5, P-40)

Advance Procurement Application with Procurement Appropriation
FY 1 FY 2 FY 3 FY 4 LOT 3 ($400M) 20 Items LOT 4 ($700M) 38 Items ADVANCE PROCUREMENT * BA ADV PROC BA SYS BA TOTAL (FY) $ 390M - $ 10M $ 400M $ 685M $ 700M - $ 15M + $ 10M + $ 15M $ 10M $ 405M $ 685M $ - 0 - * Separate Budget Line Line Item one fiscal year in advance of associated production contract

Associated with Multiyear Procurement (MYP)
Economic Order Quantity (EOQ) Associated with Multiyear Procurement (MYP) Exception to Full Funding Policy Explanation why an exception: Contracted deliveries will exceed the 12 month funded delivery period Definition of MYP A generic term that describes the process, planning and ultimate contract by which the government may contract for the purchase of supplies or services that satisfy requirements for more than one but normally not more than five years. Source: DoD R, Vol 2A, Chap 1, Section

Multiyear Procurement (MYP)
Continued Commitment to buy a specific quantity of useable end items of a weapon system over a specified number of years (normally, maximum of five years) Annual Appropriation by Congress for same specified number of years Purpose: - To reduce program cost growth - To counteract adverse effects of the annual budget and procurement process - To bring stability to acquisition process Over $500 million, must have approval in the Appropriations Act and an Act other than the Appropriations Act. Proposed legislation and funding must accompany the MYP request in the President’s budget submission or be formally submitted as a budget amendment Any contract that employs economic order quantities over $20 million in any one year of the contract - requires written notification to HASC, SASC, HAC & SAC. Must delay contract award 30 days from day of notification. A multiyear procurement contract cannot be initiated for the the economic order quantity is not funded at least to the limits of the government’s liability. Must provide for production at not less than the minimum economic rate given the existing tooling and facilities. Prior to any multiyear contract with a cancellation ceiling in excess of $100 million, must give written notification to the congressional defense committees and may not award contract until the end of a 30-day waiting period. MYP cannot be terminated without a 10 day prior notification to the congressional defense committees.

Continued Benefits: Provides assurance to contractor of future years procurement Encourages contractor investment Facilitates economic order quantities Increases contractor productivity Potential problems: Government liable for a penalty (in a decreasing amount) for early cancellation of contract Can not budget for that cancellation/termination liability Controversial concept (both in Congress & OSD) MYP Programs with Congressional approval Abrams M1A2 Upgrade Longbow Apache Helicopter Javelin Missile F/A-18E/F Aircraft C-17 Aircraft F-16 Aircraft

$ $ $ $ $ Multiyear Procurement (MYP) Contract
(Example of Budget Preparation for a MYP Contract) FY FY FY FY FY FY FY 7 Contract Award Production Lead Time Deliveries of Production Items $ $ $ $ $ Notification to Contractor and Obligation of Funds Funded Units Budget in same method as Full Funding End Items $M $ $ $ $ $ 356 EOQ Items $M Except for items budgeted under “EOQ” rules $ 60 Assumes a 92% Learning Curve and composite indices appropriate to given fiscal years

Recent Example Program: F/A-18 Super Hornet and E/A-18 Growler Proposed quantity of aircraft: 124 total Time period: FY 2010 through FY 2013 Contractor: Boeing Projected contract award: NLT 30 Sep 2010 Potential savings compared to annual contract actions: $590 Million (approximately 10% of basic contract with annual options) Congress provided conditional authority in FY 2010 NDAA and FY 2010 Defense Appropriations Act On 14 May 2010 OSD notified Congressional leaders of intent to award the MYP contract for aircraft

Funding Rules for Communications and Information Systems
RDT&E - Development, test and evaluation costs - Development of major upgrades - Hardware/Software for RDT&E facilities Procurement - Investment - New equipment / SW > $250K - Upgrades / replacement equipment > $250K O&M - Expenses - New equipment / SW < $250K - Upgrades / replacement equipment < $250K - Routine maintenance - Equipment leases ADPE usually follows the general rules pertaining to funding of Investment and Expense items. The rules on this slide apply to both General Purpose and Special Purpose ADPE. Although equipment is usually purchased with Procurement, hardware for RDT&E-funded facilities is to be purchased with RDT&E funds. General Purpose and Special Purpose ADPE funding rules diverge when it comes to development and/or purchase of software. Differences are addressed on the following slides.

Low Rate Initial Production
Primary Purpose and Proper Appropriation PURPOSE APPROPRIATION To permit an orderly increase in production ramp-up Procurement To establish an initial production base Procurement To provide production configured representative articles for operational test - RDT&E is default, but use RDT&E * Articles planned to be destroyed during testing – or planned to not go into operational inventory * Articles scheduled to go into operational inventory Procurement

Funding for Product Improvements
Decision Tree MOD INCREASES PERFORMANCE? NO INDEPENDENT DT OR IOT&E REQUIRED? IF NO YES YES SYSTEM IN PRODUCTION? THEN YES NO Fund Development and Testing with (including MOD Kits used for Testing) RDT & E PROCUREMENT O & M AND Fund MOD Kits for End Items and the installation of Kits with . . . PROCUREMENT

Decision Tree MOD INCREASES PERFORMANCE? IF YES THEN Fund Development and Testing with (including MOD Kits used for Testing) RDT & E AND Fund MOD Kits for End Items and the installation of Kits with . . . This chart illustrates the logic to follow in deciding how particular product improvements should be funded. Note that there are basically three phases to a product improvement program: Development & Test of Mod, Fabrication of Mod Kits, and Installation of Mod Kits Funding Fabrication and Installation is straightforward -- always use procurement money from same procurement appropriation which originally funded system. In deciding how to fund the Development and Testing phase, must answer two key questions: “Does this mod increase system performance?” and “Where is system in acquisition cycle?” If mod increases performance, use RDT&E money If mod does not increase performance and system is still in production, use same appropriation $ as were used to fund production (e.g., Missile Procurement, Army) If mod does not increase performance and system is no longer in production, use O&M Exception is Aircraft Engine Mods - always fund Dev/Test with RDT&E $. Discussion: What constitutes a performance increase? -- Lots of room to interpret this. Many programs end up justifying product improvements based on color of money available. TRANSITION: Now that we’ve seen how funding policies affect the phasing of dollars within a budget, let’s look at how adjust that budget to account for inflation. PROCUREMENT

Decision Tree MOD INCREASES PERFORMANCE? NO INDEPENDENT DT OR IOT&E REQUIRED? IF YES RDT & E THEN Fund Development and Testing with (including MOD Kits used for Testing) This chart illustrates the logic to follow in deciding how particular product improvements should be funded. Note that there are basically three phases to a product improvement program: Development & Test of Mod, Fabrication of Mod Kits, and Installation of Mod Kits Funding Fabrication and Installation is straightforward -- always use procurement money from same procurement appropriation which originally funded system. In deciding how to fund the Development and Testing phase, must answer two key questions: “Does this mod increase system performance?” and “Where is system in acquisition cycle?” If mod increases performance, use RDT&E money If mod does not increase performance and system is still in production, use same appropriation $ as were used to fund production (e.g., Missile Procurement, Army) If mod does not increase performance and system is no longer in production, use O&M Exception is Aircraft Engine Mods - always fund Dev/Test with RDT&E $. Discussion: What constitutes a performance increase? -- Lots of room to interpret this. Many programs end up justifying product improvements based on color of money available. TRANSITION: Now that we’ve seen how funding policies affect the phasing of dollars within a budget, let’s look at how adjust that budget to account for inflation. AND Fund MOD Kits for End Items and the installation of Kits with . . . PROCUREMENT

Decision Tree MOD INCREASES PERFORMANCE? NO INDEPENDENT DT OR IOT&E REQUIRED? IF NO SYSTEM IN PRODUCTION? THEN YES Fund Development and Testing with (including MOD Kits used for Testing) PROCUREMENT This chart illustrates the logic to follow in deciding how particular product improvements should be funded. Note that there are basically three phases to a product improvement program: Development & Test of Mod, Fabrication of Mod Kits, and Installation of Mod Kits Funding Fabrication and Installation is straightforward -- always use procurement money from same procurement appropriation which originally funded system. In deciding how to fund the Development and Testing phase, must answer two key questions: “Does this mod increase system performance?” and “Where is system in acquisition cycle?” If mod increases performance, use RDT&E money If mod does not increase performance and system is still in production, use same appropriation $ as were used to fund production (e.g., Missile Procurement, Army) If mod does not increase performance and system is no longer in production, use O&M Exception is Aircraft Engine Mods - always fund Dev/Test with RDT&E $. Discussion: What constitutes a performance increase? -- Lots of room to interpret this. Many programs end up justifying product improvements based on color of money available. TRANSITION: Now that we’ve seen how funding policies affect the phasing of dollars within a budget, let’s look at how adjust that budget to account for inflation. AND Fund MOD Kits for End Items and the installation of Kits with . . . PROCUREMENT

Decision Tree MOD INCREASES PERFORMANCE? NO INDEPENDENT DT OR IOT&E REQUIRED? IF NO SYSTEM IN PRODUCTION? THEN NO Fund Development and Testing with (including MOD Kits used for Testing) O & M This chart illustrates the logic to follow in deciding how particular product improvements should be funded. Note that there are basically three phases to a product improvement program: Development & Test of Mod, Fabrication of Mod Kits, and Installation of Mod Kits Funding Fabrication and Installation is straightforward -- always use procurement money from same procurement appropriation which originally funded system. In deciding how to fund the Development and Testing phase, must answer two key questions: “Does this mod increase system performance?” and “Where is system in acquisition cycle?” If mod increases performance, use RDT&E money If mod does not increase performance and system is still in production, use same appropriation $ as were used to fund production (e.g., Missile Procurement, Army) If mod does not increase performance and system is no longer in production, use O&M Exception is Aircraft Engine Mods - always fund Dev/Test with RDT&E $. Discussion: What constitutes a performance increase? -- Lots of room to interpret this. Many programs end up justifying product improvements based on color of money available. TRANSITION: Now that we’ve seen how funding policies affect the phasing of dollars within a budget, let’s look at how adjust that budget to account for inflation. AND Fund MOD Kits for End Items and the installation of Kits with . . . PROCUREMENT

Decision Tree MOD INCREASES PERFORMANCE? NO INDEPENDENT DT OR IOT&E REQUIRED? IF NO YES YES SYSTEM IN PRODUCTION? THEN YES NO Fund Development and Testing with (including MOD Kits used for Testing) RDT & E PROCUREMENT O & M AND Fund MOD Kits for End Items and the installation of Kits with . . . PROCUREMENT

Summary Each appropriation category has a specific set of policies pertaining to budget formulation. Budgeting policies are based on agreements between Congress and OSD. Budget requests in the Budget Estimate Submission (BES) and the President’s Budget (PB) should be prepared in accordance with applicable policies.

Questions? Now for the DAU optional “commercial”

Briefing for DAU Students
Learn. Perform. Succeed. Our customers, the over 128,000 members of the Defense Acquisition Workforce are currently facing major challenges: Projected loss of experience and knowledge Need to adapt to evolutionary advances in information technologies Necessity of streamlining infrastructure Participating in the fundamental transformation of the Department of Defense To help our customers meet these challenges, we at DAU had to transform acquisition training. We transformed: Our organization Our curriculum content and delivery methods The concept of learning to extend beyond the course itself to include continuous learning, knowledge sharing, performance support, applied research, and strategic partnerships Because of our successful efforts in transforming DAU, we were recognized as The Best Overall Corporate University in 2002 at the Corporate University Best-In-Class awards A Gold Medal winner of Brandon Hall best practices for e-learning Winner of the American Society of Training & Development BEST Award Winner of Corporate University Xchange Excellence Award Member of Training Magazine’s Top 100 Our strategy is to provide you, the members of the Defense Acquisition community, premier career-long learning options to help you add value in your vital support to the warfighter. #1 ’02 ’06 ’05 ’06 ’07 ’04 ’06 ’07 ’09 ’03 ’04 Jan 2010

DAU Mission Provide a global learning environment to support a mission-ready Defense Acquisition Workforce that develops, delivers, and sustains effective and affordable warfighting capabilities. Impact acquisition excellence through: Acquisition certification and leadership training Mission assistance to acquisition organizations Online knowledge sharing resources Continuous learning assets Strategic workforce planning DAU is a training organization, not an academic university. It is the corporate university of the Defense Acquisition Workforce. As such, we focus on enabling this workforce to be effective in the workplace and accomplish Defense acquisition strategic goals and business objectives. DAU provides: Certification and Assignment-Specific Training (stress to the students that certification course content is currently geared toward all personnel in the career field and the variety of work that they do. In the future, these courses will be shorter and more job-specific courses will be developed.) Performance Support / Rapid Deployment Training Continuous Learning Knowledge sharing With these learning assets, DAU providing learning opportunities 24 hours a day, 7 days a week. DAU Human Capital Strategic Planning: DAU also champions strategic, integrated workforce management programs and innovations to recruit, develop and retain a highly capable, motivated and agile DoD AT&L workforce. More details will be given in chart # 4 43

AT&L Performance Learning Model
Training Courses Classroom & online DAWIA, Core Plus, & Executive Continuous Learning CL Modules - Online, self-paced learning modules Conferences - PEO / SYSCOM, Business Managers, DAU Acquisition Community Symposium Knowledge Sharing DAP - Online portal to Big A & HCI knowledge ACC - DoD's online collaborative communities Virtual Library - Online connection to DAU research collection The Acquisition, Technology, and Logistics (AT&L) Performance Learning Model (PLM) is a visual representation of how the Defense Acquisition University (DAU) fulfills its mission in providing practitioner training, career management, and services to enable the acquisition workforce to make smart business decisions and deliver timely and affordable capabilities to the warfighter. Three Pillars of Workforce Development The PLM’s three pillars identify the primary types of acquisition training and development an acquisition professional receives over the course of his or her career—Defense Acquisition Workforce Improvement Act (DAWIA) core certification, Core Plus development, and executive and leadership support. The pillars represent how acquisition professionals progress through their career, from obtaining certification at level I, II, or III in acquisition career fields; to gaining specialized experience in a career field; to obtaining executive-level capabilities to run acquisition programs. Foundational Structure of Workforce Development Laying the foundation for the three pillars of workforce development are DAU’s services: training courses knowledge sharing continuous learning performance support. As the Defense Acquisition Workforce’s premier learning and development center, DAU aligns its training with the specific career field requirements as outlined by DAWIA. In addition, the university has taken innovative measures to ensure that learning and acquisition support are available beyond DAWIA certification, creating a total learning environment for career-long solutions at the point of need. The PLM depicts this versatile and encompassing learning environment, and what follows is an overview of DAU’s numerous services. Mission Assistance Consulting - Helping organizations solve complex acquisition problems Targeted Training - Tailored organizational training Rapid Deployment Training - On-site & online training on the latest AT&L policies Formal & informal learning at the point of need

Located with our Customers
Region Location Workforce Capital/Northeast Fort Belvoir, VA 31,566 Mid-Atlantic California, MD 23,110 Midwest Kettering, OH 18,604 South Huntsville, AL 28,360 West San Diego, CA 25,465 We are part of the community, not just a place to take classes.

Practices Clearinghouse
Learning assets at DAU Acker Library Acquisition Best Practices Clearinghouse Defense Acquisition Portal DAU Training & CL Courses Acquisition Community Connection Mission Assistance This chart shows the screen captures of key DAU web pages.

DAU’s iCatalog Most current resource for information regarding DAU courses and the Certification & Core Plus Development Guides Accessible from the DAU home page ( or directly at

FY10 Training - Financial Management
Level I Certification Level II Certification Level III Certification ACQ 101 Fundamentals of Systems Acquisition Management ACQ 201A Intermediate Systems Acquisition, Part A ACQ 201B Intermediate Systems Acquisition , Part B 25 hrs, online 37 hrs, online 5 days classroom BCF 102 Fundamentals of Earned Value Management BCF 203 Intermediate Earned Value Management BCF 205 Contractor Business Strategies BCF 301 Advanced Financial Management 15 hrs, online 9 days classroom 4 days classroom 9 days classroom BCF 103 Fundamentals of Business Financial Management BCF 106 Fundamentals of Cost Analysis BCF 211 Intermediate Business Acquisition Management 26 hrs, online 40 hrs, online 5 days classroom The DAU’s Learning Capabilities and Integration Center (LCIC) includes Center Directors that are responsible for a portfolio of courses much of which is included in the various career field certification requirements for each level. These recognized experts in their field. They along with their staff look across the entire curricula to ensure appropriate content, sequencing, and delivery. They closely interact with the Acquisition Functional Leaders and their Functional Integrated Process Teams (FIPT). In some cases the Center Director also serves as the Executive Secretary and/or Chair for the Functional Leaders FIPT. The Functional Leader is responsible for establishing and maintaining the career field competencies and determining which one must be included in certification training. The Center Director is responsible for converting those competencies into learning assets, predominately, courseware. They also work closely with the office of the Under Secretary of Defense for Acquisition, Technology and Logistics, other Federal Agencies and industry to capture the latest initiatives and best practices in order to disseminate information to the workforce by a variety of means to include AKSS, various Communities of Practices [COPs] and Special Interest Areas [SIAs]). This chart displays the acquisition and functional training requirements for the __________ career field. The blue represents acquisition, the green functional training and the white CLMs applicable to the functional training requirements. Unique Notes: None CLM 017 Risk Management CLM 024 Contracting Overview CLM 013 Work Breakdown Structure CLM 031 Improve Statement of Work Knowledge Based Case Based Case Based Level I “Core Plus” Courses & CL Module (See DAU iCatalog) Level II “Core Plus” Courses & CL Module (See DAU iCatalog) Level III “Core Plus” Courses & CL Module (See DAU iCatalog) Vers 10

FY10 Training - Cost Estimating
Level I Certification Level II Certification Level III Certification ACQ 101 Fundamentals of Systems Acquisition Management ACQ 201A Intermediate Systems Acquisition, Part A ACQ 201B Intermediate Systems Acquisition, Part B 25 hrs, online 37 hrs, online 5 days classroom BCF 102 Fundamentals of Earned Value Management BCF 103 Fundamentals of Business Financial Management BCF 204 Intermediate Cost Analysis BCF 206 Cost Risk Analysis BCF 302 Advanced Concepts in Cost Analysis 15 hrs, online 26 hours, online 10 days classroom 4 days classroom 5 days classroom BCF 106 Fundamentals of Cost Analysis BCF 107 Applied Cost Analysis BCF 211 Acquisition Business Management BCF 215 Operating and Support Cost Analysis 40 hrs, online 5 days classroom 5 days classroom 5 days classroom The DAU’s Learning Capabilities and Integration Center (LCIC) includes Center Directors that are responsible for a portfolio of courses much of which is included in the various career field certification requirements for each level. These recognized experts in their field. They along with their staff look across the entire curricula to ensure appropriate content, sequencing, and delivery. They closely interact with the Acquisition Functional Leaders and their Functional Integrated Process Teams (FIPT). In some cases the Center Director also serves as the Executive Secretary and/or Chair for the Functional Leaders FIPT. The Functional Leader is responsible for establishing and maintaining the career field competencies and determining which one must be included in certification training. The Center Director is responsible for converting those competencies into learning assets, predominately, courseware. They also work closely with the office of the Under Secretary of Defense for Acquisition, Technology and Logistics, other Federal Agencies and industry to capture the latest initiatives and best practices in order to disseminate information to the workforce by a variety of means to include AKSS, various Communities of Practices [COPs] and Special Interest Areas [SIAs]). This chart displays the acquisition and functional training requirements for the __________ career field. The blue represents acquisition, the green functional training and the white CLMs applicable to the functional training requirements. Unique Notes: BCF 302 is expected to be deployed during the 2nd quarter of this year (FY10). CLB 026 Forecasting Techniques CLB 030 Cost Data Sources CLB 029 Rates CLB 023 Software Cost Estimating Knowledge Based Case Based Case Based Level I “Core Plus” Courses & CL Module (See DAU iCatalog) Level II “Core Plus” Courses & CL Module (See DAU iCatalog) Level III “Core Plus” Courses & CL Module (See DAU iCatalog) Vers 10

DAU’s Commitment to the Defense Acquisition Workforce
Training - 24 / 7 learning assets: in the classroom and in the workplace Continuous Learning - Helping you learn in the workplace: what you need to know , when you need to know it Mission Assistance - Supporting your organization Knowledge Sharing - Connecting you – the Engaged Learner - with the experts, resources and materials you need to do your job Close the presentation by emphasizing the power of the AT&L Performance Learning Model and the variety of learning assets it makes available to them. Even when they graduate from the course they are currently taking, DAU is just a “click” or phone call away. We are their career-long university. Shaping a culture of engagement and career-long learning 50

Programming and Budgeting Policies for Acquisition Programs

Similar presentations

Presentation on theme: "Programming and Budgeting Policies for Acquisition Programs"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Programming and Budgeting Policies for Acquisition Programs

Similar presentations

Presentation on theme: "Programming and Budgeting Policies for Acquisition Programs"— Presentation transcript:

Similar presentations

About project

Feedback