1. Acquisition Policy
&
International Trends

2. Overview Defense Acquisition Basics International Acquisition Policies
Sales, Cooperation, and Defense Trade Trends
Program Trends

3. DoD Decision Support Systems “Little A” Acquisition
10/26/06
“Big A” Acquisition
Joint Capabilities
Integration and
Development
System (JCIDS)
REQUIREMENTS
Planning,
Programming,
Budgeting and
Execution (PPBE)
Defense
Acquisition System
MONEY
MATERIAL
“Little A” Acquisition
Lesson 02 SE Requirements Planning

4. JCIDS – The Basics JCIDS
Joint Capabilities Integration and Development System
Guidance for Future
Joint Warfighting Capabilities
Strategic Guidance
Joint Operations Concepts
CONOPS
Defense Planning Scenarios
Feedback from the field
Fielded
Capabilities
Non-Materiel
Solutions
Requirements Managers
JCIDS
Assess current capabilities
Identify gaps
Recommend non-materiel and/or materiel approaches
Identify operational performance requirements
Recommended
Materiel
Approaches
Determine materiel solution
Estimate cost and obtain funding
Design, develop, and test
Produce and field
Resources
Acquisition
PPBE
Congress

5. Defense Acquisition System
The Materiel Development Decision precedes entry into any phase of the acquisition management system
Entrance and Exit Criteria for each phase
Model 1: Hardware Intensive Program
IOC A B C
Materiel
Solution
Analysis
Engineering &
Manufacturing Development
Technology Maturation & Risk Reduction.
LRIP
Sustainment
Operations &
Support
FRP
Decision
Materiel Development
Decision
DRFPRD
CDD-V
ICD
Draft
CDD
CDD
CPD
Production & Deployment
FOC
PDR
CDR
Disposal
Now we will use the structure show here to briefly go thru each decision point and phase to point out key activities.
Initial Capabilities
Document (ICD)
DRAFT
CDD
Capability Development
Document (CDD)
Capability Production Document (CPD)
RELATIONSHIP TO JCIDS
PDR: Preliminary Design Review
CDR: Critical Design Review
CDD-V: CDD Validation
LRIP: Low Rate Initial Production
FRP: Full Rate Production
DRFPRD: Development Request For Proposals Release Decision
IOC: Initial Operational Capability
FOC: Full Operational Capability

6. International
Acquisition Policies

7. Preferred Order for Solutions
JCIDS
Guidance
Non-Materiel Solutions
Materiel Solutions
DOTMLPF-P
JCIDS
Only
Procurement or Modification
Additional Production
or Modification
JCIDS and
Defense
Acquisition
System
Cooperative
Development Program
New DoD Joint
Program
New DoD Component
Program

8. JCIDS Manual (New in 2015 version)
JCIDS Provisions
“For capability requirements documents advocating creation of international acquisition programs with allies/partner nations, Sponsors will consider to the greatest extent possible, foreign disclosure review and document structuring to facilitate releasability, in whole or in part, to the nations concerned.”
“Other system attributes may include …… physical and operational security needs, including technology security, foreign disclosure, defense exportability features, and anti-tamper.”
JCIDS Manual (New in 2015 version)

9. DoDI 5000.02 (Enclosure 2, paragraph 7.a.) New
Acquisition Strategy
“[Program Management [PM] is responsible for integrating [IA&E] considerations into the program’s Acquisition Strategy at each major milestone or decision point. [PM] will consider the potential demand and likelihood of cooperative development or production, Direct Commercial Sales, or Foreign Military Sales early in the acquisition planning process; and consider U.S. export control laws, regulations, and DoD policy for international transfers when formulating and implementing the acquisition strategy … Where appropriate, [PMs] will pursue cooperative opportunities and international involvement throughout the acquisition life cycle to enhance international cooperation and improve interoperability ...”
DoDI (Enclosure 2, paragraph 7.a.) New

10. Cooperative Opportunities
10 USC 2350(a) requires Cooperative Opportunities Document before 1st milestone or decision point
Statutory Cooperative Opportunities requirement is addresses in DoDI
Due at first program milestone review
Documented in Acquisition Strategy or equivalent document
Required for MDAP, MAIS, ACAT II & III
Approved by Milestone Decision Authority (MDA)
DoDI , Table 2 (Milestone and Phase Information Requirements), Page 47

11. DoDI 5000.02 (Enclosure 3, paragraph 13) New
Program Protection
“Program protection also supports international partnership building and cooperative opportunities objectives by enabling the export of capabilities without compromising underlying U.S. technology advantages.” Program managers will describe in their PPP the program’s critical program information and mission-critical functions and components … [including] planning for exportability and potential foreign involvement. Countermeasures should include anti-tamper, exportability features, security … and other mitigations …”
DoDI (Enclosure 3, paragraph 13) New

12. Sales, Cooperation, and Defense Trade Trends

13. Adapting to a Changing Environment

14. FMS and Service Procurement: 5 Year Average, FY10-14
The Scale of FMS
FMS and Service Procurement: 5 Year Average, FY10-14
#1. $45.1 Billion Navy (incl. USMC)
#2. $39.0 Billion FMS
#3 $38.8 Billion Air Force
#4 $32.4 Billion Army
Benefits to the U.S.
Builds U.S.-partner relationships
Interoperability
Lowers unit costs for the U.S. DoD
Maintain production lines
Dollars into the U.S. economy
Jobs 14

15. Agreement R&D Contributions
($ in Millions)
88 IAs
New Slide
IA = International Agreement

16. Top 10 Arms Exporters & Importers (2001-2012)
Exporters USA $86437 Russia $74574 Germany $22540 France $20829 UK $12435 China $9955 Netherlands $6625 Italy $6507 Israel $5997 Spain $5768
Importers India $28776 China $27875 South Korea $13896 UAE $11914 Pakistan $10430 Australia $10365 Greece $10286 USA $9095 Turkey $7962 Singapore $7426
Source: Stockholm International Peace Research Institute (SIPRI) Arms Transfer Database (US$1990 millions)

17. Share of International Arms Exports (%)
Top 3 Customers
USA 29
Australia, South Korea, UAE
Russia 27
India, China, Algeria
Germany 7
USA, Greece, Italy
China 6
Pakistan, Bangladesh, Myanmar
France 5
China, Morocco, Singapore UK 4
Saudi Arabia, U.S., India
Spain 3
Norway, Austria, Venezuela
Ukraine
China, Pakistan, Russia
Italy
India, UAE, USA
Israel 2
India, Turkey, Columbia
Source: SIPRI Arms Transfer Database

18. Defense Companies - 2013 (World-Wide excluding China)
Rank
Company
Arms Sales, 2012, ($M)
Defense Sales % of Total Sales 1
Lockheed Martin (USA)
35,490 78 2
Boeing (USA)
30,700 35 3
BAE Systems (UK)
26,820 94 4
Raytheon (USA)
21,950 93 5
Northrop Grumman (USA)
20,200 82 6
General Dynamics (USA)
18,660 60 7
EADS (trans-European)*
15,740 20 8
United Technologies (USA)
10,560 19 9
Finmeccanica (Italy)
12,530 50 10
Thales (France)
10,370 55
* EADS was renamed Airbus Group in January 2014

19. International Acquisition Program Trends

20. Foreign Military Sales (FMS)
Program Trends
Foreign Military Sales (FMS)
Sale of DoD Configuration
with Exportability Modifications
Integration of Buyer
Furnished Equipment (BFE)
Development and Integration
of New Equipment
Direct Commercial Sales (DCS)
Sale of DoD Configuration
with Exportability Modifications
DCS/FMS Hybrid Programs
Sale of New or Highly
Modified Systems
International Cooperative Programs (ICPs)
Cooperative Development of
New Systems
Incorporating Foreign
Participation in DoD Program
Cooperation Throughout
Programs’ Life-Cycles
Past
Present

21. Joint Strike Fighter (JSF)
Program Description
Foreign Military Sales
DoD requirement to replace the F-16, F-18, and AV-8B
UK MoD joins as partner and accepts DoD’s STOVL capability requirement
Other partner nations follow
Current FMS customers: Israel, Japan, Korea
Future FMS customers: TBD
Coordination of ICP and FMS customer investment in follow-on development anticipated
International Cooperative Program
Combined Activities
Concept Demo MOUs (several)
EMD MOU (U.S. and 8 partners)
Production, Sustainment, and Follow-On Development (PSFD) MOU (U.S. and 8 partners)
PSFD MOU cost shares based on projected JSF air system buys (known as Composite Share Ratio)
OT&E (selected partners)
Training
Various “Training Pooling” Implementing Arrangements
Sustainment (Logistics)
Coordinated depot Investment
Automated Logistics Information System (ALIS)

22. Foreign Military Sales International Cooperative Program
RC-135V/W Rivet Joint
Program Description
Foreign Military Sales
UK retires Nimrod R1; wants to retain SIGINT capability
UK decides to “buy into” U.S. RJ program
USAF provides three KC-135Rs as EDA
FMS Case UK-D-SAO
KC-135s converted to RC-135s
Ground support equipment, spares, and training
International Cooperative Program
Combined Operations
Sustainment & Follow-on Development (SFD) MOU
Common logistics support
Cooperative follow-on development
Cost shares based on fleet size (17 U.S./3 UK)
Co-Manning MOU
USAF to train UK cadre under FMS
Cooperative Operations MOU
Framework for cooperative operations

23. Saudi Arabia F-15SA Program Description Program Structure
$30B development, production, test, modification/conversion, and sustainment program
Largest single FMS case in history
PEO: AFLCMC/CC – PEO-FB
Security Asst PM (SAPM) (WR)
D-SAPM Production (WP)
D-SAPM Conversion (WR)
D-SAPM Sustainment (WR)
D-SAPM Training (AFSAT)
Scope
New Development
Production: 84 F-15SA new aircraft
Conversion: 70 F-15S to SA’s
Sustainment: Construction/ modification at multiple bases/ training ranges/centers
Training: RSAF for English language & specialty training
Digital Electronic Warfare System
Missile Warning System
Fly-by-Wire flight controls
Reconnaissance pod (DB-110)
Color flat panel displays
New precision weapons integration

24. P-8 Maritime Patrol Aircraft
Program Description
DCS and FMS
Navy establishes a requirement to replace the P-3
Full cooperative program with Australia, Germany, and Italy attempted w/o success
Australia decides on combination of P-8 and Navy MQ-4C Triton
Current DCS Customer: India
Current FMS Customers: None
Future FMS Customers: TBD (but likely)
International Cooperative Program
Combined Activities
MOU w/Australia late in EMD
Production, Sustainment, and Follow-On Development (PSFD) MOU w/Australia
PSFD MOU cost shares based on projected U.S. and Australia P-8 buys
Sustainment (logistics)
AUS will be treated as “13th Squadron” by Navy
Follow-on development requirements definition
Australia Cooperative Program Personnel part of Navy process

25. IA&E Policy Discussion
International Cooperative Programs (ICPs)
Consider partnership opportunities throughout life-cycle
Allied and Coalition Partner Interoperability
Establish JCIDS attributes for equipment interoperability
Program Protection Planning
Consider TSFD and exportability throughout life-cycle
Acquisition Strategy
Integrate IA&E considerations at each milestone/decision point
What’s driving these policies?
Are they appropriate?
Are they achievable?

26. Handouts

27. Capability Requirement and Acquisition Processes
Initial
Capabilities
Document*
Materiel
Solution
Analysis
Phase
Draft
Capability
Development
Document
Requirements
Authority
Review of AoA
Results
Technology Maturation &
Risk Reduction Phase A
Decision
Dev.
RFP
Release
Point B
Engineering & Manufacturing
Development Phase
Production
Legend
= Decision Point
= Milestone Decision
= Requirements Document
= Requirements Authority
Reviews C
Production &
Deployment Phase
Operations & Support
Phase
Disposal
* Or equivalent Approved/Validated Requirements Document

28. JCIDS Documents Initial Capabilities Document (ICD)
Summarizes the Capability-Based Assessment
Justifies requirement for materiel/non-materiel solutions
Supports MDD for materiel solutions
Guides MSA phase activities
Capability Development Document (CDD)
Outlines an affordable increment of militarily useful, logistically supportable, technologically mature capability
Draft CDD supports Milestone A “risk reduction” decision
Matured during TMRR and validated at requirements decision point prior to Milestone B
Capability Production Document (CPD)
Addresses production elements specific to a single increment of an acquisition program
Defines an increment that is ready for a production decision
Guides the production and final testing of the system demonstrated during EMD

29. Defense Acquisition System
The Materiel Development Decision precedes entry into any phase of the acquisition management system
Entrance and Exit Criteria for each phase
Model 1: Hardware Intensive Program
IOC A B C
Materiel
Solution
Analysis
Engineering &
Manufacturing Development
Technology Maturation & Risk Reduction.
LRIP
Sustainment
Operations &
Support
FRP
Decision
Materiel Development
Decision
DRFPRD
CDD-V
ICD
Draft
CDD
CDD
CPD
Production & Deployment
FOC
PDR
CDR
Disposal
Now we will use the structure show here to briefly go thru each decision point and phase to point out key activities.
Initial Capabilities
Document (ICD)
DRAFT
CDD
Capability Development
Document (CDD)
Capability Production Document (CPD)
RELATIONSHIP TO JCIDS
PDR: Preliminary Design Review
CDR: Critical Design Review
CDD-V: CDD Validation
LRIP: Low Rate Initial Production
FRP: Full Rate Production
DRFPRD: Development Request For Proposals Release Decision
IOC: Initial Operational Capability
FOC: Full Operational Capability

30. Materiel Solution Analysis
PURPOSE: to conduct the analysis and other activities
needed to choose the concept for the product that will be acquired
Materiel
Solution
Analysis
Materiel
Development
Decision
ICD
Draft
CDD
ENTER: Approved ICD, study guidance for conducting the AoA, and an approved AoA plan. AoA study guidance for MDAPs and AoA plan approval will be provided by CAPE.
ACTIVITIES: Establish PM & PMO, conduct AoA, user writes draft CDD, develop initial:
Acquisition Strategy
Test & Evaluation Master Plan (TEMP)
Systems Engineering Plan (SEP)
Life Cycle Sustainment Plan (LCSP)
Cyber Security Strategy
Program Protection Plan (PPP)
GUIDED BY: ICD and AoA Plan
EXIT: Completed the necessary analysis and activities to support a decision to proceed to the next decision point and desired phase in the acquisition process.
Point out requirements to enter and leave (exit) each phase
-Note the activities, and importance of JCIDS documents (ICD) to guide each phase.
-The enter and exit bullets on these charts are “generic” to all programs. Read about program specific “exit criteria” in the DAG.
Materiel Solution Analysis: The purpose of this phase is different from Concept Refinement (CR). The AoA during CR was conducted to “refine” the materiel solutions prioritized in the ICD. The ICD no longer does this, so the AoA is now focused on alternative solutions provided from a number of sources: “a diversified range of large and small businesses”.
Revisions to JCIDS: Because portions of the , like the MSA phase, take into account upcoming changes to JCIDS, these changes should be pointed out.
-The Functional Solutions Analysis (FSA) part of the Capabilities-Based Assessment (CBA) has been eliminated.
-ICD will no longer contain a prioritized list of potential materiel alternatives. The ICD will define non-materiel options, DOTMLPF and policy changes that may lead to a Joint DCR. If non-materiel approaches are not sufficient to mitigate the war fighting capability gap, and a materiel solution is required, the ICD will make a recommendation on the type of materiel solution preferred: IT system, evolution of existing systems with significant capability improvement, or a transformational approach for “breakout” systems that differ significantly in form, function, operation and capabilities from existing systems and offer significant improvement over current capabilities or transform how the mission is accomplished.
-These materiel options will be investigated during the MSA phase during the AoA. Concurrent with the AoA, a draft CDD (see draft CJCSI G) will be prepared to guide the TMRR phase activities.

31. Technology Maturation and Risk ReductionB
PURPOSE: to reduce technology, engineering,
integration, and life cycle cost risk to the point that a decision to contract for EMD can be made
with confidence in successful program execution for development, production, and sustainment
Final
RFP
Regarded by the USD (AT&L) as the most important decision in the program’s lifecycle
Technology Maturation & Risk Reduction
DRFPRD
Final
RFP
CDD-V
Draft
CDD
CDD
PDR
ENTER: MDA approved materiel solution and Acquisition Strategy, initial major program documentation and funding in the FYDP
ACTIVITIES: Competitive prototyping of critical subsystems, SE trade-off analysis, develop contracting strategy, conduct CDD Validation, conduct Preliminary Design Review (PDR), conduct Development RFP Release Decision, begin source selection for EMD
GUIDED BY: Acquisition Strategy and draft CDD/approved CDD
EXIT: Demonstration that technology, engineering, integration, manufacturing, sustainment, and cost risks have been adequately mitigated to support a commitment to design for production, Validated capability requirements, full funding in the FYDP, and compliance with affordability goals for production and sustainment

32. Engineering and Manufacturing DevelopmentB C
PURPOSE: to develop, build, and test a product
to verify that all operational and derived requirements have been met and to support production
or deployment decisions
Engineering &
Manufacturing Development
CPD
PDR?
CDR
ENTER: Adequate risk reduction; approved requirements; full funding in FYDP
ACTIVITIES: Complete detailed design, system-level CDR, integrated testing, establish product baseline, demonstrate manufacturing processes and supportability
GUIDED BY: CDD, Acquisition Strategy, SEP, and TEMP
COMPLETION:
(1) the design is stable;
(2) the system meets validated capability requirements demonstrated by developmental and
initial operational testing as required in the TEMP;
(3) manufacturing processes have been effectively demonstrated and are under control;
(4) industrial production capabilities are reasonably available; and
(5) the system has met or exceeds all directed EMD Phase exit criteria and Milestone C entrance criteria

33. Production and Deployment
IOC
PURPOSE: to produce and
deliver requirements-compliant products to receiving military organizations C
LRIP
Production & Deployment
CPD
FRP
Decision
FOC
Full Rate Production
ENTER: Acceptable performance in DT & Operational Assessments (OA); mature software; no significant manufacturing risks; approved CPD; acceptable interoperability and operational supportability; demonstration of affordability; fully funded
ACTIVITIES: Low Rate Initial Production, IOT&E, LFT&E (if required) and interoperability testing of production-representative articles; Full-Rate Production Decision; fielding and support of fielded systems; IOC/FOC
GUIDED BY: CPD, TEMP, SEP, LCSP
EXIT: Full operational capability; deployment complete
Essentially same as the 2003 DoDI
Guided By: DoDI indicates what documents “guide” the phase activities for MSA, TD and EMD; however, it does not state what documents guide Production and Deployment. So, shown here some obvious documents that guide the activities.

34. Operations and Support
PURPOSE: Execute a support program that meets materiel readiness and operational support performance requirements, and sustains the system in the most cost-effective manner over its total life cycle
Sustainment
Operations &
Support
Disposal
FOC
ENTER: Approved CPD; approved LCSP; successful FRP Decision
ACTIVITIES: LCSP implementation; Performance-Based Life-Cycle Product Support (PBL) planning, development, implementation, and management; initiate system modifications as necessary; continuing reviews of sustainment strategies, demilitarize and dispose of systems IAW legal and regulatory requirements, particularly environmental considerations and explosives safety
GUIDED BY: CPD/Acquisition Strategy/LCSP
Performance-Based Life-Cycle Product Support (PBL), has the same meaning as Performance-Based Logistics (PBL) and uses the same acronym.
Guided By: DoDI indicates what documents “guide” the phase activities for MSA, TD and EMD; however, it does not state what documents guide Operations and Support. So, shown here are some obvious documents that guide the activities.