1. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Chemical Biological Defense Acquisition Initiatives Forum (CBDAIF) January 28, 2009 1 DISTRIBUTION STATEMENT F: Further dissemination only as directed by the JPEO or higher DoD Authority. UNCLASSIFIED Stephen V. Reeves Major General, USA Joint Program Executive Officer for Chemical and Biological Defense 703.681.9600 090128 CBDAIF Reeves

2. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Agenda Updates – People – New DoD 5000 – Bio Surety Regulations Defense Budget Outlook Contracting Opportunities 2 090128 CBDAIF Reeves

3. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense 090128 CBDAIF Reeves 3

4. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense 090128 CBDAIF Reeves 4 New DoD 5000.02 Operation of the Defense Acquisition System December 8, 2008

5. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Comparison of 2003 vs. 2008 090128 CBDAIF Reeves 5 Concept Refinement Technology Development System Development & Demonstration Production & Deployment Operations & Support Concept Decision Design Readiness Review FRP Decision Review ABC IOC FOC Program Initiation User Needs & Technology Opportunities Defense Acquisition Management Framework - 2003 Materiel Solution Analysis Technology Development Production & Deployment Operations & Support Material Development Decision FRP Decision Review ABC IOC FOC Program Initiation Post-PDR Assessment User Needs Technology Opportunities & Resources Engineering & Manufacturing Development Defense Acquisition Management Framework - 2008 Post-CDR Assessment Focus of Major Changes

6. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense The Defense Acquisition Management System 2008 090128 CBDAIF Reeves 6 User Needs Technology Opportunities & Resources Strategic Guidance Joint Concepts Capabilities Based Assessment ICD Material Solution Analysis Material Solution Analysis Technology Development Engineering & Manufacturing Development CDD CPD Production & Deployment O&S ABC FCB JCIDSAcquisition Process OSD/JCSCOCOM MDD “Following the Materiel Development Decision (MDD), the MDA may authorize entry into the acquisition management system at any point consistent with phase-specific entrance criteria and statutory requirements.”

7. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Key Changes More Milestone Decision Authority Involvement in S&T Adds Material Development Decision (MDD) – Mandatory for Any Acquisition Phase – Requires Test and Evaluation Strategy and Systems Engineering Plan Mandatory Competing Prototypes Prior to MS B System Level Specifications Based on ICD Technology and Manufacturing Process Demonstrated as a Tech Development Exit Criteria Configuration Control Boards – Required by PMs to Propose Descoping and Cost Control Post Critical Design Review Updates to MDA 090128 CBDAIF Reeves 7

8. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense So What? Implications for Industry Early Technology Commitment in the Technology Development Phase Early Industry Resource Commitments to Compete in Technology Development Phase Industry Must Understand Requirements Early to Get In Front of Government Process Dual Prototypes – Competition Early Shifts More Risk to Industry 090128 CBDAIF Reeves 8

9. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Challenges Unity of Command – Tech Base vs. PM Funding – 6.2/3 Funding Drives Process Requirements Maturity During Technology Demonstration Phase Contracting – Limits Ability to Re-Compete in Later Phases 090128 CBDAIF Reeves 9

10. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense New Biosurety Regulations for Biological Select Agents and Toxins (BSAT) Army Regulation AR 50-1 (October 2008) Applies to ALL Facilities and Personnel Working with DoD-Derived BSAT – Applies to Contractor as Well as Government Facilities – Requires Biological Personnel Reliability Programs (BPRP), Including: Medical Examinations and Random Drug Testing Security Investigations to SSBI (Top Secret) Level Continuous Surveillance (Surety) BOTH Centers for Disease Control AND the Army Inspector General will Inspect Each Facility Existing DoD Contracts Will be Modified to Include Compliance With AR 50-1; New Contracts Will be Written to Include Compliance 090128 CBDAIF Reeves 10 CDC Maintains an Updated List of BSAT at http://www.selectagents.govhttp://www.selectagents.gov CDC Maintains an Updated List of BSAT at http://www.selectagents.govhttp://www.selectagents.gov AR 50-1 is Available at http://www.army.mil/usapa/epubs/pdf/r50_1.pdfhttp://www.army.mil/usapa/epubs/pdf/r50_1.pdf AR 50-1 is Available at http://www.army.mil/usapa/epubs/pdf/r50_1.pdfhttp://www.army.mil/usapa/epubs/pdf/r50_1.pdf

11. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Defense Priorities of President Obama Readiness – Build Up Our Special Operations Forces, Civil Affairs, Information Operations, and Other ‘In Demand’ Units – Increase the Size of the Army by 65,000 Soldiers and the Marine Corps by 27,000 Marines – End Stop-loss – Provide the Equipment Needed by the National Guard and Reserve Component for Domestic and Foreign Emergencies and Allow Time to Refit Before Deploying – Make the Head of the National Guard a Member of the Joint Chiefs of Staff 090128 CBDAIF Reeves 11

12. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Defense Priorities of President Obama (Cont’d) Procurement – Review Each Major Defense Program Against Current Needs and Future Threats – Rebalance Capabilities to Succeed in Both Conventional and Unconventional Operations – Air Power: Invest More in Advanced Technology Ranging from the Revolutionary to the Essential – Sea Power: Invest in Smaller, More Capable Ships with the Agility to Operate Close to Shore and the Reach to Rapidly Deploy Marines to Global Crises – Space Power: Promote Ban on Weapons that Interfere with Satellites and Assess Threats to U.S. Space Systems, Establishing Contingency Plans to Ensure Continuity of Space Assets – Missile Defense: Program Should Not Divert Resources from Other National Security Priorities Until We are Positive the Technology Will Protect the American Public 090128 CBDAIF Reeves 12

13. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Defense Priorities of President Obama (Cont’d) Acquisition Reform – Launch a Program of Acquisition Reform and Management, Which Ends No-bid Contracting and the Abuse of Supplemental Budgets – Rebuild our Contract Officer Corps – Order the Justice Department to Prioritize Prosecutions that will Punish and Deter Fraud, Waste and Abuse – Require DoD and State Department to Develop a Strategy for Balancing Private Sector/Public Sector Workload – Establish the Legal Status of Contractor Personnel, Making Possible Prosecution of Any Abuses Committed by Private Military Contractors 090128 CBDAIF Reeves 13 Full listing of priorities can be found at: http://www.change.gov/agenda/defense_agenda/

14. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense 14 090128 CBDAIF Reeves

15. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense $322 $559 $82 $193 $141 $101 $51 $66 $41 FY09 CBDP Portfolio ($M) 15 090128 CBDAIF Reeves

16. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense $454,037 $351,124 $644,144 $106,930 FY09 CDBP Appropriated Budget ($M) Total Budget: $1,556,235,000 16 090128 CBDAIF Reeves

17. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense FY10 CDBP President’s Budget Request ($M) 090128 CBDAIF Reeves 17 Total Budget: $1,580,001 $427,192 $480,881 $505,706 $166,222 7.8% 9.4% 3.6% 2.2%

18. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense 090128 CBDAIF Reeves 18

19. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense John Gorrell Deputy Director, Current Acquisition Directorate (703) 681-0808 john.gorrell@jpeocbd.osd.mil The Defense Acquisition Management System 2008 DoDI 5000. 02 19

20. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense The Defense Acquisition Management System 2008 DoDI 5000.02 New Policy Directed by Congress New or Revised Regulatory Policy Statutory & Regulatory Information & Milestone Requirements The Defense Acquisition Management System - Milestones, Phases and Key Activities 20

21. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense DoDI 5000.05 Policy Policy Flowing from Numerous New/Revised sections of Public Law since 2003 (some with Multiple Requirements) Approved Policy Appearing in over 25 Policy Memos and DoD Responses to the GAO, IG, and Congress Reference to 10 Updated or Newly Issued DoD Publications Consideration of Over 700 Defense Acquisition Policy Working Group (DAPWG) Comments 21

22. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense IOC Technology Development Production & Deployment Operations & Support FRP Decision Review FOC Materiel Solution Analysis Materiel Development Decision User Needs Technology Opportunities & Resources Defense Acquisition Management System - 2008 Acquisition Program Initiation IOC B Concept Refinement System Development & Demonstration Production & Deployment Operations & Support C FRP Decision Review FOC Technology Development Program Initiation Design Readiness Review Concept Decision User Needs & Technology Opportunities B A CA Defense Acquisition Management Framework- 2003 Comparison DoD Acquisition Processes 2003 vs. 2008 Focus of major changes Engineering and Manufacturing Development Post-CDR Assessment 6 PDR or Post PDR Assessment

23. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense The Defense Acquisition Management System 2008 Changes to Phases Old (2003)New (2008)Change from 2003 Concept Refinement (CR) Materiel Solution Analysis1 - More robust AoA Technology Development (TD) 2- Competitive prototyping Systems Development & Demonstration (SDD) Engineering & Manufacturing Development (EMD) 3 - More robust system engineering SEP required IOC B A Technology Opportunities & Resources FOC User Needs CDD CPD ICD Materiel Solution Analysis Technology Development Production & Deployment Operations & Support Engineering and Manufacturing Development FRP Decision Review Materiel Development Decision Post CDR Assessment PDRCDRAoAPDR Pre-Systems AcquisitionSystems Acquisition Sustainment C or Post PDR Assessment Technology Development (TD) 12 3 23

24. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense IOC B A Technology Opportunities & Resources Materiel Solution Analysis FRP Decision Review FOC Materiel Development Decision The Defense Acquisition Management System 2008 User Needs Changes to Acquisition Decision Points Old (2003)New (2008)Change from 2003 Concept Decision (CD)Materiel Development Decision (MDD) 1 -MDD required prior to entering the process at any point Design Readiness Review DRR Post-CDR Assessment3 -MDA’s assessment of PM’s CDR Report PDRCDR CDD CPD ICD AoA Pre-Systems Acquisition Systems Acquisition Sustainment Post CDR Assessment PDR Technology Development Production & Deployment Operations & Support Engineering and Manufacturing Development Post-PDR Assessment2 -MDA’s assessment of PM’s PDR Report (if PDR after MS B) N/A C or Post PDR Assessment 1 2 3 24

25. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Operations & Support The Defense Acquisition Management System 2008 Incremental Development A Production & Deployment O&S Technology Development Engineering & Manuf Development Acquisition Process B C “Following the Materiel Development Decision (MDD), the MDA may authorize entry into the acquisition management system at any point consistent with phase-specific entrance criteria and statutory requirements.” CDD CPD User Needs Joint Concepts Capabilities - Based Assessment OSD/JCS COCOM FCB Strategic Guidance Materiel Solution Analysis ICD MDD Technology Opportunities & Resources Entry into the Acquisition Process 25

26. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense From two processes… To one process… Capability delivered in increments, recognizing up front need for future capability improvements Each increment: - depends on mature technology - is a militarily useful and supportable operational capability - Successive Technology Development Phases may be needed to mature technology for multiple increments Incremental Development: End-state is known; requirements met over time in several increments Spiral Development: End-state is not known; requirements for increments dependent upon technology maturation and user feedback. No spirals! The Defense Acquisition Management System 2008 Evolutionary Acquisition 26

27. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense “ 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. 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....” IOC BA FOC CDD CPD ICD Materiel Solution Analysis Technology Development Production & Deployment Operations & Support Engineering and Manufacturing Development FRP Decision Review Materiel Development Decision Post CDR Assessment Post PDR Assessment PDRCDRAoAPDR Pre-Systems Acquisition Systems Acquisition Sustainment C or The Defense Acquisition Management System 2008 Prototyping and Competition 27

28. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense “Entrance into this phase depends on the completion of the AoA, a proposed materiel solution, and full funding for planned Technology Development Phase activity. At Milestone A, the MDA reviews the proposed materiel solution and the draft Technology Development Strategy (TDS). The Technology Development Phase begins when the MDA has approved a materiel solution and the TDS. – Decision is documented the decision in an ADM. – Technology development for an MDAP shall not proceed without Milestone A approval. For business area capabilities, commercially available solutions shall be preferred. A favorable Milestone A decision DOES NOT mean that a new acquisition program has been initiated.” IOC BA FOC CDD CPD ICD Materiel Solution Analysis Technology Development Production & Deployment Operations & Support Engineering and Manufacturing Development FRP Decision Review Materiel Development Decision Post CDR Assessment Post PDR Assessment PDRCDRAoAPDR Pre-Systems Acquisition Systems Acquisition Sustainment C or Technology Development Phase The Defense Acquisition Management System 2008 28

29. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Challenges Transitions from Tech Base to Acquisition Program Funding – 6.2/6.3 transitions to 6.3/6.4 Requirements Maturation – From MDD to Material Solution Analysis through Technology Development Phase Contracting – Dual Prototyping – Limits to Recompete in Later Phases 29

30. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense So What? Implications to Industry DUAL PROTOTYPE – Technology Development Phase – Early Technology Commitment in the Technology Development Phase – Early Industry Resource Commitments to Compete in Technology Development Phase – Industry Must Understand Requirements Early to Get in Front of the Government Process – Shifts more Risk to Industry 30

31. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Ron Blue Contracting Officer (703) 681-5191 Ronald.Blue@jpeocbd.osd.mil GAO Interpretation of the “Rule of Two” 31

32. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense FAR Rule (Part 19.502-2) Requires a Set Aside if There is an Expectation That at Least 2 Small Businesses Will Present Reasonable Offers GAO Held that ID/IQ Contracts with a Mix of Small and Large Business Were Subject to the Rule (Delex Systems Oct 2008 #B-400403) The Contracting Officer Applies the Rule of Two FIRST in Multiple Award ID/IQ Contracts BEFORE Applying ID/IQ Delivery Order Provisions “Rule of Two” 32

33. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense What Can Industry Do? Carefully review the ordering procedures under existing ID/IQ contracts in light of the decision. Look for new business opportunities for smaller firms under the new process. Evaluate your subcontracting and teaming strategies. New partnerships might compete for a wider range of task orders. 33

34. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense References FAR Part 16.5 Indefinite Delivery Contracts FAR Part 19.502.2 Total Small Business Set- Asides http://farsite.hill.af.mil GAO Decision B-400403 www.gao.gov/decisions/bidpro/400403.htm 34 Agencies Have Not Yet Issued Regulatory Implementation of the GAO Decision

35. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Larry Wakefield Special Assistant for Strategic Initiatives (703) 681-9678 Larry.wakefield@jpeocbd.osd.mil New BioSurety Regulation AR 50-1 35

36. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense New Biosurety Regulations for Biological Select Agents and Toxins (BSAT) New Rules Apply to ALL Facilities and Personnel Working With DoD BSAT CDC Maintains an Updated List of BSAT at http://www.selectagents.govhttp://www.selectagents.gov New BSAT Regulations 36

37. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense New Army Regulation 37 Army Regulation AR 50-1 (October 2008) DoD Using Army to Lead Applies to Contractor as well as Government Facilities – Anyone Using ‘DoD BSAT’ Requires Biological Personnel Reliability Programs (BPRP) With: Medical Examinations Drug Testing Security Investigations Continuous Surveillance (Surety)

38. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Implementing New Rules 38 Both the Centers for Disease Control AND the Army Inspector General Will Inspect Facilities DoD Contracts will be Modified to Include Compliance with AR 50-1 AR 50-1 is Available at: http://www.army.mil/usapa/epubs/pdf/r50_1.pdf http://www.army.mil/usapa/epubs/pdf/r50_1.pdf

39. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Laboratory BioSecurity – Executive Order Secretary Level Working Group Established January 2009 to Review Laboratory BioSecurity Chaired by Secretary of Defense and Secretary of Health and Human Services Will Review Laws, Regulations, and Practices of Federal and Non-Federal Facilities that Handle BSAT Specifically Includes Review of Personnel Security and Assurance Programs and Recommendations Working Group Recommendations for New Legislation, Regulations, and Oversight Due in 180 Days 39

40. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense Clearances Progress Report The Reform Team: Department of Defense Office of Mgmt. & Budget Dir. Natl. Intelligence Office of Personnel Mgmt. Will Meet 60 Day Goal for Clearances in 2009 Established a Governance Council to Drive Reforms Across Agencies Will Focus on Decreasing Duplication and Increasing Sharing Between Agencies Full Report is at: www.whitehouse.gov 40

41. UNCLASSIFIED Joint Program Executive Office for Chemical and Biological Defense 41 24 Officers Attending Command and General Staff College are Available to Speak at Your Facility Get the Army Story Straight from Future Senior Leaders To Request a Speaker for Your Group of 25 or More Contact: Army Officers Speaking to Industry Partners Brandon Pollacheck 732 427-0651 Brandon.Pollachek@us.army.mil