Materiel Development Decision (MDD) to Milestone A Requirements Management Activities April 25, 2017

Lesson Objective Determine the key requirements management activities and the role of the ICD in support of the Materiel Development Decision (MDD), during the Materiel Solution Analysis (MSA) phase, and Milestone A. Explain the inputs to the MDD Explain the outputs from MDD -- decisions and approvals Summarize the purpose, major activities, and links that take place during the MSA phase Explain Milestone A decisions and approvals

Materiel Development Decision (MDD) The MDD is mandatory for ALL programs, regardless of Acquisition Category (ACAT) Development RFP Release CDD Validation FRP/FD A B C MDD ICD Draft CDD CDD CPD Strategic Guidance Joint Concepts Capabilities - Based Assessment Materiel Solution Analysis Engineering & Manufacturing Development Production & Deployment Operations & Support Technology Maturation & Risk Reduction Sustainment Disposal President SECDEF CJCS Joint Community JCIDS DAS CDD: Capability Development Document CPD: Capability Production Document FRP/FD: Full-Rate Production/Full Deployment ICD: Initial Capabilities Document MDD: Materiel Development Decision RFP: Request for Proposal

JCIDS & Acquisition Military Services 4 President, SECDEF & Chairman: Identification of Capability Requirements AoA AS TEMP SEP OMS/MP Technology Demonstrated Initial KPPs, KSAs, APAs AS TEMP SEP LCSP OMS/MP Final Design Developmental T&E (DT&E) Operational Assessments (OA) Revise KPPs, KSAs, APAs AS APB TEMP SEP LCSP OMS/MP LRIP IOT&E FRP AS APB TEMP SEP LCSP OMS/MP Strategic Guidance Operational Planning CBAs & Other Studies Exercises/Lessons Learned JCTDs/JUON/JEON Defense Business OSD/Joint Staff Integrated Security Constructs Joint Concepts Component Approved CDD Validation RFP Release ICD Draft CDD A CDD B CPD C MDD Materiel Solution Analysis Strategic Guidance Joint Concepts Capabilities - Based Assessment Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support President SECDEF CJCS Joint Community AoA Report Sustainment Disposal PDR & PDR Assessment CDR & CDR Assessment Military Services Validates ICD Reviews AoA Results Validates CDD Validates CPD JROC action for JROC Interest programs (ACAT I & IA) SECDEF Joint Staff / Joint Requirements Oversight Council / OSD OSD (AT&L, CAPE), Services and OSD (DOT&E) -- Joint Staff (JROC) Policy Identify Capability Requirements Select Materiel Solution Develop, Test, Produce & Field 4

Technology Maturation & Risk Reduction Production & Deployment Acquisition Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support A MDD B C Materiel Solution Analysis AoA Report ICD Draft CDD CPD 5

Technology Maturation & Risk Reduction Production & Deployment Acquisition Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support A MDD B C Materiel Solution Analysis AoA Report ICD Draft CDD CPD 6

Technology Maturation & Risk Reduction Production & Deployment JCIDS Document Flow Initial Capabilities Document (ICD) Identifies needed operational capabilities, capability gaps, & recommendations for materiel solutions Informs an AoA of possible material solutions Sets the acquisition stage 10 page limit… Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support A MDD B C Materiel Solution Analysis AoA Report ICD Draft CDD CPD 7

JCIDS Document Flow 8 Capability Development Document (CDD) Draft (Component-Approved) CDD at or before MS A Validated CDD for Requirements Decision Point prior to MS B Identifies KPPs, KSAs, & APAs Attributes should be Authoritative, Measureable, & Testable Describes DOTmLPF-P constraints associated with the solution Could describe multiple increments Supports AS & APB Insert all CDD KPPs and if appropriate, Sustainment KSAs verbatim into the APB 45 page limit… Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support A MDD B C Materiel Solution Analysis AoA Report ICD Draft CDD CPD 8

JCIDS Document Flow 9 Capability Production Document (CPD) Supports one increment Production, Development Testing, and Deployment Documents authoritative & testable capabilities No new operational or technical requirements! Must meet operational performance attributes 40 page limit… Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support A MDD B C Materiel Solution Analysis AoA Report ICD Draft CDD CPD 9

Refresher: Capabilities-to-Requirements Traceability The “What” High-level capabilities Validated prior to start of system development Developed & documented by the Requirements Sponsor IAW JCIDS System Key Performance Parameters, Key System Attributes, & other system attributes (e.g. range, survivability) Subsystem Technical Requirements (e.g. airframe weight, fuel capacity) The “How” Developed through systems engineering Developed by program office engineers (…along with industry…) Component Specifications (e.g. types of materials used in airframe, crew station layout, size and configuration of fuel tank) Low-level requirements

Pre-MDD Activities CBA or other study: Results in a validated ICD recommending a materiel solution approach. Approved Analysis of Alternatives (AoA) Study Guidance & AoA Study Plan. Conduct a Market Survey to inform the AoA on potential commercial-off-the-shelf (COTS) and non-developmental item (NDI) solutions. Best Practice: Department HQ, J-8, and requirements sponsor works with Milestone Decision Authority’s (MDA) staff to ensure information is available to help the MDA make an informed decision on where to enter the acquisition process Determines next milestone and phase. For ACAT I and IA programs, the Office of the Secretary of Defense (OSD), Director, Cost Assessment and Program Evaluation (CAPE) must approve the AoA Study Guidance and Plan. For other ACATs, Component policy applies.

MDD Inputs and Outputs Inputs: Outputs: Validated ICD Validated Virtual On-line Life-Cycle Threat (“VOLT” – may see “STAR”) report (required for ACAT I & IA, may be waived by MDA for others) Approved AoA Study Guidance and Study Plan Market Survey results Any Component analysis supporting preliminary conclusions to narrow range of alternatives Plan to staff and fund actions leading to next decision point (usually Milestone A) Tentative affordability, cost & inventory goals to scope AoA Outputs: Entry into the acquisition process MDA’s Acquisition Decision Memorandum (ADM): Designates lead DoD Component Determines acquisition phase entry Directs conduct of an AoA Identifies initial review milestone AoA Study Guidance and Study Plan (attached)

Materiel Solution Analysis Phase MSA phase may include industry concept definition studies & initial solutions to inform the AoA Purpose: Conduct analysis and other activities to support a Milestone A decision Appoint PM; establish program office Conduct AoA Prepare RFP for TMRR Phase: Acquisition Strategy (AS), Systems Engineering Plan (SEP), Test & Evaluation Master Plan (TEMP), Life Cycle Sustainment Plan (LCSP) and other milestone documents Activities: Requirements Management Assess AoA results for preferred solution(s) to meet the ICD; Support AoA briefing for FCB Translate ICD operational attributes into performance attributes (KPP/KSA/APA) Develop DRAFT CDD and Operational Mode Summary/Mission Profile (OMS/MP) Update CONOPS Support PM with writing the AS, TEMP, SEP, LCSP and other milestone documents Support initial estimates for Affordability Goals (constraints) and Life Cycle Cost The Program Manager will review the information requirements for the upcoming decision event and may submit a request for waiver to statutory (when authorized by statute) and regulatory requirements to the to the cognizant approval authority (e.g., MDA, DoD CIO, DOT&E, DCAPE, JROC).” Congress must be notified – see table 6 requirement for congressional notification, page 75, DODI 5000.02.

Milestone Documents and the RM Milestone Documents the RM is responsible for, and must be coordinated with the program management office (PMO): ICD, draft CDD, CDD and CPD Concept of Operations (CONOPS) Operational Mode Summary/Mission Profile (OMS/MP) Milestone Documents the PMO should provide to & coordinate with the RM: Acquisition Strategy (Market Research results at Milestone A) Acquisition Program Baseline (APB) Cybersecurity Strategy Reliability, Availability and Maintainability Cost Rationale (RAM-C) Report Test and Evaluation Master Plan (TEMP) Life Cycle Sustainment Plan (LCSP) Validated On-Line Life-cycle Threat (VOLT) Report Technology Readiness Assessment (TRA) results (Milestone B – CDD entry); Manufacturing Readiness Assessment (MRA) results (Milestone C – CPD entry) Cost Documents: PMO Life Cycle Cost Estimate, Component Cost Estimate (CCE), Should-Cost Estimates. MDAPs and MAIS: Component Cost Position (CCP), and Independent Cost Estimate (ICE); Affordability Analysis: Initial goals to inform the AoA: MDD; Production and Sustainment Goals: Milestone A; Production and Sustainment Caps: Milestones B and C. Other: AoA Report; Acquisition Decision Memos (ADMs); Request for Proposal (RFP); Contract

Reliability Analysis Planning, Tracking, and Reporting PM formulates a comprehensive Reliability and Maintainability (R&M) program in support of Milestone A. Reliability growth curves are included in SEP at MS A, Development RFP Release Decision Point, and in the SEP and TEMP beginning at MS B. For ACAT I programs, PM prepares a Reliability, Availability, Maintainability and Cost Rationale (RAM-C) Report: Documents the quantitative basis for the elements of the Sustainment KPP Attached to the Systems Engineering Plan (SEP); updated in support of the Development RFP Release Decision Point, Milestone B, and Milestone C Programs other than ACAT I develop RAM-C Reports IAW Component policy See DoD Reliability, Availability, Maintainability, and Cost Rationale Report Manual, June 1, 2009 and Encl. 3, DoDI 5000.02

Milestone A PM Presents: MDA Approves: Component Presents: Acquisition Strategy (AS) Business approach Framing assumptions Risk assessment Should cost management targets Waiver requests for statutory/regulatory requirements for next milestone MDA Approves: Materiel solution Acquisition Strategy Release of final RFP and source selection for TMRR contract(s) Exit criteria to complete TMRR and Enter EMD. 10 USC 2366a Written Determination and summary report to Congress (ACAT I only) Waiver requests ADM (with approved affordability goals) Component Presents: Affordability analysis and proposed affordability goals (production and sustainment costs) Component Cost Estimate (CCE) Evidence of Full funding in FYDP Note: NDAA 2-17 amends 10 USC 2366b requirement for full funding at Milestone B. As of Mar 2017, there has been no DoD regulatory change initiated yet. A favorable Milestone A decision does not mean initiation of a new acquisition program – exception: ship programs

Post-MDD Analysis: Example 1, Single MOE Which does not meet threshold? Which meets threshold? Which far exceeds threshold? Which is close to threshold? Which has the least cost risk? Which has the most technical risk? Which has the lowest overall risk? Which has the most overall risk?

Post-MDD Presentation For more detailed information on the AoA, browse CLR 151: https://teach.dau.mil/html/clc/Clc1.jsp?cl=

Takeaway: ICD, AoA, draft CDD, & Contract(s) for TMRR Phase Materiel Development Decision Milestone A Strategic Direction Joint Concepts CONOPS Feedback from field Cost Estimate & $$ Full Funding in FYDP Component approved Final RFP for TMRR Phase Contract(s) Draft CDD ICD SPECs Preliminary CBA AoA operational attributes MOEs/ MOPs KPPs/ KSAs/APAs TMRR Materiel Solution Analysis Phase “The goal of each phase is to inform the next milestone decision and prep for the following phase…”

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