Ref.: New Acquisition Policy by DAU, 20 May 2003, PMT-352 Review of DoD’s New Acquisition Policy and its Impact on Programs and Systems Engineering by Al Bruns INCOSE Gateway Chapter Wednesday, 30 July 2003 Ref.: New Acquisition Policy by DAU, 20 May 2003, PMT-352

New Acquisition Policy Construct DoD Directive 5000.1 Principles retained; innovation/flexibility emphasized DoD Instruction 5000.2 Focused on required outcomes and statutory requirements and less on regulatory requirements DoD Regulation 5000.2-R Cancelled; becomes “guide” not a regulation Provides expectations (TEMP, C4ISP, etc..), best practices and lessons learned

The Defense Acquisition Management Framework DoDI 5000.2, May 2003 Technology Opportunities & User Needs Process entry at Milestones A, B, or C Entrance criteria met before entering phase Evolutionary Acquisition or Single Step to Full Capability (Program Initiation) A B C IOC FOC Concept Refinement Technology Development System Development & Demonstration Production & Deployment Operations & Support New Design Readiness Review FRP Decision Review Concept Decision LRIP/IOT&E Pre-Systems Acquisition Systems Acquisition Sustainment Increment II Increment III

New Requirements Documents Common element is CAPABILITIES Initial Capabilities Document (ICD) replaces MNS at Milestone A Describes desired capability. Evaluates multiple materiel approaches. Recommends a materiel approach. Capability Development Document (CDD) replaces ORD at Milestone B Describes the SDD effort and provides KPPs for the increment. Describes program to get to complete solution. Capability Production Document (CPD) replaces ORD at Milestone C Describes the SDD effort to produce materiel solution for the increment and provides KPPs for the production increment. Details will be implemented by CJCSI 3170.01C & CJCSM 3170.01

Technology Development Strategy Required ACAT I and IA programs. Based on AoA results Contents: Rational for EA or single-step strategy For EA, description of how program will be divided into technology spirals & development increments Appropriate limits on prototypes produced and deployed during the TD Phase Performance Goals and Exit Criteria to be met prior to proceeding into SDD and producing additional prototypes Overall cost, schedule and performance goals for the total R&D effort Specific cost, schedule and performance goals and exit criteria for the first technology spiral demonstration, and a test plan to ensure that they are met.

DoD Instruction 5000.2 New/Revised from previous 5000.2: Operation of the Defense Acquisition System New/Revised from previous 5000.2: “Concept Decision” - new decision point prior to Milestone A Analysis of materiel approaches done prior to Concept Decision, and documented in Initial Capabilities Document (ICD). MNS is eliminated.   New phase prior to Milestone A, “Concept Refinement” Analysis of Alternatives (AoA) due at Milestone A vice program initiation (Milestone B). Used to refine the initial concept and provide basis for the Technology Development Strategy.

Oversight & Review ACAT ID/IAM Programs* Defense Acquisition Executive Chief Information Officer Defense Acquisition Board IT Acquisition Board Weapon Systems C3ISR Systems Major AIS Overarching Integrated Product Teams (OIPT) C3I Overarching Integrated Product Team (OIPT) Director, Defense Systems OUSD(AT&L) The acquisition responsibilities of USD(Intel) vs. ASD(NI2)/DoD CIO are a work in process. *Note: Space Programs have been delegated to the Air Force and most missile defense programs to the Missile Defense Agency

Transformation to the Joint Capabilities Integration and Development System RGS JCIDS Integrated at Department National Military Strategy Joint Vision Systems Joint Concept of Operations Requirements Joint Concepts Integrated Architectures Joint Capabilities Bottom Up, Often Stovepiped Top Down, Born Joint

Evolutionary Acquisition Increment 2 Increment 3 Single Step to Full Capability ? OR Key Considerations Urgency of Requirement Maturity of Key Technologies Interoperability, Supportability, and Affordability of Alternative Acquisition Approaches Cost/Benefit of Evolutionary vs. Single Step Approach

Operation of the Defense Acquisition System DoD Instruction 5000.2 Operation of the Defense Acquisition System Evolutionary Acquisition Two development processes to implement Evolutionary Acquisition Strategy Incremental Development: End-state requirement is known, and requirement will be met over time in several increments Spiral Development: Desired capability is identified, but end-state requirements are not known at Program Initiation. Requirements for future increments dependent upon technology maturation and user feedback from initial increments Evolutionary acquisition strategies shall be preferred approach to satisfying operational needs. Spiral development shall be the preferred process.

Evolutionary Acquisition – Incremental & Spiral Development Warfighter Capability = Known increment Known increment Known increment - Incremental First Fielded Capability Known increment - Spiral Partially known increment Traditional = Big-Bang 100% solution that requires continuous development. P3I and Block occur subsequent to a development program and deliver an improved capability. Each P3I and Block effort is planned in detail before the effort begins—these “mini-bang” approaches do no provide for “use and learn” opportunities prior to fielding Spiral Development, rather than the “Big Bang” approach of delivering 100% of the capability in a single development, incrementally delivers capabilities that grow to the 100% solution --deliver some core capability sooner that is better than today’s capability -- deliver fresher technology– “use and learn” with each capability to influence future spirals. Spiral development differs from P3I and Block Upgrades because the content of successive spirals is not clearly defined up-front – those subsequent spirals are shaped from 1-use and learn; 2-changing requirements; 3-funding availability; 4-technology discoveries. P3I is “pre-planned” and defined prior to start. Not known increment Technology Demos Not known increment Feedback from warfighter Time

Evolutionary Acquisition Time NO CAPABILITY Capability Single Step Approach Technology Base Requirements FOC IOC Time Capability Evolutionary Acquisition Initial Operationally Useful Capability Technology Base Requirements

Evolutionary Approach CR TD SDD PD OS B C A B C Increment 2 B C Increment 3 Key Enablers Time-Phased Requirements A Modular Open Systems Approach to facilitate Technology Insertion Evolutionary Sustainment Strategies T&E Consistent with Evolutionary Approach Full Funding

Each Increment Must Have… B C Increment 2 B C Increment 3 Approved Operational Requirements Interoperability Key Performance Parameter Performance, Cost and Schedule Goals (Acquisition Program Baseline) Operational and Live Fire Testing (If Required) Compliance with Acquisition Oversight Requirements An Acquisition Strategy that reflects consideration of Logistics Planning; Manpower, Personnel and Training; Environmental and Security Factors; Protection of Critical Program Information; and Spectrum Management Other information tailored to the conditions of the program Each Increment is Managed as a Unique Acquisition

Acquisition Strategy Comparison Table Pre-planned Product Improvement (P3I) Single Step to Full Capability Evolutionary Acquisition * Criteria Incremental Development Spiral Development ** Full requirements defined at outset Yes Yes Yes No Useful intermediate capabilities No Yes Yes Yes Multiple iterations No No Yes Yes All capabilities required in initial increment Yes No No No User feedback from earlier iterations used to define final requirement No No Yes Yes Traditional acquisition strategy Achieves increased capability from predictable maturing technology Often used in hardware development Preferred process (Previously used mostly in Software development) Other characteristics * Preferred strategy ** Preferred process

DoD Instruction 5000.2 Operation of the Defense Acquisition System Statutory Information Requirements Changed/Added When Required Requirement Reference Comment Spectrum Certification Compliance 47 USC 305 & 901-904 PL 102-538 OMB A-11, Part 2 DoDD 4650.1 MS B, or MS C if no B Name change Formerly – Application For Frequency Allocation Programmatic Environmental Safety & Health Evaluation MS B, or MS C if no B From DoD 5000.2-R 42 USC 4321 Electronic Warfare T&E Report Sec. 220, PL 103-160 & Sec. 214, PL 103-337 annually From DoD 5000.2-R

DoD Instruction 5000.2 Operation of the Defense Acquisition System Statutory Information Requirements Changed/Added Continued….. When Required Requirement Reference Comment Certification of Compliance with Financial Management Modernization Plan (FM acq programs only) NEW From Congress MS A, B, and C PL 107-249 Benefits Analysis & Determination (applies to bundled acquisitions; part of acq strategy) NEW From Congress 15 USC 644(e) MS B, or MS C if no B Technology Development Strategy NEW From Congress Sec. 803, PL 107-314 MS A, B and C

DoD Instruction 5000.2 Operation of the Defense Acquisition System Regulatory Information Requirements Changed/Added Regulatory Information Requirements Added When Required Reference Comment NEW from Joint Staff Replaces MNS Initial Capabilities Document (ICD) CJCSI 3170.01 MS A Capability Development Document (CDD) CJCSI 3170.01 MS B NEW from Joint Staff Replaces ORD Capability Production Document (CPD) CJCSI 3170.01 MS C Technology Readiness Assessment (PM-level) Revised from DoD 5000.2-R requirement for an Independent Technology Assessment for all programs DoDI 5000.2 MS B & C Independent Technology Readiness Assessment (ACAT ID only – as required by DUSD(S&T)) DoDI 5000.2 MS B & C Earned Value Management Systems OMB Cir A-11, part 7 See ANSI/ EIA-748-1998 From DoD 5000.2-R

DoD Instruction 5000.2 Operation of the Defense Acquisition System Other Reports Changed/Added Report Reference When Required Comment Defense Acquisition Executive Summary (DAES) (MDAP & MAIS) Quarterly POM or BES submit UCR breach From DoD 5000.2-R DoDI 5000.2 Contractor Cost Data Report (CCDR) From DoD 5000.2-R DoD 5000.4-M-1 See the reference Software Resources Data Report (ACAT I/IA programs for all major contracts & sub – contracts for any software development elements with a projected software effort greater than $25M (FY02 constant dollars) -180 days prior to contract award -60 days after contract award -60 days after start of subsequent software releases -within 120 days after software release or final delivery DoD 5000.4-M-2 NEW from OSD Director, PA&E

Defense Acquisition Management Framework – Key Points Evolutionary acquisition is the preferred strategy for rapid acquisition of mature technology; spiral development is the preferred process MDA may authorize entry at any point consistent with phase-specific entrance criteria and statutory requirements Non-mandatory guidance on best practices, lessons learned and expectations are available in the Interim Guidebook (former DoD 5000.2-R) Validated and approved ORDs are still required until revised CJCSI 3170.01 is published

The Defense Acquisition Management Framework User Needs & Technology Opportunities Process entry at Milestones A, B, or C Entrance criteria met before entering phases Evolutionary Acquisition or Single Step to Full Capability B A C IOC FOC System Integration System Demonstration LRIP Full-Rate Prod & Deployment Sustainment Disposal Design Readiness Review FRP Decision Review Concept Decision Concept Refinement Technology Development System Development & Demonstration Operations & Support Production & Deployment Pre-Systems Acquisition Systems Acquisition Sustainment Validated & approved by operational validation authority Initial Capabilities Document (ICD) Capability Development Document (CDD) Capability Production Document (CPD) Relationship to Requirements Process