Gate Review Process presented at DODCAS 2009 DON Session CAPT Jim Baratta Deputy Director, NCCA

2 Gate Review Process Overview Purpose –improve governance and insight –ensure alignment between capability requirements and acquisition –improve senior leadership decision making –gain better understanding of RISKS and COSTS Objectives –endorse or approve key JCIDS and acquisition documents –facilitate decisions regarding capabilities and material solutions 2-Pass, 6-Gate Process –address Requirements and Acquisition governance respectively –EVERY GATE reviews program health – cost, risks, budget

3 Gate Review Board Membership Principal (voting) members –CNO / CMC / VCNO / ACMC –ASN (RDA) / PDASN –ASN (FM&C) –OPNAV N8 / HQMC DC P&R and DC CD&I –Appropriate SYSCOM Commander Advisory (non-voting) members –Resource Sponsor, CHSENG –N80, N81, N091, FMB –Cognizant DASN –DASN (C&E) Attendance limited to Principal or Deputy (Flag/SES) plus one

4 Pass 1 Gates Gates 1, 2, and 3“Requirements” Gates –Led by CNO or CMC –Starts prior to Material Development Decision, ends after Gate 3 –Leads to: Approving the ICD Approving AOA guidance Selecting an AOA “optimal” alternative Approving a CDD Developing a CONOPS Approving System Design Specification (SDS) Development Plan

5 Pass 2 Gates Gates 4, 5, and 6 “Acquisition” Gates –Led by ASN(RDA) –Starts after Gate 3, ends after Milestone B (initial EMD phase) –Leads to: Approving the SDS Approving release of the RFP Assessing readiness for production Assessing sufficiency of the EVMS PMB Assessing the IBR –Follow-on Gate 6’s pre- and post-Milestone C and FRP DR Serve as Configuration Steering Boards and review program health

6 Pass 1 – Requirements Gates Gate 1:Approval of the ICD –input: Service review of the ICD –brief: AoA assumptions, cost constraints and life-cycle considerations –outcome: Validates AoA guidance, authorizes to proceed to MSA phase Gate 2:Approval of the preferred alternative –input: Approved ICD, AoA, “sufficiently mature” MS-A documentation –brief: AoA assumptions, analysis, findings, preliminary TRL assessment –brief: Projected life cycle costs for all AoA options –outcome: Approves development of CDD and CONOPS for alternative

7 Pass 1 – Requirements Gates Gate 3:Approval of the Service CDD and CONOPS –input: Approved AoA, SDS development plan –input: Service review of CDD/CONOPS, supports LCCE (employment, sustainment, training, manning, etc) –brief: Initial independent cost estimate & schedule assessment –brief: Compare to PM estimates –outcome: Approves the CDD/CONOPS, SDS development plan –outcome: Approves program to MS-A (or with MS-B preparations)

8 Pass 2 – Acquisition Gates Gate 4:Approval of the SDS –may be combined with Gate 5 and MS-B for ACAT IC/IAC/II –input: Approved CDD, CONOPS, and review of SDS –input: Independent cost estimate, PM cost estimate, budget –brief: Capability, risk, independent/PM cost/schedule estimates –outcome: Authorizes program to proceed to Gate 5 (or Milestone B) Gate 5:Approval of release of the RFP –may be before, concurrent with, or after MS-B –input: Approved SDS, key business elements in acquisition strategy –brief: Capability, risk, independent/PM cost and schedule estimates –outcome: RFP approval for release to industry

9 Pass 2 – Acquisition Gates Gate 6:Assesses readiness for production –occurs after contract award and IBR completion –input: Source Selection completed, contract awarded, IBR completed –brief: Capability, risk, independent/PM cost and schedule estimates –brief: Assesses IBR results, sufficiency of the SDS and EVMS PMB (EAC) –outcome: follow-on Gate 6 reviews prior to and post MS-C, FRP DR Gate 6 follow-on:Pre-LRIP, Pre-FRP DR –“as needed” tailored approach –specific elements undefined in SECNAV , same as Gate 6

10 DON Requirements Acquisition PASS 1 OSD/JOINT LEVEL JROC Annual CSB 2 6 NAVY/USMC LEVEL ICD Approval ICD Approval Alternative Selection Alternative Selection SDS Approval SDS Approval RFP Approval RFP Approval CBA Contract Award Forum*: Lead Org: Chair: R3B OPNAV/HQMC CNO (N8)/DC, CD&I R3B OPNAV/HQMC CNO/CMC R3B OPNAV/HQMC CNO/CMC R3B ASN(RD&A) R3B ASN(RD&A) PEO/SYSCOM/ OPNAV/HQMC LEVEL IBR # Gate Review SDD SSAC MS B** 5 JROC PASS 2 1 CD AOA CONOPS CDD 3 CDD and CONOPS Approval CDD and CONOPS Approval MS A** InitiaI SDS R3B ASN(RD&A) Updated SDS RFP 4 Illustrated example for program initiation at Milestone A

11 DON Requirements Acquisition PASS 1 PASS 2 OSD/JOINT LEVEL JROC MS A** JROC Annual CSB NAVY/USMC LEVEL ICD Approval ICD Approval Alternative Selection Alternative Selection SDS Approval SDS Approval RFP Approval RFP Approval CBA Contract Award Forum*: Lead Org: Chair: R3B OPNAV/HQMC CNO/CMC R3B OPNAV/HQMC CNO (N8)/DC, CD&I R3B OPNAV/HQMC CNO/CMC R3B ASN(RD&A) R3B ASN(RD&A) PEO/SYSCOM/ OPNAV/HQMC LEVEL InitiaI SDS IBR # Gate Review 1 AOA CONOPS CDD CD 3 CDD and CONOPS Approval CDD and CONOPS Approval RFP R3B ASN(RD&A) SDD SSAC MS B** 5 Updated SDS Illustrated example for program initiation at Milestone B

12 Program Cost Uncertainty Over Time Pre Systems Acquisition Systems AcquisitionSustainment Material Solution Analysis Technology Development Engineering & Manufacturing Development Production & Deployment Operations & Support ABC IOCFOCDisposal Cost, Technical, and Programmatic Uncertainty Technical Reviews Estimating Techniques ITRASRSRRIBR Preferred System Concept System Specification/ CDD SFR System Functional Baseline PDR Allocated Baseline CDR Product Baseline TRR FRRSVR/PRR OTRRPCR ECPR Product Baseline Parametric Analogy Parametric Analogy Engineering Build-Up Parametric Analogy Extrapolate Actuals Engineering Build-Up Parametric Extrapolation of Actuals Engineering Build-Up fo6fo 6fo6fo 6fo6fo Gate Reviews vs. BUDGET?

13 Gate Review Process Potential “Cost Community” disconnects? How often are the program’s definition and bounds changing during the pre- MS-B timeframe? What reliable data is available to estimate a program this early in its acquisition life cycle? What documents are complete and approved leading up to each Gate? To what extent are CAIV decisions still being made prior to RFP release? Do “best practice” estimating methods allow significant cost estimate confidence at this point? As the estimate progresses, in what “ballpark” should the estimate’s upper bound of range be expected to cover potential costs into MS-B? How will the range and estimates be used to program a budget at this early phase in the program? What value does an independent assessment add in the early “requirements” Gates?

14 COST ANALYSIS Go Army! Questions?

15 Cost Estimate Confidence thru Pre-MS-B Phase of Programs TECH BASELINE ESTIMATE STABILITY OVERRUN POTENTIAL COST RISK PROGRAMMATIC BASELINE COST DATA ESTIMATE CONFIDENCE MOST CASES WILL BE RED OR YELLOW SCORE Defined? Steady? Mature? Stable? Budget supportable? Upper Bounds Stable? Analogy? Parametric? Program info? Small changes early in program life? Methodology? Underlying data?