Speaker’s Forum Co-sponsored by: Air Force Association (AFA) POC - Candace Robey, Association of Old Crows (AOC) POC - Steve Czonstka, International Test and Evaluation Association (ITEA) POC - Donna Self, National Defense Industrial Association ( NDIA) POC - Len Iannuzzo, Judy A. Stokley Deputy PEO/WP & Executive Director 25 January 2006

_Speakers Forum_Stokley Vice Commander and Deputy for Support Brig. Gen. (S) Joseph Lanni PEO and AAC Commander Maj. Gen. Jeff Riemer Deputy PEO and Executive Director Ms. Judy Stokley, SES Leadership Changes

_Speakers Forum_Stokley Overview Defense Acquisition Performance Assessment Project Air Force Acquisition Transformation Council Acquisition Focus Areas at AAC Words from the War Summary

_Speakers Forum_Stokley DAPA - The Task DAPA - The Task Issued By Acting Deputy Secretary Of Defense England, 7 June 2005 “… I am authorizing an integrated acquisition assessment to consider every aspect of acquisition, including requirements, organization, legal foundations…decision methodology, oversight, checks and balances – every aspect…” “The output… will be a recommended acquisition structure and processes with clear alignment of responsibility, authority and accountability.” “Simplicity is desirable… Restructuring acquisition is critical and essential.”

_Speakers Forum_Stokley DAPA Membership And Support Teams The Panel Advisors Lieutenant General Ron Kadish USAF (Ret) Partner, and VP Aerospace Market Group Booz, Allen Hamilton Panel Chairman Dr. Gerald Abbott Professor – Industrial College of the Armed Forces, NDU Mr. Frank Cappuccio Executive Vice President – Lockheed Martin Corporation General Richard Hawley, USAF (Ret) Aerospace Consultant General Paul Kern, USA (Ret) The Cohen Group Mr. Don Kozlowski Former Vice President, McDonnel Douglas Corporation Mr. J. David Patterson, Project Director Ms. K. Eileen Giglio, Deputy Project Director Col. Alan Boykin, USAF, Staff Director Lieutenant General Ron Kadish USAF (Ret) Partner, and VP Aerospace Market Group Booz, Allen Hamilton Panel Chairman Dr. Gerald Abbott Professor – Industrial College of the Armed Forces, NDU Mr. Frank Cappuccio Executive Vice President – Lockheed Martin Corporation General Richard Hawley, USAF (Ret) Aerospace Consultant General Paul Kern, USA (Ret) The Cohen Group Mr. Don Kozlowski Former Vice President, McDonnel Douglas Corporation Mr. J. David Patterson, Project Director Ms. K. Eileen Giglio, Deputy Project Director Col. Alan Boykin, USAF, Staff Director Dr. Francis W. Ahearn Professor – Industrial College of the Armed Forces, NDU Dr. Linda S. Brandt Professor – Industrial College of the Armed Forces, NDU Ms. Judy A. Stokley Deputy for Acquisition – Air Armament Center Mr. Alfred G. Hutchins, Jr. President – Hutchins & Associates, Inc. Support Staff Lt. Col. Rene Bergeron, USAF Lt. Col. Annette Foster, USAF Mr. Stephen Hayes, USA Ms. Maggie Souleyret Ms. Annette Atoigue

_Speakers Forum_Stokley Performance Assessment Process Reviewed Over 1,500 Documents To Establish Baseline Of Previous Recommendations Held Open Meetings And Maintained A Public Web-site To Obtain Public Input Heard From 107 Experts, Received Over 170 Hours of Briefings Surveyed Over 130 Government And Industry Acquisition Professionals Developed Observations Identified 42 Areas Of Interest Created Integrated Acquisition Performance Assessment. Defined Eight Performance Improvements Issue Identification Situational Assessment Performance Assessment 1,069 OBSERVATIONS 42 ISSUE AREAS INTEGRATED ASSESSMENT 8 PERFORMANCE IMPROVEMENTS Performance Improvements Assessment Performance Improvement Major Findings Implementation Criteria LITERATURE SEARCH PUBLIC INPUT SURVEY OF PRACTITIONERS SUBJECT MATTER EXPERT BRIEFINGS

_Speakers Forum_Stokley Integrated Look At Key Issues 42 Issue Areas Number of Observations PPBE Process Acquisition Strategy Program Structure Complex Acquisition System Requirement Process Joint Requirement Development Need for Leadership Process Discipline Oversight Industry Motivation & Behavior PM Expertise RAA Allocation Acquisition Career Path

_Speakers Forum_Stokley Our Integrated Assessment Organization, Workforce, Budget, Requirements, Acquisition, and Industry, as well as Leadership and Congressional Oversight. An effective acquisition system requires stability and continuity that can only be achieved through integration of the major elements upon which it depends. For example: In Theory - Cohesive and Stable

_Speakers Forum_Stokley Our Integrated Assessment There are fundamental disconnects in DoD management systems and Congressional oversight, driven by competing values and objectives that create government-induced instability in our acquisition programs In Practice – Disconnected and Unstable (government induced) STABILITY TRAINING JOB SATISFACTION EXPERIENCE COMPLIANCE CONSISTENCY CONTROL OVERSIGHT SURVIVAL PREDICTABILITY STOCKHOLDER VALUE VENDOR BASE VITALITY HOW MUCH AND WHEN TO BUY CONTROL, OVERSIGHT AND BALANCE INSTABILITY THAT ADVOCACY CREATES HOW TO BUY BALANCE OF COST, SCHEDULE AND PERFORMANCE TECHNOLOGY AVAILABLE vs. PERFORMANCE, COST AND TIME TO NEED WHY AND WHAT TO BUY MISSION SUCCESS AT LOWEST COST IN LIFE SERVICE ADVOCACY

_Speakers Forum_Stokley Performance Improvement Reducing government-induced instability through transformation of these key elements of the Acquisition system can reduce cost, enhance acquisition performance and accelerate key capabilities by years.

_Speakers Forum_Stokley Performance Improvements – Organization Organization OSD Acquisition, Technology and Logistics (AT&L) –Focus on what, not how, to buy –Member of JROC –Own Acquisition Stabilization Account (ASA) –Compete capability needs and chair Materiel Selection Board –Disestablish OIPT process Service Acquisition Executives (SAEs) –Elevate to Level 3 –Make 5-year Fixed Presidential Appointments renewable for second term –Create pool of pre-qualified candidates –Post Milestone B execution Service Chiefs/CNO –Pre-milestone B execution Service 4-Star Acquisition Commander –Dual report to SAE and Service Chief/CNO –Integrate budget, requirements, acquisition –Advocate for technological future –Advocate and manage A cquisition workforce –Oversee day-to-day program execution –Direct and manage preparation of service materiel solution proposals

_Speakers Forum_Stokley Performance Improvements – Budget and Requirements Budget Create separate ASA programmed and executed by AT&L Create management reserve at Service level Adjust all accounts to 80/20 confidence level in 08 POM submission Requirements Replace JCIDS with COCOM-led requirements process in which the Services and DoD agencies compete to provide solutions –Create 15-year Joint Capability Acquisitions and Divestment Plan (JCADP), 2-yr cycle Time-phased, fiscally-informed and prioritized capability needs – AT&L compete among Services and select Materiel Solutions –Require TEMP and IOT&E Plan for Milestone B decision –Add ”operationally acceptable” category to Operational Test evaluation –Require JROC approval to test outside Requirements –PMs can reschedule requirements

_Speakers Forum_Stokley Performance Improvements – Acquisition Acquisition Pre-milestone B, PM is operator trained in acquisition, DPM is acquisition professional Post-milestone B, PM is acquisition professional, DPM is operator trained in acquisition 4-Star Acq Cmdr is certification authority for A cquisition workforce –Incl budget, reqts, test officers from Service Staffs/other Commands Make time a KPP Require Time Certain Development - NGT 6 years from MS A to 1 st del Require Risk Based Source Selections - replace development cost bid with negotiated most-probable cost Baseline at Milestone B NET Preliminary Design Review Require TEMP and IOT&E Plan at Milestone B- PEO/PM signator on both Give PM explicit authority to defer requirements post Milestone B Appoint PM accountable for each baseline with tenure from Milestone B through Beyond Low Rate Initial Production report

_Speakers Forum_Stokley Performance Improvements – Workforce and Industry Workforce 4-Star Acq Cmdr is certification authority for Acq workforce –Workforce includes personnel from budget, requirements, test, etc. –Establish mentor program for PMs –Stabilize PM tour – NLT MS B - Beyond Low Rate Initial Prod Report Industry Establish Roundtable hosted by SECDEF to share Joint Capability Acquisition and Divestment Plan –Align industry and defense strategic planning Convert to Risk-based Source Selections –Award to minimum risk proposals at negotiated most probable cost –Favor formal competitions by primes vice traditional make/buy

_Speakers Forum_Stokley DAPA – Closure Results presented in public forum 14 Dec 05 Release of full report expected 27 Jan 06 Results provided to QDR panel Feb Date TBD

_Speakers Forum_Stokley Air Force Acquisition Transformation Council The Umbrella – “SMART OPS 21” – LEAN –Process Efficiency –Balanced Scorecard Acquisition Improvement Efforts –Transparency in Governance - Program Stability –Risk Assessment Methodology - Program Planning & Baselines –Oversight- Test – OT Evaluations Risk Assessment Methodology – Ms. Betsy Thorn –“Center of Gravity” for Acquisition Improvements –SPIRAL 1, Beta Tests, Operating Guide by 30 Sept 06 –Acquisition Strategies, Source Selections, Milestone/Program Decisions WAR-WINNING CAPABILITIES… ON TIME, ON COST

_Speakers Forum_Stokley AF Goal “GOING GREEN” Reset Program Success Factors to Risk Based 95% By 2010 (New Culture!) Majority Objective Overall8%33%59% Cost6%14%80% Schedule9%35%57% Technical3%16%81% Funding8%35%57% Now- Much is Subjective (Old Culture!) Source: AF PEO Portfolio, Oct 05 MAR

_Speakers Forum_Stokley Acquisition Focus Areas at AAC Credibility –Risk Assessment Methodology –Risk-focused Source Selections –Sufficiency Reviews –College of Acquisition Curriculum –Expectation Management Agreements – Annual Commitments –PEO reviews – Balanced Scorecard –Financial Execution Capability Needs –Counter MANPADS –Net-ready weapon data links –Chemical Biological Radiological Nuclear & Explosive (CBRNE) –Universal Armament Interface –Urban CAS –Reliability Air Armament Symposium – 3-4 October 06

_Speakers Forum_Stokley Words From The War “My concern is that this war has reached a point where a tactical error can have strategic implications so everything in our arsenal needs to work first time, every time. We have also become the victim of our own success in that the ground troops “know” we can shack the target every time and pretty much control collateral damage. As such, we only drop one at a time so when one doesn’t work as advertised it becomes obvious.” -Lt Gen Walter Buchanan Commander of 9 th Air Force

_Speakers Forum_Stokley Summary War-Winning Capabilities… On Time, On Cost Thank You for All You Do