1. AT&L Hot Topics in Acquisition
Presentation for DAU
9 August, 2006

2. Acquisition and Technology
Providing Value-Added Oversight and Coherent Strategic Direction for Reduced Cycle Time, Increased Competition and Predictable Performance
Examples of Initiatives
Concept Decision/Time Defined Acquisition
Capital Budgeting
Risk-Based Source Selection
Defense Acquisition Executive Summary (DAES)
IIPT/OIPT/DAB/Portfolio Management Processes
Systems of Systems/Centers of Excellence
Award/Incentive Fee Policy/FAR/DFAR Δ’s
Acquisition of Services Policy
Human Capital Strategic Planning
Lead Systems Integrator/Spiral Acquisition
Industry and Congressional Outreach
“THE WILL TO CHANGE…”

3. Concept Decision Toolkit
RISK-BASED SOURCE SELECTION
Reducing Risk and Improving Source Selection
CAPITAL ACCOUNTS
Program Funding Stability
TRI-CHAIR CONCEPT DECISION
Improved Process Alignment
Focused on Department Investment Decision Options
Time Defined determinations
MS A
MS B
MS C CD B’
FRP DR
Strategic Planning Guidance
JCD
E O A
EOA Rpt
CDD
CPD
Joint Concepts
Tech Dev
FAA
FNA
SDD PD
O&S
CDR
OSD/JCS
COCOM
FCB
TIME DEFINED ACQUISITION STRATEGY
Multiple Customer-Focused Paths to Speed Fielding of Capability
Post-Initiation Stability Initiatives
Science and Technology Base
Technology Development—TRL/IRL MRL
Stronger Emphasis
CD Methodology—Broad Acquisition Initiatives

4. Why do Concept Decision?
Accelerate delivery of Joint warfighting capabilities
Current process slow to respond to warfighter needs
Address resource/funding constraints early
Necessary to control cost growth/requirements creep
Adequately fund and stabilize funding stream
Tailor analysis to support decision at hand
Not all programs require extensive, time consuming and costly additional analytical efforts
Leverage Service/organizational competencies
Delegate execution
Minimize oversight
Challenge: Maximize Process Change…Minimize Bureaucracy

5. “As Is” Process As Is: Serialized Program-Centric Closed Aperture
Significant Early Service
Commitment of Resources
Existing Focus Here
Concept Decision
MS A
MS B
MS C
Full Rate
Prod DR
JCD
ICD
CDD
CPD
Strategic Planning Guidance
Joint Concepts
A o A
System Development & Demonstration
Concept Refinement
Technology Development
Production & Deployment
FAA
FNA
FSA
O&S
Incremental Development
FCB
COCOM
OSD/JCS
Technology Development—TRL/IRL MRL
Science and Technology Base

6. New “To Be” Process To Be: Aligned Capability Orientation
Open Aperture
Joint
Broad Range of Options
Future Focus Here
Concept Decision
MS A
MS B
MS C
Full Rate
Prod DR
JCD
EoA
Report
CDD
CPD
Strategic Planning Guidance
System Development & Demonstration
Joint Concepts
E o A
Technology Development
Production & Deployment
FAA
FNA
O&S
Incremental Development
FCB
OSD/JCS
COCOM
Science and Technology Base
Technology Development—TRL/IRL MRL
Stronger Emphasis

7. Concept Decision: Notional Next Layer
JCD sponsor drafts, PA&E approves, Tri-Chair directs
CORPORATE
TRI-CHAIR INVESTMENT
DECISION
CCJO, JOCs, JFCs and JICs A B C
FCB, COCOM,
Service–led
Requirements
FULL
CONOPS
Technology Maturity
EoA Guidance
Affordability
CPD
Concept
Decision
Tailored
JCD
FAA
FNA 1 2 3
Time-Defined Acquisition
Initial Operational Capability
CDD
EOA
COCOM
Service
ICD
PORTFOLIO Based:
Investment Strategy
Competitive Solutions
Balance Risks
Establish Baselines
Rapid
COCOM/Service/Agency
FCB assesses, prioritizes gaps, shortfalls, and redundancies/offsets
0 < Years < 8
BOUNDED SOLUTIONS (I.E. 40 TO 80%)

8. Concept Decision From / To Savings
From FSA + AoA
To EoA
SavingsMetric
30 Months (min)
6 to 12 months
Shorter
@ Milestone A or B
Left of Milestone A
Earlier
Fragmented Approval
Focused Approval
Buy In
Single Service
Joint/Integrated
Choices
Performance Driven
Trade Off Driven
Constraints

9. TIME-DEFINED ACQUISITION STRATEGY MILITARILY USEFUL CAPABILITY
A Customer-Focused Concept that:
Enhances system agility
Capitalizes on Rapid Acquisition Authority and the Concept Decision
Employs a time-sensitive acquisition approach emphasizing Customer Response and designed to provide capability when it is needed
Uses three risk-based criteria to determine the Acquisition Strategy:
Time to delivery
Requirement certainty
Technology maturity
Rapid requirements Triage via Gatekeeper function inherent in Concept Decision methodology
Enhanced by Enabling Actions:
Requirements Stability
B “Prime”
CUSTOMER NEED
Rapid
Limited
Full
6 mo – 2 yrs
2 – 4 yrs
4 – 8 yrs
TIME-DEFINED ACQUISITION STRATEGY
MILITARILY USEFUL CAPABILITY
Our First Priority is to Produce Useful Capability for the Warfighter When Needed

10. Requirements Stability—A Time-Defined Enabler
IMPLIED AND DERIVED REQUIREMENTS UNDERSTOOD
BASE KNOWLEDGE OF REQUIREMENT
- Key System Attributes
DEVELOPMENT CONTRACT AWARD
MS A
MS B
MS C CD
FRP DR B’
Joint Concepts
JCD
EOA Rpt
Tech Dev
CDD
CPD
SPG
FAA
FNA
EOA
SDD PD
O&S
CDR
Rqmts Stabilized
OSD/ JCS
COCOM
FCB
Proposed Requirements Stability
Potential B “Prime”
No changes that may result in additions or extensions to baselined cost or schedule after CDR unless approved by the MDA and Requirements Approving Official
If such a change is approved by specified authority, it shall be self-financed and shall NOT impact schedule
Default policy should be to defer proposed changes to follow-on increment
A logical point, subsequent to Contract Award, where “Implied” and “Derived” requirements are known
At System CDR, or “B Prime,” that knowledge is available. There should be a required APB review at this point so we can assess the cost and schedule impact and identify non-value added cost drivers

11. Funding Stability Capital Accounts
MS A
MS B
MS C CD
FRP DR
Joint Concepts
JCD
EOA Rpt
Tech Dev
CDD
SDD
CPD
SPG
FAA
FNA
EOA PD
O&S
Funding Stability
OSD/ JCS
COCOM
FCB
Capital Accounts
A financial initiative designed to provide stability in the budgeting system and to establish accountability for acquisition programs throughout the hierarchy of program responsibility
Implements a risk-informed investment strategy reflecting joint warfighter priorities
Consistent with the QDR and section 1004(a) of the FY 06 Authorization Act, the Department is exploring capital accounts to stabilize funding for selected major programs
Process will be part of the larger risk-informed investment strategy used to inform future investment decisions.