2. 2 Andrew C. Obermeyer, Director of Contracting Tests, Targets & Countermeasures Missile Defense Agency Date August 5, 2008 Time10:45 – 11:45 Contracting Challenges in the Missile Defense Agency

3. 3 The Challenge So you think you want to be the Director of Contracts for a large organization…….?

4. 4 Missile Defense Agency (MDA) Who and What is MDA?

5. 5 A Little Background… What exactly is MDA? (Timeframe: November 2004) - A new “Other Defense Agency” under DoD AT&L - Previous heritage was SDIO and BMDO (circa 1984) - Numerous, quasi-independent systems – “Elements” Each element managed and “optimized” separately Individual budgets and resources – Few constraints Most contracting was done by Services (Army, Navy Air Force) Very little centralized control of contracts or programs at MDA No demonstrated missile defense capability to warfighter - MDA was chartered in 2002 by Presidential Mandate Goal: integrated “system of systems” w/C2BMC capability Control and integrate all assets, then integrate with warfighters MDA given leeway from DODD 5000 series, other flexibilities - Approximately 65% of MDA Personnel are Contractors SETA Support: Does not count personnel from R&D Contracts MDA “dares to be different” – for better or worse!!

6. 6 Sensors Space Tracking And Surveillance System Sea-Based Radars Forward-Based Radar With Adjunct Sensor Midcourse X-Band Radar Defense Support Program Command, Control, Battle Management & Communications Terminal High Altitude Area Defense Patriot Advanced Capability-3 Aegis Ballistic Missile Defense / Standard Missile-3 Ground-Based Midcourse Defense Airborne Laser Terminal Defense Segment Boost Defense Segment Midcourse Defense Segment Integrated Ballistic Missile Defense System Multiple Kill Vehicle USSTRATCOM USPACOM USNORTHCOM NMCC EUCOM CENTCOM Kinetic Energy Booster Early Warning Radar Sea-Based Terminal

7. 7 An Integrated Approach To Ballistic Missile Defense 1 2 3 4 5 6 Surveillance and Track Surveillance and Track Launch Detection Launch Detection Location and Interceptor Commit Location and Interceptor Commit Refinement and Interceptor Updates Refinement and Interceptor Updates Interceptor Acquisition Interceptor Acquisition Intercept Kill Vehicle Fire Control Node (FDC) Fire Control Node (FDC) Interceptor Launch Interceptor Launch Fylingdales UEWR Fylingdales UEWR Space Sensors Space Sensors Aegis Radar Cobra Dane Radar Fire Control Node (MDE) Fire Control Node (MDE) Missile Field Missile Field Beale UEWR Beale UEWR Standard Missile AN/TPY-2 Radar Sea-Based Radar Intercept

8. 8 Capability-Based Acquisition Approved for Public Release 07-MDA-2362 (27 MAR 07) MDA Funding Profile 2 Year Cycle DoD Operations Procurement Testing Development R&D Requirement and Threat Definition TRADES Rqmt Def. JCIDS Service Prog. Mgt.Test Auth. Fielding Auth. R&DDevelopmentTestingProcurement IOC Capability Capability Delivery Funding Strengths Fully flexible funding Combined development and operational testing Integrated capability management Risks Transition to services Early Delivery Early Delivery Early Delivery Warfighter Feedback

9. 9 The Scene: November 2004 (1 of 2) New MDA Director – Lt Gen “Trey” Obering –Focused on Integrated Ballistic Missile Defense System (BMDS) Completely integrated mission capability for warfighter “Limited Defensive Operations” established per president’s mandate –Desire to transition from loose confederation of R&D organizations into an integrated, interdependent systems acquisition organization –“Capability Based” Acquisition and management –MDA Director is SAE, HCA and BMDS Program Manager

10. 10 The Scene: November 2004 (2 of 2) Most MDA contracting accomplished externally –Service contract numbers, policies and procedures – not MDA –MDA desired more centralized control, decision making via: MDA contracting personnel awarding and administering…… MDA contracts (pursuant to contracting authority from MDA HCA) Notwithstanding “quality of service” provided by services Director’s Mandate: establish an MDA “system contracting” organization with robust capability across the entire BMDS!

11. 11 The Scene Cont’d… MDA Contracting Locations –National Capital Region (NCR) – MDA –Aegis BMD (NCR) - Navy –Huntsville (HSV) - Army –Colorado Springs (COS) - MDA –Albuquerque (ABQ) – Air Force –Los Angeles (LOS) – Air Force Lots of Dispersion, No Control Goal: Develop an Organic MDA Workforce

12. 12 Fast Forward – Spring 2005 New, evolving agency – “herding cats” BRAC move to Huntsville by 2010 Transition from R&D to system acquisition Transition to organic capability to do MDA contracting and program management Focus on the future vice precedence Reengineering of policies and processes Everything was changing - and still is!!

13. 13 Wanna Be A Contracts Director? Your mission, should you choose to accept it, is to recruit, retain, and develop a highly competent system contracting organization to support transition of advanced technology into an operational mission Your constraints: –You must provide immediate, high-quality support –The mission and workload are rapidly expanding –You’re already severely undermanned –You must “take back” programs from services –MDA is BRAC’d to Huntsville by NLT 2011 –Govt 1102 availability is scarce in NCR, elsewhere –The HR hiring system is seriously deficient –MDA is suffering significant budget cuts –OSD opposes using contractor support vice 1102

14. 14 Perspective: Nov 2004 (1 of 2) MDA senior leadership criticism –Contracting directorate was too “top heavy” Too many chiefs, not enough Indians Result of specific direction of previous MDA Director –Contracting directorate was overmanned Number of slots were cut based on this assumption –Frustration over external support by services; inability to account for specific quantity of support acquired

15. 15 Perspective: Nov 2004 (2 of 2) Actions taken by Contracting Directorate (DAC) –Reduced number of directors, gave more responsibility –Maintained workload level; previous cuts were restored after recognition that Contracting was actually undermanned –Prepared plan for MDA Director to stand up completely “organic” MDA contracting directorate by 2010 – approved!

16. 16 The Challenge: Creating an Organization in Huntsville (1 of 2) Spring 2006 –Accelerated BRAC transition already evident –Largest MDA program – Ground Based Midcourse Defense (GMD) had major disconnect/problem Program Office in Huntsville, Contracting Office in NCR GMD Program Director expressed desire for collocation –Mandated significant acceleration of planned schedule

17. 17 The Challenge: Creating an Organization in Huntsville (2 of 2) –Other MDA programs needed HSV presence THAAD – already in HSV, but not MDA contracting Targets - same as above NCR programs – some moving to HSV ahead of schedule Numerous programs in HSV administered by SMDC for MDA The Goal: Create major presence in HSV ASAP!!

18. 18 Desired Attributes - Huntsville Diverse backgrounds and experience – “jointness” –Recruit personnel from around the country “Best and Brightest” capability Strong work ethic and dedication Ability to perform well under continuous pressure Adaptability, flexibility and creativity – “risk taking” –“Find a way to get the mission accomplished” Teamwork: with program office, contracting office Willingness and ability to accept ambiguity Bottom Line: “Delight the Customer!”

19. 19 Standing up the New Organization: Management Concerns Who to recruit? –Majority of NCR personnel unwilling to relocate to HSV –Majority of available 1102s are in Huntsville –Desire to avoid “raiding” existing agencies in Huntsville But most SMDC personnel already doing work for MDA Market for 1102s increasingly scarce – even in Huntsville –Avoid “Huntsville-centric” way of thinking Desire of agency to do things differently Want to avoid established paradigms and “groupthink” Where to put them? –Acceptable office space critically short – “quality of life”

20. 20 Standup Concerns Cont’d Timing –If you need people now based on workload, do you hire “best currently available” instead of taking longer to hire “best ultimately available” – may be a big difference! Contractor Support Services (CSS) –An established part of the MDA workforce in the NCR Perform Contract Specialist duties Critical to mission accomplishment in NCR Can be recruited more easily and faster than normal govt process –Not generally used in most agencies – but increasing –Augment with CSS if can’t hire desired quality/quantity? Critical Issue: What is the right balance? Tradeoff: How much “hurt” can we accept if delay? Decision: Hire best available, let market sort out

21. 21 The Current Environment (1 of 2) NCR programs are moving faster than anticipated NCR personnel are leaving MDA faster than anticipated –Difficult to hire replacement personnel in the NCR – BRAC impact Overall MDA workload is increasing – everywhere!

22. 22 The Current Environment (2 of 2) Creates need for accelerated recruitment for HSV –But are there enough qualified people? By what standard? –1102s are in short supply everywhere – especially 1102s with systems acquisition backgrounds –What is impact to losing agencies? How much control do we have? MDA “reengineering” – different structure, processes –Agency will do most of its contracting in Huntsville by Summer 2008

23. 23 BLENDED WORKFORCE PROFILE

24. 24 MDA Contracting Personnel Growth YEARNCRHSV OTHER (CA,CO,NM) TOTAL CIVCTRCIVCTRCIVCTR Feb 05693900140122 Feb 06565170150129 Feb 074858474160173 Feb 0852618620184241

25. 25 Huntsville Projections –Fall 2005: 0 –Fall 2006: 10 –Fall 2007:100 –Fall 2008130 –Fall 2009150 –Fall 2010200

26. 26 Organic Contracting Capability NCR (Aegis) – Conversion to MDA by end of 2007 LOS (STSS) – Conversion to MDA by end of 2007 ABQ (ABL) – Conversion to MDA by end of 2009 COS (MDIOC) – No conversion necessary HSV (SMDC) – Conversion NLT 2010 Goal is consistency and transparency across MDA –Common policies –Common processes –Common culture Contracting is leading the way in MDA

27. 27 Current Status - Huntsville Contracting directorates stood up to support: –GMD –THAAD –European Site –Kinetic Energy Interceptor –Multiple Kill Vehicle –Targets and Countermeasures –Advanced Research Center –Simulation Center –International Support More programs are on the way!

28. 28 Current Environment for MDA Congressional mandate: restore quantity and quality of acquisition workforce – MAJOR DPAP Objective Congress/OSD concern over inherently governmental functions – are we operating as we’re supposed to? 2007 DPAP PMR Audit of MDA Contracting –Criticized heavy use of contractor support personnel and the way in which they are used (at MDA, KR support perform all functions (including negotiations) except PCO decisions and signature) –Perceived abuse of authority, potential COI Subsequent DPAP Direction to MDA to create plan to eliminate use of contractor support personnel Okay, Director: What would you do??

29. 29 What Else Lies Ahead? Building a replacement workforce –Focus on a robust intern program Nationwide recruiting Intense training program with rotational assignments –Increased national recruiting at journeyman level Good people want to come to Huntsville – we need to find them Major emphasis on internal training –Cross-pollination based on diverse backgrounds –Challenge workforce to improve their capabilities Ultimate goal: a “world class” workforce

30. 30 Getting Off the Stage… QUESTIONS?