1. DoD Pricing Conference 5-6 May 2009 Sharing Knowledge in Support of the Pricing Community ’05 ’06 ’07

2. Integrated Baseline Review System IntegrationSystem DemonstrationLow-Rate Initial Production Defense Acquisition System (event driven) Planning, Programming, Budgeting, & Execution Process (biennial calendar driven) Military Departments & Defense Agencies Cost Integrated Defense Acquisition, Technology, & Logistics Life Cycle Management Framework FOC IOC Full-Rate Production/Deployment MS B System Development & Demonstration Phase Operations & Support Phase Post Deployment Performance Review Three DOD Decision Support Systems Effective Interaction is Essential Sustainment National Military Strategy FYDP updated ISSUES Budget Committees Congress DoD Budget On Year Off Year POM/Budget Formulation PCP/BCP Prep Final PBDs Actual Costs Engineering Cost Estimation Methods Parametric Analogy Technology Development PhaseConcept Refinement Phase National Security Strategy DoD Testimony Strategic Planning Guidance Off Year Optional Fiscal Guidance President’s Budget to Congress Joint Programming Guidance Off Year Optional White House OSD & Joint Staff OMB SLRG Reviews Joint Planning Document PBD Cycle PMO Budget Estimate PMO POM Input Full Funding in FYDP CDD MS C POM/Budget Submit PCP/BCP Submit FYDP updated MS A The Milestone Decision Authority may authorize entry into the acquisition process at any point, consistent with phase specific entrance criteria and statutory requirements Economic Analysis (MAIS Only) AoA Plan System Threat Assessment Information Support Plan CPD Service/JROC Validation & Approval J-6 Interoperability & Supportability Cert. Validated and approved CDD and CPD for each increment of an evolutionary acquisition Oversight & Review Clinger-Cohen Act - Compliance (all IT) - Certification (MAIS) Net-Ready KPP KPPs CPD System Threat Assessment Information Support Plan Service/JROC Validation & Approval J-6 Interoperability & Supportability Cert. Net-Ready KPP Clinger-Cohen Act - Compliance (all IT) - Certification (MAIS) Clinger-Cohen Act - Compliance (all IT) - Certification (MAIS) Clinger-Cohen Act - Compliance (all IT) - Certification (MAIS) ADM Exit Criteria Met DAB/ ITAB MDA ADM DAB/ ITAB MDA ADM Exit Criteria Met DAB/ ITAB MDAAPB ADM Exit Criteria Met DAB/ ITAB MDA ADM Exit Criteria Met DAB/ ITAB MDAAPB ADM Exit Criteria Met DAB/ ITAB MDAAPB MBI Allocation Apportionment Affordability Assessment CARD (Designated Programs) POE CCA ICE Affordability Assessment POE CCA ICE Economic Analysis (MAIS Only) Contracting Acq Plan Source Selection Plan Draft RFP Acq Plan Draft RFP Source Selection Plan Production & Deployment Phase Increment III BC DRR FRP Increment II BC DRR FRP KPPs Joint Capabilities Integration & Development System VCJCS Oversight CJCSI 3170.01D Defense Acquisition System USD(AT&L) Oversight DoDD 5000.1 Planning, Programming, Budgeting & Execution DEPSECDEF Oversight MID 913 Purpose of LRIP: Establish Production Base Ramp to Production Rate Produce systems for IOT&E Low-Rate Initial Production Systems FCA Prototypes/ Engineering Dev Models Technology Development Strategy Program Strategy Cost, schedule & performance goals & exit criteria for first tech demo Test Plan Acquisition Strategy Program Structure Acquisition Approach Capability Needs T&E Considerations Risk Management Resource Management Life-Cycle Considerations Business Considerations System Development & Demonstration Contract Integrated Baseline Review LRIP Contract AoA Best Materiel Approach(es) Draft ver. 4.7. May 21, 2004 Study Contracts Initiate Evolutionary Acquisition StrategyEvolutionary Acquisition Strategy Refine initial concept. Develop Technology Development Strategy Reduce technology risk and determine appropriate set of technologies to integrate into a full system. Develop a system or increment of capability; reduce integration and manufacturing risk; ensure operational supportability; reduce logistics footprint; implement human systems integration; design for producibility; ensure affordability and protection of critical program information; and demonstrate system integration, interoperability, safety, and utility. Achieve operational capability that satisfies mission needs. Execute a support program that meets operational support performance requirements and sustains the system in the most cost-effective manner over its total life cycle. Dispose of the system in the most cost-effective manner at the end of its useful life. Tech Demos Preliminary Integrated Architecture Acq Plan Draft RFP Source Selection Plan Technology Development Contract Supports O&M Budget Review Acq Plan Draft RFP Source Selection Plan In-Service Review OctoberApril / May August September - November October - November November December January February (1st Monday) February - September DoD Appeals Disposal This chart is a classroom aid for Defense Acquisition University students. It provides a notional illustration of the interfaces among the three major decision support systems used to develop, produce, and field a system for national defense. Defense acquisition is a complex process, with many more activities than shown here, and many concurrent processes that cannot be properly displayed on a two-dimensional chart. Supporting information is on the back of this chart. For more detailed information see the Acquisition, Technology & Logistics Knowledge Sharing System (http://akss.dau.mil). System Performance Spec Prototypes/ Engineering Dev Models Initial Production Baseline CARD – Cost Analysis Requirements Description CCA – Component Cost Assessment ICE – Independent Cost Estimate MAIS – Major Automated Information System POE – Program Office Estimate RDT&E – Research, Development, Test & Evaluation Cost Acronyms BCP – Budget Change Proposals FYDP – Future Years Defense Program MBI – Major Budget Issue OMB – Office of Management & Budget PBD – Program Budget Decision PCP – Program Change Proposals PDM – Program Decision Memorandum POM – Program Objectives Memorandum SLRG – Senior Leadership Review Group Planning, Programming, Budgeting & Execution Acronyms Joint Capabilities Integration & Development System (need driven) ADM – Acquisition Decision Memorandum AoA – Analysis of Alternatives APB – Acquisition Program Baseline CD – Concept Decision DAB – Defense Acquisition Board DRR – Design Readiness Review FOC – Full Operational Capability FRPDR – Full-Rate Production Decision Review IOC – Initial Operational Capability ITAB – Information Technology Acquisition Board LRIP – Low Rate Initial Production MAIS – Major Automated Information System MDA – Milestone Decision Authority Oversight & Review Acronyms RFP – Request for Proposal Joint Capabilities Integration & Development System - Acronyms CDD – Capability Development Document CJCSI – Chairman, Joint Chiefs of Staff Instruction CPD – Capability Production Document DOTMLPF – Doctrine, Organization, Training, Materiel, Leadership, Personnel, and Facilities DAB – Defense Acquisition Board ICD – Initial Capabilities Document IOC – Initial Operational Capability JROC – Joint Requirements Oversight Council KPP – Key Performance Parameter Draft CDD AoA updated Full-Rate Production Systems Major Products Appropriation Committees Authorization Committees Authorization/ Appropriation Acts Passed PDM(s) Appropriated Funds To Support Contracts FOC Affordability Assessment POE CCA ICE Economic Analysis (MAIS Only) CARD (Designated Programs) Post Production Software Support Contracts Sustainment Contracts Operations & Maintenance Types of Funds RDT&E – Management & Support RDT&E – Adv Component Dev & Prototypes RDT&E – Systems Development & Demonstration Decision Points/Milestones CD DRR FRP DR Acquisition Strategy Program Structure Acquisition Approach Capability Needs T&E Considerations Risk Management Resource Management Life-Cycle Considerations Business Considerations Acquisition Strategy Program Structure Acquisition Approach Capability Needs T&E Considerations Risk Management Resource Management Life-Cycle Considerations Business Considerations Procurement AoA updated n/a MAIS AoA MAIS only Preferred System Concept Final Production Baseline ICD Post Independent Analysis Functional Area Analysis Functional Needs Analysis Joint Operations Concepts DOTMLPFDOTMLPF Joint Operating Concepts Joint Functional Concepts Joint Integrating Concepts Integrated Architectures DoD Strategic Guidance Functional Solution Analysis DOTMLPF Changes (CJCSI 3180) Service/JROC Validation & Approval Materiel Changes (CJCSI 3170) Ideas for Materiel Approaches Analysis of Materiel Approaches Alternative 1 Alternative 2 Alternative N RDT&E – Advanced Technology Development Integrated Baseline Review Production Contract Joint Functional Concept Joint Integrating Concept Integrated Architecture Joint Functional Concept Joint Integrating Concept Integrated Architecture Threshold/objective tradeoffs – Revised Performance Attributes Joint Functional Concept Joint Integrating Concept Integrated Architecture FOT&E LFT&E Waiver (if appropriate) Technical Systems Engineering Test & Evaluation Supportability Analyze/Assess Concepts Versus Defined User Needs Develop Concept Performance (& Constraints) Definition & Verification Objectives Interpret User Needs, Analyze Operational Capabilities & Environmental Constraints Decompose Concept Perf into Functional Definition & Verification Objectives Assess/Analyze Concept System Versus Functional Capabilities Decompose Concept Functional Definition into Component Concepts/ Assessment Objectives Develop Component Concepts, i.e., Enabling/Critical Technologies, Constraints & Cost/Risk Drivers Assess/Analyze Enabling/Critical Components Versus Capabilities Interpret User Needs. Analyze Operational Capabilities & Environmental Constraints Demo & Validate Sys Concepts & Technology Maturity Versus Defined User Needs Develop System Perf (& Constraints) Spec & Enabling/Critical Tech &Verification Plan Develop Functional Definitions for Enabling/ Critical Technologies & Associated Verification Plan Demo System Functionality Versus Plan Decompose Functional Definitions into Critical Component Definition & Tech Verification Plan Demo Enabling/ Critical Technology Components Versus Plan Develop System Concepts, i.e., Enabling/Critical Technologies, Update Constraints & Cost/Risk Drivers TRR PDR SRR Interpret User Needs, Refine System Performance Specs & Environmental Constraints Develop System Functional Specs & System Verification Plan Evolve Functional Performance Specs into CI Functional (Design to) Specs and CI Verification Plan Evolve CI Functional Specs into Product (Build to) Documentation and Inspection Plan Fabricate, Assemble, Code to “Build-to” Documentation Integrated DT&E, LFT&E & EOAs Verify Performance Compliance to Specs Individual CI Verification DT&E SFR CDR INPUTS ICD AoA Plan Exit Criteria Alternative Maintenance & Logistics Concepts INPUTSOUTPUTS Trades Analyze Assess/Analyze Concept & Verify System Concept’s Performance Trades Analyze Demo/Model Integrated System Versus Performance Spec Trades Analyze System DT&E, LFT&E & OAs, Verify System Functionality & Constraints Compliance to Specs Monitor and Collect All Service Use Data Develop Corrective Action Analyze Data to Determine Root Cause Determine System Risk/ Hazard Severity Integrate & Test Corrective Action Implement and Field Process Change – Hardware/Support Materiel Change INPUTS Service Use Data User Feedback Failure Reports Discrepancy Reports SEP OUTPUTS Analyze Trades Assess Risk of Improved System Combined DT&E/OT&E/LFT&E Demonstrate System to Specified User Needs & Environmental Constraints ICD & Draft CDD Preferred Sys Concept Exit Criteria T&E Strategy Support & Maintenance Concepts & Technologies AoA SEP TDS Sys Performance Spec Exit Criteria Validated Sys Support & Maintenance Objectives & Requirements APB CDD SEP ISP TEMP Analyze Deficiencies To Determine Corrective Actions OUTPUTS Modify Configuration (Hardware/Software/Specs) To Correct Deficiencies Logistics & Technical Acronyms ASR – Alternative Systems Review BLRIP – Beyond Low Rate Initial Production CDR – Critical Design Review CI – Configuration Item DT&E – Developmental Test & Evaluation EDM – Engineering Development Model EOA – Early Operational Assessment ESOH – Environmental, Safety & Occupational Health FCA – Functional Configuration Audit FMECA – Failure Mode Effects & Criticality Analysis FOT&E – Follow-on Test & Evaluation FTA – Failure Tree Analysis IOT&E – Initial Operational Test & Evaluation ISR – In-Service Review JITC – Joint Interoperability Test Command LFT&E – Live Fire Test & Evaluation LCC – Life Cycle Costs LORA – Level of Repair Analysis LRIP – Low Rate Initial Production MTA – Maintenance Task Analysis OA – Operational Assessment OT&E – Operational Test & Evaluation OTRR – Operational Test Readiness Review PESHE – Programmatic Environment, Safety & Occupational Health Evaluation PDR – Preliminary Design Review PCA – Physical Configuration Audit PRR – Production Readiness Review PPP – Program Protection Plan RMS – Reliability, Maintainability & Supportability SEP – Systems Engineering Plan S&T – Science & Technology SFR – System Functional Review SRR – System Requirements Review STA – System Threat Assessment SVR – System Verification Review T&E – Test & Evaluation TEMP – Test & Evaluation Master Plan TDS – Technology Development Strategy TRA – Technology Readiness Assessment TRR – Test Readiness Review Least Acceptable Most Acceptable Recycle/Reuse Reprocessing Disposal Landfill Disposal Logistics/ Sustainment Test Results Exit Criteria APB CPD SEP TEMP Product Support Package INPUTS Operations & Sustainment Peacetime Training Joint Operations Crises Evaluate Product Support Capabilities Performance Based Agreements Business Case Analysis Product Support Integrator/ Product Support Provider LFTE Report to Congress BLRIP Report to Congress ACCDDRR FRPDR B Demonstrate Product Support Capability Footprint Reduction Supply Chain Management Product Support Elements Total Life Cycle Systems Management Verify & Validate Production Configuration Define Supportability Objectives MTA FMECA FTA RCM LORA Prelim Sys Spec T&E Strategy SEP Support & Maintenance Concepts & Technologies Inputs to: -draft CDD -AoA -TDS -Cost/Manpower Est. ASR Sys Performance Spec LFT&E Waiver Request TEMP Validated Sys Support & Maintenance Objectives & Requirements SEP PESHE PPP TRA Inputs to: -IBR -ISP -STA -CDD -Acq Strategy -Affordability Assessment -Cost/Manpower Est. SVR PRR SRR Initial Prod Baseline Test Reports TEMP Elements of Product Support Risk Assessment SEP TRA PESHE Inputs to: -CPD -STA -ISP -Cost/Manpower Est. Data for In-Service Review Input to CDD for next increment Modifications/upgrades to fielded systems SEP Independent IOT&E Production Baseline Test Reports TEMP PESHE SEP Input to: - Cost/Manpower Est. Full-Up System Level LFT&E J-6 Interoperability & Supportability Validation Product Support Package/PBL Implementation Product Support Elements Support and Cost Baseline Supply Chain Management Contract for Sustainment (organic & commercial) OTRR JITC Interoperability Certification Testing PCA Develop Initial Product Support Strategy Interoperability Supply Chain Mgmt LCC Optimization Footprint reduction Product Support Elements Performance Based Logistics (PBL) Strategy (Preferred Product Support Approach) Refine Supportability Objectives/ Constraints Set Product Support Strategy Pre-IOC & Post IOC Supportability Assessments Continuous Tech Refreshment Obsolescence Management Configuration Control Data Management Product Support/PBL Management Public-Private Partnering PBA Modifications Assessment of PSI/PSPs Supply Chain Management Product Support Plan Statutory/Regulatory Source of Support Legacy Considerations -Supply Support -Training -Maintenance -Support Data -Manpower & personnel Product Support Elements The Challenge DoD’s Big “A”cquisition Systems and Processes

3. The Acquisition Warrior

4. © LearningGuide Solutions US, 2007 When Learning for the First Time When Wanting to Learn More When Trying to Remember and/or Apply When Things Change When Something Goes Wrong 4 Dr. Conrad Gottfredson, BYU The Five Moments of Need Application & Maintenance of Knowledge Performance Support Acquisition of Knowledge Formal Instruction

5. AKSS ACC BPCh (Informal) Acquisition Knowledge Management System (AKMS) AT&L knowledge repository –will merge JUN 09 into the Defense Acquisition Portal (DAP ) (MOSS2007) Repository of validated practices and lessons learned. (MOSS2007) Collaborative arm of the AKMS. Hosts acquisition related Communities of Practice. (Ecco 2.0) Multimedia Video and audio library. (Qumu) Atlas Blackboard Repository, player of online courseware and continuous learning modules. Repository of classroom courseware. Classroom support and course facilitation tool. (Formal) Learning Management Systems Guidance AAP Q&A Policies Webcasts Communities of Practice Videos Best Practices Lessons learned Templates Tools Guidebooks ExamplesExamplesExamplesExamples Regulations LawsLawsLawsLaws Handbooks Audios DL Courses CL Modules DL Course Lessons Classroom Materials Users find formal and informal assets and cohorts/experts through Formal Learning Management and AKMS systems, Search, and ACQuipedia articles – at their point and time of need.

6. 24/7 access to new knowledge Repository component of the overall AT&L KM System Provides a central point to access and organize AT&L resources and information Provides a means to link together, group, and present information and reference assets from various disciplines into a selectable and filtered integrated information source Trusted source of information -acquisition news, web sites, training opportunities, and other relevant information Includes the Ask A Professor function and Defense Acquisition Guidebook/IFC

8. Selecting just “policy documents” provides the Contract Pricing Reference Guides and FAR documents

9. ACQuire searches all repositories of the AKMS systems, plus DAU’s browsable courseware, and the FAI website.

10. ACQuire search results of DAU’s browsable formal course materials came up with 142 instances.

11. You can check Q & A’s in the AAP system, or ask a question if you can’t find your answer in AAP and AKMS assets in general

12. Searching “contract pricing” in the AAP system resulted in 108 Q&A’s. You can search within results to narrow your search to a specific question.

13. What’s in the future? Phase I – Launching 30 June, 2009 - Converting to new MS Portal for local control of content - Expanding knowledge on all elements of “Big A” to a Defense Acquisition Portal (DAP) - Ownership by DoD/Industry Knowledge Providers Network - RSS “push” of new knowledge - Build exportable “services” for user portals - New Search Results Design Phase II - Focus on customization “My DAP” - Expand “Services” - CAC sign-on and SSO to other portals

15. This “Service” will be exportable into your work portal, family portal, or future “My DAP” to personalize your needs

24. This area of the Contracting Community of Practice/Portal is available to the pricing community, 24/7, worldwide, no log-in required.

25. You can help build the DoD pricing and negotiations area into a full functioning Community of Practice. Become a member, ask questions, blog, add your knowledge, subscribe to see changes, tag contributions that are special to you, and with permission you can edit the page and create new pages. When you Log-In you have all these tools

26. Just launched 31 March DAU faculty developed articles with the “best of the best” found and indexed for you. Contract Pricing article being developed.Contract Pricing article being developed.