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

2. 2 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…” Acquisition and Technology

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

4. 4 Why do Concept Decision?  Accelerate delivery of Joint warfighting capabilities oCurrent process slow to respond to warfighter needs  Address resource/funding constraints early oNecessary to control cost growth/requirements creep oAdequately fund and stabilize funding stream  Tailor analysis to support decision at hand oNot all programs require extensive, time consuming and costly additional analytical efforts  Leverage Service/organizational competencies oDelegate execution oMinimize oversight Challenge: Maximize Process Change…Minimize Bureaucracy

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

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

7. 7 Concept Decision: Notional Next Layer FAA FNA Service COCOM COCOM/Service/ Agency JCD JCD sponsor drafts, PA&E approves, Tri-Chair directs CCJO, JOCs, JFCs and JICs FCB, COCOM, Service–led FCB assesses, prioritizes gaps, shortfalls, and redundancies/ offsets Time-Defined Acquisition FULL Rapid 13 Initial Operational Capability CORPORATE TRI-CHAIR INVESTMENT DECISION 2 BOUNDED SOLUTIONS (I.E. 40 TO 80%) ICD CDD CPD 0 < Years < 8 CONOPS Technology Maturity Affordability Requirements PORTFOLIO Based: Investment Strategy Competitive Solutions Balance Risks Establish Baselines EOA Tailored EoA Guidance Concept Decision ABC

8. 8 Concept Decision From / To Savings From FSA + AoATo EoASavingsMetric 30 Months (min)6 to 12 monthsShorter @ Milestone A or BLeft of Milestone AEarlier Fragmented ApprovalFocused ApprovalBuy In Single ServiceJoint/IntegratedChoices Performance DrivenTrade Off DrivenConstraints

9. 9 Time-Defined Acquisition 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” Our First Priority is to Produce Useful Capability for the Warfighter When Needed CUSTOMER NEED MILITARILY USEFUL CAPABILITY TIME-DEFINED ACQUISITION STRATEGY Rapid Limited Full 6 mo – 2 yrs 2 – 4 yrs 4 – 8 yrs

10. 10 Rqmts Stabilized Requirements Stability—A Time-Defined Enabler JCD SPG Joint Concepts FNAFAAEOA SDD EOA Rpt PD Tech Dev MS C MS B FRP DR CPD CDD OSD/ JCS COCOM CD O&S MS A FCB BASE KNOWLEDGE OF REQUIREMENT - Key System Attributes BASE KNOWLEDGE OF REQUIREMENT - Key System Attributes DEVELOPMENT CONTRACT AWARD DEVELOPMENT CONTRACT AWARD IMPLIED AND DERIVED REQUIREMENTS UNDERSTOOD IMPLIED AND DERIVED REQUIREMENTS UNDERSTOOD 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 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 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 Potential B “Prime” Proposed Requirements Stability B’B’ CDR

11. 11 Funding Stability JCD SPG Joint Concepts FNAFAAEOA SDD EOA Rpt PD Tech Dev MS C MS B FRP DR CPD CDD OSD/ JCS COCOM CD O&S MS A 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.