1. 39 th Annual Guns & Ammunition / Missiles & Rockets Conference & Exhibition April 13, 2004 Anthony J. Melita OUSD (Acquisition, Technology & Logistics) Deputy Director, Defense Systems, Land Warfare and Munitions OSD Perspectives

2. 2/27 OSD Organization DoD Transformation Requirements and Acquisition Process Changes

3. 3/27

4. 4/27 UNDER SECRETARY OF DEFENSE (ACQUISITION, TECHNOLOGY AND LOGISTICS) (Acting) Honorable Michael W. Wynne 695-2381 3E933 ____________________________________________________ PRINCIPAL DEPUTY Honorable Michael W. Wynne 697-7021 3E1006 UNDER SECRETARY OF DEFENSE (ACQUISITION, TECHNOLOGY AND LOGISTICS) (Acting) Honorable Michael W. Wynne 695-2381 3E933 ____________________________________________________ PRINCIPAL DEPUTY Honorable Michael W. Wynne 697-7021 3E1006 DATSD, NUCLEAR MATTERS Mr. Frederick S. Celec 3C125 697-3060 DATSD, CHEM/BIOLOGICAL DEFENSE Dr. Anna Johnson-Winegar 3C257 693-9410 DATSD, NUCLEAR TREATY PROGRAMS (Vacant) Wilson Blvd 588-1983 DIR, DEFENSE PROCUREMENT & ACQUISITION POLICY Ms. Deidre A. Lee 3E1044 695-7145 DIR, DEFENSE SYSTEMS Dr. Glenn F. Lamartin 3E130 697-9386 DIR, SMALL & DISADVANTAGED BUSINESS UTILIZATION Mr. Frank Ramos RPN Suite 9100 588-8620 DUSD, INTERNATIONAL TECHNOLOGY SECURITY Dr. John A. Shaw 3E1034 693-0011 DUSD, INDUSTRIAL POLICY Miss Suzanne Patrick 3E1060 697-0051 DEPUTY UNDER SECRETARY OF DEFENSE (ACQUISITION & TECHNOLOGY) Honorable Michael W. Wynne 3E1006 697-7021 DEPUTY UNDER SECRETARY OF DEFENSE (ACQUISITION & TECHNOLOGY) Honorable Michael W. Wynne 3E1006 697-7021 DUSD, INSTALLATIONS & ENVIRONMENT Mr. Ray DuBois 3E792 695-2880 DIR, DEFENSE CONTRACT MANAGEMENT AGENCY BG Ed Harrington, USA 6350 Walker LA 428-1703 DIRECTOR MISSILE DEFENSE AGENCY Lt Gen Ronald T. Kadish, USAF NAVY ANNEX 695-6344 DIRECTOR MISSILE DEFENSE AGENCY Lt Gen Ronald T. Kadish, USAF NAVY ANNEX 695-6344 ADUSD, TRANSPORTATION POLICY Mr. Earl B. Boyanton, Jr. CGN 210A 601-4461 ADUSD, SUPPLY CHAIN INTEGRATION Mr. Alan Estevez CGN 210B 604-0098 ADUSD, MAINTENANCE POLICY, PROGRAM & RESOURCES MATERIEL READINESS Mr. Robert T. Mason 3B915 697-7980 ADUSD, LOGISTICS SYSTEMS MANAGEMENT Ms. Laura A. Faught CGN 406 604-0157 ADUSD, LOGISTICS PLANS & PROGRAMS Mr. Louis A. Kratz 2C263 614-6327 DIR, DEFENSE LOGISTICS AGENCY VADM Keith W. Lippert, USN FT BEL 767-5200 DEPUTY UNDER SECRETARY OF DEFENSE (LOGISTICS & MATERIEL READINESS) Honorable Diane Morales 3E808 697-5531 DEPUTY UNDER SECRETARY OF DEFENSE (LOGISTICS & MATERIEL READINESS) Honorable Diane Morales 3E808 697-5531 DIR, DEFENSE THREAT REDUCTION AGENCY Dr. Stephen Younger (IPA) FT BEL 767-4883 DUSD, ADVANCED SYSTEMS & CONCEPTS Ms. Sue C. Payton 3E144 697-6446 DUSD, LABORATORIES & BASIC SCIENCES Dr. John Hopps, Jr. 3E114 692-4592 DUSD, SCIENCE & TECHNOLOGY Dr. Charles Holland 3E114 695-0598 DIR, DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Dr. Anthony Tether VSB 983 696-2400 DIRECTOR DEFENSE RESEARCH & ENGINEERING Honorable Ronald Sega 3E1014 697-5776 DIRECTOR DEFENSE RESEARCH & ENGINEERING Honorable Ronald Sega 3E1014 697-5776 ATSD NUCLEAR & CHEMICAL & BIOLOGICAL DEFENSE PROGRAMS Honorable Dale E. Klein 3E1074 697-1771 ATSD NUCLEAR & CHEMICAL & BIOLOGICAL DEFENSE PROGRAMS Honorable Dale E. Klein 3E1074 697-1771 DIR, INTERNATIONAL COOPERATION Mr. Alfred G. Volkman 3A280 697-4172 DIR, ADMINISTRATION Ms. Julie K. Bigler 3D1020 697-2525 DIR, ACQUISITION RESOURCES & ANALYSIS Dr. Nancy L. Spruill 3E1025 614-5737 DIR, SPECIAL PROGRAMS RADM(L) Richard P. Terpstra, USN 3D1064 697-1282 EXEC DIR, DEFENSE SCIENCE BOARD Mr. Brian Hughes 3D865 695-4157

5. 5/27 DEFENSE SYSTEMS ORGANIZATION Director Dr. Glenn Lamartin Principal Deputy Mr. Mark Schaeffer Director Dr. Glenn Lamartin Principal Deputy Mr. Mark Schaeffer DS Defense Systems SMI Systems Engineering Enterprise Development Asst for DS Planning Systems Acquisition Director:Dr. Lamartin Systems and Mission Integration Director: Dr. Garber SE Director: Mr. Schaeffer SA Development Test & Evaluation Assessments & Support Air Warfare Land Warfare & Munitions Naval WarfareMissile Warfare Treaty Compliance Joint Force Integration Joint Force Application Joint Force Operations Asst for DS Projects

6. 6/27 Transformation

7. 7/27 Transformation “…a future force that is defined less by size and more by mobility and swiftness, one that is easier to deploy and sustain, one that relies more heavily on stealth, precision weaponry and information technologies.” George W. Bush

8. 8/27 The Emerging American Military*: More expeditionary (lighter, more lethal) More networked (more interoperability at the JTF level) Designed to leverage the exterior positions (precision from distance as sensors move in) Leverages increasingly persistent ISR Tighter sensor-shooter timelines (sensing, C2, fly-out) Values Information Superiority (information operations) Focused on unmanned capabilities (UAV, UCAV, UUV, robotics) * Transforming Defense….General Observations, Office of Force Transformation

9. 9/27 Strategy for Transforming Transformed culture through innovative leadership – Strong commitment from senior leaders Transformed processes – Reformed capabilities-identification process (joint operating concepts) – Strategic analysis that can identify and assess risks for strategic planning Transformed capabilities through force transformation Source: DoD Transformation Planning Guidance, April 2003

10. 10/27 Scope of Transformation Transforming how we fight – Joint warfighting concepts – Doctrine, organization, training, materiel, leadership and education, personnel and facilities. Transforming how we do business – Legislative reforms – Requirements generation and acquisition processes – Adaptive war planning Transforming how we work with others – Coordination among agencies (federal, state, local) – Allied and coalition partners Source: DoD Transformation Planning Guidance, April 2003

11. 11/27 Requirements and Acquisition Process Changes

12. 12/27 Acquisition Decision Support Systems In Transformation Defense Acquisition System Joint Capabilities Integration & Development System (JCIDS) VCJCS/Service Chief Oversight Milestone Decision Authority (MDA) Oversight Planning, Programming, Budgeting & Execution Process (PPBE) DEPSECDEF Oversight Revolutionary Evolutionary Emerging CJCS 3170.01C 24 June 03 MID 913 PPBS to PPBE 22 May 03 DoD 5000 Series 12 May 03 Revision

13. 13/27 Summary of Changes Enhance methodology to identify and to describe capabilities gaps Engage the acquisition community earlier Better define non-material aspects of material solutions Prioritize capability gaps and proposals Improved coordination with other departments and agencies Mandate broader review of capability proposals Joint Capabilities Integration and Development System

14. 14/27 Responsibilities Ensure new capabilities are conceived and developed in joint warfighting context Ensure JCIDS proposals are consistent with integrated joint force Validate Joint Impact proposals Organize, analyze & prioritize capabilities proposals Oversee development and update of Functional Concept(s) Ensure integrated architectures (as available) reflect functional area 7 Chartered by JROC: –Command & Control (JFCOM); –Battlespace Awareness (J2); –Force Application (J8); –Focused Logistics (J4) –Protection (J8) –Network Centric (J6) –Force Management (J8) More Efficient Use of Scarce Department Resources Functional Capabilities Boards

15. 15/27 Functional Capability Area Portfolios Battlespace Awareness JS J-2 Portfolio –All source intel collection –Environmental data collection –Knowledge management –Predictive analysis Command & Control JFCOM J-8 Portfolio –SJFHQ –DJC2 –Collaborative Information Environment –Integrated Fires/Targeting (Combat ID & Integrated Ops Pictures –Effects-based Ops/Planning –Joint Commander Impact Issues (C2) Force Application JS J-8 Portfolio – Land, maritime, air & space ops – Joint targeting – Conventional and nuclear atk – Close and urban combat – Joint fires – SEAD – Special ops – Information Operations (CNA/CND/EW/ PSYOP/Military Deception/ OPSEC)ForceProtection JS J-8 Portfolio –Personnel and infrastructure protection –Homeland security –Air and Missile Defense –Consequence management –Proliferation control Focused Logistics JS J-4 Portfolio –Deployment/ distribution –Mobility –Sustainment –Force Health Protection –Logistics C2 Net Centric JS J-6 Portfolio –IT & NSS systems and integration –Warfighting CCE systems –Cryptographic systems –National-to- tactical C4 integration

16. 16/27 Oversight Body Comparison Services DIA Representative (Intelligence Supportability) Services Combatant Commanders USD (AT&L) USD (I) USecAF (Space) ASD NII/ DOD CIO D, PA&E DIA Representative (Intelligence Supportability) Mission requirements board Executive Secretary Advisory Membership –J-6E/I (Interoperability Advisor) –J-8 Warfighting Concepts and Architectures Integration –DOD Laboratories & Industry Functional Capabilities Board (FCB) Joint Requirements Panel (JRP) Joint Requirements Board (JRB) Joint Requirements Oversight Council (JROC) Joint Capabilities Board (JCB)

17. 17/27 The Defense Acquisition Management Framework

18. 18/27 Revised Policy Objectives Streamline Increase Flexibility Enhance Business Practice Emphasize Evolutionary Acquisition Integrate Acquisition Business Model with transformed Requirements Generation System

19. 19/27 Two development processes to implement Evolutionary Acquisition Strategy – Incremental Development: End-state requirement is known, and requirement will be met over time in several increments – Spiral Development: Desired capability is identified, but end- state requirements are not known at Program Initiation. Requirements for future increments dependent upon technology maturation and user feedback from initial increments Evolutionary acquisition strategies shall be preferred approach to satisfying operational needs. Spiral development shall be the preferred process. Evolutionary Acquisition

20. 20/27 Planning, Programming, Budgeting and Execution Primary Resource Management System for DoD: –Articulates strategy –Identifies size, structure and equipment for military forces –Sets programming priorities –Allocates resources –Evaluates actual output against planned performance and adjusts resources as appropriate

21. 21/27 QDR to Congress 4 Administration Years with 2-year PPBE Cycle Electio n JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Year 1 Year 3 Year 2 Year 4 Off-year DPG On-year DPG Off-year DPG On-year DPG Modify Budget Submission (previous administration) Budget Submission Year 1 Budget Submission Year 2 Budget Submission Year 3 Budget Execution (previous administration) Budget Execution Year 1 Budget Execution Year 2 Budget Execution Year 3 POM/BES QDR Prep Program Budget Review Program Budget Review Program Budget Review Program Budget Review PCP/BCP “Review and Refinement” “Formalizing the Agenda” “Execution of Guidance” “Ensuring the Legacy” FY 09-13 FY 08-13 FY 06-11 We are here! New Admin FY 07-11 *

22. 22/27 JPG President National Security Council CIA/DIA/JCS/OSD JCS COCOMs SERVICES NMS SPG NSS CPR DRAFT JPG MAY JCS, OSD, COCOMs, SVC HQs, ETC. DECFEBMAR SECDEF 1st Year2nd Year 1 st year of a new administration Planning Phase COCOM – Combatant Command CPR – Chairman’s Pgm Recommendation JPG – Joint Programming Guidance NSS – National Security Strategy NMS – National Military Strategy QDR – Quadrennial Defense Review SPG – Strategic Planning Guidance Strategy also reflected in QDR

23. 23/27 PBDs PDM Services PEO/PM, SVC HQs COCOMs BES PB MBI Adv Ques/ Hearings AUG JAN/FEB OCT Issue Resolution SECDEF DRB POM OSD/ OMB CPA DEC NOV Services / PEO / PM Answer / Reclama JCS OSD/ OMB BES – Budget Estimate Submission COCOM – Combatant Command CPA – Chairman’s Pgm Assessment DRB – Defense Resources Board MBI – Major Budget Issues PB – President’s Budget PBD – Program Budget Decision PDM – Program Decision Memo POM – Program Objectives Memo Concurrent Program/Budget Review (“On-year”) Updates FYDP Updates FYDP

24. 24/27 PBDs PDM Services PEO/PM, SVC HQs COCOMs BCPs PB MBI Adv Ques/ Hearings AUG JAN/FEB OCT Accepted PCP Resolution SECDEF DRB PCPs OSD/ OMB CPA DEC NOV Services / PEO / PM Answer / Reclama JCS OSD/ OMB BCP – Budget Change Proposal COCOM – Combatant Command CPA – Chairman’s Pgm Assessment DRB – Defense Resources Board MBI – Major Budget Issues PB – President’s Budget PBD – Program Budget Decision PCP – Program Change Proposal PDM – Program Decision Memo Off-Year Program/Budget Review

25. 25/27 Program Change Proposals (PCPs) Identify areas to take additional risk (offsets) –Offsets may be used for other initiatives Limited to items that exceed $250 million across FYDP –Threshold at individual programmatic issue level –May address smaller issues if serious programmatic problem –If less than $250 million, may submit as BCP if budget year is affected Must comply with PDM decisions Combatant Commanders may submit up to six prioritized PCPs regardless of dollar value Full budgetary data submitted for accepted PCPs

26. 26/27 Budget Change Proposals (BCPs) Generally limited to fact-of-life changes: –Cost increases –Schedule delays –Management reform savings –Workload changes –Budget execution experience –Congressional action May involve FYDP years if total cost is less than $250 million and budget year is affected Offsets required Backed up with appropriate budget exhibits

27. 27/27 Final Thoughts….. Deliver Advanced Technology Faster Improved integration of business practice Focus on Joint Capabilities Flexible, outcome-based, Acquisition Management Framework PPBE Interface aligned with JCIDS and Acquisition Process Improved Business Practices meet the 21 ST Century Challenge