Upload
truongthuan
View
214
Download
0
Embed Size (px)
Citation preview
A New Way to Start Acquisition Programs: DoDI 5000.02 and WSARA of 2009
Bill Fast, CDFM-ACapital and Northeast Region
Defense Acquisition University703-805-2107
ASMC PDI Workshop 50, 4 Jun 2010, 0915-1030
Objectives• Explain the major changes made to the
Defense Acquisition Management Systemin December 2008
• Identify the major provisions of the 2009Weapon Systems Acquisition Reform Act (WSARA of 2009)
• Reflect on how these changes shift the paradigm through which we understand how to start acquisition programs
1
Motivations for Revision of DoDI 5000.2• Most potential programs proceeding to Milestone Bwithout a predecessor review to assess the capabilityneed and direct the analysis of alternatives
• Technical maturity not adequately demonstrated prior toprogram initiation
• Program cost, schedule, and performance inadequatelyinformed by design considerations
• No formal / effective opportunity between Milestone Band Milestone C for Milestone Decision Authority (MDA)to assess progress, adjust/refer requirements, orconsistent with statute, restructure the program
• Requirements “creep” continuing to destabilizeprograms
2
New DoD Instruction 5000.02 (Dec 08) 1 - Initial Materiel Investment Decision
2 - Analysis of Alternatives
3 - Component Cost Estimate & Affordability Decision
4 - Cost-Performance Trades from Competitive Prototyping
5 – Systems Engineering Reviews (post assessments) raisedto Milestone Decision Authority (MDA) level
6 - Configuration Steering Boards Stabilize Requirements
PDR or PDR
3
The Defense Acquisition Management System 2008
PDR Before Milestone B
• Mandatory for MDAPs• PDR Report to MDA prior to MS B• Planned for in Technology Development
Strategy• Includes recommended requirements
trades
B
Engineering & Manufacturing Development
C
TechnologyDevelopment
PDR CDR
CDD CPDPost CDRAssessment
PDR
Preliminary Design Review
or
PDR After Milestone B
• Planned for in Acquisition Strategy• PDR Report provided to MDA prior to Post
PDR Assessment• Reflects requirements trades• At Post PDR Assessment, MDA considers
PDR report; determines action(s) required to achieve APB objectives and issues ADM
Post PDRAssessment
4
Joint Air-to-Ground Missile (JAGM)
USA / USN Lockheed Martin RaytheonContract Type CPIF CPIFTD Contract Costs $66.7 M $66.7 MRequirements validated CDD, Jan 08; 6 KPPsTech Dev Phase 27 monthsPreliminary Design Rev 3QFY10TRL / MRL (at MS B) 6+ / 6 (Program Office Estimates)
6
Required Signed and Documented Component-level Cost Positions for Milestone Reviews
(OSD Memo, Chairman, CAIG and Dir, ARA, March 12, 2009)
• Purpose: to strengthen and improve transparency in cost estimation review procedures and to support statutory certification and regulatory requirements
• Policies:– Signed / documented Component-level cost position required for all
Milestone A, B, C, and Full Rate Production Decisions– Components must fully fund to this cost position in current
President’s Budget Future Years Defense Program (FYDP), or commit to full funding in next President’s Budget FYDP
• Expectation:– Deputy Assistant Secretary for Cost and Economics signs the
Component Cost Position– Service Acquisition Executive and Chief Financial Officer
endorse and certify that the FYDP fully funds program consistent with component cost estimate
7
The Defense Acquisition Management System(DoD Instruction 5000.02, Enclosure 2, Figure 1)
Full Fundingin FYDP
Updated Component Cost Position
Appropriated Funds to Support Contracts
• Realistic Cost Estimates• Full Funding in the FYDP• Appropriated Funds
*Full Fundingin FYDP
Full Fundingin FYDP
Full Fundingin FYDP
*Expectation of OSD Memo, Chairman, CAIG and Director, ARA, March 12, 2009,SUBJ: Required Signed and Documented Component-level Cost Position for Milestone Reviews
8
Implementation of WSARA of 2009(Decision-Type Memorandum 09-027, 4 Dec 09)
1. Analysis of Alternatives Study Guidance2. Revised MDAP Definition3. Competitive Prototyping4. Preliminary Design Reviews (PDR)5. Assessment of MDAP Technologies6. Cost Estimation7. Critical Cost Growth8. Systems Engineering9. Developmental Test and Evaluation (DT&E)10. Acquisition Strategies to Ensure Competition11. Competition and Considerations for Operation and Sustainment
(O & S) of Major Weapon Systems12. Performance Assessments and Root Cause Analysis (PARCA)13. Certification IAW 10 USC 2366a & 2366bPhoto: President Barack Obama hands a pen to U.S. Rep. Robert Andrews (D-NJ) as he signs the Weapons Systems Acquisition Reform Act in the Rose Garden at the White House Friday, May 22, 2009. Standing from left are: Andrews, Rep. John McHugh (R-NY), Sen. Carl Levin (D-MI), Rep. Ike Skelton (D-MO) and Rep. Mike Conaway (R-TX). Official White House Photo by Samantha Appleton
9
MDA Certifications (10 USC Sec 2366)Milestone A (Sec 2366a)• Program fulfills an approved initial
capabilities document
• Program is being executed by an entity with a relevant core competency as identified by SECDEF
• If program duplicates a capability already provided by an existing system, the duplication is necessary and appropriate
• A cost estimate for the program has been submitted and the level of resources required to develop and procure the system is consistent with the priority level assigned by the JROC
*Added by Sec 205, WSARA of 2009, May 22, 2009
Milestone B (Sec 2366b)• Program is affordable when considering using alternative
systems
• Program is affordable on unit cost and total acquisition cost basis in current FYDP
• Reasonable cost and schedule estimates have been developed
• Funding is available to execute product development and production plan in FYDP
• PDR / post-PDR assessment certifies high likelihood of accomplishing intended mission*
• Appropriate market research has been conducted prior to technology development to reduce duplication
• Analysis of alternatives was completed with respect to the program
• JROC has done its duties under 10 USC Sec 18l(b), including an analysis of operational requirements for the program
• Technology in the program has been demonstrated in a relevant environment, as determined by MDA on basis of independent assessment by Dir, Defense Research & Engineering*
• Program demonstrates a high likelihood of accomplishing its intended mission
• Program complies with all relevant policies, regulations, and directives of DoD
10
What about Existing MDAPs ?
11
MRAP – All Terrain Vehicles MQ-9 Reaper
Variant to ACAT 1D MRAP ACAT 2 to ACAT 1D, 2009
Production, based upon updated MRAP CPD, 2009
EMD Phase, withMS C planned 3QFY10
“Chief among institutional challenges facing the Department is acquisition.”
Secretary of Defense Direction
12
Planning, Programming & Budgeting System
Acquisition Management System
Requirements Generation System New
DoDD 5000.1DoDI 5000.2Defense
AcquisitionGuidebook
Joint Capabilities Integration & Development System–signed May 04
QDR
Decision Support Systems
Planning,Programming,Budgeting, &
Execution(PPBE)
“Big A” Acquisition
13
Operations & Support
The Defense Acquisition Management System 2008
Joint Concepts
Capabilities - Based Assessment
OSD/JCS COCOM FCB
Strategic Guidance
Incremental Development
A
User Needs
Production & Deployment O&S
Technology Opportunities & Resources
MDDICDTechnology
DevelopmentEngineering & Manuf
Development MaterielSolutionAnalysis
JCIDS Acquisition Process
B C
“Following the Materiel Development Decision (MDD), the MDA may authorize entry into the acquisition management system at any point consistent with phase-specific entrance criteria and statutory requirements.”
CDD CPD
14
From two processes… To one process…
Evolutionary Acquisition
• Capability delivered in increments, recognizing up front need for future capability improvements
• Each increment: - depends on mature technology
- is a militarily useful and supportable operational capability
- Successive Technology Development Phases may be needed to mature technology for multiple increments
• Incremental Development: End-state is known; requirements met over time in several increments
• Spiral Development: End-state is not known; requirements for increments dependent upon technology maturation and user feedback.
No spirals!
15
User Need• JCIDS Capabilities-Based
Assessment (CBA)• Initial Capabilities
Document (ICD)
Pre-Systems Acquisition
Technology Development
MaterielSolutionAnalysisMateriel Development Decision
User Needs
BA
Technology Opportunities & Resources
Technology Opportunities• All sources foreign & domestic• SBIR Program• S&T Activities: ATDs, JCTDs,
Qualified Prototype Projects, Joint Warfighting Experiments.
New terms/requirements in blue bold italics 16
Materiel Development Decision (MDD)
MDA:– Determines acquisition phase of entry– Identifies initial review milestone– Designates Lead DoD Component– Approves Acquisition Decision
Memorandum(ADM)
• Initial Capabilities Document (ICD)• Director, CAPE will prepare and approve AoA study guidance• AoA Plan due immediately following the MDD
New terms/requirements in blue bold italics
17
Materiel SolutionAnalysis
MaterielDevelopmentDecision
Materiel Solution Analysis
Purpose: Assess potential materiel solutions
• Begin the phase: Approved ICD and study guidance for conducting AoA.
• Activities during the phase: Conduct AoA, develop Technology Development Strategy (TDS) & draft CDD
• Guided by: ICD and AoA Plan• End the phase: Materiel solution to capability need in ICD
recommended by lead Component conducting AoA, and phase-specific exit criteria have been satisfied
New terms/requirements in blue bold italics
A
18
MDA approves:
–Materiel solution
–Technology Development Strategy (TDS)**
–Exit criteria for next phase
–Milestone A Certification (10 USC 2366a)
–Acquisition Decision Memorandum (ADM)
Milestone A
** The PM may submit the TDS to the MDA significantly before Milestone A (approximately 3-6 months). Approval of the TDS allows release of formal RFPs for the TD phase prior to the milestone review as well as proposal evaluation and source selection, as time permits. (Results of source selection though cannot be released, and contract award cannot be made, until after the milestone review.)
New terms/requirements in blue bold italics19
TechnologyDevelopment
Technology Development
APurpose: Reduce Technology Risk, Demonstrate Critical Technology on Prototypes, Complete Preliminary Design
Begin the phase: MDA approved materiel solution and TDS; full funding in FYDP(Note: this is a change since publication of DoDI 5000.02 – CAIG/ARA Memo, 12 Mar 09, SUBJ: Required Signed and Documented Component-level Cost Position for Milestone Reviews); ICE required for potential ACAT I/IA programs (also new)
Activities during the phase: Competitive prototyping; Develop RAM strategy; conduct Preliminary Design Review (PDR)
Guided by: ICD & TDS and supported by SE planningEnd the phase: Affordable increment of military-useful capability identified;
technology demonstrated in relevant environment; manufacturing risks identified; PDR conducted for candidate solutions; system or increment ready for production within short time frame (normally less than 5 years for weapon systems)
New terms/requirements in blue/red bold italics
B
20
Technology and Manufacturing Readiness
MaterielSolutionAnalysis
Engineering &ManufacturingDevelopment
PRODUCTION &DEPLOYMENT
B CAOPERATIONS &
SUPPORT
MaterielDevelopmentDecision
Post CDRAssessment
FRPDecisionReview
TECHNOLOGYDEVELOPMENT
Analytical/Experimental
CriticalFunction/
Characteristic
Proof ofConcept
ComponentAnd/or
BreadboardValidation
In aLaboratory
Environment
SystemPrototype
Demonstrated
In anOperational
Environment
ActualSystem
CompletedQualifiedThroughTest and
Demonstration
ActualSystem
“MissionProven”Through
SuccessfulOperations
Capability to ProduceSystems, SubsystemsOr Components in a
Production RepresentativeEnvironment
Full RateProduction
Demonstrated.Lean Production
Practices In Place
Low RateProduction
Demonstrated.Capability InPlace for FRP
Pilot LineCapability
Demonstrated.Ready for LRIP
Cost Model UpdatedTo System Level
Unit Cost ReductionEfforts Underway
Engineering Cost Model
Validated
FRP UnitCost Goals
Met
LRIP CostGoals Met
Learning CurveValidated
Section 2366b of Title 10, United States Code, requires certification that: the technology in the program has been demonstrated in a relevant environment to enter Milestone B. [TRL 6]
Technology Readiness
LevelsDefense Acquisition
Guidebookpara. 10.5.2
Manufacturing Readiness
LevelsDraft MRA Deskbook
May 2008
IOC FOC
Capability to produceTechnology In Lab
Environment.Manufacturing Risks
Identified
ManufacturingCost Drivers
Identified
ManufacturingFeasibility Assessed.Conceptsdefined/
developed
TRLs 1-3
MRL 4 MRL 7 MRL 8 MRL 9 MRL 10MRLs 1-3
TRL 4 TRL 7 TRL 8 TRL 9
ComponentAnd/or
BreadboardValidation
In aRelevant
Environment
Cost ModelConstructed
System/Subsystem
Model orPrototype
Demonstrated
In a RelevantEnvironment
Capability toProduce System/
SubsystemPrototypes
Detailed Cost AnalysisComplete
Capability toProduce Prototype
Components
MRL 5 MRL 6
TRL 5 TRL 6
Joint Lightweight Tactical Vehicle (JLTV)
USA / USMC BAE Systems AM General/GDLS Lockheed MartinContract Type Various Various CPFFTD Contract Costs $62.9 M $61.3 M $53.4 MRequirements draft CDDTech Dev Phase 27 monthsPrelim Design Rev June - July 2009TRL / MRL 5 (underbody) / TD protoypes built on assembly line
22
MDA approves:– Program Initiation (for most programs)– Entry into EMD– Acquisition Strategy (AS)** – Acquisition Program Baseline– LRIP quantities– Exit criteria for next phase– Type of Contract– Milestone B Certification (10 USC 2366b)– ADM
Milestone B
New terms/requirements in blue bold italics
** The PM may submit the AS to the MDA significantly before Milestone B (3-6 months). Approval of the AS allows release of formal RFP(s) for the EMD phase prior to the milestone review as well as proposal evaluation and source selection, as time permits. (Results of source selection though cannot be released, and contract award cannot be made, until after the milestone review.)
23
Engineering and Manufacturing Development
Engineering & Manufacturing DevelopmentPurpose: Develop a system or increment of capability, develop an
affordable manufacturing process, minimize logistics footprint
B
Integrated System Design
System Capability & Manufacturing Process Demonstration
•Begin the effort Mature Technology; Approved Requirements; Full Funding in FYDP
•Activities during the effort: Define System of System Functionality & Interfaces, Complete Detailed Design, System-Level PDR (as needed)/CDR, Establish Product Baseline,
•Guided by: CDD, Acq Strategy, SEP & TEMP
•End the effort: Complete System-Level CDR and Post-CDR Assessment by MDA
•Begin the effort: Post-CDR Assessment and Establishment of initial Product Baseline
•Activities during the effort: Developmental Testing (DT) Assesses Progress Against Technical Parameters, and Operational Assessments (OA) Against CDD
•Guided by: CDD, Acq Strategy, SEP & TEMP•End the effort: System Demonstrated in
Intended Environment using production-representative articles; Manufacturing Processes Demonstrated; Meets Exit Criteria and MS C Entrance Requirements
New terms/requirements in blue bold italics
Post CDRAssessment
Post PDRAssessment
C
24
Paradigm Shifts Based UponDoDI 5000.02 and WSARA of 2009
New Paradigm• Cost and schedule must be considered
before setting performance objectives
• Costs estimated at 80% confidence level (for MDAPs)
• Competitive prototyping before Milestone B
• MDA’s post-PDR & CDR assessments elevate Systems Engineering process
• Independent technological maturity and integration risk assessment by Director, Defense Research and Engineering
• Ensure competition at both prime and subcontract levels
Old Paradigm• Performance objectives often established
before cost and schedule considered
• With exception of high-risk elements, most costs estimated at 50% confidence
• Little prototyping due to cost
• PDR and CDR were recommended as “best practice” technical reviews
• Program Manager assessed technology readiness level in accordance with Defense Acquisition Guidebook
• Competition at prime level; prime responsible for subcontract competition
25
Small Diameter Bomb (SDB) II
USAF / USN Boeing / Lockheed RaytheonContract Type CPFF CPFFTD Contract Costs $161.4 M $161.4 MRequirements validated CDD, June 2009; 5 KPPsTech Dev Phase 42 monthsCritical Design Rev within 6 months of MS B (June 2010)TRL / MRL (at MS B) 6 / 6 (Program Office Estimates)
26
For Additional Information • DoDD 5000.01; DoDI 5000.02; Defense Acquisition
Guidebook
https://acc.dau.mil/dag
• Integrated Framework Chart
https://acc.dau.mil/ifc/
• DAU Rapid Deployment Training Topics
DoD Instruction 5000.02Frequently Asked Questions (FAQ)Weapon Systems Acquisition Reform Act of 2009
http://www.dau.mil/images/Pages/RDT.aspx
27
28
On-Site, Targeted Training
(by Defense Acquisition University)
• TTB 002 Budget Execution
•TTB 004 DoD Budget “Primer”
• TTB 007 POM Development Process
• TTB 009 Business Financial Management Integrationinto Programs
All training will be tailored to the specific needs of the customer
Request at:http://icatalog.dau.mil/onlinecatalog/targeted_training.aspx
Workshop Take-Aways• DoDI 5000.02 (Dec 08) and WSARA of 2009
mandate changes to acquisition management system that attempt to fix mismatches between requirements, cost estimates, and budgets
• Cost and schedule estimates and program affordability must be considered before validation of system capability documents
• Knowledge gained from mandated competitive prototyping should help assess technologymaturity and inject realism into cost estimates
29