I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Air Force Acquisition

Dr. Bill LaPlante Assistant Secretary of the Air Force

(Acquisition)

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USAF Acquisition Priorities

Get the high priority programs right & keep them on track

Improve relationships & transparency with stakeholders

Own the technical baseline for important programs

Build on “Better Buying Power” to improve business acumen & small business to achieve best program outcomes

Build to the long term strategy – resiliency to peer competitors – experiment and innovate – STRATEGIC AGILITY

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Priority #5

Build to the long term strategy: resiliency to peer competitors,

experiment and innovate – STRATEGIC AGILITY

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Moving toward Double-loop Planning

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Goals, values, beliefs and assumptions

Evaluation of how and why we do what we do

Double-Loop Learning

Reassess the problem and assumptions

Action Strategies and Tactics

What we do

Results and Consequences

What we achieve

Do

Single-Loop Learning

Adjust

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Air Force DP History

From Hap Arnold to Alton Slay to Today: DP has waxed and waned

Air Force Studies Board Oct 2014 Study

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Air Force redefining Development Planning as a key process to support the SECAF and CSAF making strategic investment decisions.

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Air Force Studies Board Development Planning Study

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Capability Collaboration Teams (CCT)

Capability Collaboration Team Chartered by HAF with organizational leadership responsibilities

assigned Comprised of operational, scientific & technical experts

(MAJCOMs, Centers, AFRL, DARPA, HAF, etc.)

High-priority Enterprise-wide Capability Gap

CCT Charter - Understand Operational Problem(s) and Explore Full Range of Potential Concepts (cross-SCF,

Materiel & Non-Materiel)

Capability Collaboration Team

Acq Strategies Studies

JCIDS

S&T Needs & Opportunities

Development Planning Experimentation

Prototyping

Doctrine / CONOPS

CCT lead(s): Builds, executes

capability development

“lines of effort”

Enterprise CCTs rapidly address high-priority gaps & capitalize on emerging technologies

Industry Engagement

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S&T Needs (things we don’t know how to do)

Focus to zero-in on right subset of

emerging technologies

Mature concepts (low risk/ feasible)

New CONOPS

Without this we cannot realize strategic direction outlined in Air Force Strategy

Opportunities – New Ops

Concepts and/or Technologies

Operational Challenges –

Warfighter Needs / Gaps

Virtual and Physical Domain Experimentation Enabling Development Planning

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Experimentation Venues: online, workshops, war games, simulations, field experiments and exercises Analysis and Assessment: planning toolsets, data

collection and management, rapid analysis Rapid prototyping: both virtual & hardware

People: management team, red team, innovation teams

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AF leveraging industry concept development and risk reduction as part of ongoing Next Generation Air Dominance effort

Air Superiority 2030- proposed proof of concept CCT

Industry involvement needed to explore full range of innovative industry capability concepts

Industry Day TBD

Proof of Concept Proposal—Air Superiority 2030

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AF Enterprise Capability Collaboration Teams – Notional Sequencing Air

Superiority 2030

Charter Understand Explore Prototype/Experimentation Future Planning Choice

Feb 15

Strategic Deterrence

Charter Understand Explore Prototype/Experimentation Future Planning Choice

Mar 15

Electronic Warfare

Charter Understand Explore Prototype/Experimentation Future Planning Choice

~ Nov 15

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Proof of Concept Proposal - Air Superiority 2030

Focus on capability gaps– develop DOTMPLF concepts & solutions Employ robust development planning / experimentation to assess

concepts & advanced technologies Bring operationally relevant, analytically rigorous strategic choices to

senior AF leadership

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Entry Level Laser Pod for Self Defense

Artist Concept of Hypersonic Demonstrator

High Performance...

Fuel Efficiency...

Adaptive Engines

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Priority #3

Own the technical baseline for important programs

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Owning the Technical Baseline (OTB)

Government team has wherewithal to make proper decisions to achieve successful outcomes Understanding of System Designs and Architectures

End-to-end system models (independent of Prime)

Technology and Integration risk assessment capability

Test design, analysis, and results

Performance of Operational Systems, including Reliability & Maintainability

Interface standards (ICDs) and appropriate Data Rights

Integrated Master Schedule

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Owning the Technical Baseline (OTB)

We are assessing & implementing OTB in the AF New Programs JSTARS Recap T-X Space Launch PAR

Re-building in Ongoing Programs

Introducing into Sustainment

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Air Force Engineering Enterprise Strategic Plan (2014-2024)

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OTB Example: JSTARS Recap

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• Sub-Systems: • Aircraft • Wide Area Surveillance Radar • Robust Communications • On-board BMC2

Open Architecture using OMS standard

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Recent Examples B-1B

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B-1 BONE Sustainment Contract

Engineering Services

Weapon System Support

Individual Modification Efforts

Sustaining Engineering

Services

Current State Future State

- Sole Source - Boeing

- Proprietary

- Competitive - Multiple Awards - Non-Proprietary

- Overarching ID/IQ - Sole Source - Boeing

- 15 Year PoP ends Dec 16

• Improves affordability through increased competition and direct sourcing to supplier • Allows Small Business participation

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Recent Examples B-2

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B-2 FAST Contract

Current State

- NG Sole Source - Proprietary

- CY 15/16

- Multiple Awards - Non-Proprietary

- CY17-19

- Overarching ID/IQ - Sole Source –

Northrop Grumman (NG) - 15 Year PoP ends Dec 14

B-2 FAST II Contract

Phase 2

Phase1

Phase 2 - Acquisition Strategy approval August 15 based on BCA results

Future State

Product Support BCA

Competitive Contract(s) Competitive

Contract(s) Competitive Contract(s)

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Recent Examples F-15

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F-15 Eagle Talon Contract

Current State

- Overarching ID/IQ - Sole Source - Boeing

- 15 Year PoP ends Apr 17

Sustainment Contract

Future State

Test Support Contract

Radar Production Contract

- Competitive - Non-Proprietary

- Sole Source - Boeing

- Proprietary

Sustainment Contracts

- Sole Source - Boeing

- Proprietary

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

USAF Acquisition Priorities

Get the high priority programs right & keep them on track

Improve relationships & transparency with stakeholders

Own the technical baseline for important programs

Build on “Better Buying Power” to improve business acumen & small business to achieve best program outcomes

Build to the long term strategy – resiliency to peer competitors – experiment and innovate – STRATEGIC AGILITY

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Suggested Reading

America’s Air Force: A Call to the Future (http://airman.dodlive.mil/files/2014/07/AF_30_Year_Strategy_2.pdf)

Enhancing Adaptability of U.S. Military Forces (http://www.acq.osd.mil/dsb/reports/EnhancingAdaptabilityOfUSMilitaryForcesB.pdf)

Driving in the Dark: Ten Propositions About Prediction and National Security (http://www.cnas.org/files/documents/publications/CNAS_Prediction_Danzig.pdf)

Development Planning: A Strategic Approach to Future Air Force Capabilities (http://www.nap.edu/catalog/18971/development-planning-a-strategic-approach-to-future-air-force-capabilities)

Performance of the Defense Acquisition System 2014 Annual Report

(http://www.acq.osd.mil/fo/docs/Performance-of-Defense-Acquisition-System-2014.pdf)

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Questions?

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BACKUPS

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Priority #2

Improve relationships & transparency with stakeholders:

Bending the Cost Curve

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Bending the Cost Curve

BTCC includes a growing and evolving set of acquisition reform activities defined in collaboration with industry

BTCC activities identified in 3 categories: Improve internal AF acquisition

processes Enhance interactions with industry

throughout acquisition lifecycle Expand competition among traditional

and non-traditional industry partners

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BTCC Activity Summary

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Improve Internal Processes (Project Title | Purpose)

IT Bus. Analytics Achieve better awareness and coordination of AF-wide IT spending

Matchmaker Translate prior acquisition successes to future programs

FMS Efficiencies Identify and implement new strategies to improve FMS processes

Best Practices Reinforce best practices for reducing time to complete sole source contracts

Enhance Industry Interactions (Project Title | Purpose)

CCA – Industry Engagement

Gather and utilize industry insights during the requirements generation process

TINA Study Identify the optimal threshold for TINA compliance

IT Vendor Mgmt. Identify and implement new industry engagement strategies for IT acquisitions

Expand Competition (Project Title | Purpose)

PlugFest Plus Implement a new agile acquisition strategy for open architecture systems

AF Tech Challenge

Expand use of challenge-based acquisitions for rapid technology innovation

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F-15 EPAWSS CCA Example

Are there cost / schedule / requirements trades to meet affordability goals?

Prototype and System Spec (Detailed Engineering Design)

Initial Product Baseline

• Prototypes inform design & requirements • Final KPP values in CDD

• System Requirements Document finalized

DT&E Technical Performance

Measures results included in CPD

• Capability Attributes • System Attributes • AoA Measures of Effectiveness

• Initial KPP values

LCC vs. Alternatives

Alternatives on “Pareto Front”

Mission Tasks:

Mission Tasks:

ACC defined the priority-operational value-derived from each measure under four Mission Tasks Performing cost & effectiveness analysis at detail level

Aggregating normalized results to compare Alternatives

CCA Pilot Program • T-X • SBIRS • LRSO • MAPS

First down-selecting Alternatives that are on the “Pareto Front”

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F-15 EPAWSS CCA Example

Are there cost / schedule / requirements trades to meet affordability goals?

Prototype and System Spec (Detailed Engineering Design)

Initial Product Baseline

• Prototypes inform design & requirements • Final KPP values in CDD

• System Requirements Document finalized

DT&E Technical Performance

Measures results included in CPD

Further down-selecting Alternatives based on affordability and minimum acceptable capability

CCA Pilot Program • T-X • SBIRS • LRSO • MAPS

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PlugFest Plus Overview

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PlugFest Events IT Consortia

Industry events that promote collaboration and tech development around open system

architectures

Acquisition model utilizing Other Transaction Authorities (OTA) to promote flexibility, speed & accessibility to a broad

industrial base.

Initial PFP demonstration with Air Force DCGS Program –

First PFP acquisition event on 19 May at Joint Base Langley-Eustis

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Priority #4

Build on “Better Buying Power” to improve business acumen & small business to achieve best

program outcomes

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Integrity Service Excellence

PEO Weapons Should Cost

Results Returned over $350M to USAF Mitigated $70M+ sequestration Reinvested in programs:

10 QF-16s 8 JASSMs + tooling 12 AMRAAMs 2,652 Paveways 5,060 Fuzes 550 HCSM kits 50 MALD-Js

JPF $16.4M

AMRAAM $45.9M

JASSM-ER $123.9M

HTVSF $4.2M

LWIP $2.5M

Med Cal Ammo $.77M

MALD-J $14.5M

MDS HTS $4.9M * 3400 Sustainment

QF-16 $46.2M

SDB II $258.3M

HCSM $24.3M JDAM $10.6M

Best Practices Increased competition Data-driven negotiations Quantity Bundling Warranty vs. CLS BCA Reuse GFE VECPs

$567.4M Realized Savings FY13-20

LWIP $3.5M

AFSAT $13.9M

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PEO Space Should Cost

Results Supported Air Force corporate

priorities Returned $6B to USAF Actively tracking $800M of

additional projected savings

AEHF - $1.0B

Best Practices Acquisition strategy efficiency Increased competition Fact-based negotiations Enterprise synergies Streamlining contractor

deliverables Economic Order Quantity buy

SBIRS - $591M

JMS - $61M

GPS - $81M CCSC - $24M

EPS - $34M

EELV - $3.6B

$1B Realized Savings FY14 Alone $6B+ Savings FY12-19

WGS- $405M

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PEO Battle Management Should Cost

$467M Realized Savings FY13-19 Actively tracking up to $489M Savings FY15-20

Aerospace Mgmt Systems Division - $114M

Operation Command & Control Division - $11M

COCOM Command & Control Division - $8M

Theater Battle Control Division $234M

C2ISR Division - $1M

Airspace Mission Plan Sys Division $10M

Foreign Military Sales Division - $3M

Strategic Warn & Surv Systems Division - $50M

AWACS Division - $35M

Aerospace Dominance Enabler Division - $2M

Results Returned to AF TOA - $38M Mitigated Sequestration – $500k Cost Avoidance – $2M Reinvested in programs - $427M

3DELRR ATCALS FOS Weather AWACS Mission Planning Other programs

Best Practices Increased competition Negotiations Cost Capability Analysis Manpower Reductions Sustainment Reductions