Gt Df B i S t ?Got a Defense Business System? · Gt Df B i S t ?Got a Defense Business System? ... – What is a Defense Business System ? Tools – DOD wide: ... Execution Plans

G t D f B i S t ?Got a Defense Business System? The effect of the new defense business system policy on cost y p yestimating, tools, and funding

Charles GuICEAA Conference – New Orleans, LAJune 2013June 2013

Presented at the 2013 ICEAA Professional Development & Training Workshop - www.iceaaonline.com

AgendaAgenda

Background– What is a Defense Business System ?

Tools– DOD wide: DITPR vs. SNaP-IT– Navy/USMC: DITPR-DON vs.

– Current State of Defense Business Systems– Summary of NDAA requirements

R l d R ibiliti f th

y/DADAM

Case Study– Scenario

– Roles and Responsibilities of the DBS Governance Body

DBS Acquisition Process – What is Business Capability

– Relevance– Open Discussion– FAQs

SWhat is Business Capability Lifecycle?– BCL Acquisition Business Model– BCL Highlights

Summary

DBS Investment Process – DBS Modernization Certification Approval


Background Background -- What is a Defense Business System?What is a Defense Business System?

Definition: • An information system, other than a national security system, y , y y ,

operated by, for, or on behalf of the Department of Defense, including financial systems, mixed systems, financial data feeder systems, and IT & information assurance infrastructure.

• The term “defense business system modernization” means—(A) the acquisition or development of a new defense business

t system; or(B) any significant modification or enhancement of an existing defense business system (other than necessary to maintain current services)current services).


Background Background -- What is a Defense Business System? What is a Defense Business System? -- Cont’dCont’d

• Defense business systems support business activities such as acquisition, financial management, logistics, strategic planning

d b d i i ll i d i d h and budgeting, installations and environment, and human resource management.

• IT and information assurance infrastructure that are intended to • IT and information assurance infrastructure that are intended to be used to support the general activities of the DoD, i.e., not solely dedicated to a specific business system, are not defense business systems This includes local area networks business systems. This includes local area networks, metropolitan area networks, wide area networks and telephone systems.


Background Background –– Overview of Defense Business Systems Overview of Defense Business Systems

BackgroundBackground

There are approx. 2200 Defense Business Systems with a total budget of 17.2 Billions in business systems environment and IT infrastructure i t t i 2013investments in 2013


Background Background –– Overview of Defense Business Systems Overview of Defense Business Systems –– Cont’dCont’d

The DOD systems environment that supports these business functions is overly complex and error prone, and

• little standardization across the department

y p p ,is characterized by:

• multiple systems performing the same tasks• the same data stored in multiple systems, and • the need for data to be entered manually into multiple systems

DOD’s business systems modernization is one of the department’s specific

S GAO DOD BUSINESS SYSTEMS MODERNIZATION G M h i f I l ti M t

DOD s business systems modernization is one of the department s specific high-risk areas and is an essential enabler in addressing many of the department’s other high-risk areas.

Source: GAO, DOD BUSINESS SYSTEMS MODERNIZATION - Governance Mechanisms for Implementing Management Controls Need to Be Improved, GAO 12-685, June 2013.


Background Background –– Summary of NDAA RequirementsSummary of NDAA Requirements

Ronald W. Reagan National Defense Authorization Act (NDAA), requires DoD to:

• develop a Business Enterprise Architecture (BEA) and an enterprise transition plan for implementing the architecture

• identify each business system proposed for funding in DOD’s y y p p gfiscal year budget submissions

• delegate the responsibility for business systems to designated authorities within DOD

• establish an investment review structure and process, and• not obligate appropriated funds for a defense business system

program with a total cost of more than $1 million over the i d f h F Y D f P l h period of the current Future-Years Defense Program unless the

approval authority certifies that the business system program meets specified conditions


Background Background -- Roles and Responsibilities of the DBS Roles and Responsibilities of the DBS Governance Body Governance Body


DBS Acquisition Process DBS Acquisition Process -- Business Capability LifecycleBusiness Capability Lifecycle

BCL is the overarching framework for the planning, design, acquisition, deployment, operations, maintenance, and modernization of DBS

• BCL addresses the unique challenges of IT, recognizing that the deliberate weapon systems acquisition process is not agile enough to meet the speed at which new IT capabilities are being introduced

h kto the market• BCL applies to each DBS with total cost over $1M• BCL’s core documents are the Business Case and the Program

Ch tCharter• For all DBS that are not MAIS or otherwise designated, they must

achieve Initial Operating Capability (IOC) within 5 years from Milestone (MS) AMilestone (MS) A


Business Capability Lifecycle Business Capability Lifecycle –– Required DocumentsRequired Documents


Business Capability Lifecycle Business Capability Lifecycle -- Time PhaseTime Phase

• Technical capabilities and software development are strongly related to • Technical capabilities and software development are strongly related to • Technical capabilities and software development are strongly related to Moore's law, roughly doubling in ability every 18 months (or less); and

• User requirements almost always change as soon as a capability is fielded -new ideas for enhancement or additional capability tend to increase.

• Technical capabilities and software development are strongly related to Moore's law, roughly doubling in ability every 18 months (or less); and

• User requirements almost always change as soon as a capability is fielded -new ideas for enhancement or additional capability tend to increase.


Business Capability Lifecycle Business Capability Lifecycle -- HighlightsHighlights


DBS Investment Management ProcessDBS Investment Management Process

Step 1: development of Functional Strategies by the appropriate DoD Principal Staff Assistants (PSA)Step 2: development of Organizational Execution Plan Organizational Execution Plan by DoD ComponentStep 3 IRB review and approve of Organizational Execution Plan and recommend to the DBSMC for approval of funds certification.Step 4: incorporation of the Step 4: incorporation of the content of both Functional Strategies and Organizational Execution Plans into the BEA


DBS Investment Management Process DBS Investment Management Process ––Organizational Execution Plan Construct

Organizational Execution Plans are developed by each Component to articulate their planned approach to aligning to and implementing their part of the Functional Strategiespart of the Functional Strategies.


DBS Investment Management Process DBS Investment Management Process ––IRB Certification Criteria

The IRB/DBC recommends whether or not to certify funds upon review of the Organizational Execution Plan:


Tools: DITPR Vs. Tools: DITPR Vs. SNaPSNaP--ITIT

The DoD IT Portfolio Repository (DITPR) is a web-based computer system that keeps track of DoD IT systems. DITPR contains basic o er ie information regarding all DoD IT s stems overview information regarding all DoD IT systems.

• Contains DoD’s authoritative inventories of IT systems• Provides a coherent and contextual view of the capabilities and

associated system enablers for making resources decisions• Provide a common central repository for IT system information to

support the certification processes of the various Investment Review B d (IRB ) d th D f B i S t M t Boards (IRBs) and the Defense Business Systems Management Committee (DBSMC)

• Automate processes across the Components to meet compliance reporting requirements (e g NDAA)reporting requirements (e.g. NDAA)


Tools: DITPR Vs. Tools: DITPR Vs. SNaPSNaP--ITIT

• Select & Native Programming Data Input System for Information Technology is the authoritative DoD database used for publishing the DoD IT Budget Estimates to Congress and the Office of Management and Budget (OMB), and for monthly IT performance reporting to the OMB IT Dashboard.

• SNaP-IT is operated by the Assistant Secretary of Defense for Networks and Information Integration/DoD Chief Information Officer (ASD(NII)/DoD CIO) Officer (ASD(NII)/DoD CIO).

• Currently, the information in SNaP-IT and the DITPR is not easily d b SN P IT t k i iti ti hi h / t

• Currently, the information in SNaP-IT and the DITPR is not easily d b SN P IT t k i iti ti hi h / t merged because SNaP-IT tracks initiatives, which may/may not

encompass a family of systems, whereas the DITPR tracks systems. • SNaP-IT assigns an unique number to initiatives, so for a family of

systems multiple systems have the same number

merged because SNaP-IT tracks initiatives, which may/may not encompass a family of systems, whereas the DITPR tracks systems.

• SNaP-IT assigns an unique number to initiatives, so for a family of systems multiple systems have the same numbersystems, multiple systems have the same numbersystems, multiple systems have the same number


Tools: Navy/USMC DITPRTools: Navy/USMC DITPR--DONDON

DITPR‐DON is the system module within DADMS. It contains the DON’s authoritative inventory of IT systems: • is accessible to DON users via the Internet, and provides senior DON

decision makers with the context and key information to support IT investment decisions.

id i t t t t d th D t t t • provides consistent automated processes across the Department to meet both internal and external compliance reporting requirements associated with numerous federal and defense policies and mandates.


Tools: DON Application and Database Management Tools: DON Application and Database Management System (DADMS) System (DADMS)

DON Application and Database Management System (DADMS) is the Authoritative Data Source (ADS) for DON IT and NSS applications and database inventory and IT Systems Registration:• a web‐enabled repository of IT applications and systems and their

associated data structures and data exchange formats. t th DON i th d ti f l li ti d th • supports the DON in the reduction of legacy applications and the

development of standard applications, databases, and data elements.

• supports IT interoperability Information Assurance (IA) • supports IT interoperability, Information Assurance (IA) assessments, defense business system investment management, and the construction and maintenance of functional and enterprise architectures.enterprise architectures.


Tools: Relationship Between DITPRTools: Relationship Between DITPR--DON, DADMS and DITPRDON, DADMS and DITPR

• The DITPR evolved from the DADMS and was initially selected by the • The DITPR evolved from the DADMS and was initially selected by the Business Management Modernization Program (BMMP) to support the DoD IT Portfolio Management Review Process.

• DITPR now includes systems from all Mission Areas and has a much broader range of uses


Case Study Case Study -- ScenarioScenarioProject Name: USMC Logistics Requirement Funding Summary Cost Estimating Tool (LRFS CET)

Description: The USMC LRFS CET is an Excel based user-friendly tool designed to provides life cycle logisticians a means to identify the funding necessary to satisfy the needs of their logistics requirements

th i l b d i t t l i d t d per their plans based on appropriate cost analysis data and methodologies.

Funding: Funded by USMC Systems Command Acquisition Logistics Funding: Funded by USMC Systems Command Acquisition Logistics Product Support office. Investment cost is more than $1M over a period of three years starting in 2009.

Other Info: Not a program of record, not a software, has utility in Acquisition and Logistics functional areas.


Case Study Case Study –– RelevanceRelevanceThe Law:Within the FY2012 NDAA, Congress directed DOD to develop a certification/oversight process for all DBS with over $1M in budget across the FYDP for all appropriations. For the USMC, this process is coordinated by the Marine Corps Business Enterprise Office and Headquarters C4 through the Functional Area Managers (FAMs).

Key Concepts: • A system is defined as any solution that requires a combination of

two or more interacting, interdependent, and/or interoperable g p / phardware, software, and/or firmware to satisfy a requirement or capability.

• An application is defined as any software application that uses an existing operating system software program to provide the user with a specific capability or function that is independent of other “applications.” If it is dependent on other applications it becomes a

tsystem.


Case Study Case Study –– DiscussionDiscussionIs the USMC LRFS CET a defense business system?

No Exemption?Exemption? No Exemption?• Funding exceeds $1M• Business system?• Part of portfolio (family of DBS tools

ithi USMC)?

p• MS Excel-based tool (information system?)• No budget (ad hoc funding from multiple sources) within USMC)?

• Within Acquisition, Logistics or Financial Management functional areas

(ad-hoc funding from multiple sources)• Not currently an acquisition

program (merely a tool/application)• No need for information assurance


Case Study Case Study -- FAQsFAQsDo Commercial off-the-shelf (COTS) acquisitions require certification? Yes.

D t h i l f h t th t d i tifi ti Do technical refreshments or other system upgrades require certification approval? Generally, technical refresh or system upgrades do not require certification if the current level of service is being maintained but not significantly enhanced g g yand changes are being made primarily to reduce technical risk or reduce operational costs.

Can I spend up to $1M before I get IRB and DBSMC certification and Can I spend up to $1M before I get IRB and DBSMC certification and approval?No. Certification by the approving authority and approval by the DBSMC is required before obligating any modernization, even if the cost in the first year

ill b l th $1Mwill be less than $1M.

What happens if the program spends $1.00 more than was approved?Generally, the certification will allow for expenditures up to 10% more than the

d approved amount.


SummarySummary• Section 901 of the FY2012 NDAA includes significant changes to the

requirements for investment review and certification of DBS before funds whether appropriated or non appropriated can be obligated funds, whether appropriated or non appropriated, can be obligated. As a result, DoD has provided guidance for implementation of the law that includes:

• Consolidating traditional requirement, investment and acquisition process under single governance.

• adopting a Portfolio-Based Approach in which Business systems will be arrayed, analyzed, and certified in groupings within portfolios (vice individual systems) by

• Promoting BCL as the overarching framework for the planning, design, acquisition, deployment, operations, maintenance, and modernization of defense business systems (DBS)modernization of defense business systems (DBS).


BackupsBackups


Business Capability Lifecycle (BCL) Business Capability Lifecycle (BCL) –– Acquisition OversightAcquisition Oversight

• Acquisition oversight:o DBS MAIS, designated special interest or Other Major IT Investment

Programs are subject to OSD oversight (IRB, MDA) Programs are subject to OSD oversight (IRB, MDA) o For all others, Component provides acquisition oversight similar to BCLo For investment oversight (certification) purposes, DBS will use the IRB

process.p• When a Major Automated Information System (MAIS) DBS employs an

incremental acquisition approach, Acquisition Program Baseline (APB) for the given increment is required and must be achievable within 5 years g q yfrom when funds were first obligated.

• For all DBS that are not MAIS or otherwise designated, they must achieve Initial Operating Capability (IOC) within 5 years from Milestone (MS) A. p g p y ( ) y ( )

• Delivery of capability within an increment (e.g., releases, sub-phases, software drops) must be based on technologies that have been determined to be mature at the MS B decision review.


DoDDoD EndEnd--toto--End Business Process FlowsEnd Business Process Flows
