OCCAR Management Procedure · collaborative defence equipment Programmes on a Through-Life Management (TLM) basis. This will be done by offering professional Programme Management

OCCAR

OCCAR Management Procedure

Title: Principal Programme Management Procedure Number:

OMP 1

Date: 08/12/16

Computer Ref: OMP 1_Principal Programme Management

Procedure_Issue6_20161208 Current status: Issue 6 Contact address:

Central Office, OCCAR-EA Bonn Email: [email protected]

Approved for issue: OCCAR File Ref:

CO/PMSD/2016/00216

This document replaces: OMP 1 – Issue 5 dated 10/06/14

mailto:[email protected]

OMP 1_Principal Programme Management Procedure_Issue6_INT_20161208 Page 2 of 56

Record of changes

Date Issue Changes

01/99 OMP 1.01 - Issue 1 Creation of the document. OMP approved by the BoS.

02/02 OMP 1.01 - Issue 2 Revision of the main document and of annexes.

Document not entered into force.

03/03 OMP 1.01 - Issue 3 Revision of the main document and of annexes i.a.w. comments from the nations. Document not entered into force.

11/03 OMP 1.01 - Issue 4 Document issue further to the approval of OMP 1.01 issue4 draft1 dated 08/03 by the BoS on 5/12/03.

24/05/05 OMP 1 - Issue 1

Revision: including “Programme Board”

Document issue further to the approval of OMP 1 issue1 draft3 by the BoS on 19/05/05.

01/07/06 OMP 1 - Issue 2 Conversion to the OCCAR-EA graphical house style.

06/11/09 OMP 1 - Issue 3

Updated to insert Annex OMP 1-D on cost analysis, audit and price investigation and to make reference within the OMP 1. Integration of OMP 1 Addendum 1 as Annex OMP 1-C.

15/12/10 OMP 1 - Issue 4

Update to align with OMP 2, Issue 6. Addition of Annex OMP 1-E, issue 1 “Management of Technology Demonstrator Programmes”. Implementation of changes as agreed at the 34th

FTPC meeting on 8-9/11/10.

10/06/14 OMP 1 - Issue 5 Overall structure modification of Issue 4, introduction of OCCAR specific definitions to describe Programme / Programme activities.

08/12/16 6 Amendment of Annex OMP 1-A, paragraph 5.2, to raise PB’s awareness regarding its role in the OCCAR whistle blowing policy.

Table of Contents

Main Part OMP 1 ... Principal Programme Management Procedure ......................... 3

Annex OMP 1-A ..... Roles and Responsibilities in an OCCAR-managed Programme .. 17

Annex OMP 1-B ..... Programme Management Functions ..................................... 27

Annex OMP 1-C ..... Transitions in an OCCAR-managed Programme ...................... 43

Annex OMP 1-D .... Acronyms, Definitions and Explanations ............................... 49


Main Part OMP 1

Principal Programme Management Procedure

Table of Contents

1. Background and Scope ..................................................................................... 5

1.1 Background ............................................................................................................................... 5

1.2 Scope ....................................................................................................................................... 5

2. Purpose ............................................................................................................ 5

3. Applicable Documents ...................................................................................... 6

4. Principles ......................................................................................................... 6

4.1 Business Ethics .......................................................................................................................... 6

4.2 General Governance ................................................................................................................... 7 4.3 Through Life Management .......................................................................................................... 7

4.4 Programme High Level Objectives ............................................................................................... 8 4.5 Accountability of the OCCAR-EA Director ...................................................................................... 8

4.6 Accountability of the Programme Manager ................................................................................... 8

4.7 Autonomy of the Programme Manager ......................................................................................... 8 4.8 Multidisciplinary Team ................................................................................................................ 8

4.9 Global Balance ........................................................................................................................... 9 4.10 Efficiency and Continuous Improvement ...................................................................................... 9

5. Defence System Life Cycle ............................................................................... 9

5.1 Defence System Life Cycle Phases ............................................................................................... 9

5.2 Defence System Life Cycle Phases and OCCAR-managed Programmes .......................................... 10 5.3 Preparation Phase .................................................................................................................... 11

5.4 Definition Phase....................................................................................................................... 11

5.5 Development Phase ................................................................................................................. 11

5.6 Production Phase ..................................................................................................................... 11

5.7 In-Service Phase ...................................................................................................................... 12

5.8 Disposal Phase ........................................................................................................................ 12

6. OCCAR-managed Programme ........................................................................ 12

6.1 General ................................................................................................................................... 12

6.2 Programme Integration ............................................................................................................ 13

6.3 National Support to Programmes ............................................................................................... 13

6.4 Stakeholders and Relationship Management ............................................................................... 13 6.5 Roles and Responsibilities in an OCCAR-managed Programme ..................................................... 13

6.6 Programme Management Structures for OCCAR-managed Programmes ........................................ 13 6.6.1 Programme Division .................................................................................................... 14 6.6.2 Programme Management Cell ...................................................................................... 14

6.7 Programme History .................................................................................................................. 15

7. Management activities ................................................................................... 15

8. Annexes ......................................................................................................... 15


Table of Figures

Figure 1: OCCAR Use-Centric Defence System Life Cycle Phases representation .................. 9

Figure 2: Defence System Life Cycle Phases and OCCAR-managed Programme ................. 10

Figure 3: OCCAR PD relationships with Stakeholders ....................................................... 14

Figure 4: OCCAR PMC relationships with Stakeholders ..................................................... 14

List of acronyms/definitions/explanations

List of acronyms, definitions and explanations can be found at Annex OMP 1-D.


1. Background and Scope

1.1 Background

OCCAR was established to improve the management efficiency and cost effectiveness of international armaments co-operation Programmes, including Technology Demonstrator Programmes (TDPs), studies or single projects. The OCCAR vision is to become the first choice in Europe for management of collaborative defence equipment Programmes on a Through-Life Management (TLM) basis. This will be done by offering professional Programme Management methodology, resulting in optimum equipment performance and delivery timescales, whilst reducing the level of management risk and cost.

In order to deliver these objectives, OCCAR has developed an integrated set of OCCAR Management Procedures (OMPs), approved by the Member States, which give a management framework of clear and concise good practice methods and tools, templates and examples to support their implementation. Applying OMPs improves Programme Management efficiency and gives the Participating States (PS), also referred to as Programme Participating States, the confidence to delegate increased authority to OCCAR-EA.

For Programmes integrated into OCCAR, all OMPs shall be applied. Deviations from OMPs should be exceptional and are subject to Board of Supervisor (BoS) approval. Approved deviations should be reflected in the Programme Decision (ProgD) in compliance with the procedure as detailed in OMP 2 (Programme Integration) or otherwise shall be recorded in a Programme Board (PB) decision.

1.2 Scope

OMP 1 shall apply to OCCAR Stakeholders involved in the management of Programmes integrated into OCCAR. Regarding non-OCCAR Stakeholders and considering their involvement in the Programme, OCCAR-EA shall ensure that relevant elements of OMP 1 are followed.

Annex OMP 1-A addresses the OCCAR and non-OCCAR Stakeholders for an OCCAR-managed Programme.

2. Purpose

The purpose of OMP 1 is to provide the mandatory Programme Management instructions in order to fulfil OCCAR-EA’s obligations towards the PS as defined in the relevant ProgD. Descriptions on how to implement the instructions are part of the internal OCCAR-EA documentation.

In particular, OMP 1 addresses:

The recommended Defence System Life Cycle Phase(s) the management of which is entrusted to OCCAR;

The management concept and principles to be applied to an OCCAR-managed Programme; and

The management structure, roles and responsibilities for an OCCAR-managed Programme.


3. Applicable Documents

OCCAR Convention;

OCCAR Security Agreement;

OMP 2 ............ Programme Integration;

OMP 3 ............ Corporate Management;

OMP 4 ............ Legal Issues;

OMP 5 ............ Contract Placement Procedure;

OMP 6 ............ Contract Terms & Conditions;

OMP 7 ............ Government Quality Assurance;

OMP 8 ............ Personnel Regulations;

OMP 9 ........... Recruitment;

OMP 10 .......... Financial Rules;

OMP 11 .......... OCCAR Security Regulations;

OMP 12 .......... Handling of Unclassified Sensitive Information;

Global Balance Policy Paper; and

BoS Decisions.

4. Principles

To allow OCCAR to consistently achieve high quality results, the successful implementation of the management concept developed in OMP 1 requires agility and flexibility to find the best solution for each circumstance. To do this and yet still maintain proper control, the management of OCCAR Programmes has to focus on the following principles:

4.1 Business Ethics

OCCAR recognises the significance of business ethics as a tool for supporting the successful achievement of objectives and consequently instils ethical business practices, throughout all professional activities, including those practices employed for Programme Management.

OCCAR considers the following behavioural principles being fundamental for assuring the highest ethical standard:

Maintain integrity;

Exercise impartiality;

Respect confidentiality; and

Respect others.

A high reputation in business ethics is essential for building up trustful relationships with all Stakeholders, which is mandatory for successful management of any Programme.


4.2 General Governance

OCCAR implements a comprehensive business management framework, comprising strategic management integrated at the level of concepts, procedures and tools into the OCCAR-EA integrated business management framework.

The OCCAR-EA management framework is based on the following interrelated components of the OCCAR-EA Internal Control Process:

Control environment, which is the basis for all other components of the management framework;

Objectives setting, which consists in the translation of the OCCAR-EA mission into Specific, Measurable, Achievable, Realistic and Time-related (SMART) objectives;

Risk Management (RM), which identifies and mitigates possible incidents that could affect the achievement of the objectives of a Programme;

Control activities, needed to ensure that directives are followed, decisions are implemented and risk mitigation actions are properly applied;

Information management as well as internal and external communication, which are essential for effective and efficient Programme Management;

Continuous monitoring of the OCCAR-EA Internal Control Process with a regular review and evaluation of the information available in order to ensure that the potential risks are properly identified and assessed, and the necessary control mechanisms are effectively implemented to mitigate effects; and

Use of the information available to take appropriate action (reaction/ readjustment/counter-measure) especially when the achievement of objectives is at risk.

The OCCAR-EA Internal Control Process as a whole provides all Stakeholders with reasonable assurance that OCCAR-EA is meeting its objectives in the most efficient and effective possible way.

4.3 Through Life Management

The mission of OCCAR requires the capability to manage collaborative defence Programmes throughout their entire life cycle. Therefore, OCCAR has adopted TLM as the good practice approach to manage its Programmes. TLM is achieved by applying and integrating good practice management techniques in a coherent manner. TLM aims to develop and deliver products that optimise cost-effectiveness based on Life Cycle Cost (LCC) and operational performance.

Applying TLM principles allows seamless transition from one Defence System Life Cycle Phase to another and supports most efficient Programme Management.

The key principles of the OCCAR-EA TLM approach are:

Strong “Use-Centric” view: the In-Service (IS) Phase of the Defence System has to be at the centre of attention at any time of the life cycle;

Managing LCC for achieving and sustaining the cost-effective Defence System and ensuring that decisions take into account the longer term implications;


Proactive involvement of Stakeholders throughout the Defence System Life Cycle emphasising on customer/supplier relationships between PS and OCCAR-EA and between OCCAR-EA and industry; and

Integrated approach addressing all management activities and factors required for a seamless and cost-effective progression through the Defence System Life Cycle Phases.

4.4 Programme High Level Objectives

High Level Objectives (HLOs), in terms of performance, time and cost, have to be defined for each Programme Stages entrusted to OCCAR, and will be included in the relevant ProgD. HLOs shall be based on precise and measurable high level parameters.

HLOs shall focus on essential Programme Stage objectives. Monitoring the Programme against these HLOs allows the continuous assessment of the progress of each Programme Stage.

4.5 Accountability of the OCCAR-EA Director

The OCCAR-EA Director (hereafter referred to as the Director) is personally and directly accountable to the BoS for the effective and efficient overall management of all OCCAR-managed Programmes.

The Director is personally and directly accountable to the relevant PB for the effective and efficient management of the individual OCCAR-managed Programmes.

4.6 Accountability of the Programme Manager

The authority and responsibility to manage the Programme is entrusted to the Programme Manager (PM) by delegation from the Director. Therefore, the PM is personally and directly accountable to the Director for the effective and efficient management of the Programme.

4.7 Autonomy of the Programme Manager

The PM has the required authority and autonomy to manage the Programme and to meet the Programme HLOs within the given delegation of the Director. The responsibilities of the PM are set out in section 3 of Annex OMP 1-A and, where appropriate, further elaborated in the relevant ProgD which shall be written to allow the PM to have adequate “marge de manœuvre” to manage the Programme.

4.8 Multidisciplinary Team

The multidisciplinary team principle ensures that the PM has available all required skills e.g. technical, quality, risk, Integrated Logistic Support (ILS), In-Service Support (ISS), finance, commercial and legal, to manage a Programme in the most effective and efficient way. The team is either organised in a dedicated Programme Division (PD) or, for smaller OCCAR-managed Programmes, in a Programme Management Cell (PMC), a matrix organisation staffed by OCCAR-EA Central Office (CO). PD and PMC are described in paragraph 6.6.


4.9 Global Balance

According to the OCCAR Convention, OCCAR Member States have renounced the application of the analytical calculation of industrial “juste retour” on a programme-by-programme basis, and replaced it by the pursuit of an overall multi-programme/multi-year balance, also known as Global Balance (GB).

OCCAR-EA is responsible for recording GB information. This activity is performed in close coordination between and with contributions from PDs and CO. The BoS will consider what action, if any, needs to be taken to rectify an imbalance should one occur.

CO provides the PDs and PMCs with the relevant instructions for the collection of the annual GB data. It is the responsibility of the PMs to provide CO with the required data in a timely manner.

OCCAR-EA awards contracts on the basis of OMP 5 with the standard terms and conditions defined in OMP 6 where the contractor is obligated to provide detailed information on work versus value for the activities performed in the frame of the contract.

4.10 Efficiency and Continuous Improvement

In the spirit of ISO 9001 and 9004, OCCAR-EA is applying a continuous process of monitoring, analysis and improvement in order to excel in effectiveness and efficiency.

4.10.1 Learning from Experience

OCCAR-EA actively pursues the sharing of lessons identified / lessons learned and best practice, in a controlled manner in accordance with OMP 11 and OMP 12. This applies to all aspects of OMP 1.

The purpose of the lessons identified / lessons learned process is to capture the lessons and to develop recommendations to improve the overall efficiency and effectiveness of Programme Management.

5. Defence System Life Cycle

5.1 Defence System Life Cycle Phases

The Defence System Life Cycle is organised into 6 phases as shown in Figure 1 to minimise risks (technical, financial, schedule, etc.). Due to its high cost and long duration, the IS Phase should remain the focus of attention throughout the Defence System Life Cycle. This is ensured by OCCAR-EA’s Use-Centric TLM approach.

Figure 1: OCCAR Use-Centric Defence System Life Cycle

Phases representation


5.2 Defence System Life Cycle Phases and OCCAR-managed Programmes

The terminology used to describe OCCAR-managed Programmes is provided in the figure below:

Figure 2: Defence System Life Cycle Phases and OCCAR-managed Programme

OCCAR may manage a Programme Stage in any of the following Defence System Life Cycle Phases: Definition, Development, Production, In-Service (support activities only), and Disposal. Although Figures 1 and 2 show a “Preparation Phase”, the associated activities are normally performed by the potential PSs and/or international organisations such as the European Defence Agency (EDA).

A Programme Stage encompasses Programme Management activities covered by a specific ProgD. Moreover, Programme Stages are not necessarily aligned with Defence System Life Cycle Phases and there might be several Programme Stages at the same time.

OCCAR aims to manage Programmes according to the TLM approach (legacy Programmes will follow the application of the TLM approach to the maximum extent compatible with existing ProgDs and contracts), ensuring that transitions

Defence System Life Cycle Phases

Maturity Gates

Programme Stages

Integration Activities

Transitions between Programme Stages

Closure of last Programme Stage with or without transfer outside OCCAR

1st ProgD (PB level)


between Defence System Life Cycle Phases occur only after defined Maturity Gates have been passed (see Annex OMP 1-B paragraph 3.4). Maturity criteria may also be applicable to new Programmes being integrated into OCCAR.

If required, OCCAR-EA provides the PSs with relevant information relating to the achievement of these maturity criteria (see Annex OMP 1-A section 3 last paragraph).

5.3 Preparation Phase

During the Preparation Phase, a prospective co-operative Programme is prepared in terms of outline scope, time, cost, performance, acquisition organisation and participation to meet harmonised capability requirements that can be feasibly taken forward. Feasibility studies may be performed during this Phase.

The concept of how the Defence System will be supported and utilised during the IS Phase needs to be established. It is also essential that the Stakeholders ensure that appropriate strategies and specialist resource requirements are well defined.

OCCAR may be involved in those activities, providing advice as required and preparing for the integration of the new Programme into OCCAR. On request, OCCAR-EA may provide support in different areas such as TLM considerations and Cost Estimation (CE) or cost analysis.

5.4 Definition Phase

The Definition Phase consists of the selection of a solution from those explored under the concept and feasibility studies conducted during the Preparation Phase. Programme requirements, technical specifications, ILS aspects, CE and industrial conditions for the Development Phase and subsequent Phases are refined. Risk reduction studies may be performed during or prior to the Definition Phase.

Based on the results of the activities performed during the Definition Phase, OCCAR-EA will advise the PSs and assist them with their national decision making processes. At the end of the Definition Phase, the level of residual risk should be acceptable to the PSs prior to entering into the Development Phase.

5.5 Development Phase

During the Development Phase, the Defence System (including its support solution) is designed in detail, developed, tested, qualified and certified, and the industrial production resources are defined and normally put in place. In principle, the Development Phase is completed when the Defence System is qualified. Some certification activities (e.g. airworthiness certification of individual aircraft) may also be performed during the Production Phase.

5.6 Production Phase

The Production Phase consists of all activities required to produce and deliver the Defence System to the armed forces for its subsequent use (series production, initial training and support resources, etc…).

Formally, there is a decision for service acceptance taken jointly or individually by the PSs. This decision formalises the authorisation for operational use of the Defence System after its acceptance trials.


In principle, the Production Phase ends when all the individual systems have been accepted and delivered.

5.7 In-Service Phase

The IS Phase is composed of two concurrent activities: operational usage and support. While the operational usage is under the responsibility of the PSs, the management of the support activities may be assigned to OCCAR (partially or fully). In this case, these support activities are referred to as ISS.

ISS aims to maintain the Defence System to the required operational level. It begins with the first delivery of the Defence System and ends when the use of the Defence System within the PSs stops.

The decision to end the IS Phase will generally be taken independently by each PS, potentially supported by OCCAR-EA disposal analysis results (e.g. scrapping, sale as a system, dismantling and sale for spares) and depending upon a balance of different factors (e.g. age and operational effectiveness, supportability, cost considerations, mid-life improvements, new results of capability analysis).

5.8 Disposal Phase

The aim of the Disposal Phase is to systematically remove the Defence System from service and to manage the disposal process efficiently.

OCCAR-EA will assist the PSs in proposing the most economical time and method of disposal (considering aspects such as cost analysis, reuse of system/components, sale, demilitarisation, dismantling and environment, security, safety and political issues).

6. OCCAR-managed Programme

6.1 General

An OCCAR-managed Programme starts with the signature of the first ProgD (leading to the first Programme Stage), continues with the implementation of Programme Stages (individually covered by a specific ProgD) and ends with the closure of the last Programme Stage with or without transfer of this Programme to a third party. However, the conduct of preliminary activities by OCCAR starts with the integration process of the new Programme into OCCAR.

The integration process defined in OMP 2 covers the integration of both new Programmes and new Programme Stages. In addition to these integration activities, the transition activities between two Programme Stages also include the preparation of the new Programme Stage as well as the residual activities from the previous Programme Stage. Smooth transition between Programme Stages can be achieved by the careful planning of all these activities and the use of the most relevant resources from the PD/PMC, the CO, or from the PSs (Detached National Experts), within the provisions of the Programme Management Authorisation (PMA) (or BoS decisions) and the ProgDs (or PB decisions).

Annex OMP 1-C describes the potential options with recommendations to facilitate transitions between Programme Stages.


6.2 Programme Integration

In order to gain maximum benefit from the management of a collaborative Programme by OCCAR, a new Programme should be integrated at the start of the Definition Phase. However, the PSs may decide to integrate a Programme into OCCAR at any point in the Defence System Life Cycle. In order to allow smooth transfer to OCCAR, OCCAR-EA staff should be involved as early as possible in the preparation of the integration.

The integration of a new Programme / new Programme Stage into OCCAR shall be undertaken in accordance with OMP 2. Inter alia, a Programme Integration Team (PIT) may be established to manage the integration activities (mandatory in case of new Programme).

6.3 National Support to Programmes

The Programme Management structures within OCCAR (including PIT) foresee strong liaisons with PSs such as GFX, Expert Working Group (EWG), Programme Working Group (PWG), audits (e.g. quality, price, security), as requested by the PM (or the head of the PIT). The level of support may vary through the life of the Programme and include the provision of Detached National Experts (DNEs).

6.4 Stakeholders and Relationship Management

Identification of Stakeholders involved in a Programme requires identifying the individuals or organisations that have an active involvement in the Programme or that may exert any influence over the Programme’s objectives and outcomes.

The identification of Stakeholders and analysis of their power and level of interest shall be conducted throughout the Programme and during transition of the Programme from one Stage to another. The result of the Stakeholder analysis will contribute to the development of an effective communications strategy and plan, and support Risk Management.

6.5 Roles and Responsibilities in an OCCAR-managed Programme

An OCCAR-managed Programme involves groups of Stakeholders, at both internal and external levels. Each of these groups of Stakeholders has a role in the Programme Management activities, which are undertaken before and after the signature of the ProgD and are detailed in the Annex OMP 1-A “Roles and Responsibilities in an OCCAR-managed Programme”.

6.6 Programme Management Structures for OCCAR-managed Programmes

The management structure may be indicated within the PMA and shall be defined in the respective ProgD. Two possible management structures can be set up within OCCAR-EA depending on the size of the Programme and on the requirement from the PSs; a PD or a PMC within CO.

The PD is intended for the management of complex, large or medium size Programmes while the PMC is intended for the management of small Programmes.

The management structure can evolve during the life of the Programme subject to BoS and PB decisions.


6.6.1 Programme Division

The PD will be structured to manage one or more Programmes for optimisation of the management cost or for synergy among the Programmes. The PM will define, implement and lead all the necessary functions as defined in section 7. Programme support and corporate support will be provided by CO and by DNEs if required and agreed by the PSs. Figure 3 illustrates the relationships between Stakeholders and the position of the PD inside OCCAR.

Figure 3: OCCAR PD relationships with Stakeholders

6.6.2 Programme Management Cell

The PMC will be a matrix organisation where all the necessary functions are performed using resources from CO and with the potential support from DNEs. The PM will be selected from within Programme Management Support Division (PMSD) staff. Figure 4 illustrates the relationships between Stakeholders and the position of the PMC inside OCCAR.

Figure 4: OCCAR PMC relationships with Stakeholders

ProgrammeWorking Group

Expert Group

OCCAR-EA DirectorProgramme Committee

Programme Board

OCCAR-EA

ProgrammeDivision

Industry / Partners

(2)

(1)

Responsibility

Accountability

Support

CentralOffice

(1) Accountability of the Director to the PC in the frame of the tasks and decisions delegated to the PC

(2) Accountability of the PM to the Director in the frame of the tasks and decisions delegated to the PM

PMSDExpert Group

OCCAR-EA DirectorProgramme Committee

Programme Board

OCCAR-EA

Industry / Partners

(2)

(1)

Responsibility

Accountability

Support

(1) Accountability of the Director to the PC in the frame of the tasks and decisions delegated to the PC

(2) Accountability of the PM to the Director in the frame of the tasks and decisions delegated to the PM

Ce

ntr

al O

ffic

e HR

FD

CSDProgramme

Management

Cell

PMSD

ProgrammeWorking Group

PM


6.7 Programme History

Programmes are managed on the principle of delegating authority to the PMs. To ensure full accountability and a clear audit trail, the Programme history shall be carefully maintained to meet the requirements of all Programme Stakeholders.

The Programme history is compiled and recorded through a folder containing explanations and a list of relevant references from the initiation of each Programme, using a secure network or database storage system in accordance with applicable rules. In addition, appropriate access rights for information, for the different areas of responsibility should be defined. Information should be accessible to those with a need to know. When legally required, authenticated paper copies of key documents shall be maintained in order to speed the transfer process from OCCAR-EA to other external authorities (e.g. ISS and procurement authorities from PSs).

7. Management activities

In order to properly manage the complexity and minimise the associated risks, OCCAR strives to apply best practice international Programme Management methods and tools. To that end OCCAR is applying a process oriented management concept.

Each PM, taking into account the internal and external constraints and making use to the maximum extent of the TLM framework, shall implement the necessary functions from Annex OMP 1-B. The PM shall implement a Programme Management Plan (PMP) which will create an effective and efficient management framework for the Programme, thus maximising her/his ability to achieve the HLOs.

8. Annexes

Annex OMP 1-A Roles and Responsibilities in an OCCAR-managed Programme

Annex OMP 1-B Programme Management Functions

Annex OMP 1-C Transitions in an OCCAR-managed Programme

Annex OMP 1-D Acronyms, Definitions and Explanations


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Annex OMP 1-A_Roles and Responsibilities in an OCCAR-managed Programme_Issue6_20161208 Page 17 of 56

Annex OMP 1-A

Roles and responsibilities in an OCCAR-managed Programme

Table of Contents

1. Scope and purpose ......................................................................................... 18

2. Roles and Responsibilities of the Director ..................................................... 19

3. Roles and Responsibilities of the Programme Manager ................................. 20

4. Roles of OCCAR-EA Central Office .................................................................. 22

5. Roles and Responsibilities of Member and Participating States .................... 22

5.1 Board of Supervisors ................................................................................................................ 23

5.2 Programme Board .................................................................................................................... 23

5.3 Programme Committee............................................................................................................. 24

5.4 National Programme Coordinator............................................................................................... 25

5.5 Programme Working Group ...................................................................................................... 26

5.6 National Security Authority/Designated Security Authority ........................................................... 26

6. Roles and Responsibilities of Industry ........................................................... 26

7. Collaboration between OCCAR and Other International Organisations ......... 26




1. Scope and purpose

This Annex shall apply to all Stakeholders involved in the management of Programmes entrusted to OCCAR. It describes the roles and responsibilities of the major Stakeholders involved in an OCCAR-managed Programme.

An OCCAR-managed Programme involves the following major Stakeholders:

OCCAR including:

o Board of Supervisors (and the corporate committees)

o Programme Board

o Programme Committee

o Programme Working Group

o OCCAR-EA including:

Director,

Programme Manager,

Programme management structure (PD or PMC)

Central Office

Participating States (including but not limited to):

o National Programme Coordinator (NPC)

o National Security Authority (NSA)/Designated Security Authority (DSA)

o National Quality Assurance Authorities (NQAA)

o National Military Airworthiness Authorities, if applicable

o National Safety Approving Authorities (NSAA), if applicable

Industrial organisations and/or international organisations performing work for the Programme; and

Other international organisations participating to the Programme.

o e.g. European Defence Agency

Each of these groups of Stakeholders has a role in the Programme Management activities which are undertaken before and after the signature of the ProgD by the PB.

As already addressed in the main part of OMP 1, OCCAR-EA implements a comprehensive management framework whose related components are further detailed below:

“Control Environment” sets OCCAR-EA’s ethical values and establishes its risk culture through setting the related philosophy and considering the peculiarities of OCCAR;

“Objectives” in an OCCAR-managed Programme are deployed from the strategic level to the lowest possible levels within OCCAR-EA;

“Risk Management” (covering both threats and opportunities) which aims to identify and assess the extent to which such threats and opportunities may impact the objectives, to allow the establishment of priorities, to mitigate the impact and/or the likelihood of the identified threats and to maximize the benefit of the identified opportunities;


Specific control policies and procedures are established, based on the definition of processes and accountability for risks throughout OCCAR, and preventive and corrective actions are defined;

The OCCAR-EA integrated business management framework relies on the collection and exchange of reliable information from and with all Stakeholders, involving each of the implemented controls and related to all of the set objectives; and

Continuous monitoring is performed by means of regular management and supervisory activities at each level, management boards, reviews, and by separate evaluations comprising of internal and external audits.

2. Roles and Responsibilities of the Director

The Director is personally and directly accountable to the BoS for the effective and efficient overall management of all OCCAR-managed Programmes. The Director is personally and directly accountable to the relevant PB for the effective and efficient management of matters strictly related to individual OCCAR-managed Programmes, and especially for the achievement of the Programme HLOs.

The Director shall have overall and direct authority over the PM in accordance with the OCCAR Convention, the ProgD and any other relevant decision of the BoS or the PB. This authority is also extended to the PIT established for the integration of the Programme into OCCAR (see OMP 2).

The Director shall set the PM’s objectives derived from the general objectives of OCCAR set by the BoS and the PB and from the Programme HLOs. The Director shall monitor and control the PM’s performance towards achieving both the general and Programme specific objectives. The Director shall also monitor and control the PM’s adherence to the OCCAR Rules.

The Director shall act as the point of contact with contractors (current Programme and prospective) for all matters concerning the integration and the management of the Programmes, supported by the PIT, the PD or the PMC as appropriate.

Furthermore, the Director shall:

Have full accountability, and have full authority for signing all (unless that authority is delegated) OCCAR Major1 Contracts and related Major Amendments placed by OCCAR-EA, subject to the approval by the relevant Programme Committee (PC);

Have full accountability, and have full authority for signing all (unless that authority is delegated) OCCAR Minor1 Contracts and related Minor Amendments placed by OCCAR-EA;

Endorse the Procurement Strategy (ProcS)/Contract Route (CR) for Major Contracts/Major Amendments which is then provided to the relevant PC for approval;

Approve the ProcS/CR for Minor Contracts/Minor Amendments;

Endorse the Invitation To Tender (ITT) which is then provided to the relevant PC for approval before issuance;

Examine applications from non-PSs to join or observe the Programme and report to the BoS and PB on the implications for OCCAR;

1 The definitions of Major/Minor Contracts and Major/Minor Amendments shall be referenced in the

ProgD in accordance with OMP 2.


Approve the PMP of each Programme which shall then be Noted by the relevant PC;

Present Programme reports (Director’s report) to the relevant PB and PC, and in particular notify the PB of specific risks to the achievement of the HLOs and make proposals for mitigation and contingency plans;

Report to the relevant PB and PC for any other issue that might have an impact on the development of the Programme and that requires a decision outside the authority provided to the Director;

Appoint the selected personnel to the PD or to the PMC;

Enforce the provisions of the OCCAR Security Agreement; and

Guarantee that the PM has enough “marge de manœuvre” to manage the Programme efficiently.

3. Roles and Responsibilities of the Programme Manager

The size and shape of the management structure established for each OCCAR-managed Programme is mainly determined by the scope of the Programme. As detailed in section 6 of OMP 1 main part, a Programme entrusted to OCCAR shall be managed by a PD or a PMC. A PM shall be appointed by the Director to head the PD or the PMC.

The Director shall nominate a candidate for the PM post to the PB for approval. When a Programme is managed by a PMC, the PM is appointed by the Director, with the approval of the PC; this will be a staff member from CO/PMSD.

The Director shall delegate to the PM the following responsibilities:

Achieving the Programme objectives and management objectives, within the framework of the ProgD and within the OCCAR Rules;

Developing the PMP;

Taking the decisions relating to the Programme needed on a daily basis;

Managing the cost, schedule, performance requirements, technical, commercial and financial aspects of the Programme;

Recommending to the PC, through the Director, a ProcS, and for Major Contract / Major Amendment a CR;

Providing to the Director for his approval a CR for a Minor Contract / Minor Amendment;

Negotiating contracts with industry to ensure that the resulting prices are deemed fair and reasonable;

Having full authority and accountability for signing contracts and related amendments placed by OCCAR-EA within his delegation from the Director;

Providing to the Director for his signature, contracts or amendments which are not within the terms of his delegation, accompanied by the appropriate Approving Authority’s approval;

Monitoring and managing contracts, with the close assistance of CO experts;

Approving the work performed by the contractor(s) and the related invoices;

Implementing and executing proper RM according to OCCAR-EA’s RM process through all areas of the Programme;


Overseeing and co-ordinating as necessary tests and trials conducted by the contractor(s) or the relevant authorities;

Overseeing and co-ordinating as necessary the provision of any nationally or OCCAR-provided equipment, facilities, services, information or personnel necessary for the contractor to execute the contract;

Managing all activities required by the PSs for the preparation of follow-on Programme Stages;

Approving the job description for all posts of the PD, other than the PM’s post, or, in case of a PMC, proposing the specific ToR for all the OCCAR-EA staff within the management cell (in coordination with the relevant CO Heads of Divisions) for approval by the Director;

Coordinating with CO all necessary activities for the finalization and implementation of all international arrangements and related amendments required for the Programme;

Coordinating with CO all necessary activities for the application of Programme Management best practices, including CE studies;

Implementing security within the PD premises; and

Tailoring and applying the Programme Management Functions as defined in Annex OMP 1-B.

The PM shall ensure that clear delegations of responsibility and enough “marge de manœuvre” to manage the Programme are given to make sure that tasks and risks are passed on to those who are in the best position to manage them. In particular, the PM shall ensure that, to the maximum extent possible, the responsibility for the execution of the contract is passed to the contractor(s).

The PM shall ensure that the roles of the PD/PMC multidisciplinary team are defined carefully and shall ensure that their relationship(s) with industry allows good communication without diminishing the contractor’s responsibilities.

The PM shall co-ordinate the general concept for Government Quality Assurance (GQA) performance in the Programme with the National Quality Assurance Authorities/Quality Assurance Representative of the PSs prior to the issue of the initial request for GQA.

The PM shall report on a regular basis to the Director and provide the draft Director’s reports for the PB and PC. The PM shall also report immediately any threat to the execution of the Programme with respect to timescales, costs and performance and shall propose, through the Director, alternatives and recommendations for actions, if required by the PC or the PB.

The PM shall manage the transitions within the OCCAR-managed Programme in accordance with Annex OMP 1-C in case CO is not selected for managing this task.

The PM may establish Expert Working Groups (EWGs) on specific topics, for which purpose he/she shall approach the competent national authorities through the NPCs. These EWGs shall be managed and controlled by the PM. In principle, EWGs meetings are held in the PD or PMC premises. EWGs shall be disbanded as soon as they have completed their task. Should the PSs be unable to provide suitable experts and subject to


the prior information of the PC, OCCAR-EA may contract2 for such expertise, the costs of which shall be covered within the Operational Budget allocated to the Programme Stage.

The PM should provide PSs or NPCs, upon their request, with information needed for fulfilling their national obligations relative to the management of the Programme, such as financial aspects. Information provided to PSs should conform to agreed general rules, or, when such rules do not exist, to specific needs of the requiring PS, and verified under the responsibility of the PM. Difficulties in answering PS specific and unusual needs shall be reported to the PC.

4. Roles of OCCAR-EA Central Office

In the framework of Programme Management, the CO will have the following main roles: supporting the PDs, advising the Director in Programme related issues and managing small Programmes in accordance with paragraph 6.6 of OMP 1 main part.

CO supports the PDs in order to ensure they become increasingly and continuously more efficient and effective. This supporting role shall include in particular the following:

The provision of support through a close relationship to PDs in all Programme Management disciplines/areas and other corporate areas, such as infrastructure, site and Information Communication Technology (ICT) services;

The provision, maintenance and improvement of an integrated set of procedures to give clear instructions and guidance to those involved in procurement within OCCAR-EA on how to conduct their management activities;

The monitoring of management performance and procedures application (in order to identify areas for improvement and/or innovation), and the definition and monitoring of related actions.

The secondment of staff from CO to PDs in special circumstances, including the provision of expertise during transition between Programme Stages within a Programme; and

The management of transition between Programme Stages and closure activities which cannot be performed by the PD (see Annex OMP 1-C).

When the PSs decide that a Programme has to be managed by OCCAR-EA without establishing a PD, a PMC is created in CO. In this case, specific finance mechanisms apply in accordance with OMP 10.

CO plays a key role for the integration of new Programmes / new Programme Stages into OCCAR by providing resources and contributing to the management activities aimed at launching the new Programme / Programme Stage. Involvement of CO and PD resources and/or DNEs is described in Annex OMP 1-C.

5. Roles and Responsibilities of Member and Participating States

In the framework of Programme Management, the two groups of Stakeholders involved in OCCAR institutional bodies outside OCCAR-EA are OCCAR Member States through the BoS and Participating States through the PB and PC. The main relationships between OCCAR institutional bodies concerning the management of Programmes remain applicable when a PMC is established instead of a PD.

2 The ProgD should define whether or not such contracts shall be considered as Major, in which case

prior approval of the PC is required.


The major responsibilities of the PSs are described below and include the provision of resources for the management of the Programme, the supervision/monitoring of the Programme, the provision of directions/decisions on the Programme and the attendance of empowered representatives to the relevant OCCAR meetings.

5.1 Board of Supervisors

The BoS shall decide the assignment of a Programme to OCCAR for management purposes through the signature of a PMA. BoS’ approval is also required to allow OCCAR-EA committing regular resources prior to the PMA (see OMP 2).

The BoS supervises the effective and efficient overall management of all OCCAR-managed Programmes and shall be involved if OCCAR is affected by a decision related to the management of a Programme. The BoS decides upon any deviation from OCCAR rules and regulations.

The approval of each individual Programme Administrative Budget is done, following endorsement by the relevant PCs, through the approval by the BoS of the Administrative Budget.

5.2 Programme Board

For specific issues relating to an OCCAR-managed Programme, the PB will make any high-level decision related to the Programme. In principle, the PB is formed by the BoS representative(s) of the Member State(s) participating to the Programme and, where appropriate, the representative(s) at an equivalent level of the Non-Member State(s) participating in the Programme.

If there are several ProgDs within a Programme, when discussing matters related only to a specific ProgD, the participation to the specific PB may be limited to the representatives of the concerned PSs.

In more detail, for each Programme the PB shall:

Sign the ProgD and its amendments;

Approve the HLOs of the Programme Stage and any amendments to them;

Approve the consequence of the withdrawal/change of off-takes of a PS;

Approve the appointment of the PM in case of PD;

Approve the Programme Operational Budget(s) of the Programme Stage, unless this decision is delegated to the PC;

Take Note of the OCCAR-EA Programme reports addressed to it; and

If requested, decide upon the Director’s recommendations resulting from the above reports or regarding any issue related to the Programme.

In addition to the PB representatives, the meetings of the PB are normally attended by the Director and/or his/her Deputy. Attendees may also include other staff from PSs and OCCAR-EA, and experts invited by the PB.

The PB elects its chairman, as necessary, normally for a period of one year, choosing her/him from among the nominated PB representatives. By default, the chairman of the PB shall be from the same PS as the chairman of the PC.


The PB convenes as appropriate, generally once a year. Further meetings may be called by the chairman of the PB on request by a PS. The PB meetings should, as far as practicable, take place immediately before or after the BoS meetings. OCCAR-EA provides the secretariat.

The PB shall comply with OCCAR Rules. The Director is responsible to the BoS for submitting any deviations from these.

Decisions are generally made on a unanimity basis of the concerned PSs, unless otherwise decided unanimously by the PB representatives of the concerned PSs. Exceptions from the unanimity basis include simple majority, qualified majority and reinforced qualified majority. Details about scope and type of majority to be used in a Programme Stage shall be described in the relevant ProgD.

As described in Annex OMP 3-B, each PB Chair may have to conduct investigations in the event of an allegation of fraud, malpractice or bribery related to its Programme.

5.3 Programme Committee

A PC shall be established to oversee the management of the Programme, especially in respect of achievement of the HLOs. Each PSs shall designate a representative, who may be accompanied by a national delegation. These national delegations shall be composed, as necessary, of personnel from national organisations and may also include technical experts invited by the PSs.

The following OCCAR-EA staff shall also participate in the PC meetings: the Director and/or his/her Deputy/authorised representative, the PM (or head of the PIT) and the secretary provided by the PD (or PIT); PD (PIT) and CO staff as necessary.

The designated representative shall head the national delegation and shall be the only member of each delegation to have the right to vote. None of the OCCAR-EA staff has the right to vote. Decisions shall be taken in accordance with the decision-making process described in the ProgD. If no agreement is reached, the matter shall be escalated to the PB.

The PC shall normally meet twice a year. Ad hoc meetings may also be convened by decision of the PB or at the request of the Director or of the head of a national delegation to deal with specific matters.

Meetings of the PC shall normally be held on the premises of the relevant PD or PMC, unless it is exceptionally jointly decided otherwise. The PC representative of each PS shall chair each meeting in turn or during a time period as agreed.

The following responsibilities are delegated to the PC:

The approval and the monitoring of the implementation of the ProcS based on OCCAR Rules. Any deviation shall be referred to the BoS for approval;

Taking Note of the PMP once approved by the Director, and making comments if necessary;

The approval of the CR, and any amendment, for Major Contract(s) / Major Amendment(s) as well as novel or contentious Minor Contract(s) / Minor Amendment(s);


The approval of the award of Major Contract(s) / Major Amendment(s);

The approval of the Programme management structure identifying the different sections and posts/functions. The PC shall also approve the grading for the posts of the PD, if established, on proposal by the Director;

The endorsement of the Programme Administrative Budget.

The endorsement of the final settlement of accounts after completion of each Programme Stage or after completion of the OCCAR-managed Programme;

The approval of the final sharing/disposal between the owners of special tooling and other assets purchased with the common funding, at the conclusion of the OCCAR-managed Programme, in connection with the NSAs or the DSAs as appropriate;

The certification of the completion of the Programme based on a closure document submitted by the Director; and

The approval of the Configuration changes or the launching of technical studies proposed by the PM with the support (if applicable) of a joint configuration management working group.

In taking its decisions, the PC shall not deviate from the provision of the ProgD and shall fulfil the following roles:

Overseeing the management of the Programme against the HLOs and when appropriate reporting to the PB on any specific concern;

Providing advice when appropriate to the PB concerning the recommendations made by the Director on specific events likely to impede the progress of the Programme or which require adjustments to the finance plans and/or timetables to reflect changed circumstances which may affect the HLOs;

The monitoring of the collection of levies;

The review of proposals for amendments to the ProgD and making of recommendations to the PB; this shall include in particular the examination of changes to the cost-share, off-take, withdrawal and termination;

The examination of applications from non-PSs to join or observe the Programme and making recommendations to the PB;

The consideration of proposals submitted by the Director on issues related to the management of the Programme, giving him direction as necessary, in the frame of its delegation specified above; and

Monitoring the security aspects of the Programme.

5.4 National Programme Coordinator

NPCs shall be nominated by the PSs. They should be the national counterparts of the PM and their main responsibilities shall be as follows:

They shall represent the PSs as permanent members in the PWG;

They shall provide the interface with national organisations, including military users, in particular for PWG purposes;

They shall be responsible for the management or coordination of any programme-related national task not delegated to OCCAR and for arranging


the provision of national specialists and procurement services, goods and infrastructures as defined in the ProgD;

They shall ensure that all national contributions and decisions are provided in due time to allow the Programme to progress within the planned objectives; and

They shall coordinate the harmonisation of the national GQA procedures and activities in each of the PSs as far as possible.

5.5 Programme Working Group

The PWG is an advisory/consultative body that may be set up to support the PM. The PWG is chaired by the PM and shall be composed of the NPCs as permanent members. The PWG may also include national experts and representatives of industry, if and when required.

The purpose of the PWG shall be to ensure that dialogue takes place, that information is exchanged and to discuss issues related to the Programme, in particular national approvals (including support by OCCAR-EA for safety and airworthiness aspects as relevant), risks, GFX, operational and acceptance aspects in order to achieve the HLOs.

The ToRs of the PWG shall be approved by the PC. Such ToRs must conform to OCCAR Rules. Any deviation shall be submitted to the BoS for approval.

Issues which could have an impact on the achievement of the HLOs and/or which cannot be achieved within the framework of the powers and the autonomy of the PM shall be referred to the Director.

The PWG meetings shall be convened as required by the PM or at the request of one of the NPCs. The PWG meetings are normally held in the PD or PMC premises.

5.6 National Security Authority/Designated Security Authority

The role and responsibilities of NSA or the DSA of the PSs in an OCCAR-managed Programme are addressed in OMP 11.

6. Roles and Responsibilities of Industry

Industrial organisations involved in any OCCAR procurement may consist of a prime contractor level and several sub-contractor levels, or can be formed by co-contractors.

The role of any industrial organisation is to perform the work/services required by the PSs as specified in the contracts.

7. Collaboration between OCCAR and Other International Organisations

In managing collaborative defence Programmes, OCCAR may work together with other international organisations in the European defence framework. The collaboration between OCCAR and other international organisations shall aim at providing cost-effective Programme Management services to OCCAR customers, in the frame of a mutual beneficial relationship, avoiding duplication.

OCCAR shall maintain the overall responsibilities of Programme Management on behalf of the PSs.

Annex OMP 1-B_Programme Management Functions_Issue6_20161208 Page 27 of 56

Annex OMP 1-B

Programme Management Functions

Table of Contents

1. Scope ............................................................................................................. 29

2. Grouping Management Functions .................................................................. 29

3. Management Functions .................................................................................. 30

3.1 Agreement / Contracting Processes ........................................................................................... 30 3.1.1 Programme Integration ............................................................................................... 30 3.1.2 Cost Estimation ........................................................................................................... 30 3.1.3 Contracting ................................................................................................................ 31

3.2 Organisational Programme Enabling Processes ........................................................................... 32 3.2.1 Life Cycle Model Management ...................................................................................... 32 3.2.2 OCCAR Infrastructure Management .............................................................................. 32 3.2.3 Human Resources Process ........................................................................................... 32 3.2.4 Quality Management ................................................................................................... 32

3.3 Overall Coordination................................................................................................................. 33

3.4 Programme Processes .............................................................................................................. 33 3.4.1 Planning ..................................................................................................................... 33 3.4.2 Programme Assessment .............................................................................................. 33 3.4.3 Decision Management ................................................................................................. 33 3.4.4 Risk Management ....................................................................................................... 33 3.4.5 Configuration Management .......................................................................................... 34 3.4.6 Communication Management ....................................................................................... 35 3.4.7 Reporting Process ....................................................................................................... 35 3.4.8 Stakeholder Management ............................................................................................ 35 3.4.9 Interface Management ................................................................................................ 35 3.4.10 Schedule Management ................................................................................................ 36 3.4.11 Cost Management ....................................................................................................... 36 3.4.12 Finance Management .................................................................................................. 36

3.5 Technical Processes ................................................................................................................. 37 3.5.1 Performance Management ........................................................................................... 37 3.5.2 Requirements Management ......................................................................................... 37 3.5.3 Qualification, Certification and Individual Acceptance ..................................................... 37 3.5.4 GFX Management ....................................................................................................... 39 3.5.5 Security Management .................................................................................................. 40 3.5.6 Lessons Management .................................................................................................. 40 3.5.7 ILS Management ......................................................................................................... 40 3.5.8 ISS Management ........................................................................................................ 41


Table of Figures

Figure 1: Mapping of the management functions ............................................................ 29


List of acronyms, definitions and explanations can be found in Annex OMP 1-D.


1. Scope

This Annex applies to the Programme management structure (PD or PMC) established for OCCAR-managed Programmes. It describes the management functions required for the effective and efficient management of the Programmes. Where appropriate, these functions will also apply to a PIT.

2. Grouping Management Functions

Management of Programmes entrusted to OCCAR includes several interrelated management functions. These functions are categorised by the following major processes groups: Agreement Processes, Organisational Programme Enabling Processes, Programme Processes and Technical Processes. The mapping of the management functions is given in Figure 1 below.

Figure 1: Mapping of the management functions

Agreement/Contracting Processes

3.1

Programme Integration 3.1.1

Cost Estimation

3.1.2

Contracting3.1.3

Organisational Programme Enabling

Processes

3.2

Life Cycle Model Management

3.2.1

OCCAR Infrastructure Management

3.2.2

Human Resources Process3.2.3

Quality Management3.2.4

Programme Processes3.4

Planning3.4.1

Programme Assessment 3.4.2

Decision Management3.4.3

Risk Management

3.4.4

Configuration Management

3.4.5

Communication Management

3.4.6

Reporting Process3.4.7

Stakeholder Management 3.4.8

Interface Management 3.4.9

Schedule Management

3.4.10

Cost Management 3.4.11

Finance Management 3.4.12

Technical Processes3.5

Performance Management3.5.1

Requirements Management

3.5.2

Qualification Certification and individual acceptance

3.5.3

GFX Management3.5.4

Security Management

3.5.5

Lessons Management3.5.6

ILS Management3.5.7

ISS Management3.5.8

Overall Coordination3.3


3. Management Functions

3.1 Agreement / Contracting Processes

The Agreement Processes focus on the integration of a new Programme / new Programme Stage into OCCAR and on the contractual activities leading to contract placement by OCCAR to suppliers.

3.1.1 Programme Integration

This is the process to integrate a new Programme or a new Programme Stage into OCCAR. The process is fully detailed in OMP 2. The main elements of this process are the PMA, the ProgD and the ProcS.

The PMA is a decision taken by the BoS that authorises the assignment of a Programme to OCCAR for management purposes. The decision is non-binding regarding the formal integration of a Programme into OCCAR. Formal integration will be achieved by the signature of the respective ProgD.

The ProgD is a decision taken by the PB that contains the binding details in respect of the most important aspects relevant to the Programme Stage such as the HLOs and criteria to differentiate Major from Minor Contracts. These criteria are essential to determine the Approving Authority for contracts, the contractual arrangements and the principles for price investigation and cost forecasting.

The ProcS provides a justified explanation of how procurement of goods and services is to be undertaken. It includes an assessment of the options for procurement and support, associated costs, timescales, risks and benefits involved in adopting each of the identified options. The ProcS is described in OMP 5. This document will normally be developed during the integration activities. It requires PC approval and may need to be updated to be consistent with the relevant ProgDs.

3.1.2 Cost Estimation

CE must be addressed at all stages of a Programme in order to support the decision making process. The objectives of CE in OCCAR-managed Programmes are the following:

Provide cost estimates to support contract negotiation;

Provide LCC estimates for the Programme;

Inform decision makers of the likely future cost consequences associated to the various alternatives under consideration during trade-offs; and

Support cost/budget planning processes by providing cost estimate profiles.

In order to influence the Defence System (e.g. design, operational use, support strategy), CE should be implemented as early as possible in the Defence System Life Cycle.

OCCAR-EA will offer LCC estimates whenever PSs ask for a major deviation from common configuration. This will allow evaluation of the impact of the deviation.


3.1.3 Contracting

This is the process by which industry is contracted to deliver the Defence System or the service. The contracting process is detailed in OMP 5 and OMP 6.

Contracting is implemented by means of the placement and subsequent management of contracts signed between the Director (in the name and on behalf of the PS) and the representatives of the selected contractor(s).

3.1.3.1 Contract Placement

Each contract requires an approved CR unless it is already fully covered in the ProcS. The principles for placement of contracts and the details of the associated process are contained in OMP 5.

3.1.3.2 Contract Management

Contract management consists of all the necessary activities to ensure that the agreements reached in the contract are adhered to. Such activities are grouped into the following areas:

Delivery management ensures that the object of the contract is delivered as agreed, to the required quality standards, timelines and level of performance;

Contract administration deals with the formal governance of the contract, including all the changes that will be introduced, according to OMP 5.

The set of OCCAR's applicable standard contractual terms and conditions is contained in Annex OMP 6-A.

3.1.3.3 Pricing

An independent cost estimate should be performed by OCCAR-EA to provide for a better basis for the negotiations (see Cost Estimation at paragraph 3.1.2).

The proper and effective application of competition should produce a price which precludes the requirement for further analysis. An assessment of the effectiveness of the competition shall be performed. Prices by major item and by main sub-contract will be requested during the tendering process where appropriate. The right to investigate pricing for amendments to the contract will be preserved.

In case of single/sole source procurement, OCCAR-EA may request national authorities to perform a formal price investigation and/or audit of the quotation (see Annex OMP 6-B). Rights to perform price investigation should be flown down to sub-contractors (see OMP 5 & 6).


3.2 Organisational Programme Enabling Processes

3.2.1 Life Cycle Model Management

The management of the life cycle model is performed in accordance with the Defence System Life Cycle Phases identified in section 5 of main part OMP 1.

3.2.2 OCCAR Infrastructure Management

Infrastructure is required to host OCCAR-EA Organisational Units and must be fit for purpose. It must provide space and services (including meeting room facilities, ICT, etc.) required to manage Programmes.

3.2.3 Human Resources Process

The Human Resource (HR) function defines the process to organise and manage the resources of the PDs or the PMCs.

In the PD, the resources are fully dedicated to the Programme whereas in the PMC, the team members will normally have corporate tasks in addition to the programme tasks (or tasks from other PMC).

It is important to define the size and structure of the PD/PMC as early as possible. The level of resources may change during the Programme Stage.

The main HR management processes defined in OCCAR are to establish HR planning, recruit staff (see OMP 9), develop the team (including learning and development activities), and manage the staff with the annual setting of objectives and reports as per OMP 8.

3.2.4 Quality Management

Quality Management in OCCAR-managed Programmes is performed in accordance with the ISO 9001 standard. A set of coherent and integrated processes and procedures are adopted to ensure that customer requirements are met within scope, schedule and budget, striving for continuous improvement. This set may be based on international standards (e.g. NATO-AQAP).

3.2.4.1 Quality Planning

All OCCAR-managed Programmes ensure that appropriate quality standards are identified and determine how these are to be satisfied. This activity is completed in parallel with other planning activities and is captured in the quality management plan.

3.2.4.2 Quality Assurance

PDs maintain Quality Management Systems (QMS) that contribute to the overall OCCAR-EA management system which is certified to the ISO 9001 standard by an external accredited body. Certification is performed on a 3-year cycle with follow-up audits conducted annually. All PDs are subjected to external verification (certification or follow-up audit) within the 3-year cycle.

GQA is carried out in accordance with the provisions of OMP 7.


3.2.4.3 Quality Control

Internal audit is used as a tool to drive the improvement of the OCCAR-EA QMS and performance. A multi-year internal audit programme plan is produced by the internal audit coordinator. All OCCAR-EA Organisational Units are subject to audit, over a predetermined period of time, of both their processes/procedures and maintenance of records in a structured and systematic manner.

3.3 Overall Coordination

Overall Coordination includes identifying, analysing, planning, organising, directing, monitoring and controlling of all activities and elements of the Programme Stages. Furthermore it comprises the setup, synchronisation and maintenance of the necessary processes for the successful achievement of the HLOs. It includes all the Agreement, Organisational Programme Enabling, Programme and Technical Processes insofar applicable.

3.4 Programme Processes

3.4.1 Planning

Planning activities apply to any management process. Once the HLOs have been identified and agreed, a PMP is established. The PMP shall include how the management functions described in this Annex are implemented in the Programme with particular emphasis on the achievements of all HLOs and the management resources for achieving these targets. The initial plans will be reviewed periodically and updated as required. In particular the PMP provides the targets/milestones against which the Programme Stage will be executed and measured, including maturity criteria for any Defence System Life Cycle Phase if applicable.

3.4.2 Programme Assessment

The process of Programme Assessment is performed continuously by the PM in evaluating the status of the Programme Stage against the HLOs and the targets/milestones provided in the PMP. Specific checking points are the PC and PB meetings during which the Director provides progress reports to the PSs. If applicable the progress of a Programme transition between Defence System Life Cycle Phases is assessed against the maturity criteria specified in the PMP.

3.4.3 Decision Management

The decision-making process is addressed by OMP 3 and by the ProgD. For a Programme, the two decision-making bodies are the PB and the PC. Decisions are documented in in-committee and ex-committee Decision Sheets.

PB decisions are processed by BDSPRO while PC decisions are processed directly by the PD or the PMC.

3.4.4 Risk Management

It is assumed that RM activities are performed by the potential PSs even before their formal decision to entrust OCCAR with a new Programme.


Indeed, RM is an iterative and continuous process that should start as early as possible when a new Programme or Programme Stage is envisaged. As soon as OCCAR-EA is officially involved (i.e. after PMA approval), OCCAR-EA will consolidate and continue all RM aspects covering both threats and opportunities.

All stakeholders are involved in the RM process ensuring that all areas of a Programme are covered, threats and opportunities of all subject categories are managed and individual expertises exploited to ensure that the objectives of the ProgD are met.

RM deals with uncertainties of the future and hence provides essential support to decision making at all management levels. The process consists of the following 5 steps:

Risk management planning;

Risk identification;

Risk analysis;

Risk mitigation and response plan; and

Risk monitoring and control.

3.4.5 Configuration Management

Configuration Management (CM) applies to the complete Defence System Life Cycle and provides control and visibility of its functional and physical attributes. It verifies that a Defence System is identified and described in sufficient detail to support its projected life cycle.

The purpose of CM is to:

Provide an approach for Configuration control through management of the design, development, manufacture, test and acceptance processes, including installation, maintenance and support, and disposal; and

Provide functional and physical characteristics (form, fit and functions) identification for every Configuration Item (CI). It records all changes of any such properties and their implementation status, hence ensuring overall traceability of Configuration.

OCCAR’s policy for CM is as follows:

The PSs should strive for Configuration commonality to the maximum extent practicable and for keeping such commonality throughout the operational life of the Defence System;

Establishment and evolution of the Configuration baseline should be controlled and managed through a single joint body for Configuration control, under PD’s control (unless otherwise specified in the ProgD), in line with the agreed share of responsibilities and authority of the PSs, contractors and OCCAR-EA.

Proposals for changes to the Configuration baseline should provide the PSs with all the information required to assess the impact on technical, operational, maintenance and CE aspects;


Contracts placed by OCCAR include appropriate requirements in line with the above rules.

OCCAR’s implementation of CM is as follows:

A joint CM Working Group (WG) should be established by the PM to analyse changes to the Configuration of the Defence System. This CM WG will assess the impacts on cost, time and performance of the changes for decisions to be taken at PC level.

3.4.6 Communication Management

In order to ensure efficient communication, both internally and externally, a programme communication strategy is developed as part of the early planning of the Programme. This strategy is based on the general OCCAR communication strategy and its relevant provisions.

OCCAR-EA has to facilitate information exchange between Programme’s Stakeholders whilst applying appropriate data processing and protection. OCCAR-EA supports and where needed develops the appropriate interfaces with PSs’ and other Stakeholders’ information systems.

3.4.7 Reporting Process

The aim of the reporting process to PB and PC is to provide all the information required allowing the PSs to support the process of making decisions on the Programme. Reporting is mainly focused on the achievement of Programme HLOs, Programme risks, resources and predicted performance.

3.4.8 Stakeholder Management

Internal and external Stakeholders are identified as part of the early planning of the Programme, as well as their levels of interest, expectations, importance and influence.

Once the Stakeholders have been identified, the PM ensures that proper communication is performed so that each Stakeholder is provided with the relevant information, in a timely manner, in order to fulfil his role in the Programme.

Relationships and decision making processes with related national and international Programmes outside the control of OCCAR, but influencing the Programme, require close monitoring by OCCAR-EA.

3.4.9 Interface Management

Interface Management includes identification and management of the relevant interfaces of the Programme. These interfaces need careful definition in order to manage constraints, while maintaining the ability to achieve the Programme’s objectives. The multitude of internal and external technical, programmatic and administrative interfaces includes areas such as:

Subordinate projects of the Programme;

GFX;


Communication and control;

Other national Programmes;

PSs’ planning and budgeting processes;

GQA; and

Certification and accreditation authorities.

3.4.10 Schedule Management

The schedule of a Programme Stage is the result of carefully decomposing the Programme into the required activities, sequencing them, estimating their duration in order to meet the Programme HLOs referring to schedule as defined in the corresponding ProgD. The schedule is developed taking into account constraints such as the availability of PSs’ commitments, resources and dependencies among activities, and should include an adequate and reasonable risk margin.

An initial schedule should be created prior to integrating the Programme Stage into OCCAR, i.e. prior to the signature of the ProgD. It will evolve iteratively, relying on results from request for information or request for proposal and, depending on complexity, also from feasibility or risk reduction studies.

This schedule shall be reviewed after ProgD signature to include the necessary high level milestones consistent with the Programme schedule HLOs. From these milestones, the detailed schedule will be developed by industry which will form part of the contract. The contractual schedule will be managed by industry and monitored by the PM.

Early awareness and reporting of schedule risks and variances are essential for all the Stakeholders and particularly for PSs as this will have an impact on their budget planning and on the delivery dates of the Defence System.

3.4.11 Cost Management

Cost Management consists of a set of activities oriented to estimate (see paragraph 3.1.2), budget and control the costs to ensure that the Programme can be completed within the approved financial commitments as defined in the ProgD.

3.4.12 Finance Management

Finance Management covers the following aspects:

Regular forecasts of the total cost of the Programme Stage to ensure that the ProgD financial ceiling fixed by the PSs will not be exceeded at closure;

Establishment of yearly budgets per ProgD to cover the administrative and operational costs for one year and forecasts for the following years;

Preparation of regular forecasts of outturn, in year, to ensure that the annual budget will not be exceeded at closure and to set up a reliable basis for the issuing of Call for Funds (CFFs);

Cash management, in particular the calculation of the amount of funds


to be called for and the amounts of extra funds needed, if any; and

Recording of invoices and of actual payments to check that the budget has been properly executed.

OCCAR-EA financial activities are implemented through financial rules, which are detailed in OMP 10.

3.5 Technical Processes

3.5.1 Performance Management

The management of performance is based on the monitoring of HLOs that should be identified for each sub-system. The complexity of the Defence System is a key factor in determining the number of performance HLOs to be defined in the ProgD. These performance HLOs shall be reported to the PS at each PB and PC meetings. Additionally, specific reports should be issued at the time of Significant Events (e.g. System Requirement Review, Formal Qualification Review, Functional Configuration Audit / Physical Configuration Audit) as required.

Significant Events should cover system and sub-system levels, in accordance with their peculiarities and the related technical specifications. Stakeholders involved in these events are OCCAR-EA, the prime contractor and the relevant national authorities. WGs dealing with specific technical issues should be established. These WGs will be chaired by OCCAR-EA and formed by specialists from the PSs, and may include representatives from the prime contractor and sub-contractors.

Instruments used to perform and support Significant Events are the contract(s) between OCCAR and the prime contractor(s) and as agreed by the PSs.

3.5.2 Requirements Management

Requirements Management starts before the Programme is integrated into OCCAR. It also implies the establishment and maintenance of a common understanding between the programme team (PIT, PD or PMC) and the PSs and/or contractor concerning the outputs of the Programme.

Requirements Management encompasses the processes carried out throughout the Defence System Life Cycle in order to maintain traceability. The requirements should be SMART (Specific, Measurable, Achievable, Realistic, and Time-related) and if possible captured before the Programme is entrusted to OCCAR.

3.5.3 Qualification, Certification and Individual Acceptance

The application of this group of management functions is very much depending on the type of Defence System. For each Programme, the qualification, certification and individual acceptance process is tailored, in the early phases of the Programme, to the needs of the Defence System. A common understanding between the relevant Stakeholders is important before entering into contractual commitments.


3.5.3.1 Terminology

Misunderstandings among Stakeholders are often related to terminology being applied with a different meaning. OCCAR-EA establishes the common definitions needed for the qualification, certification and acceptance processes considering the peculiarities of the Defence System. These definitions will be used in all documents relevant for the management of the concerned Programme. The use of internationally recognised definitions should be promoted.

3.5.3.2 Qualification

The qualification of a product constitutes the process of verifying that a Defence System complies with a specified set of requirements (namely: Function, Interface, Environment, EMI/EMC, TEMPEST, ammunition safety, COMSEC etc.) taking into account its intended operational use, as well as verification of compliance to airworthiness, seaworthiness or traffic homologation and other regulations depending on the nature of the Defence System.

The qualification process follows four major steps:

Planning qualification, which should occur as early as possible;

Defining the qualification procedure, including procedures for Waivers/Deviations;

Performing qualification tests;

Processing of Waivers/Deviations.

The contractor notifies (in accordance with the contract) the start of the qualification to allow the availability of the required experts and GFX. Qualification tests begin once the contractor presents the screened mature Defence System (complete or part of it). During the qualification tests, the Defence System Configuration may evolve because of the correction of the deficiencies found. Non compliances may be raised as Waivers/Deviations and processed according to the agreed procedure.

OCCAR-EA, on behalf of, and in coordination with the PSs will accept, conditionally accept, or reject the Waivers/Deviations and formally document the decision. The qualification process for the specific Configuration of the Defence System is closed once the Defence System completes all qualification tests without any rejected Waiver/Deviation.

Changes to a qualified Configuration of the Defence System leads to complementary qualification activities.

3.5.3.3 Certification

Certification consists of the process of a national authority certifying that the Configuration of the Defence System complies with the applicable regulations especially in the area of the airworthiness, seaworthiness or traffic homologation. In some areas this is also referred to as accreditation (e.g. TEMPEST, COMSEC, and COMPUSEC).

Certificates are issued by the competent authority on the basis of the


qualification tests or additional test as required. Achieving the required certificates is a prerequisite for the Defence System to be cleared for its intended use. However, based on national legislation, military authorities may decide to authorise the use of the Defence System although certification is still ongoing.

Changes to a certified Configuration of the Defence System leads to complementary certification activities.

The PSs involve their national certification authorities/representatives for the review of the certification provisions contained in ProgDs and OCCAR contracts.

The PM co-ordinates the general concept and resulting activities for certification in the Programme with the national certification authorities/representatives of the PSs prior to and during contract execution, to ensure particularly the consistency between civil and military certification requirements and activities.

The national certification authorities/representatives of the PSs should harmonise their certification procedures and activities within the Programme as far as possible, aiming especially at mutual recognition among PSs. The costs of those activities will be balanced in accordance with the Programme MoU and the ProgD.

3.5.3.4 Individual Acceptance

Similarly to qualification, the acceptance process includes four steps:

Planning acceptance;

Defining the acceptance procedure;

Performing acceptance tests; and

Processing of acceptance Waivers/Deviations.

The individual acceptance is performed to demonstrate that the delivered item is compliant to contractual Configuration. During the acceptance process, Waivers/Deviations need to undergo a formal process in which OCCAR-EA, on behalf of and in coordination and agreement with the PSs, accepts, conditionally accepts or rejects them. Accepted or conditionally accepted Waivers/Deviations will be taken into account during acceptance.

The process is completed when all the Waivers/Deviations are accepted. The acceptance will trigger the transfer of property from the contractor to the receiving PS.

3.5.4 GFX Management

GFX includes Government Furnished Equipment (GFE), - Services (GFS), - Facilities (GFF), - Information (GFI), and - Personnel (GFP) and needs to be provided in a timely manner by the PSs. OCCAR-EA coordinates the provision of GFX to industry. GFX requirements, if known, will be detailed in the ProgD (see OMP 2). If not, these will have to be identified by OCCAR-EA with the support of the PS and approved by the PC.


Liability in respect of any financial consequence resulting from the failure of a PS to deliver GFX shall be stated in the relevant ProgD and managed accordingly.

The PSs advise on the return/disposal instructions of GFX with the PC deciding on the sharing of any jointly owned GFX.

OCCAR-EA ensures that GFX provisions in the contracts are consistent with the relevant ProgDs, the decisions of the PC, and are in accordance with the relevant OMPs. OCCAR-EA gives consideration on the need for confidentiality provisions where intellectual property rights apply to GFX.

The contractor is responsible for the safe custody and due return of GFX or, where applicable, the integration and overall system performance associated with any GFE.

The GFX is marked as being the property of the providing PS(s). The contractor keeps a register and utilisation account of GFX which includes any special tooling to be treated as GFX under the provisions of the relevant contract. The register is available for audit.

Unless otherwise agreed, PSs will be responsible for carrying out audits on the GFX they provide.

3.5.5 Security Management

The Security Management within a Programme will follow the principles of OMP 11. Additional or more detailed security provisions are set in the Programme Security Instructions (PSI, see OMP 11).

The handling of unclassified sensitive information is covered by OMP 12.

3.5.6 Lessons Management

All OCCAR-managed Programmes will apply the process of learning from experience by identifying lessons derived from OCCAR-EA’s management processes and the relation to contractors, CO, OCCAR Committees, national authorities/representatives or WGs. A lessons learned report should be generated at the closure time of any Programme Stage.

3.5.7 ILS Management

TLM requires integrating logistics and procurement not only at the start of the IS phase of a Defence System but from the start of the Defence System Life Cycle. This is achieved by the rigorous and structured application of ILS which aims to minimise the total costs throughout the Programme while ensuring that the Defence System meets the required operational performance. ILS objectives are:

Influence the design early enough to be cost-effective for logistic purposes and disposal including issues such as environmental impact, safety impact, etc. Design influence is achieved through Logistic Support Analysis (LSA) and LCC;

Identify, develop and acquire the operational and support resources for the use of the Defence System in the intended environment, enabling it


to deliver its required capability;

Provide the ISS services for the achievement of the required operational performance at the optimum LCC.

To achieve its objectives, ILS addresses the following topics which are defined in detail in the OCCAR-EA ISS Guide:

Supply Support;

Technical Information and Data;

Maintenance Planning;

Support and Test Equipment (ST&E);

Reliability, Maintainability & Testability (RM&T);

Facilities and Infrastructure;

Packaging, Handling, Storage and Transportation (PHS&T);

Training and Training Equipment (TTE);

Manpower and Human Factors;

Software Support;

In-Service Monitoring;

Life Cycle Costing;

Obsolescence Management;

Configuration Management; and

Disposal Management.

3.5.8 ISS Management

ISS management aims at supporting and maintaining the Defence System’s ability to fulfil operational capability at the required level. In addition to the management of ILS functions, the following additional ISS management functions are to be taken into account:

Technical Support Services (TSS);

Technical Event Management;

Post Design Services (PDS); and

Maintenance Management.

These functions are described in detail in the OCCAR-EA ISS Guide.


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Annex OMP 1-C_Transition in an OCCAR-managed Programme_Issue6_20161208 Page 43 of 56

Annex OMP 1-C

Transitions in an OCCAR-managed Programme

Table of Contents

1. Scope and Purpose ......................................................................................... 44

2. Transition Management ................................................................................. 44

2.1 Transition Principles ................................................................................................................. 44

2.2 Transition Strategy ................................................................................................................... 45

2.3 Transition Management Plan ..................................................................................................... 45

3. Transition between Programme Stages ......................................................... 46

3.1 Process Flow leading to a new Programme Stage ........................................................................ 46 3.2 Activities’ Owners ..................................................................................................................... 47

4. Closure of the last Programme Stage with or without Transition to an External Entity ....................................................................................................................... 48

List of tables

Table 1: Transition activities’ owners .............................................................................. 47

List of figures

Figure 1: Transition process flow ................................................................................... 46




1. Scope and Purpose

Annex OMP 1-C concentrates on the management activities related to the transition between Programme Stages (generally the closure of a Programme Stage and the integration of the follow-on Programme Stage). Closure of the last Programme Stage with or without transition to an external entity is covered as well.

The terminology “Transition” used hereafter encompasses all the activities potentially to be performed, which can be summarized as follows:

Remaining activities from the closed Programme Stage;

Integration activities related to the new Programme Stage; and

Preparatory work1 for the new Programme Stage activities.

The purpose of this Annex is to provide the principle to be implemented by OCCAR.

It does not cover the integration of new Programmes into OCCAR, unless there is a strong link with an existing OCCAR-managed Programme. The procedure for the integration of new Programme, including the establishment of a PIT, is covered by OMP 2 and is not addressed in this Annex.

2. Transition Management

2.1 Transition Principles

The following list provides the main principles to be applied when preparing Transitions.

A lead shall be appointed to manage Transition from either within the PD or within PMSD;

A Transition strategy shall be developed in the PMP;

A Transition Management Plan (TMP) shall be co-developed between the PD/PMC and PMSD;

The use of existing resources shall be based on actual background/experience;

Duplication of resources between the PD/PMC and CO should be avoided; and

The set-up of a PIT should only be considered in the absence of a PD/PMC.

1 Work performed to prepare new Programme Stage activities in addition to the integration activities. Its scope

will vary from Programme Stage to Programme Stage.


2.2 Transition Strategy

As stated in Annex OMP 1-A section 3, the PM is responsible for producing a PMP. Such PMP includes a section dedicated to the “Future Course of the Programme” with a 2 to 3-year vision.

The PM shall use this section to develop and propose a strategy for the next Transition (integration of new Programme Stages, Programme Stage closure, or Programme transfer to another entity) with the support of PMSD if requested. PMSD will review the proposed strategy during the PMP internal staffing.

2.3 Transition Management Plan

A TMP shall be co-developed by the PD/PMC and PMSD to cover as a minimum the following elements:

Closure/remaining activities (including corresponding workload);

Manning level;

Allocation of activities between PD and CO (depending on the ProgD/PMA scope) as well as PSs and potentially other external entity;

Identification of significant risks; and

Any need for PB and/or BoS approval prior to implementation of this TMP.

The TMP shall be tailored to the complexity of the OCCAR-managed Programme and to the scope of the Transition. It shall follow the principles laid out in OMPs 1, 2 and 3 as well as in the OCCAR-EA internal procedures and guidelines issued under the responsibility of the Director.

PMSD shall ensure that the planned CO resources at the time of the transition are compatible and commensurate with the proposed work allocation.

This plan shall be endorsed at PC level. However, its implementation may require prior additional PB decisions and/or BoS decisions (e.g. PMC involvement, CO tasking).


3. Transition between Programme Stages

3.1 Process Flow leading to a new Programme Stage

Figure below provides a schematic representation of the Transition process flow. It leads to two basic work allocations that are described further in paragraph 3.2.

Figure 1: Transition process flow

NewProgramme Stage

activities covered bya PMA?

Are Transitionactivities linked to an

existing OCCAR-managedProgramme?

CO is

authorised

to commit

resources

Is the involvementof the PD/PMC covered by an

existing ProgD orPB decision?

NO

NO

NOYES

YES

YES

CASE 1

CO and PD/PMC jointly manage

Transition

Is theinvolvement

of the PD/PMCauthorised by

the PB*?

CASE 2

CO* leads and

performs allTransition activities

YES

Update PMA or approve new PMA

or get BoS decision

New PB decision

requested(ProgD update or specific decision)

NO

Integration of totally new and independent

Programme

See OMP2

* PMC involvement in “Transition

activities” and CO involvement in“remaining activities” may requireprior BoS approval. See paragraph 2.3.


3.2 Activities’ Owners

Table 1 below identifies the owners of the main Transition activities for the two cases identified in Figure 1.

Activities CASE 1 CASE 2

Remaining activities

from the closed

Programme Stage.

The PD/PMC performs all

activities.

CO* performs all the activities (no

PD/PMC exists or it is not allowed to do so).

It is essential that the Transition Management Plan include an

assessment of the associated

workload to ensure that CO has sufficient resources (possibly with

DNE & nations support).

Preparation /

amendment of a

ProgD and associated potential documents

(LoO/LoA and PMA) for the new

Programme Stage

CO (PMSD) leads the activities

with the support of the

PD/PMC.

CO (PMSD) performs all activities.

Security Agreement

CO (CSD) leads the activities

with the support of CO (PMSD) and the PD/PMC.

CO (CSD) leads the activities with the only support of CO (PMSD).

Other areas such as

commercial (e.g. CR / ProcS / RFI / ITT),

PSI, HR …

The PD/PMC performs all activities.

CO is fully involved as part of the formal internal staffing

process.

CO* performs all the activities (no

PD/PMC exists or it is not allowed to do so).

It is essential that the Transition Management Plan include an

assessment of the associated workload to ensure that CO has

sufficient resources (possibly with

DNE & nations support).

* CO tasking may require prior additional BoS decisions. Management of the Transition activities still follow OMP 1 normal decision process (i.e. PB and PC decisions as relevant).

Table 1: Transition activities’ owners

Notes:

MoUs are the domain of the PSs, however to preserve consistency with future ProgDs, OCCAR-EA needs to be involved as soon as it is feasible. OCCAR-EA will be represented by CO (PMSD) with the support of the PD/PMC if available.

The tasks’ repartition of Case 1 is the best option to efficiently manage the Transition between Programme Stages and should therefore be aimed at by OCCAR and by the PSs. However, it mainly relies on PD/PMC continuity and requires timely planning of ProgD extensions or new ProgD signatures as well as proper tasking (see OMP 2).


4. Closure of the last Programme Stage with or without Transition to an External Entity

An assessment of the potential remaining activities shall be performed prior to the closure of the PD to propose the most appropriate split of activities between OCCAR-EA, the PSs and potentially the external entity. The management of the remaining activities assigned to OCCAR-EA may require a BoS decision to authorise the regular commitment of CO resources who are normally involved in other programme management and support activities.

Moreover, in case of a transition to an external entity and in line with OCCAR-EA’s TLM approach, the PD/PMC should be mandated to liaise with the future management entity to smooth the transfer process. This will ultimately benefit the PSs and therefore such tasking should be included in the ProgD or covered by a separate PB decision.

Annex OMP 1-D_Acronyms_Definitions and Explanations_Issue6_20161208 Page 49 of 56

Annex OMP 1-D

Acronyms, Definitions and Explanations

Table of Contents

1. Acronyms ....................................................................................................... 50

2. Definitions and Explanations.......................................................................... 52


1. Acronyms

Name Definitions / Explanations

BDSPRO Business Development Strategy, Planning & Reporting Office

BoS Board of Supervisors

CE Cost Estimation

CFF Call for Funds

CI Configuration Item

CM Configuration Management

CO OCCAR-EA Central Office

COMPUSEC Computer Security

COMSEC Communication Security

CR Contract Route

CSD Corporate Support Division

DNE Detached National Expert

DSA Designated Security Authority

EDA European Defence Agency

EMC Electro Magnetic Compatibility

EMI Electro Magnetic Interference

EWG Expert Working Group

FD Finance Division

FTPC Future Tasks and Policy Committee

GB Global Balance

GFE Government Furnished Equipment

GFF Government Furnished Facility

GFI Government Furnished Information

GFP Government Furnished Personnel

GFS Government Furnished Service

GFX GFX includes GFE, GFF, GFI, GFP and GFS

GQA Government Quality Assurance

HLOs High Level Objectives

HR Human Resources

ICT Information Communication Technology

ILS Integrated Logistic Support

IS In-Service

ISO International Standard Organisation

ISS In-Service Support

ITT Invitation to Tender

LCC Life Cycle Cost

LoA Letter of Acceptance



LoO Letter of Offer

LSA Logistic Support Analysis

MoU Memorandum of Understanding

NATO North Atlantic Treaty Organisation

NPC National Programme Coordinator

NQAA National Quality Assurance Authority

NSA National Security Authority

OCCAR Organisation Conjointe de Coopération en matière d’ARmement

OCCAR-EA OCCAR Executive Administration

OMP OCCAR Management Procedure

PB Programme Board

PC Programme Committee

PD Programme Division

PIT Programme Integration Team

PM Programme Manager

PMA Programme Management Authorisation

PMC Programme Management Cell

PMP Programme Management Plan

PMSD Programme Management Support Division

ProcS Procurement Strategy

ProgD Programme Decision

PS Participating State

PSI Programme Security Instruction

PWG Programme Working Group

QMS Quality Management System

RFI Request for Information

RM Risk Management

SMART Specific, Measurable, Achievable, Realistic and Time-related

TDP Technology Demonstrator Programme

TEMPEST Telecommunications and Electrical Machinery Protected from Emanations Security

TLM Through Life Management

TMP Transition Management Plan

ToR Terms of Reference

VOP Variation of Price

WG Working Group


2. Definitions and Explanations


Administrative Budget

The AB (Administrative Budget) is the amount of expenditure authorised to cover activities associated with the internal functioning of OCCAR-EA for one year. It corresponds to the “administrative section” used in article 35 of the Convention. It is inclusive of all Programme Administrative Budgets.

Approving Authority The body responsible for approving award of a contract.

Board of Supervisors (BoS)

The highest decision-making level within OCCAR which comprises of the ministers of defence or their delegates from each Member State. It directs and supervises the Executive Administration and the corporate committees.

Closure Activities

The work to be performed to support the controlled end of the last Programme Stage. This includes in particular the reallocation of residual work, rights and obligations outstanding at the end of this Programme Stage.

Configuration The functional and physical characteristics of a materiel as described in its technical documentation and later achieved in the materiel.

Configuration Item (CI)

Any hardware, software, or combination of both that satisfies an end use function and is designated for separate configuration management. Configuration Items are typically referred to by an alphanumeric identifier which also serves as the unchanging base for the assignment of serial numbers to uniquely identify individual units of the Configuration Item.

Contract Route (CR)

OCCAR document detailing all the aspects related to the procurement process leading to the award of a specific contract/amendment, consistent with the relevant Procurement Strategy. This includes appropriate justification for the selection of the method of procurement as the best option to achieve value for money in that contract/amendment.

Defence System The result of the design, development and procurement of a Programme for defence, including all elements to use, support and dispose of it. This also may include services.

Defence System Life Cycle The complete set of phases for a Defence System comprising of Preparation, Design, Development, Production, In-Service and Disposal.

Functional Configuration Audit

The formal examination of functional characteristics of a configuration item, or system to verify that the item has achieved the requirements specified in its functional and/or allocated configuration documentation.

Government Furnished Equipment (GFE)

Any equipment (e.g. test equipment, tools, embodiment items) that the Participating States agree, as part of the contract, to provide to industry.



Government Quality Assurance (GQA)

Process by which the appropriate national authorities establish confidence that the contractual requirements relating to quality are met.

High Level Objectives (HLOs)

The objectives set in terms of cost, time and performance of the work to be performed under a Programme Decision.

Life Cycle Cost (LCC)

It consists of all direct costs plus indirect-variable costs associated with the procurement, operating & support and disposal of the system. Indirect costs may include linked costs such as additional common support equipment, additional administrative personnel and non-linked costs such as new recruiters to recruit additional personnel. This does not include indirect costs related to activities or resources that are not affected by the introduction of the system.

Logistic Support Analysis (LSA)

The selective application of scientific and engineering analyses, during the system engineering and design process to assist in complying with supportability and other Integrated Logistic Support objectives.

Major Contract / Major Amendment

As defined in the Programme Decision, these are contracts / amendments which require formal approval of the concerned Programme Committee members prior to award.

Maturity Gate Decision point consisting of a set of criteria to be met, allowing a Defence System to transition to its next life cycle phase.

Member State See “OCCAR Member State”

Memorandum of Understanding (MOU)

Arrangement between PSs in respect of a collaborative Programme, a specific phase of a Programme, a project, a Technology Demonstrator Programme or a study.

Minor Contract / Minor Amendment

Any contract / amendment not defined as Major.

Non-Member State Any State that is not a Member State of OCCAR. This term is also used in the context of this OMP to refer to any international organisation or institution, except OCCAR.

Note (or Noted) See “To Take Note”

OCCAR Executive Administration (OCCAR-EA)

Standing executive body of OCCAR, headed by the OCCAR-EA Director, responsible for the day-to-day management in accordance with regulations adopted by the Board of Supervisors (BoS). The Executive Administration comprises the Central Office and Programme Divisions.

OCCAR Management Procedures (OMPs)

Documents which gives rules and policy from the Board of Supervisors for the management of OCCAR and OCCAR-managed Programmes.

OCCAR Member State (Also referred to as Member State)

A State that has ratified the OCCAR Convention and signed the OCCAR Security Agreement.



OCCAR Rules

The OCCAR Convention, the OCCAR Security Agreement, including relevant decisions pertaining to their interpretation, and OCCAR procedures (including all principles, strategies and policies). The version of these documents to apply is the one in force at the time of application.

OCCAR-EA Internal Control Process

Integral process, implemented to by all OCCAR-EA staff, applied in strategy setting and across OCCAR-EA, designed to address potential risks that may affect OCCAR-EA, to provide reasonable assurance regarding the achievement of OCCAR-EA’s objectives.

OCCAR-EA Organisational Units

The Directorate, BDSPRO, the Central Office Divisions and the Programme Divisions.

OCCAR-EA’s TLM

The approach of managing a programme throughout its whole life cycle, in a use-centric way. Through Life Management is achieved by applying and integrating best practice management techniques in a coherent manner across all system aspects in order to deliver, sustain and dispose the required cost-effective defence system.

OCCAR-managed Programme

A Programme assigned to OCCAR for management from the signature of the first Programme Decision by the Programme Board.

Participating State (PS) also referred to as Programme Participating State

A State (Member or Non-Member of OCCAR) which participates in an OCCAR-managed Programme as defined in the corresponding Programme Management Authorisation. This term is also used in the context of this OMP to refer to any international organisation or institution which participates in an OCCAR-managed Programme as defined in the corresponding Programme Management Authorisation.

Phase(s) Any of the Defence System Life Cycle phase.

Physical Configuration Audit

The formal examination of the "as-built" configuration of a configuration item against its technical documentation to establish or verify the configuration item's system baseline.

Procurement Strategy (ProcS)

OCCAR document detailing and justifying the best way to satisfy the Participating States declared requirements through the achievement of the most economically advantageous solution, while ensuring the application of the OCCAR Rules. It includes an assessment of the possible procurement and support options, in terms of cost (including Life Cycle Cost estimates), timescales, risks and benefits.

Programme A group of related projects managed in a coordinated way.

Programme Administrative Budget

The amount of expenditure authorised to cover the administrative costs of a Programme Stage for one year. It is inclusive of VAT and VOP where this is applicable.



Programme Board (PB)

The highest OCCAR decision body in an OCCAR-managed

Programme.

Roles and responsibilities of the Programme Board are described in paragraph Error! Reference source not found. of Annex OMP 1-A.

Programme Committee (PC)

OCCAR decision body established to oversee the running of an OCCAR-managed Programme.

Roles and responsibilities of the Programme Committee are

described in paragraph Error! Reference source not found. of Annex OMP 1-A.

Programme Decision (ProgD)

A legally binding decision approved and signed by the representatives to the Programme Board of the States participating in the activities covered by this Programme Decision, which sets out all the commitments of these States. A Programme Decision may cover the whole or part of a Programme. Each Programme Decision is associated to a unique Programme Stage.

Programme Division (PD)

A multi-disciplinary team in charge of the management of one or more Programme Stages.

Programme Management

The planning, organisation, monitoring and control of all aspects of a project and the motivation of all involved to achieve the project objectives safely and within agreed time, cost and performance criteria.

Programme Management Authorisation (PMA)

A decision taken by the Board of Supervisors to authorise the assignment of a Programme to OCCAR for management purposes.

The decision is non-binding regarding the formal integration of a Programme into OCCAR. Formal integration will be achieved by the signature of the respective Programme Decision.

Programme Operational Budget

The amount of expenditure authorised to cover the operational costs of a Programme Stage for one year. It is inclusive of VAT and VOP where this is applicable.

Programme Stage

Part of a programme management of which has been assigned to OCCAR-EA through the signature of a specific Programme Decision.

A Programme Stage can cover one or more Defence System Life Cycle Phase or can cover only a part of a Defence System Life Cycle Phase.

Quality Management System (QMS)

A system used to direct and control an organisation with regard to quality.

Risk An event which may occur and modify a programme/project, with either a positive or negative effect in terms of cost, time, performance or other attributes.



Safety Freedom from those conditions that can cause death, injury, occupational illness, or damage to or loss of equipment or property, or damage to the environment

Security

The condition achieved when designated information, materiel, personnel, activities and installations are protected against espionage, sabotage, subversion and terrorism, as well as against loss or unauthorised disclosure.

Significant Event

A main event relating to the activity of a Programme or Central Office Division. A Significant Event shall be defined by its description, its delivery date and its associated deliverables. Significant Events are established on an annual basis.

Stakeholder

Individuals, entities, groups or organisations who have an interest in the OCCAR-managed Programme and whose interests can be affected as a result of the OCCAR-managed Programme.

Technology Demonstrator Programme (TDP)

A Programme in which a combination of technologies is intended to validate either a proposed technology capability or operational requirement. The products of a Technology Demonstrator Programme may include, but are not necessarily limited to: equipment, materials, and software (including system architecture and source codes).

TEMPEST Investigations and studies of compromising emission

Through Life Management (TLM)

Managing a programme throughout its whole life cycle, in a Use-Centric way. Through Life Management is achieved by applying and integrating best practice management techniques in a coherent manner across all system aspects in order to deliver, sustain and dispose the required cost-effective defence system.

To Take Note / Note / Noted

Something reported verbally or in writing has been brought to one’s attention without the need to approve or disapprove.

Use-Centric The attribute describing that the in-service use of a defence system has to be at the centre of attention at any time of the life cycle of a defence system.

Waivers/Deviations

A specific, written authorisation to depart from a particular requirement of a product’s current approved configuration documentation for a specific number of units or time period (A variance differs from an engineering change in that an approved engineering change requires corresponding revision of the product’s current approved configuration documentation).