Presentation Transcript

1. Urgent Operational Needs& Rapid Acquisition

   Mr Tom Dee Director, Joint Rapid Acquisition Cell (JRAC) OSD AT&L thomas.dee@osd.mil 1
2. Topics Rapid Acquisition Challenges Urgent Warfighter Needs Lessons Learned from OEF / OIF Agility and Responsiveness Relevant Policy Discussion 2
3. BackgroundThe need for agile acquisition “The Department must not only prepare for those threats we can anticipate, but also build the agile, adaptive and innovative structures capable of quickly identifying emerging gaps and adjusting program and budgetary priorities to rapidly field capabilities that will mitigate those gaps.… The Department needs a means to quickly prioritize and quantify requirements and to ensure that the resources are available to enable rapid fielding of capabilities inside of the Department’s Planning Programming, Budgeting and Execution System (PPBES) cycle.” QDR, Feb 2010, pg 80 “As we end today’s wars and reshape our Armed Forces, we will ensure that our military is agile, flexible, and ready for the full range of contingencies.”President Obama , Jan 3, 2012 Sustaining U.S. Global Leadership: Priorities for 21st Century Defense “This includes an accounting of our ability to make a course change that could be driven by many factors…” “Why was it necessary to go outside the normal process to develop technologies to counter IEDs, to build MRAPS, and to quickly expand ISR capability? Why was it necessary to bypass existing institutions and procedures to get the capabilities needed to protect US troops and fight ongoing wars?” Secretary Gates, Foreign Affairs, Jan/Feb 2009 Lessons of war require the Department to develop more agile and responsive processes to address emerging threats 3
4. The “Fast Lane” SECDEF and Deputy SECDEF continue to emphasize the need for more responsive acquisition process … so, what is “Rapid Acquisition”? “I … believe that it is necessary to create a “Fast Lane” for acquiring and fielding systems in response to urgent operational needs, as was done with the Mine Resistant Ambush Protected (MRAP) vehicle in Iraq and Afghanistan. Since the attacks of September 11, 2001, DoD has engaged in rapid acquisition through a variety of largely ad hoc processes. Section 804 of the FY 2011 National Defense Authorization Act requires DoD to consider a formal process for rapid acquisition. If confirmed, I will make creating a formal process for rapid acquisition a priority”. Secretary Panetta Advanced Policy Questions for Senate Confirmation Hearing, June 9, 2011 4
5. Defense Acquisition Management System “Evolutionary acquisition is the preferred DoD strategy for rapid acquisition of mature technology for the user. An evolutionary approach delivers capability in increments, recognizing, up front, the need for future capability improvements. The objective is to balance needs and available capability with resources, and to put capability into the hands of the user quickly. The success of the strategy depends on phased definition of capability needs and system requirements, and the maturation of technologies that lead to disciplined development and production of systems that provide increasing capability over time.” DODI 5000.02 (Operation of the Defense AcquisitionSystem) 5
6. Requirements Acquisition Budget Building Capability Requires integrated processes…. 6
7. What does it take to “field” a capability quickly? Know what it is that you’re trying to field “Requirements” Know how it’s going to be used and who’s going to use it DOTMLPF and force management considerations Have mature technology in the bank Non-material solutions? Have a responsive “acquisition” structure Analysis, program mgt, contracts, industrial base, supply chain, logistics, etc… Have access to money to execute when you need it “Budgets”: current execution year, future year, color Logistic and operational support A sense of urgency and clear authorities 7
8. Where we’re going… Continue urgent support to OEF In parallel with planned troop reductions Identify continuing and enduring OEF needs ISR, force protection, C-IED Exploit all resource, process, policy, and technology avenues to support current fight Provide continued Department focus to balance risks and provide “good enough” capability quickly Support the stratgey to transition to GIRoA Institutionalize Agility Capture Lessons Learned from our OIF/OEF urgent needs organizations and processes Provide enduring avenue for quick action within requirements, budgeting and acquisition communities The “Fast Lane” What organizational constructs and processes must endure, post-OEF, to ensure agility and responsiveness to unanticipated but urgent needs? 8
9. Agile Support to Combatant Commander Urgent Needs “We developed a strategy that said [the military] is going to be leaner, it is going to be smaller, but it has to be agile, it has to adaptable, it has to be flexible…” Secretary Panetta, 5 Jan 2012 Lessons of Iraq & Afghanistan vs. the Habits of the Budget Process Urgent , Unanticipated Threats and Opportunities vs. Deliberate and Multi-year Processes Four Steps to Agile Acquisition: Validate the requirement Find a Solution Obtain Funding Execute and Field Quickly Success requires: Leadership involvement Clear priorities and sense of urgency Accepting risk Congressional Support Transparent and objective processes “Institutionalizing flexibility and adaptiveness is no easy matter: it goes against the bureaucratic grain. Our experience suggest(s)… the need for a deliberate effort to offset the inevitable bureaucratic tendency to keep doing the familiar and to adapt only slowly and incrementally, no matter how clear the need for change.” “Bureaucracy Does Its Thing” U.S. - GVN Performance in Vietnam, Rand Study, R-967-ARPA, Aug 1972 9
10. Lessons Learned Need separate, flexible funding and authority and must use the contracting flexibilities provided for rapid acquisition GAO 10-186T, DSB Jul 09, DSB 2010, GAO 12-385 Direct connection to Theater and the Warfighter GAO 10-660, GAO12-385, DSB 2010 Need DoD wide strategic communication, framework, policy, and process for QRC GAO 11-273, GAO11-417T, GAO10-660, GAO10-186, DoD SMP SIG has helped increase oversight over the entire JUONs process and specifically accelerated the identification and allotment of funds to urgent needs GAO 12-385 DoD Senior leadership needs a capability for timely assessment and warning of potentially high risk adversary capabilities with options and recommendations for addressing them DSB Capability Surprise, 2009 Multiple reports from GAO, DOD-IG, Defense Science Board, Defense Business Board, etc, highlight the shortcomings of the traditional deliberate acquisition process in times of war. 10
11. Multiple Service and Joint Responses to COCOM Problems Multiple Service and Joint QRC Processes UAVs (Scan Eagle/Puma/GMAV) New and expanded ISR capabilities (Platforms, PED, Wide Area Lenses) Cultural awareness (Human Terrain Teams) Expeditionary Explosive Detection Dogs Force Protection: BETTS-C/ C-RAM, Ballistic Underwear Persistent Surveillance System (PSS) Tremendous efforts by Joint Staff and the Services to address the problems… but “seams” still exist Over the past 10 Years, the Department has developed quick reaction capabilities and organizations to support urgent warfighter needs, for: Route Clearance Robotics Biometrics/Forensics C-IED: CREW/EW, Goldie, Minehound Weapons Technical Intelligence (WTI) MRAPs 11
12. DoD Directive 5000.71 “Rapid Fulfillment of Combatant Commander Urgent Operational Needs” DoD’s highest priority: Provide warfighters involved in conflict or preparing for imminent contingency operations with the capabilities urgently needed to overcome unforeseen threats, achieve mission success, and reduce risk of casualties. Warfighter SIG: Leads and facilitates agile and rapid responses to combatant commander urgent operational needs (UONs). Recognize, respond to, and mitigate the risk of operational surprise associated with ongoing or anticipated near-term contingency operations. Urgent Needs processes will be optimized for speed and accept reasonable risk with regard to cost, performance and other DOTMLP-F considerations. Actions will be taken swiftly and senior leaders will ensure that staffing processes do not inordinately delay the fielding of critical capabilities. Chaired by Deputy Secretary of Defense Provides leadership to enable action 12
13. Urgent Operational Need (UON) Definitions (CJCSI 3170.01H) Urgent Operational Needs (UONs): capability requirements identified by a DOD Component as impacting an ongoing or anticipated contingency operation. If left unfulfilled, UONs result in capability gaps potentially resulting in loss of life or critical mission failure. DoD Components, in their own terminology, may use a different name for a UON. Joint Urgent Operational Needs (JUONs): UONs that are identified by a Combatant Command as inherently joint and impacting an ongoing contingency operation. Joint Emergent Operational Needs (JEONs): UONs that are identified by a Combatant Command as inherently joint and impacting an anticipated or pending contingency operation. “Stability and counter-insurgency missions require 75% solutions over a period of months…” Secretary Gates, Foreign Affairs, Jan/Feb 2009 JRAC DAU 404 13 Dec 2012 13
14. USD(AT&L) Policy Guidance Acquisition Actions in Support of Joint Urgent Operational Needs (JUONs) Memo signed by USD(AT&L) 29 Mar 2010 OEF or OIF JUONs represent DoD acquisition Community’s highest priority “Components shall use all available tools and authorities to expediently develop, procure, field and sustain JUON solutions.” Examples: “Unusual and compelling” urgency exception to contract competition Use of oral presentations in lieu of written proposals Contract modification and acceleration of delivery of items currently in production Rapid Acquisition Authority 14
15. Other Than Full and Open Competition 10 U.S.C. 2304(c)(2) Unusual and Compelling Urgency Guidance located at FAR 6.302-2 and DFARS/PGI 206.302-2 Applies when the need for supplies or services is of such an unusual and compelling urgency that the government would be seriously injured unless the number of sources solicited is limited to those specified Must solicit as many sources as practicable under the circumstances Appropriate when an unusual urgency precludes full and open competition, and delay of the award would result in serious injury, financial or other, to the government USC 2304(c)(1) Only One Responsible Source (or Limited Sources Guidance located at FAR 6.302-1 and DFARS 206.302-1 Applies when only one responsible source available, or a limited number of sources can satisfy the requirement Appropriate when impediments are known to exist Even if more than one potential source exists Example: A follow-on contract is planned for highly specialized services, award to any other source would result in the duplication of costs or unacceptable delays 10 U.S.C. 2304(c) provides for seven exceptions to full and open competition Reference specific authority Maximum competition practicable is still expected Shall not be justified on the basis of A lack of advance planning by the requiring activity Concerns related to the amount of funds available Approval authorities Under $550K local approval $550K-11.5M Command Competition Advocate $11.5M-78.5M PEO or HCA or designee (if meets criteria at FAR 6.304(a)(3) (must be General Officer or SES)) Over $78.5M, Senior Procurement Executive (SPE) 15
16. Rapid Acquisition Authority Secretary of Defense granted special authority in Bob Stump National Defense Act for Fiscal Year 2003 as amended by the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005. Waive statutes and regulations for testing and procurements – short of criminal statutes. $200 million in authority, per fiscal year, to move funding regardless of “color” (reprogramming authority). Notify Congress within 15 days of action. JRAC facilitates (IAW Secretary direction) Secretary of Defense “Determination” and subsequent Congressional notification. Invoked 11 times Counter IED Critical ISR Force Protection 16
17. The Defense Urgent Operational Need Model(Draft) How do you create a formal process for rapid acquisition? C B Development and Assessment Operations and Support Production and Deployment Pre-Development ValidatedUON DispositionRecommendation/ Decision Month(s) Month(s) – Year(s) Day(s) Month(s) = Validation / Recommendation = Milestone 17
18. Critical Enduring Elements of Agility Leadership Policy and Process Funding Mature Technology Responsive Acquisition System Timely analysis and decision support Strategic threats require deliberate responses to develop disruptive technology and concepts while working within PPBES Near term threats require urgent responses to mitigate gaps working with what’s available DoD needs the capability and structure to do both 18
19. Summary “Stability and counter-insurgency missions require 75% solutions over a period of months… The issue (is) how to build innovative thinking and flexibility into the rigid procurement processes…” Secretary Gates, Foreign Affairs, Jan/Feb 2009 “As we end today’s wars and reshape our Armed Forces, we will ensure that our military is agile, flexible, and ready for the full range of contingencies.”President Obama , Jan 3, 2012 Sustaining U.S. Global Leadership: Priorities for 21st Century Defense “This includes an accounting of our ability to make a course change that could be driven by many factors…” Rapid Acquisition = Requirements + Resources + Acquisition No magic formula or authorities FAR/DFAR, FMR and Department policies provide the authorities needed Key to success is common understanding of urgency and priorities, and leadership to act 19

20. Discussion ?

21. Backup Slides 21
22. SEC. 804. Review of Acquisition Process for Rapid Fielding of Capabilities in Response to Urgent Operational Needs Complete review of process for fielding of capabilities in response to urgent operational needs: Requires an assessment of several recommended improvements Must clearly define roles of OSD, JCS, Services and other DoD components for all phase of the process Establish target date for fielding of capability for each validated urgent operational need Document key process milestones and track cost, schedule and performance Establish a formal feedback system of how well fielded solutions meet urgent operational needs Discriminating Urgent Operational Needs from Traditional Requirements Not later than 270 days after enactment of the Act Develop and implement an expedited review process to determine whether capabilities proposed as urgent operational needs are appropriate for fielding though the process for rapid fielding of capabilities or should be fielded through the traditional acquisition process. 22
23. Sec 804B: Discriminating Urgent Operational Needs from Traditional Requirements “Develop and implement an expedited review process to determine whether capabilities proposed as urgent operational needs are appropriate for fielding though the process for rapid fielding of capabilities or should be fielded through the traditional acquisition process”. Elements – The review process developed and implemented shall – Apply to the rapid fielding in response to joint urgent operational need statements and to other urgent operational needs statements generated by the military departments and the combatant commands; Identify officials responsible for making above determinations Establish appropriate time periods for making such determinations Set forth standards and criteria for making such determination based on considerations of urgency, risk, and life-cycle management; Establish appropriate thresholds for the applicability of the review process, or of the elements of the review process; and Authorize appropriate officials to make exceptions from standards and criteria established above Covered Capabilities of the Review Process: “Subject to such exceptions as the Secretary considers appropriate, the acquisition process for rapid fielding of capabilities in response to urgent operational needs is appropriate only for capabilities that: “ Can be fielded within a period of two to 24 months Do not require substantial development effort; Are based on technologies that are proven and available Can appropriately be acquired under fixed price contracts.” (AT&L requested rescission which is pending, 2012 NDAA) * Legislation applies to both JUONs and Service/ Combatant Commander Urgent needs 23
24. What GAO Found… “DOD has taken steps to create urgent needs processes that are more responsive to urgent warfighter requests than traditional acquisition procedures, DOD is unable to fully assess how well the processes address critical deficiencies or to measure the effectiveness of solutions fielded in the theater because it has not established an effective management framework for those processes. DOD’s guidance for its urgent needs processes is dispersed and outdated. Further, DOD guidance does not clearly define roles and responsibilities for implementing, monitoring, and evaluating all phases of those processes or incorporate all of the expedited acquisition authorities available to acquire joint urgent need solutions. Data systems for the processes lack comprehensive, reliable data for tracking overall results and do not have standards for collecting and managing data. I The joint process does not include a formal method for feedback to inform joint leadership on the performance of solutions. In the absence of a management framework for its urgent needs processes, DOD lacks tools to fully assess how well its processes work, manage their performance, ensure efficient use of resources, and make decisions regarding the long-term sustainment of fielded capabilities.” We need a “management framework” for the Department… 24
25. What the GAO Found….(2) DOD is unable to fully assess how well the processes address critical deficiencies ….. because it has not established an effective management framework for those processes. DOD’s guidance for its urgent needs processes is dispersed and outdated. Data systems for the processes lack comprehensive, reliable data for tracking overall results and do not have standards for collecting and managing data. The joint process does not include a formal method for feedback to inform joint leadership on the performance of solutions. DOD lacks tools to fully assess how well its processes work, manage their performance, ensure efficient use of resources, and make decisions regarding the long-term sustainment of fielded capabilities.” We need a “management framework” for the Department… 25
26. Exemptions to Full and Open Competition 10 USC 2304(c)(1) Only One Responsible Source (or Limited Sources) Guidance located at FAR 6.302-1 and DFARS 206.302-1 Applies when only one responsible source available, or a limited number of sources can satisfy the requirement Appropriate when impediments are known to exist Even if more than one potential source exists Example: A follow-on contract is planned for highly specialized services, award to any other source would result in the duplication of costs or unacceptable delays Key points for justification Ability to validate assumptions regarding the specified sources unique capabilities Identify all sources that expressed interest in the requirement, and details regarding the evaluation of their capabilities Thoroughly describe unique capabilities or qualifications that form basis of the justification If absence of required data or limited rights data involved: Document the actions taken to obtain missing data or to validate, challenge or otherwise remove the impediment 26
27. Exemptions(cont’d) 10 U.S.C. 2304(c)(2) Unusual and Compelling Urgency Guidance located at FAR 6.302-2 and DFARS/PGI 206.302-2 Contracts awarded pursuant to this authority (FAR rule in process) limited to no more than 1 year Applies when the need for supplies or services is of such an unusual and compelling urgency that the government would be seriously injured unless the number of sources solicited is limited to those specified Must solicit as many sources as practicable under the circumstances Appropriate when an unusual urgency precludes full and open competition, and delay of the award would result in serious injury, financial or other, to the government Initial response to crisis (e.g. Hurricane Katrina & 9/11) Examples (DFARS 206.302-2(b)) Supplies, services or construction needed at once because of fire, flood, explosion, or other disaster Essential equipment or repair needed at once to perform operational mission of an aircraft; or preclude impairment of launch capabilities or mission performance of missiles or missile support equipment Construction needed at once to preserve a structure or its contents from damage 27
28. Exemptions (cont’d) Examples (DFARS 206.302-2(b) 10 USC 2304(c)(3) Purchase requests citing an issue priority designator under DoDD 4410.6, Uniform Material Movement and Issue Priority System, of 4 or higher, or citing “Electronic Warfare QRC Priority” Key points for justification Quantify the nature of the serious injury Identify financial obligations of the government - Estimate the costs - Identify basis of the estimate Identify potential personnel injuries or loss of life - Describe the conditions creating the situation - Why no other action than the planned acquisition could avert the situation - Explain the impaired defensive capability if the posture of the U.S. would be seriously jeopardized Extent to which competition is limited Demonstrate how competition was obtained, given the circumstances If circumstances are similar to those cited under exception 1 (only one responsible source), detail these impediments 28
29. Exemptions (cont’d) 10 U.S.C. 2304(c)(3) Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services Guidance located at FAR 6.302-3 Applies when it is necessary to award a contract to a particular source or sources in order to Maintain a facility, producer, manufacturer, or other supplies in case of a national emergency or to achieve industrial mobilization or Establish or maintain an essential engineering, research or development capability provided by an educational or non-profit organization or federally funded research and development center Appropriate to authorize non-competitive renewal of contracts with Federally Funded Research and Development Centers (FFRDCs) Use with development or production contracts would be unusual and requirement some form of national emergency Examples: Train a selected supplier in the furnishing of critical supplies or services; prevent the loss of a supplier’s ability and employees’ skills; or maintain active engineering, research, or development work 29
30. Exemptions (cont’d) 10 U.S.C. 2304(c)(3) Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services (cont.) Key points for justification Demonstrate the need to maintain the capability possessed by the identified source(s) Some form of market survey may be critical in demonstrating the uniqueness of this capability FFRDC the need to maintain the capability is inherent in the source’s designation as an FFRDC Explain why no actions are planned or underway are planned to pursue future competition, if applicable 30
31. Exemptions (cont’d) 10 U.S.C. 2304(c)(4) International Agreement Guidance located at FAR 6.302-4 and DFARS 6.302-4 Applies when purchase supplies or services under an international agreement, treaty or written direction of a foreign government or international organization Examples The U.S. is to be reimbursed by a foreign nation, and that country has specified in written direction that the supplies or services be procured from a particular firm The planned contract is for supplies to be used, or services to be performed in the sovereign territory of another country and the terms of the treaty or agreement specify or limit the sources to be solicited Justification A J&A is not required if the Head of the Contracting Activity prepares a document that describes the terms of an agreement or treaty or the written directions, such as a Letter of Offer and acceptance, that have the effect of requiring the use of other than competitive procedures 31
32. Exemptions (cont’d) 10 U.S.C. 2304(c)(5) Authorized or Required by Statute FAR 6.302-5 and DFARS 206.302-5 contains the guidance Applies when a statute expressly authorizes that the acquisition be made through another agency, or from a specified source, or the agency’s need is for a brand name or commercial item for authorized resale, the government may limit competition A J&A is not required Qualified non-profit agencies for the blind or severely handicapped (FAR 8.7) Sole source awards under 8(a) (FAR 19.8) Commercial items for authorized resale at a commissary or similar facility Statute expressly requires the procurement to be made from a specified source A J&A is required for: Non-competitive awards to Federal Prison Industries (Unicor) (FAR 8.6) Government Printing and Binding (FAR 8.8) Sole source awards pursuant to the HUBZone or SDVOSB programs 32
33. Exemptions (cont’d) 10 U.S.C. 2304(c)(6) National Security Guidance located at FAR 6.302-6 Applies to certain highly sensitive classified programs Appropriate when disclosure of the Government’s needs would compromise the national security, the government may limit competition. It shall not be used merely because the acquisition is classified, or merely because access to classified material will be necessary to submit an offer Must request offers from as many potential sources as is practicable under the circumstances Key points for justification – Documentation is limited to the minimum essential information to establish the validity of the justification The J&A is a classified document Special handling procedures exist for processing the documentation to the approval authority 33
34. Exemptions (cont’d) 10 USC 2304(c)(7) Public Interest Guidance located at FAR 6.302-7 and DFARS 6.302-7 Applies when it is determined the use of full and open competition is not in the public interest Appropriate when none of the other authorities applies Determination cannot be made on a class basis Approval CO prepares a determination to support the secretarial determination For military departments – approval is Service Secretary For defense agencies – approval is Secretary of Defense Congress must be notified in writing 30 days prior to award of the contract Key points for justification Describe the reasons full and open competition is not in the public interest Describe why no other authority is appropriate 34