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10 U.S.C. Chapter 144A – Major Automated Information System (MAIS) Programs

10 U.S.C. Chapter 144A – Major Automated Information System (MAIS) Programs. February 27, 2012. December 11, 2013 Under Secretary of Defense for Acquisition, Technology and Logistics DASD(C3&Cyber ) Bob Ramsey. Outline. 10 U.S.C. Chapter 144A establishes reporting regime

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10 U.S.C. Chapter 144A – Major Automated Information System (MAIS) Programs

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  1. 10 U.S.C. Chapter 144A – Major Automated Information System (MAIS) Programs February 27, 2012 December 11, 2013 Under Secretary of Defense for Acquisition, Technology and Logistics DASD(C3&Cyber) Bob Ramsey

  2. Outline • 10 U.S.C. Chapter 144A establishes reporting regime • Enacted FY07 NDAA §816; amended FY09 NDAA §812, WSARA 2009 §101, FY10 NDAA §817 and §841, FY11 NDAA §805, FY12 NDAA §811 • §2445a – definitions • §2445b – requires annual and quarterly reports • §2445c – Significant & Critical variance reporting • §2445d – if MAIS program is MDAP magnitude SecDef decides • 5-year development clock • Critical Change process • Resources

  3. Key Requirements10 U.S.C. Chapter 144A • Defines Major Automated Information System (MAIS) in statute • Designates USD(AT&L) and Service Acquisition Executives as Senior Officials responsible for reporting regime • Requires a MAIS Annual Report(MAR) to congressional defense committees (analogous to MDAP Selected Acquisition Report) • MAR establishes the Original Estimate (baseline) • Requires Program Managers to submit MAIS Quarterly Report (MQR) to the Senior Official • any variance from the baseline • Establishes Significant and Critical Change thresholds • Imposes a reporting penalty if program exceeds 5 years from Milestone A (or selection of preferred alternative) to FDD • Requires communication to Congress • Significant Change → Notification letter • Critical Change → Report w/ certifications based on program evaluation (almost identical to Nunn-McCurdy)

  4. Definitions

  5. MAIS Definition10 U.S.C. 2445a • Chapter 144A defines MAIS as a Department of Defense program for the acquisition of an automated information system (either as a product or a service) if— “(1) the program is designated by the Secretary of Defense, or a designee of the Secretary, as a major automated information system program; or “(2) the dollar value of the program is estimated to exceed— (A) $40,000,000 in fiscal year 2014 constant dollars for all program costs in a single fiscal year; (B) $165,000,000 in fiscal year 2014 constant dollars for all program acquisition costs for the entire program; or • $520,000,000 in fiscal year 2014 constant dollars for the total life-cycle costs of the program (including operation and maintenance costs).” *italicized numbers are published in the Interim DoDI 5000.02 dated 26 Nov 2013

  6. Amendment to MAIS Definition FY09 NDAA §812 • Adds “Other Major Information Technology Investment Program” to MAIS definition • (1) An investment that is designated by the Secretary of Defense, or a designee of the Secretary, as a ‘pre-MAIS’ program • we try to avoid designating a program as “pre-MAIS” and rely instead on definition based on cost estimate • (2) Any other investment in automated information system products or services that is expected to exceed a MAIS threshold, but is not considered to be a MAIS program because a formal acquisition decision has not yet been made • “formal acquisition decision” = Milestone B • This means “unbaselined MAIS”

  7. MAIS of MDAP Magnitude 10 U.S.C. 2445d • FY10 NDAA §817 amendment makes MAIS programs and MDAP mutually exclusive • If a MAIS program reportable under Chapter 144A is also an MDAP reportable under Chapter 144, SecDef may designate that program as either a MAIS or MDAP • If program produces custom hardware → MDAP → Ch 144 • If a program is software intensive → MAIS → Ch 144A • MDAP definition thresholds • Estimated RDT&E more than $480M (FY14 constant dollars) • Estimated Procmore than $2.79B (FY14 constant dollars)

  8. MAIS Program Increments • An “acquisition program” is used by the acquisition community to refer to the basic unit of management for an acquisition effort • A MAIS “program” is usually composed of a number of increments • A MAIS “program” is not baselined, only its increments have APBs • Increment—the Increment is “a militarily useful and supportable operational capability that can be developed, produced, deployed, and sustained. Each Increment will have its own set of threshold and objective values set by the user.” (DODI 5000.02, Encl.2, 2.c.) • MAIS program = ∑ Inc 1 + Inc 2 + Inc n • Regardless of cost, each increment of a MAIS program is managed and reported as if it is a MAIS program

  9. MAIS Program Annual and Quarterly Reports

  10. MAIS Annual Report (MAR)10 U.S.C. 2445b • MAR submissions must start when funds are requested in the President’s Budget • Due annually to Congress 45 days after submission of the President’s Budget (PB) • The annual report must include the following • Schedule including estimates of milestone dates, full deployment decision, and full deployment • Estimates of total acquisition and total life-cycle costs • Summary of key performanceparameters • The initial MAR constitutes the Original Estimate for determining Significant & Critical Changes in the program; • Based on approved Acquisition Program Baseline (APB) by policy • Original Estimate can only be changed if a Critical Change Report is sent to Congress • An updated APB is not sufficient to change an Original Estimate

  11. 2014 MAR Preparation Events and Target Dates

  12. MAIS Quarterly Report (MQR) 10 U.S.C. 2445c • BaselinedMAIS programs submit a quarterly report (MQR) to the Senior Official • MQR required even if no variance has occurred • Also required for unbaselined MAIS programs ≥ 5 years past MS A / preferred alternative decision • UnbaselinedMAIS do not have Original Estimates; no c/s/p variances are possible • If unbaselined, only Ch 144A breach possible is 5-year development clock • needs no status reporting via MQR; can track status via ad hoc DAMIR report

  13. MAIS Quarterly Report (MQR) 10 U.S.C. 2445c • MQR provides the PM’s Current Estimate • For schedule, PM’s best estimate of dates • For performance, PM’s best estimate of values • For cost, PB ± fact of life changes • Submitted on same (A, B, C) cycle as Defense Acquisition Executive Summary (DAES) • MQR is not sent to Congress

  14. Chapter 144A MAIS ReportingAutomation • The APB, MAR, MAR Original Estimate, MQR, and DAES have been automated in DAMIR • APB • MAR DAMIR • data • data • data • MAR OE • MQR • DAES • data • Working to combine MQR into DAES—Summer 2014

  15. Reporting Variances

  16. Senior Official10 U.S.C. 2445c(b) • SAE: An AIS to be acquired for a military department • USD(AT&L): AIS acquired by a Component other than military department • USD(AT&L) delegated all his Senior Official responsibilities to: • ASD(HA) • DCMO • CAEs (DISA, DLA, NSA) • Note: the MDA is often NOT the Senior Official

  17. Determinations10 U.S.C. 2445c(c) and (d) • The Senior Official must review the Program Manager’s MQR and determine whether a Significant or Critical Change has occurred • Significant Changes: notify congressional defense committees of the change within 45 days after the PM’s report is due • Critical Changes: within 60 days after the PM’s report is due, the Senior Official must - • Conduct an evaluation of the program, then • Submit a report with certifications to the congressional defense committees • Through the Secretary of Defense (USD(AT&L) transmittal ltr) • The clock starts the date the MAIS Quarterly Report was due in the office of the Senior Official • Last business day of every third month aligning with DAES Group

  18. Significant and Critical Change Summary

  19. Significant Change Defined10 U.S.C. 2445c(c) • Schedule: estimate a delay of more than six months but less than a yearin any program schedule milestone or significant event from the Original Estimate • Cost: estimate of total acquisition cost or total life-cycle cost for the program has increased by at least 15 percent, but less than 25 percent, over the Original Estimate • Performance: a significant, adverse change in the expected performanceof the major automated information system to be acquired

  20. MAIS Significant Changes(as of December 11, 2013)

  21. Critical Change Defined10 U.S.C. 2445c(d) • Schedule: estimate a delay of one year or more in any program schedule milestone or significant event from the Original Estimate • Cost: estimate of total acquisition cost or total life-cycle cost for the program has increased by 25 percent or more over the Original Estimate • Performance: a change in expected performance that will undermine the ability of the system to perform the functions anticipated in the Original Estimate • DoD has defined a failure to achieve a Threshold Key Performance Parameter as a Critical Change • Five-year to full deployment decision threshold: failed to achieve a full deployment decision within five years of MS A or if no MS A selection of preferred alternative • Excluding any delay as a result of bid protest • Only variance based on actual delay instead of PM’s estimate

  22. MAIS Critical Changes(as of December 11, 2013)

  23. Starting the 5-Year Development Clock 10 U.S.C. 2445c(d)(2)(A) • Clock starts at “… the Milestone A decision for the program or, if there was no Milestone A decision, the date when the preferred alternative is selected for the program (excluding any time during which program activity is delayed as a result of a bid protest).” • Calculate delay in months and round-up to whole month • Previously, clock started on a “funds first obligated” date • FFO is an obsolete event, but we grandfather use of the date to start the clock • And before that, clock started at Milestone A

  24. Stopping the 5-Year Clock10 U.S.C. 2445c(d)(2)(A) • “ … failed to achieve a full deployment decision within five years after ….” • Statutory definition of ‘full deployment decision’ – “the final decision made by the Milestone Decision Authority authorizing an increment of the program to deploy software for operational use” • The date the FDD ADM is signed by the MDA • Interpretation of this definition and the FDD event is often complicated and depends on specific circumstances

  25. Prohibition on Obligation of Funds10 U.S.C. 2445c(g) • If the Senior Official does not submit the required report on Critical Changes within 60 days of MQR due date, appropriated funds may not be obligated for any major contract under the program • For Chapter 144A purposes, the term "major contract" means any contract under the program that: • Is not a firm-fixed price contract and, • Has target cost exceeding $17M (FY00 constant dollars), or • If no target cost exceeds $17M, is the largest contract under the program. • recommend programs not obligate funds during Critical Change Report (CCR) preparation (would look bad as news headline) • The prohibition ceases to apply on the date on which Congress receives a report in compliance with the law

  26. Critical Change Process

  27. Critical Change Program Evaluation10 U.S.C. 2445c(e) • An assessment of— (1) the projected cost and schedule for completing the program if current requirements are not modified; (2) the projected cost and schedule for completing the program based on reasonable modification of such requirements; and (3) the rough order of magnitude of the cost and schedule for any reasonable alternative system or capability

  28. Critical Change Report 10 U.S.C. 2445c(f) • Must include Senior Official’s written certification (with supporting explanation) that— (1) the automated information system to be acquired is essential to the national security or to the efficient management of the Department of Defense (2) there is no alternative to the system which will provide equal or greater capability at less cost (3) the new estimates of the costs, schedule, and performance parameters with respect to the program and system or information technology investment, as applicable, have been determined, with the concurrence of the Director of Cost Assessment and Program Evaluation, to be reasonable; and (4) the management structure for the program is adequate to manage and control program costs

  29. D,CAPE Involvement10 U.S.C. 2445c(f)(3) • Weapon Systems Acquisition Reform Act (WSARA) 2009 changed Chapter 144A certification requirement #3 to read: “(3) the new estimates of the costs, schedule, and performance parameters with respect to the program and system or information technology investment, as applicable, have been determined, with the concurrence of the Director of Cost Assessment and Program Evaluation, to be reasonable;”

  30. Critical Change Team (CCT) Organization and Reporting Path USD(AT&L) or designee if needed for transmittal Senior Official IPT Principals Lead IPT Principals Critical Change Team Team Leader JS/J8* CAPE* CAPE* AT&L* IPT C1 “Essential” IPT C2 “No Alternative” IPT C3 “New Estimate” IPT C4 “Management” E3 “Reasonable Alternative” E2 “Reasonable Modification” E1 “Not Modified” * Lead organization for ACAT IAM programs; Services have an equivalent Lead organization

  31. Model Critical Change Process Timeline Informal Notification to Senior Official Cannot Obligate Funds on Major Contracts Triage Meeting; draft Determination and Tasking Senior Official (SO) Identifies CCT Lead and IPT Principals Lead Kickoff Meeting of CCT Leadership; specify detailed timeline Official MQR submittal; SO issues Determination &Tasking 60 Days CCT Conducts Evaluation IPT Meetings Heading check w/ IPT Principals Compile Final Report Pre-Brief IPT Principals Lead Brief IPT Principals SO signs Report; sends to OSD OSD transmits Report to Congress

  32. For Additional Chapter 144A Guidance Everything you wanted to know about Ch 144A DAG 10.11 MAIS Statutory Reporting https://dag.dau.mil/Pages/Default.aspx Chapter 144A Source and Reference documents are available at: https://acc.dau.mil/CommunityBrowser.aspx?id=227820&lang=en-US OUSD(AT&L), DASD(C3 & Cyber) Bob Ramsey, 571-372-4415, robert.w.ramsey2.civ@mail.mil

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