US ACQUSITION PROCESS AND TURKEY’S ACQUSITION PROCESS

1. US ACQUSITION PROCESS AND TURKEY’S ACQUSITION PROCESS

2. US Weapon Acquisition Process

3. Acquisition • Acquisitionis a broad term that applies to more than just the purchase of an item or service; the acquisition process encompasses the design, engineering, construction, testing, deployment, sustainment, and disposal of weapons or relateditems purchased from a contractor.

4. Acquisition

5. Acquisition

6. Identifying a required (needed) weapon system • As set forth by statute and regulation, from concept to deployment, a weapon system must go through a three-step process of identifying a required (needed) weapon system, establishing a budget, and acquiring the system. These three steps are organized as follows: • 1.The Joint Capabilities Integration and Development System (JCIDS)—for identifying requirements. • 2.The Planning, Programming, Budgeting,and Execution System (PPBE)—for allocating resources and budgeting. • 3.The Defense Acquisition System (DAS)—for developing and/or buying the item.

7. 1.The Joint Capabilities Integration and Development System (JCIDS)—for identifying requirements. • The Joint Capabilities Integration and Development System is the process by which DOD identifies, assesses, and prioritizes what capabilities the military requires to fulfill its mission. • As such, JCIDS is often referred to as the requirements generation process. Requirements identifiedthrough JCIDS can be addressed in a number of ways, including changes in doctrine, training, and organization, or the acquisition of a new item, such as a weapon system. • The JCIDS process was created in 2003 in an effort to fundamentally change the way DOD developed requirements. Prior to 2003, DOD used a threat-based approach to identifying warfighter requirements. • With the advent of JCIDS, DOD shifted to a capabilities-basedapproach to identifying warfighter needs. In other words, instead of developing, producing, andapplications.

8. 1.The Joint Capabilities Integration and Development System (JCIDS)—for identifying requirements. • Defense Acquisitions: How DOD Acquires Weapon Systems Congressional Research Service fielding systems based on specific perceived threats to the nation, DOD adopted a policy of identifying what capabilities it needs to meet the strategic direction and priorities set forth in high-level strategy and guidance documents such as the National Military Strategy, National Defense Strategy, and Quadrennial Defense Review. • Many analysts suggest that under the threat-basedapproach, each military service identified a threat, and in response to the threatdeveloped its own independent weapons. The shift to a capabilities-based approach served to promote a more collaborative method of identifying capability gaps across services instead of each service developing its own response. • As a result, weapon systems are expected to be developed jointly among services.

9. 1.The Joint Capabilities Integration and Development System (JCIDS)—for identifying requirements. • MilitaryCapabilityNeeds • the capabilities required to perform thedefined mission, • the gap in capabilities required to perform the mission, and • how the identified capability gap will be addressed (in whole or in part).

10. 1.The Joint Capabilities Integration and Development System (JCIDS)—for identifying requirements. • 1. Overview: • Before any action can be taken in the JCIDS process related toreviewing and validating requirements documents, Sponsors must first identifycapability requirements related to their functions, roles, missions, andoperations, and then determine if there are any capability gaps which presentan unacceptable level of risk and warrant further action in JCIDS. • 2. Organizational Functions/Roles/Missions/Operations: • a. Identification of capability requirements and associated capability gapsbegins with the Sponsor’s organizational functions, roles, missions, andoperations, in the context of a framework of strategic guidance documents,andif applicable, overarching plans. • b. The National Security Strategy (NSS), the National Strategy forHomeland Security; the National Defense Strategy (NDS) or the most recentQuadrennial Defense Review (QDR) Report; and the National Military Strategy(NMS) provide the overarching description of the Nation’s defense interests,objectives, and priorities.

11. 1.The Joint Capabilities Integration and Development System (JCIDS)—for identifying requirements. • 3. Identification of Capability Requirements • a. Sponsors may pursue a variety of approaches to determine theirorganizational capability requirements, depending upon the timeliness of theassessment and the scope of the activities being reviewed. Figure A-1 showsthe general concept of identifying capability requirements.

12. 1.The Joint Capabilities Integration and Development System (JCIDS)—for identifying requirements. • The fundamental goal of each approach is to derive and refine capabilityrequirements – either organically or leveraged through the Joint force –necessary to accomplish their assigned functions, roles, missions, andoperations. Primary outputs include: • (1) description of the mission and military problem being assessed. • (2) identification and assessment of prior CBAs, studies, and otheranalytical products applicable to the area of interest. • (3) identification of the tasks to be completed to meet the missionobjectives. • (4) identification of the capability requirements within one or more ofthe JCAs, described in terms of the tasks, performance, and conditions.

13. 1.The Joint Capabilities Integration and Development System (JCIDS)—for identifying requirements. • (5) assessment of capability gaps between the identified capabilityrequirements and current or programmed force capabilities. • (6) assessment of operational risks associated with each capability gapif not addressed. • (7) evaluation of possible non-materiel and materiel approaches tosatisfy part or all of the capability requirements and close or mitigate theassociated capability gaps. • (8) recommendation for the most appropriate approach to be taken tocloseor mitigate capability gaps and reduce operational risk. “You cannot make decisions simply by asking yourself whether something might be nice to have. You have to make a judgment on how much is enough.” Robert S. McNamara April 20, 1963

14. 2. The Planning, Programming, Budgeting,and Execution System(PPBE)—forallocating resources and budgeting. • The PPBE is an annual process consisting of four stages: planning, programming, budgeting, and execution. • Planning: • During this stage, a national defense strategy is defined and a plan is developed for executing the strategy. • The plan sets forth priorities for developing programs (including military force modernization, readiness, and businessprocesses and infrastructure support) and is published in the Joint ProgrammingGuidance. • This document helps guide the DOD components’ efforts to proposeor modify acquisition programs. • Programming: • During this stage, proposed programs are fleshed out and a • Program Objective Memorandum (a document that outlines the anticipated • missions and objectives of the proposed weapon system and anticipated budget • requirements) is submitted. These memoranda are reviewed and, as deemed appropriate, integrated into an overall defense program.

15. 2. The Planning, Programming, Budgeting,and Execution System(PPBE)—forallocating resources and budgeting. • Budgeting: • Budgeting occurs concurrently with the programming stage. • Proposed budgets are reviewed in a different manner than proposed programs. • Upon completion of a program decision or as a result of a budget review, Program Budget Decisions are issued. • Execution: • During execution, programs are evaluated and measured against preestablished performance metrics, including rates of funding obligations and expenditures.

16. 2. The Planning, Programming, Budgeting,and Execution System(PPBE)—forallocating resources and budgeting. • Six Fundamental Ideas: • 1.Decisions should be based on explicit criteria of national interest, not on compromises among institutional forces • 2.Needs and costs should be considered simultaneously • 3.Major decisions should be made by choices among explicit, balanced, feasible alternatives • 4.The Secretary of Defense should have an active analytic staff to provide him with relevant data and unbiased perspectives • 5.A multiyear force and financial plan should project the consequences of present decisions into the future • 6.Open and explicit analysis, available to all parties, should form the basis for major decisions

17. 3.The Defense Acquisition System (DAS)—for developing and/or buying the item. • The Defense Acquisition System is the management process by which DOD develops and buys weapons and other systems. • The Defense Acquisition System is not intended to be a rigid, one-size-fits-all process. Acquiring information technology systems is different than acquiring missiles, which is different than acquiring a nuclear attack submarine

18. The Defense Acquisition System (DAS) • Generally, the defense acquisition system uses “milestones” to oversee and manage acquisition programs • The milestones serve as gates that must be passed through before the program can proceed to the next phase of the acquisition process. To pass a milestone, a program must meet specific statutory and regulatory requirements and be deemed ready to proceed to the next phase of the acquisition process. There are three milestones: • Milestone A—initiates technology maturation and risk reduction. • Milestone B—initiates engineering and manufacturing development. • Milestone C—initiates production and deployment.

19. The Defense Acquisition System (DAS)

20. Entering the Defense Acquisition System—Materiel Development Decision • For a program to enter the Defense Acquisition System, it must pass a Materiel DevelopmentDecision review, which determines whether a new weapon system is required to fill the identified gap (or whether a non-materiel solution, such as a change in training or strategy, is sufficient). • To pass the Material Development Decision, Theymust • determine that a material solution is necessary, • approve the plan for developing an Analysis of Alternatives(described in the nextsection), • designate the DOD component that will lead the programand • identify at which phase of the acquisition system the program should begin.

21. Material Solution Analysis Phase—Determining the Right Solution • The Materiel Solution Analysis Phase is where competing systems are analyzed to determinewhich one is best suited to meet the validated requirements. This phase occurs prior to any of themilestones. • During this phase, the Analysis of Alternatives is conducted. The Analysis of Alternativesexplores the competing methods of meeting the identified requirement. • This analysis shouldinclude the comparative effectiveness, cost, schedule, concepts of operations, overall risks, and critical technologies associated with each proposed alternative, including the sensitivity of eachalternative to possible changes in key assumptions or variables. • The Analysis of Alternatives alsoaddresses total life-cycle costs. During this phase, a program manager is selected and a programoffice is established.The materiel solution phase ends when the Analysis of Alternatives is completed, a specificsolution is chosen to continue through the acquisition process, and the program meets the criteriafor the milestone where the program will enter the acquisition system.

22. Material Solution Analysis Phase—Determining the Right Solution

23. Milestone A—initiates technology maturation and risk reduction.

24. Milestone A—initiates technology maturation and risk reduction. • To pass Milestone A, • the Milestone Decision Authority must approve the proposed materiel solution(based on the Analysis of Alternatives) and the Acquisition Strategy, • the lead component must submit a cost estimate for the proposed solution(including life-cycle costs) • the program must have full funding for the length of the Future Years DefenseProgram, and • if technology maturation is to be contracted out, the program must have aRequest for Proposal (RFP) that is approved by the MDA and ready for release.

25. Milestone A—initiates technology maturation and risk reduction. • The Technology Maturation and Risk Reduction phase is when nascent technologies and thesystem design are matured to the point that a decision can be made with reasonable confidencethat a system can be developed to meet military requirements and fit within affordability caps. Tomeet these twin objectives, requirements are refined and cost caps are finalized.

26. Milestone B and the Engineering and Manufacturing Development Phase

27. Milestone B and the Engineering and Manufacturing Development Phase • The Engineering and Manufacturing Development Phase is where a system is designed anddeveloped, all technologies and capabilities are fully integrated into a single system (full system integration), and preparations are made for manufacturing (including developing manufacturingprocesses, designing for mass production, and managing cost). • During the detail design effort, the office of Developmental Test and Evaluation tests the maturityand adequacy of the design and provides the results of its analyses to the Program Manager.

28. Milestone B and the Engineering and Manufacturing Development Phase • During system integration, the various subsystems are integrated into one system and adevelopment model or prototype is produced. For example, on an aircraft carrier, systemintegration would be when the aircraft launching system, radar, nuclear reactor, and othersubsystems are all integrated onto the ship. Operational testing and evaluation also takes placeduring this phase, both at the subsystem and integrated-system level. • Operational testing andevaluation is intended to determine whether a system is operationally effective, suitable, andsurvivable.

29. Milestone C : the Production and Deployment Phase

30. Milestone C : the Production and Deployment Phase • During the Production and Deployment phase, responsiblestructureauthorizes the beginning of low-rateinitial production, which is intended to both prepare manufacturing and quality control processesfor a higher rate of production and provide test models for operational test and evaluation. • Aprogram can enter full-rate production when it has completed sufficient operational testing andevaluation, demonstrated adequate control over manufacturing processes, and received approvalto proceed with production. • When enough systems are delivered and other predefined criteria are met, an Initial OperatingCapability can be attained, allowing for some degree of operations. • Full Operational Capability isachieved when the system is ready to operate as required.

31. Operations and Support Phase

32. Operations and Support Phase • Operations and Support is the final phase of a weapon system’s life • In this phase,the system is fully deployed, operated, supported, and ultimately retired. Up to 70% of the totallife cycle costs of a system can occur in the operations and support phase.

33. TURKEY’S ACQUSITION PROCESS

34. ACQUSITION PROCESS IN TURKEY Acqusition/ProcurementSystem of Turkish Armed Forces: • Starts withNational Security PolicyCertificate (MGSB), • National Military Strategy is prepared by the military authority in theline of MGSB and with its predictions. • Then, the Strategic Target Plan (SHP) and the Ten-Year Procurement Plan (ASAP) are prepared. • The SHP / OYTEP becomes official after the legitimate civilian authority and the approval of the legislative body and the procurement process begins.

35. Turkey’sDefense Planning andAqusitionProcess CONSTITUTIONAL LAW NATIONAL SECURITY POLICY DOCUMENT (MGSB) TURKEY'S NATIONAL MILITARY STRATEGY (TUMAS) REQUEST NEEDS PLAN (HIP) Military Authority Prepares, Civil Authority Approvals Government Level STRATEGIC OBJECTIVE PLAN (SHP) 20 YEARS TEN-YEAR PROCUREMENT PLAN (OYTEP) SUPPLY DEFENSE INDUSTRY EXECUTION BOARD (SSİK) PROJECT Military Authority prepares and submitted to the approval of the Council of Ministers SSM Forces - SSM 35 BUDGET DEFENSE INDUSTRYİ (MSB, ParliamentApproval)

36. This formality is not enough for the procurement process to actually begin. For the realization of the projects, first the feasibility is prepared by the Defense Industry Presidency (SSB) and then the Defense Industry Executive Committee (Savunma Sanayii İcra Komitesi-SSIK) decision is taken under the chairmanship of the President and the procurement process starts with the execution order. • One of the two dimensions that are most criticized in the SHP and OYTEP processes is not having enough R & D. (Based on : Acqusition)

37. Because the Force Commands naturally want to obtain the desired weapons and systems in the shortest time and in a modern way. This expectation largely prevents the definition of the procurement method with original development based on R & D. • In addition, it requires more than a decade for a master weapon system to be supplied through R & D based original development. Therefore, the SHP system was amended in 2006 in order to encourage «acqusitionbasedprocurement method» and the SHP process was extended to cover the 20-year period.

38. The long-term period estimation of SHP does not guarantee procurement through R & D or original development alone. For this reason, it is vital to determine a procurement method of a project in the SHP/ OYTEP. • Todecide the procurement method through SSİK a comprehensive feasibility study is needed. • To do this, there is a need for a relatively independent study and analysis center with the authority to penetrate the SHP / OYTEP projects. This center should be comprised of civil-military experts and should make feasibility of SHP / OYTEP projects

39. This center should also have the authority to cooperate with the defense sector, the private sector, the University and other public institutions. •   With this center, which can be called as Armament Projects Survey Center, all the studies and analysis of the project will be made, and the procurement method will be presented to SSIK. • Someexamplesarebeingexplained in thefollowingslides.

40. EurepeanExamples in AcqusitionProcess. • France: General Directorate of Armaments (DGA), • Germany:Equipment, Information Technology and Service Support Unit (BAAINBw) • United Kingdom: Defense Equipment and Support Unit (DE & S), which determine the supply logistics by the method of procurement projects.

41. Questions?