DoD Systems Engineering Update

1. DoD Systems Engineering Update Col Donald Robbins Deputy for SE Plans and PolicyOffice of the Deputy Assistant Secretary of Defensefor Systems Engineering, OUSD(AT&L) NDIA SE Division Annual Strategic Planning Meeting December 11, 2013

2. Key Elements ofDefense Strategic Guidance • The military will be smaller and leaner, but it will be agile, flexible, ready and technologically advanced. • Rebalance our global posture and presence to emphasize Asia-Pacific regions. • Build innovative partnerships and strengthen key alliances and partnerships elsewhere in the world. • Ensure that we can quickly confront and defeat aggression from any adversary – anytime, anywhere. • Protect and prioritize key investments in technology and new capabilities, as well as our capacity to grow, adapt and mobilize as needed.

3. 2013 DoD Leadership Focus:Challenges, Choices, Opportunities • The challenges posed by a changing strategic landscape and new budget constraints; • The choices we have in responding to these challenges; and • The opportunities that exist to fundamentally reshape the defense enterprise to better reflect 21st century realities. Chuck Hagel 24th Secretary of Defense

4. DASD, Systems Engineering DASD, Systems Engineering Stephen Welby Principal Deputy Kristen Baldwin Systems AnalysisKristen Baldwin (Acting) Major Program SupportJames Thompson Mission AssuranceVacant Addressing Emerging Challenges onthe Frontiers of Systems Engineering Analysis of Complex Systems/Systems of Systems Program Protection/Acquisition Cyber Security University, FFRDC and Industry Engineering and Research Modeling and Simulation Supporting USD(AT&L) Decisions with Independent Engineering Expertise Engineering Assessment / Mentoring of Major Defense Programs Program Support Reviews OIPT / DAB / ITAB Support Systems Engineering Plans Systemic Root Cause Analysis Leading Systems Engineering Practice in DoD and Industry Systems Engineering Policy & Guidance Development Planning/Early SE Specialty Engineering (System Safety, Reliability and Maintainability Engineering, Quality, Manufacturing, Producibility, Human Systems Integration) Counterfeit Prevention Technical Workforce Development Standardization Providing technical support and systems engineering leadership and oversight to USD(AT&L) in support of planned and ongoing acquisition programs

5. DASD, Systems Engineering Mission Systems Engineering focuses on engineering excellence − the creative application of scientific principles: • To design, develop, construct and operate complex systems • To forecast their behavior under specific operating conditions • To deliver their intended function while addressing economic efficiency, environmental stewardship and safety of life and property DASD(SE) Mission: Develop and grow the Systems Engineering capability of the Department of Defense – through engineering policy, continuous engagement with component Systems Engineering organizations and through substantive technical engagement throughout the acquisition life cycle with major and selected acquisition programs. A Robust Systems Engineering Capability Across the Department Requires Attention to Policy, People and Practice • US Department of Defense is the World’s Largest Engineering Organization • Over 99,000 Uniformed and Civilian Engineers • Over 39,000 in the Engineering (ENG) Acquisition Workforce

6. DASD(SE) Portfolio • Perform system engineering oversight of 182 programs with acquisition costs of $1.8T • Approve System Engineering Plans (SEPs) • Assess preliminary and critical design reviews (PDR, CDR) $1.15T $625B $28B $16B $=Total Acquisition Cost Program data – SE oversight; Cost data from DAMIR

7. Program Engagement • Engineering Assessment / Mentoring of Major Defense Programs • Technical Reviews • AT&L Decision Forums • Systems Engineering Plans • Systemic Root Cause Analysis • Support Acquisition Leadership with Independent Engineering Analysis and Advice Our Focus: Supporting Knowledge-Based Decision Making

8. FY13 Major Program Support Activity • Program Support Reviews: 15 • Critical Change Report: 2 • Focused Reviews: 10 • PDR/CDR Assessments: 10 • DPAP RFP Peer Reviews: 5

9. Deputy Secretary of Defense Memorandum, “Defense Acquisition” • Interim DoDI 5000.02 is effective immediately • Cancels DoDI 5000.02, dated December 8, 2008, EXCEPT for Enclosure 9, Acquisition of Services • Revised DoDI 5000.02 to be prepared within 180 days • New Acquisition of Services Instruction to be drafted within 180 days Signed November 26, 2013

10. USD(AT&L) Memorandum, “The New Department of Defense Instruction 5000.02” • “Our purpose of this new version is to implement a number of statutes and regulations that have come into existence since the last version was published in 2008… • I have tried to make the document more readable and helpful to acquisition professionals, both those new to the world of defense acquisition and those more experienced professionals… • The basic structure of the “acquisition system” is unchanged with minor exceptions… a “Requirements Decision Point” and a “Development RFP Release Decision Point” • Updating 5000.02 provided an opportunity to integrate several of the Better Buying Power initiatives… • Finally, I have also tried to reinforce the importance and primacy of the acquisition chain of command – particularly the Program Executive Officers (PEOs) and PMs…” “It is about us all constantly working to make the acquisition system as efficient and effective as we can.”

11. Statute & Policy Driving the Update POLICY • USD(AT&L) Memos • Better Buying Power 1 & 2 • Designation of Subprograms for MDAPs • EVM Systems Performance, Oversight, and Governance • Government Performance of Critical Acquisition Functions • Preservation and Storage of Tooling for MDAPs • Reporting Requirements for Programs Qualifying as Both MAIS & MDAP • Should-cost Memos • Strengthened Sustainment Governance • Improving Technology Readiness Assessment Effectiveness • PDUSD(AT&L) Memos • Improving Milestone Process Effectiveness • Post-CDR Reports and Assessments • Milestone Decision Documentation Outlines • Other Memos • Guidelines for Operational Test and Evaluation of Information and Business Systems • DoD CIO Policy for CCA Confirmations STATUTE Title 10 §2334: Independent cost estimation and analysis §2366: Major systems and munitions programs: survivability and lethality testing required before full scale production §2445c: MAIS Programs NDAA §332 of FY09: Fuel Logistics Requirements §805 of FY10:Life-Cycle Management and Product Support §803 of FY11: Enhancing … Rapid Acquisition §804 of FY11: … Acquisition Process for Rapid Fielding of Capabilities in Response to Urgent Operation Needs §811 of FY11: Cost Estimates for MDAP and MAIS §812 of FY11: Management of Manufacturing Risk §932 of FY11: Computer Software Assurance §831 of FY11: [Waiver of Nunn-McCurdy for a Change in Quantity] §811 of FY12: Calculation Of Time Period [for MAIS] Critical Changes… §801 of FY12: Core Depot-level Maintenance and Repair Capabilities §832 of FY12: Assessment, Management, and Control of Operating and Support Costs for Major Weapon Systems §834 of FY12: Management of Manufacturing Risk in MDAPs §901 of FY12: Revision of DBS Requirements §811 of FY13: Limitation on use of cost-type contracts §812 of FY13: Estimates of Potential Termination Liability … §904 of FY13: Additional Responsibilities ….. (T&E) DoDI 5000.02 DIRECTIVE TYPE MEMOS DTM 09-027: Implementation of WSARA 2009 DTM 09-025: Space Systems Acquisition Policy DTM 09-016: Supply Chain Risk Management (SCRM) to Improve the Integrity of Components Used in DoD Systems DTM 10-015: Requirements for Life Cycle Management and Product Support DTM 10-017: Development Planning DTM 11-003: Reliability Analysis, Planning, Tracking, and Reporting DTM 11-009: Acquisition Policy for Defense Business Systems ADDITIONAL CONSIDERATIONS • JCIDS Reissuance • New Emphasis on Cybersecurity • New Emphasis on Intellectual Property (IP) Strategy • FY10 NDAA, Sec. 804: Agile IT Development http://www.acq.osd.mil/docs/DSD%205000.02_Memo+Doc.pdf

12. New Acquisition Models • InterimDoDI 5000.02 introduces six acquisition program models as a starting point for program-specific planning • Model 1: Hardware Intensive Program • Model 2: Defense Unique Software Intensive Program • Model 3: Incrementally Fielded Software Intensive Program • Model 4: Accelerated Acquisition Program • Hybrid Program A (Hardware Dominant) • Hybrid Program B (Software Dominant) • All models recognize the critical role of software Acquisition programs should use these models as a starting point in structuring a program to acquire a specific product

13. Six Acquisition Models Model 1: Hardware Intensive Program Model 2: Defense Unique Software Intensive Program Model 3: Incrementally Fielded Software Intensive Program Model 4: Accelerated Acquisition Program Hybrid Program A (Hardware Dominant) Hybrid Program B (Software Dominant)

14. Interim DoDI 5000.02 Structure • Core Instruction - Operation of the Defense Acquisition System • 13 Enclosures • Acquisition Program Categories and Compliance Requirements • Program Management • Systems Engineering • Developmental Test and Evaluation (DT&E) (New) • Operational and Live Fire Test and Evaluation • Life-Cycle Sustainment Planning (New) • Human Systems Integration (HSI) • Affordability Analysis and Investment Constraints (New) • Analysis of Alternatives • Cost Estimating and Reporting • Requirements Applicable to All Programs Containing Information Technology (IT) • Defense Business Systems (DBS) • Rapid Acquisition of Urgent Needs (New) Added four new enclosures (4, 6, 8, and 13); many others (including Systems Engineering) underwent major revision

15. Enclosure 3 – Systems Engineering • Enclosure 3 • Systems Engineering • Purpose • Systems Engineering Plan • Development Planning • Systems Engineering Trade-Off Analyses • Technical Risk and Opportunity Management • Technical Performance Measures and Metrics • Technical Reviews • Configuration Management • Modeling and Simulation • Manufacturing and Producibility • Software • Reliability and Maintainability • Program Protection • Open Systems Architecture • Corrosion Prevention and Control • Environment, Safety, and Occupational Health (ESOH) • Insensitive Munitions • Item Unique Identification • Spectrum Supportability • Design Reviews • Program Support Assessments • ALL paragraphs have been revised • New paragraphs are highlighted in Red • Old paragraphs with major revisions are highlighted in Blue

16. Protecting Information “America must also face the rapidly growing threat from cyber-attacks… We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy. “We are going to aggressively protect our intellectual property. Our single greatest asset is the innovation and the ingenuity and creativity of the American people. It is essential to our prosperity and it will only become more so in this century.” President Barack ObamaFebruary 2013 DoD efforts to advance cyber security in the Defense Industrial Base (DIB) include: • DIB Cyber Security/Information Assurance (CS/IA) Program, and its optional enhanced component the DIB Enhanced Cybersecurity Services (http://dibnet.dod.mil) • Standards development in collaboration with Industry • Reinforcing protection of technical information in acquisition activities

17. Safeguarding Unclassified Controlled Technical Information Memo • Secretary of Defense Memorandum, October 10, 2013 • Emphasizes DoD commitment to preserving the intellectual property (IP) and competitive capabilities of the Defense Industrial Base (DIB) and the technological superiority of our fielded military systems. • Key Goals • Protect DoD unclassified controlled technical information from cyber intrusions • Minimize the consequences associated with loss of this information • Augments current activities • Including the DIB Cyber Security/Information Assurance (CS/IA) Program

18. Secretary of Defense direction: Implement policy and acquisition regulations to improve protection of technical information Establish a joint analysis capability to assess technical information losses Identify critical acquisition and technology programs requiring higher levels of protection; review classification guidance Identify technical standards for protection of information; align with JIE security architecture Conduct assessment of unclassified DoD networks to determine vulnerabilities to cyber attack Monitor the effectiveness of actions taken Secretary of Defense Memorandum, “Safeguarding Unclassified Controlled Technical Information,” October 10, 2013

19. DFARS Clause 252.204-7012: Safeguarding Unclassified Controlled Technical Information • Rule Published November 18, 2013 • Clause affects all new contracts that contain, or will contain unclassified controlled technical information • Purpose: Establish minimum requirements for DoD unclassified controlled technical information on contractor information systems • Requires contractors implement minimum set of information security controls • Requires contractors report cyber incident and compromises • Requires contractor actions to support DoD damage assessment • Minimum Security Controls • Set of 51 information security controls from NIST SP 800-53, Revision 4 • Combination of Technical, Process, Awareness & Training measures • Incident Reporting • Reporting includes: • DoD contracts and subcontractor information affected by a cyber incident or compromise • DoD programs, platforms, or systems involved • Description of DoD technical information compromised • Reported information does not include attack signatures or other threat actor indicators • Clause includes flow down in all subcontracts http://www.acq.osd.mil/dpap/dars/dfars/html/current/204_73.htm

20. Challenges to theDoD Engineering Enterprise • Lay solid foundations…create opportunities • Envision multiple futures…enable flexible choices • Design and build systems with focus on lifecycle cost • Protect our critical defense “intellectual property” • Focus on “3 Ps” of the DoD Engineering Enterprise: Policy, Practice and, most importantly, People

21. Summary of DASD(SE) Goals • Continued excellence in SE support to programs and acquisition decisions • Improved, consistent PPP engagement with programs resulting in successful protection strategies • New processes for Software Assurance, Trusted Microelectronics, Exportability • Advocacy and impact in ensuring SE workforce capacity and capability • Provide depth to acquisition policy and processes with SE guidance, practices, and continuous learning opportunities • Make progress on areas of DoD interest: • Quantitative Risk Management • SE Tradespace Analysis • Supply Chain Risk Management and Damage Assessment • Anti-Counterfeit • Advanced Modeling for Engineering Resiliency

22. Systems Engineering:Critical to Defense Acquisition Innovation, Speed, Agility http://www.acq.osd.mil/se