Andrew C. Obermeyer, Director of Contracting Tests, Targets & Countermeasures

2. Contracting Challenges in the Missile Defense Agency Andrew C. Obermeyer, Director of Contracting Tests, Targets & Countermeasures Missile Defense Agency Date August 5, 2008 Time 10:45 – 11:45

3. The Challenge So you think you want to be the Director of Contracts for a large organization…….?

4. Missile Defense Agency (MDA) Who and What is MDA?

5. A Little Background… • What exactly is MDA? (Timeframe: November 2004) • - A new “Other Defense Agency” under DoD AT&L • - Previous heritage was SDIO and BMDO (circa 1984) • - Numerous, quasi-independent systems – “Elements” • Each element managed and “optimized” separately • Individual budgets and resources – Few constraints • Most contracting was done by Services (Army, Navy Air Force) • Very little centralized control of contracts or programs at MDA • No demonstrated missile defense capability to warfighter • - MDA was chartered in 2002 by Presidential Mandate • Goal: integrated “system of systems” w/C2BMC capability • Control and integrate all assets, then integrate with warfighters • MDA given leeway from DODD 5000 series, other flexibilities • - Approximately 65% of MDA Personnel are Contractors • SETA Support: Does not count personnel from R&D Contracts • MDA “dares to be different” – for better or worse!!

6. Integrated Ballistic Missile Defense System Sensors Forward-Based Radar With Adjunct Sensor Midcourse X-Band Radar Early Warning Radar Defense Support Program Space Tracking And Surveillance System Sea-Based Radars Boost Defense Segment Terminal Defense Segment Midcourse Defense Segment Sea-Based Terminal Airborne Laser Kinetic Energy Booster Aegis Ballistic Missile Defense / Standard Missile-3 Terminal High Altitude Area Defense Patriot Advanced Capability-3 Ground-Based Midcourse Defense Multiple Kill Vehicle Command, Control, Battle Management & Communications NMCC USSTRATCOM USNORTHCOM USPACOM EUCOM CENTCOM

7. An Integrated Approach To Ballistic Missile Defense 6 Intercept Fylingdales UEWR Kill Vehicle 5 Space Sensors Interceptor Acquisition 4 Refinement and Interceptor Updates 3 Location and Interceptor Commit Fire Control Node (FDC) Missile Field Fire Control Node (MDE) Interceptor Launch Surveillance and Track 2 Cobra Dane Radar 1 Aegis Radar Beale UEWR Sea-Based Radar Launch Detection Standard Missile AN/TPY-2 Radar Intercept

8. Capability-Based Acquisition MDA Capability Delivery Funding Profile Early Delivery Early Delivery Early Delivery Operations Procurement Warfighter Feedback Warfighter Feedback Testing TRADES Development R&D Requirement and Threat Definition 2 Year Cycle IOC DoD Capability Funding Rqmt Def. R&D Development Testing Procurement Service Prog. Mgt. Test Auth. JCIDS Fielding Auth. • Strengths • Fully flexible funding • Combined development and operational testing • Integrated capability management • Risks • Transition to services Approved for Public Release 07-MDA-2362 (27 MAR 07)

9. The Scene: November 2004 (1 of 2) • New MDA Director – Lt Gen “Trey” Obering • Focused on Integrated Ballistic Missile Defense System (BMDS) • Completely integrated mission capability for warfighter • “Limited Defensive Operations” established per president’s mandate • Desire to transition from loose confederation of R&D organizations into an integrated, interdependent systems acquisition organization • “Capability Based” Acquisition and management • MDA Director is SAE, HCA and BMDS Program Manager

10. The Scene: November 2004 (2 of 2) • Most MDA contracting accomplished externally • Service contract numbers, policies and procedures – not MDA • MDA desired more centralized control, decision making via: • MDA contracting personnel awarding and administering…… • MDA contracts (pursuant to contracting authority from MDA HCA) • Notwithstanding “quality of service” provided by services • Director’s Mandate: establish an MDA “system contracting” organization with robust capability across the entire BMDS!

11. The Scene Cont’d… • MDA Contracting Locations • National Capital Region (NCR) – MDA • Aegis BMD (NCR) - Navy • Huntsville (HSV) - Army • Colorado Springs (COS) - MDA • Albuquerque (ABQ) – Air Force • Los Angeles (LOS) – Air Force • Lots of Dispersion, No Control • Goal: Develop an Organic MDA Workforce

12. Fast Forward – Spring 2005 • New, evolving agency – “herding cats” • BRAC move to Huntsville by 2010 • Transition from R&D to system acquisition • Transition to organic capability to do MDA contracting and program management • Focus on the future vice precedence • Reengineering of policies and processes • Everything was changing - and still is!!

13. Wanna Be A Contracts Director? • Your mission, should you choose to accept it, is to recruit, retain, and develop a highly competent system contracting organization to support transition of advanced technology into an operational mission • Your constraints: • You must provide immediate, high-quality support • The mission and workload are rapidly expanding • You’re already severely undermanned • You must “take back” programs from services • MDA is BRAC’d to Huntsville by NLT 2011 • Govt 1102 availability is scarce in NCR, elsewhere • The HR hiring system is seriously deficient • MDA is suffering significant budget cuts • OSD opposes using contractor support vice 1102

14. Perspective: Nov 2004 (1 of 2) • MDA senior leadership criticism • Contracting directorate was too “top heavy” • Too many chiefs, not enough Indians • Result of specific direction of previous MDA Director • Contracting directorate was overmanned • Number of slots were cut based on this assumption • Frustration over external support by services; inability to account for specific quantity of support acquired

15. Perspective: Nov 2004 (2 of 2) • Actions taken by Contracting Directorate (DAC) • Reduced number of directors, gave more responsibility • Maintained workload level; previous cuts were restored after recognition that Contracting was actually undermanned • Prepared plan for MDA Director to stand up completely “organic” MDA contracting directorate by 2010 – approved!

16. The Challenge: Creating an Organization in Huntsville (1 of 2) • Spring 2006 • Accelerated BRAC transition already evident • Largest MDA program – Ground Based Midcourse Defense (GMD) had major disconnect/problem • Program Office in Huntsville, Contracting Office in NCR • GMD Program Director expressed desire for collocation • Mandated significant acceleration of planned schedule

17. The Challenge: Creating an Organization in Huntsville (2 of 2) • Other MDA programs needed HSV presence • THAAD – already in HSV, but not MDA contracting • Targets - same as above • NCR programs – some moving to HSV ahead of schedule • Numerous programs in HSV administered by SMDC for MDA • The Goal: Create major presence in HSV ASAP!!

18. Desired Attributes - Huntsville • Diverse backgrounds and experience – “jointness” • Recruit personnel from around the country • “Best and Brightest” capability • Strong work ethic and dedication • Ability to perform well under continuous pressure • Adaptability, flexibility and creativity – “risk taking” • “Find a way to get the mission accomplished” • Teamwork: with program office, contracting office • Willingness and ability to accept ambiguity • Bottom Line: “Delight the Customer!”

19. Standing up the New Organization: Management Concerns • Who to recruit? • Majority of NCR personnel unwilling to relocate to HSV • Majority of available 1102s are in Huntsville • Desire to avoid “raiding” existing agencies in Huntsville • But most SMDC personnel already doing work for MDA • Market for 1102s increasingly scarce – even in Huntsville • Avoid “Huntsville-centric” way of thinking • Desire of agency to do things differently • Want to avoid established paradigms and “groupthink” • Where to put them? • Acceptable office space critically short – “quality of life”

20. Standup Concerns Cont’d • Timing • If you need people now based on workload, do you hire “best currently available” instead of taking longer to hire “best ultimately available” – may be a big difference! • Contractor Support Services (CSS) • An established part of the MDA workforce in the NCR • Perform Contract Specialist duties • Critical to mission accomplishment in NCR • Can be recruited more easily and faster than normal govt process • Not generally used in most agencies – but increasing • Augment with CSS if can’t hire desired quality/quantity? • Critical Issue: What is the right balance? • Tradeoff: How much “hurt” can we accept if delay? • Decision: Hire best available, let market sort out

21. The Current Environment (1 of 2) • NCR programs are moving faster than anticipated • NCR personnel are leaving MDA faster than anticipated • Difficult to hire replacement personnel in the NCR – BRAC impact • Overall MDA workload is increasing – everywhere!

22. The Current Environment (2 of 2) • Creates need for accelerated recruitment for HSV • But are there enough qualified people? By what standard? • 1102s are in short supply everywhere – especially 1102s with systems acquisition backgrounds • What is impact to losing agencies? How much control do we have? • MDA “reengineering” – different structure, processes • Agency will do most of its contracting in Huntsville by Summer 2008

23. BLENDED WORKFORCE PROFILE

24. MDA Contracting Personnel Growth

25. Huntsville Projections • Fall 2005: 0 • Fall 2006: 10 • Fall 2007: 100 • Fall 2008 130 • Fall 2009 150 • Fall 2010 200

26. Organic Contracting Capability • NCR (Aegis) – Conversion to MDA by end of 2007 • LOS (STSS) – Conversion to MDA by end of 2007 • ABQ (ABL) – Conversion to MDA by end of 2009 • COS (MDIOC) – No conversion necessary • HSV (SMDC) – Conversion NLT 2010 • Goal is consistency and transparency across MDA • Common policies • Common processes • Common culture • Contracting is leading the way in MDA

27. Current Status - Huntsville • Contracting directorates stood up to support: • GMD • THAAD • European Site • Kinetic Energy Interceptor • Multiple Kill Vehicle • Targets and Countermeasures • Advanced Research Center • Simulation Center • International Support • More programs are on the way!

28. Current Environment for MDA • Congressional mandate: restore quantity and quality of acquisition workforce – MAJOR DPAP Objective • Congress/OSD concern over inherently governmental functions – are we operating as we’re supposed to? • 2007 DPAP PMR Audit of MDA Contracting • Criticized heavy use of contractor support personnel and the way in which they are used (at MDA, KR support perform all functions (including negotiations) except PCO decisions and signature) • Perceived abuse of authority, potential COI • Subsequent DPAP Direction to MDA to create plan to eliminate use of contractor support personnel • Okay, Director: What would you do??

29. What Else Lies Ahead? • Building a replacement workforce • Focus on a robust intern program • Nationwide recruiting • Intense training program with rotational assignments • Increased national recruiting at journeyman level • Good people want to come to Huntsville – we need to find them • Major emphasis on internal training • Cross-pollination based on diverse backgrounds • Challenge workforce to improve their capabilities • Ultimate goal: a “world class” workforce

30. Getting Off the Stage… QUESTIONS?