Ref.: New Acquisition Policy by DAU, 20 May 2003, PMT-352

1. Review of DoD’s New AcquisitionPolicy and its Impact on Programs and Systems Engineering by Al BrunsINCOSE Gateway ChapterWednesday, 30 July 2003 Ref.: New Acquisition Policy by DAU, 20 May 2003, PMT-352

2. New Acquisition PolicyConstruct • DoD Directive 5000.1 • Principles retained; innovation/flexibility emphasized • DoD Instruction 5000.2 • Focused on required outcomes and statutory requirements and less on regulatory requirements • DoD Regulation 5000.2-R • Cancelled; becomes “guide” not a regulation • Provides expectations (TEMP, C4ISP, etc..), best practices and lessons learned

3. Technology Opportunities & User Needs New The Defense Acquisition Management Framework DoDI 5000.2, May 2003 • Process entry at Milestones A, B, or C • Entrance criteria met before entering phase • Evolutionary Acquisition or Single Step to Full Capability (Program Initiation) A B C FOC IOC Concept Refinement Technology Development System Development & Demonstration Production & Deployment Operations & Support Design Readiness Review FRP Decision Review Concept Decision LRIP/IOT&E Pre-Systems Acquisition Systems Acquisition Sustainment Increment II Increment III

4. Common element is CAPABILITIES Initial Capabilities Document (ICD) replaces MNS at Milestone A Describes desired capability. Evaluates multiple materiel approaches. Recommends a materiel approach. Capability Development Document (CDD) replaces ORD at Milestone B Describes the SDD effort and provides KPPs for the increment. Describes program to get to complete solution. Capability Production Document (CPD) replaces ORD at Milestone C Describes the SDD effort to produce materiel solution for the increment and provides KPPs for the production increment. New Requirements Documents Details will be implemented by CJCSI 3170.01C & CJCSM 3170.01

5. Technology Development Strategy • Required ACAT I and IA programs. Based on AoA results • Contents: • Rational for EA or single-step strategy • For EA, description of how program will be divided into technology spirals & development increments • Appropriate limits on prototypes produced and deployed during the TD Phase • Performance Goals and Exit Criteria to be met prior to proceeding into SDD and producing additional prototypes • Overall cost, schedule and performance goals for the total R&D effort • Specific cost, schedule and performance goals and exit criteria for the first technology spiral demonstration, and a test plan to ensure that they are met.

6. DoD Instruction 5000.2 Operation of the Defense Acquisition System • New/Revised from previous 5000.2: • “Concept Decision” - new decision point prior to Milestone A • Analysis of materiel approaches done prior to Concept Decision, and documented in Initial Capabilities Document (ICD). MNS is eliminated.   • New phase prior to Milestone A, “Concept Refinement” • Analysis of Alternatives (AoA) due at Milestone A vice program initiation (Milestone B). Used to refine the initial concept and provide basis for the Technology Development Strategy.

7. Oversight & ReviewACAT ID/IAM Programs* Defense Acquisition Executive Chief Information Officer Defense Acquisition Board IT Acquisition Board Weapon Systems C3ISR Systems Major AIS Overarching Integrated Product Teams (OIPT) C3I Overarching Integrated Product Team (OIPT) Director, Defense Systems OUSD(AT&L) The acquisition responsibilities of USD(Intel) vs. ASD(NI2)/DoD CIO are a work in process. *Note: Space Programs have been delegated to the Air Force and most missile defense programs to the Missile Defense Agency

8. Transformation to the Joint CapabilitiesIntegration and Development System JCIDS RGS Integrated atDepartment JointVision National Military Strategy Systems Joint Concept of Operations Requirements Joint ConceptsIntegrated Architectures Joint Capabilities Top Down, Born Joint Bottom Up, Often Stovepiped

9. Increment 2 Increment 3 Evolutionary Acquisition Single Step to Full Capability ? OR Key Considerations • Urgency of Requirement • Maturity of Key Technologies • Interoperability, Supportability, and Affordability of Alternative Acquisition Approaches • Cost/Benefit of Evolutionary vs. Single Step Approach

10. Two development processes to implement Evolutionary Acquisition Strategy Incremental Development: End-state requirement is known, and requirement will be met over time in several increments Spiral Development: Desired capability is identified, but end-state requirements are not known at Program Initiation. Requirements for future increments dependent upon technology maturation and user feedback from initial increments Evolutionary acquisition strategies shall be preferred approach to satisfying operational needs. Spiral development shall be the preferred process. DoD Instruction 5000.2 Operation of the Defense Acquisition System Evolutionary Acquisition

11. Evolutionary Acquisition –Incremental & Spiral Development Warfighter Capability = Known increment Known increment Known increment - Incremental First Fielded Capability Known increment - Spiral Partially known increment Not known increment Technology Demos Not known increment Feedback from warfighter Time

12. Single Step Approach Technology Base NO CAPABILITY Requirements Capability FOC IOC Capability Time Evolutionary Acquisition Technology Base Requirements Capability Capability Initial Operationally Useful Capability Time

13. B C A CR TD SDD PD OS C B Increment 2 C B Increment 3 Evolutionary Approach Key Enablers • Time-Phased Requirements • A Modular Open Systems Approach to facilitate Technology Insertion • Evolutionary Sustainment Strategies • T&E Consistent with Evolutionary Approach • Full Funding

14. C B Increment 2 C B Increment 3 Each Increment Must Have… • Approved Operational Requirements • Interoperability Key Performance Parameter • Performance, Cost and Schedule Goals (Acquisition Program Baseline) • Operational and Live Fire Testing (If Required) • Compliance with Acquisition Oversight Requirements • An Acquisition Strategy that reflects consideration of Logistics Planning; Manpower, Personnel and Training; Environmental and Security Factors; Protection of Critical Program Information; and Spectrum Management • Other information tailored to the conditions of the program Each Increment is Managed as a Unique Acquisition

15. Acquisition Strategy Comparison Table Pre-planned Product Improvement (P3I) Evolutionary Acquisition * Acquisition Strategy Single Step to Full Capability Incremental Development Criteria Spiral Development ** Full requirements defined at outset Yes Yes Yes No Useful intermediate capabilities No Yes Yes Yes No No Yes Yes Multiple iterations All capabilities required in initial increment Yes No No No User feedback from earlier iterations used to define final requirement No No Yes Yes Achieves increased capability from predictable maturing technology Often used in hardware development Preferred process (Previously used mostly in Software development) Traditional acquisition strategy Other characteristics * Preferred strategy ** Preferred process

16. DoD Instruction 5000.2 Operation of the Defense Acquisition System Statutory Information Requirements Changed/Added When Required Requirement Reference Comment Name change Formerly – Application For Frequency Allocation Spectrum Certification Compliance 47 USC 305 & 901-904 PL 102-538 OMB A-11, Part 2 DoDD 4650.1 MS B, or MS C if no B Programmatic Environmental Safety & Health Evaluation MS B, or MS C if no B From DoD 5000.2-R 42 USC 4321 Electronic Warfare T&E Report Sec. 220, PL 103-160 & Sec. 214, PL 103-337 From DoD 5000.2-R annually

17. DoD Instruction 5000.2 Operation of the Defense Acquisition System Statutory Information Requirements Changed/Added Continued….. When Required Requirement Reference Comment Certification of Compliance with Financial Management Modernization Plan (FM acq programs only) NEW From Congress MS A, B, and C PL 107-249 Benefits Analysis & Determination (applies to bundled acquisitions; part of acq strategy) NEW From Congress MS B, or MS C if no B 15 USC 644(e) Technology Development Strategy NEW From Congress Sec. 803, PL 107-314 MS A, B and C

18. DoD Instruction 5000.2 Operation of the Defense Acquisition System Regulatory Information Requirements Changed/Added Regulatory Information Requirements Added When Required Comment Reference NEW from Joint Staff Replaces MNS Initial Capabilities Document (ICD) CJCSI 3170.01 MS A Capability Development Document (CDD) CJCSI 3170.01 MS B NEW from Joint Staff Replaces ORD Capability Production Document (CPD) CJCSI 3170.01 MS C Technology Readiness Assessment (PM-level) Revised from DoD 5000.2-R requirement for an Independent Technology Assessment for all programs DoDI 5000.2 MS B & C Independent Technology Readiness Assessment (ACAT ID only – as required by DUSD(S&T)) MS B & C DoDI 5000.2 Earned Value Management Systems See ANSI/ EIA-748-1998 From DoD 5000.2-R OMB Cir A-11, part 7

19. DoD Instruction 5000.2 Operation of the Defense Acquisition System Other Reports Changed/Added Report Reference When Required Comment Defense Acquisition Executive Summary (DAES) (MDAP & MAIS) Quarterly POM or BES submit UCR breach From DoD 5000.2-R DoDI 5000.2 Contractor Cost Data Report (CCDR) From DoD 5000.2-R DoD 5000.4-M-1 See the reference Software Resources Data Report (ACAT I/IA programs for all major contracts & sub – contracts for any software development elements with a projected software effort greater than $25M (FY02 constant dollars) -180 days prior to contract award -60 days after contract award -60 days after start of subsequent software releases -within 120 days after software release or final delivery DoD 5000.4-M-2 NEW from OSD Director, PA&E

20. Defense Acquisition Management Framework – Key Points • Evolutionary acquisition is the preferred strategy for rapid acquisition of mature technology; spiral development is the preferred process • MDA may authorize entry at any point consistent with phase-specific entrance criteria and statutory requirements • Non-mandatory guidance on best practices, lessons learned and expectations are available in the Interim Guidebook (former DoD 5000.2-R) • Validated and approved ORDs are still required until revised CJCSI 3170.01 is published

21. B The Defense Acquisition Management Framework User Needs & Technology Opportunities • Process entry at Milestones A, B, or C • Entrance criteria met before entering phases • Evolutionary Acquisition or Single Step to Full Capability A C IOC FOC System Integration System Demonstration LRIP Full-Rate Prod & Deployment Sustainment Disposal Design Readiness Review FRP Decision Review Concept Decision System Development & Demonstration Operations & Support Concept Refinement Technology Development Production & Deployment Sustainment Pre-Systems Acquisition Systems Acquisition Validated & approved by operational validation authority Initial Capabilities Document (ICD) Capability Development Document (CDD) Capability Production Document (CPD) Relationship to Requirements Process