NDAA Section 804 “Middle Tier”

1. NDAA Section 804 “Middle Tier” Oct 2018

2. FY16 NDAA Section 804 SPEED WITH DISCIPLINE • FY16 National Defense Authorization Act Section 804 Authority • Rapid Prototyping – fielded demo within 5 years • Rapid Fielding – production w/in 6 mo, complete fielding w/in 5 yrs • Relief from the Major Defense Acquisition Program label/reporting • What does Section 804 allow us to do? • Shave years off programs • Freedom to define decision and reporting requirements • Allows decisions and approvals to be made at the Air Force level • What we will NOT do with Section 804 • Sacrifice quality or safety • Skip essential reviews • Hide/keep information to ourselves • Preferred starting point for Air Force Acquisitions

3. FY16 NDAA Section 804 • Section 804 Rapid Prototyping and Fielding efforts are not subject Joint Capabilities Integration and Development System (JCIDS), Department of Defense Directive 5000.01 or Department of Defense Instruction 5000.02 • Rapid Prototyping • Provides programs rapid pathway to pursue using innovative technologies to rapidly develop fieldable prototypes, demonstrating new capabilities to meet emerging military needs. • Objective is to field a prototype that can be demonstrated in an operational environment and provide operational capability within five years of an approved requirement. • Rapid Prototyping actions end with MDA determination if the effort will result in a subsequent prototype, initiate a Rapid Fielding, transition to a traditional program, or terminate.

4. FY16 NDAA Section 804 • Rapid Fielding • Provides programs rapid pathway to pursue using proven technologies to field production quantities of new/upgraded systems with minimal development. • Objective is to begin production within six months and complete fielding within five years of an approved requirement. • Rapid Prototyping Fund • Directs the Secretary of Defense to establish a fund for the express purpose of funding programs executing pursuant to this section. This fund has not yet been authorized • FY18 NDAA Sec 831 – Relief from MDAP label • The term "major defense acquisition program" does not include an acquisition program or project that is carried out using the rapid fielding or rapid prototyping acquisition pathway under Section 804

5. FY16 NDAA Section 804 OSD A&S Guidance “Middle Tier of Acquisition (Rapid Prototyping/Rapid Fielding) Interim Authority and Guidance” • 6 April 18 Defense Acquisition Executive (DAE) Memo • Provides interim authority to implement Section 804 until 30 Sep 2019 • Components to develop processes and procedures • Components will determine what constitutes an approved requirement • New capabilities to meet needs communicated by the Joint Chiefs of Staff and Combatant Commanders • The Service Acquisition Executive is accountable for management and delegation of authority • Interim guidance does not cover establishment of the Rapid Prototyping Fund • Data capture and share requirements • Identify data that can be shared “across the Department via an open and collaborative Department-managed tool” -- minimum 11 basic data elements • Data required to be captured and stored by SAE for use in creating policy

6. AFGM2018-63-146-01 “Air Force Guidance Memorandum for Rapid Acquisition Activities” • SAF/AQ AFGM Published 13 June 2018 • Written and Signed by Dr. Roper • Includes 10 Apr Dr Roper memo as an Attachment • Available on e-Pubs: http://static.e-publishing.af.mil/production/1/saf_aq/publication/afgm2018-63-146-01/afgm2018-63-146-01.pdf • Air Force implementation of statute and OSD memo • Provides general roles, responsibilities, and processes • Not all processes fully vetted • Encourages tailored reviews, processes, assessments, and documentation • Emphasizes stakeholder involvement • Will be published as an AF Instruction no later than one year from publication • Incorporate lessons learned and any additional OSD Guidance

7. Requirements • Not subject to JCIDS, but if exists – use JCIDS docs (CDD, ICD, Draft CDD, CPD…) • Fast Pass • Working Process for Dedicated 804 Requirements Documentation – RPRD, RFRD • Condensed versions of CDD/CPD • Less fidelity • Less prescriptive • Require concrete measureable attributes • KPP/KSA not required, but useful if you want interoperability with other processes • Sponsor from the field’s job – can find guidebooks in AF Portal • Everything is still put into IRIS for tracking • Initial requirements for rapid prototyping efforts should typically be validated no later than one year after initiation, but are not mandatory • Rapid fielding efforts must be validated by the CSAF or designated representative prior to commitment of funds -- unless waived by the SAE (rare) “Throw away pens and carry pencils.”

8. Requirements • AF/ASR and SAF/AQ developed a Rapid Prototyping Requirements Document (RPRD)/Rapid Fielding Requirements Document (RFRD) and a validation process to expedite delivery of capability to the warfighter using rapid acquisition authorities. • Documents and the validation process are based on JCIDS. • Modified documents and a streamlined process that gets Warfighter needs to AQ for rapid prototyping and fielding quickly. • Expedited submission to VCSAF/CSAF for validation/signature then back to AQ for execution.

9. Requirements Process Requirements

10. RPRD / RFRD Elements • Commander's Intent (CDR signs at bottom of page) • Explain why the solution is a candidate for rapid acquisition • CONOPS • Section 1: Operational Context • Provide operational context explaining how the capability solution(s) contribute to the missions and activities of the Air Force/Joint Force. • Discuss the gaps to be filled and their priority to the Air Force • Section 2 Threat Summary (RFRD Only) • Section 3 Capability Discussion • Summarize any/all related analysis and/or studies conducted to derive the performance attributes. • For IT systems add IT Box Construct.

11. RPRD / RFRD Elements • Section 4: Program Summary - Summarize the overall program strategy for reaching IOC andFOC • Section 5: Attributes • RPRD: • Explain why the capability requirements are essential to achieve assigned goals and objectives • Initial objective values should be the value necessary to achieve mission objectives with moderate operational risk • RFRD: • KPPs/KSAs with sufficient granularity to support contracting actions • Section 6: Other System Attributes • Section 7: Joint Interoperability (as required) • Section 11: Technology/Manufacturing Readiness • Section 13: Program Affordability (RFRD only)

12. Governance • The SAE is the Milestone Decision Authority (MDA) for rapid acquisition activities meeting the funding criteria for ACAT I as defined in DoDI 5000.02 • MDA for efforts meeting the criteria of ACAT II and III programs—as defined in DoDI 5000.02—is delegated to the PEO • Further delegation allowed to qualified individuals meeting the definition, and following the process, in Chap. 1 of AFI 63-101/20-101 • Use of ACAT criteria for MDA determination or reporting does not mean it is an ACAT program • Section 804 should be used for all future Air Force acquisitions to the maximum extent practicable when deemed suitable by the MDA

13. Funding • Funding for rapid acquisition activities must be reasonably anticipated by the expected date of commitment to enable efficient personnel and contracting actions. (Projected initiation date and criteria will be documented in the Acquisition Strategy Document) • Funded via normal Planning, Programming, and Budgeting Execution process • But rapid may mean reprogramming • Prioritization problems – engage with MAJCOM sponsor early • Considering “kick-start” methods • OSD Rapid Prototyping Fund not yet established • To use “overrun” funds • Know tradeoffs between additional funds and schedule acceleration • FM may use this language for UFR

14. Execution • Section 804 should be considered for all future Air Force acquisitions and applied when deemed suitable by the MDA • Approach has up to four tailorable phases -- depending on the pathway chosen: • Alpha: Prototyping • Beta: Fielding and Initial Production • Gamma: Modernization and Follow-on Production • Delta: Operations and Sustainment • PM develops and proposes an acquisition strategy, acquisition oversight milestones, metrics and execution guardrails, timing and scope of decision reviews, metrics, and required documentation to the MDA • Tailored to needs of that activity – but DoDI 5000.02 can provide basis • Failing fast is OK - overachieve early and fallback as reality intervenes • Decisions are documented in Acquisition Decision Memorandum

15. “Seven Steps for Incorporating Rapid Prototyping into Acquisition” (10 Apr 2018 AF SAE Memo) • Constrain Time & Budget • Aggressive Goal • Go FAST! • Do NOT constrain final performance • Keep your MDA in the Loop • Over and above minimum requirements • New Opportunity – no requirements yet • It Takes a Team • Bound Risks • Collaboration • Continual dialog and input: operators, finance, contracts, legal, test • Introduce only 1 new hard thing - the X-factor • Laser focus on that factor • Get MDA Signature • POINT 3 • Be Aggressive • Don’t be Greedy • Have a traditional Initial Operational Capability (if X fails) • Follow ACAT MDA Authorities

16. Documentation • Primary product – Acquisition Strategy Document • JCIDS and DODI 5000.02 do not apply … but documents required by other statutes and FAR are still required (Clinger Cohen, NEPA, etc.) • Demonstrate speed with rigor • Articulate speed • Faster speed compared to the old ‘normal’ means more flexibility available to you • Balance speed with transparency and accountability considerations • Document rigor • Projected initiation date and criteria • Metrics • Triggers/guardrails/gates • Cost/sched/performance objectives

17. Acquisition Strategy • Crafting a good rapid acquisition strategy document: • Design Goals should keep in mind future sustainment and improvement • Consider the Seven Steps of Incorporating Rapid Prototyping into Acquisition • Partially complete versus complete partially -- Should a step fail, your result should still be functional. • Be aggressive with schedule -- zero-based scheduling includes only elements required for execution • Not Milestones -- Gates & Triggers • Gates you see coming: Contracting Action, Test Results, Design Validated • Triggers you may not: missing a cost target, not ready for a test, incomplete capability drop • Look for contracting innovations: • IDIQ, cooperative agreements, OTA, experimental authority, FAR part 12 (Commercial items) • Get it signed • If you already have GC and AQ coord, Dr Roper will likely sign when you present it to him.

18. Reporting • Required Reporting: • All are on IML unless waived • ACAT I equivalent are on AML and require monthly MARs (unless waived) • Tri-annual SAR-like report • Prepared by PM for MDA, and passed up the chain to next higher level • ACAT I equivalents passed from SAE to Congress • Satisfies the statutory MDAP exclusion reporting requirement • PMRT data – to include data required by OSD memo [ref AFGM] • Name of effort • Capability gap or problem being addressed • Qualifications as a rapid acquisition activity • Schedule acceleration over a traditional acquisition approach • Budget, funding source, and date funds were approved • Completion data and criteria • Current status • Contracting approach and time to award • Additional OSD reporting TBD

19. Transitions • Rapid prototyping actions will end with the MDA determining if the effort results in: • A subsequent prototype • Initiation of rapid fielding • Transition to a traditional program • Inclusion in an existing program • Termination • Modernization and Follow-on Production from Rapid Fielding should be based on balancing needed quantities, purchasing efficiencies, and upgrade options • Assess the merits of increasing production of current system configurations versus spiral modernization based on operational need, training, sustainment, and industry base considerations • Smart modernization is encouraged over sustainment of obsolescing, less-effective, and more-costly systems which are readily available or producible • Delta Phase (Operations) should mark the end of production but not improvement • System components, especially software, should be continually improved—vice merely being replaced or refreshed—assuming preferred upgradeable design approaches • Improvement options should be balanced against operational need, training, sustainment, and industry base considerations

20. Statute Summary

21. Other Related Authorities