Speaker’s Forum

1. Speaker’s Forum Co-sponsored by: Air Force Association (AFA) POC - Candace Robey, 883-1900 Association of Old Crows (AOC) POC - Steve Czonstka, 897-4775 International Test and Evaluation Association (ITEA) POC - Donna Self, 883-5364 National Defense Industrial Association (NDIA) POC - Len Iannuzzo, 883-1088 Judy A. Stokley Deputy PEO/WP & Executive Director 25 January 2006

2. Leadership Changes PEO and AAC Commander Maj. Gen. Jeff Riemer Vice Commander and Deputy for Support Brig. Gen. (S) Joseph Lanni Deputy PEO and Executive Director Ms. Judy Stokley, SES

3. Overview • Defense Acquisition Performance Assessment Project • Air Force Acquisition Transformation Council • Acquisition Focus Areas at AAC • Words from the War • Summary

4. DAPA - The Task Issued By Acting Deputy Secretary Of Defense England, 7 June 2005 “… I am authorizing an integrated acquisition assessment to consider every aspect of acquisition, including requirements, organization, legal foundations…decision methodology, oversight, checks and balances – every aspect…” “The output… will be a recommended acquisition structure and processes with clear alignment of responsibility, authority and accountability.” “Simplicity is desirable… Restructuring acquisition is critical and essential.”

5. DAPA Membership And Support Teams The Panel Advisors Dr. Francis W. Ahearn Professor – Industrial College of the Armed Forces, NDU Dr. Linda S. Brandt Professor – Industrial College of the Armed Forces, NDU Ms. Judy A. Stokley Deputy for Acquisition – Air Armament Center Mr. Alfred G. Hutchins, Jr. President – Hutchins & Associates, Inc. Lieutenant General Ron Kadish USAF (Ret) Partner, and VP Aerospace Market Group Booz, Allen Hamilton Panel Chairman Dr. Gerald Abbott Professor – Industrial College of the Armed Forces, NDU Mr. Frank Cappuccio Executive Vice President – Lockheed Martin Corporation General Richard Hawley, USAF (Ret) Aerospace Consultant General Paul Kern, USA (Ret) The Cohen Group Mr. Don Kozlowski Former Vice President, McDonnel Douglas Corporation Mr. J. David Patterson, Project Director Ms. K. Eileen Giglio, Deputy Project Director Col. Alan Boykin, USAF, Staff Director Support Staff Lt. Col. Rene Bergeron, USAF Lt. Col. Annette Foster, USAF Mr. Stephen Hayes, USA Ms. Maggie Souleyret Ms. Annette Atoigue

6. Performance Assessment Process • Surveyed Over 130 Government And Industry Acquisition Professionals • Developed 1.069 Observations • Identified 42 Areas Of Interest • Created Integrated Acquisition Performance Assessment. • Defined Eight Performance Improvements • Reviewed Over 1,500 Documents To Establish Baseline Of Previous Recommendations • Held Open Meetings And Maintained A Public Web-site To Obtain Public Input • Heard From 107 Experts, Received Over 170 Hours of Briefings LITERATURE SEARCH Issue Identification Performance Improvements Situational Assessment PUBLIC INPUT Performance Improvement Assessment Performance Assessment SURVEY OF PRACTITIONERS Major Findings Implementation Criteria SUBJECT MATTER EXPERT BRIEFINGS 1,069 OBSERVATIONS 42 ISSUE AREAS INTEGRATED ASSESSMENT 8 PERFORMANCE IMPROVEMENTS

7. Oversight Acquisition Strategy Requirement Process PM Expertise Need for Leadership Program Structure Industry Motivation & Behavior RAA Allocation Process Discipline Acquisition Career Path Joint Requirement Development Complex Acquisition System PPBE Process Number of Observations 42Issue Areas Integrated Look At Key Issues

8. Our Integrated Assessment An effective acquisition system requires stability and continuity that can only be achieved through integration of the major elements upon which it depends. For example: Organization, Workforce, Budget, Requirements, Acquisition, and Industry, as well as Leadership and Congressional Oversight. In Theory - Cohesive and Stable

9. Our Integrated Assessment There are fundamental disconnects in DoD management systems and Congressional oversight, driven by competing values and objectives that create government-induced instability in our acquisition programs • HOW MUCH AND WHEN TO BUY • CONTROL, OVERSIGHT AND BALANCE INSTABILITY THAT ADVOCACY CREATES • STABILITY • TRAINING • JOB SATISFACTION • EXPERIENCE • COMPLIANCE • CONSISTENCY • CONTROL • OVERSIGHT • HOW TO BUY • BALANCE OF COST, SCHEDULE AND PERFORMANCE • TECHNOLOGY AVAILABLE vs. PERFORMANCE, COST AND TIME TO NEED • WHY AND WHAT TO BUY • MISSION SUCCESS AT LOWEST COST IN LIFE • SERVICE ADVOCACY • SURVIVAL • PREDICTABILITY • STOCKHOLDER VALUE • VENDOR BASE VITALITY In Practice – Disconnected and Unstable (government induced)

10. Performance Improvement Reducing government-induced instability through transformation of these key elements of the Acquisition system can reduce cost, enhance acquisition performance and accelerate key capabilities by years.

11. Performance Improvements – Organization Organization • OSD Acquisition, Technology and Logistics (AT&L) • Focus on what, not how, to buy • Member of JROC • Own Acquisition Stabilization Account (ASA) • Compete capability needs and chair Materiel Selection Board • Disestablish OIPT process • Service Acquisition Executives (SAEs) • Elevate to Level 3 • Make 5-year Fixed Presidential Appointments renewable for second term • Create pool of pre-qualified candidates • Post Milestone B execution • Service Chiefs/CNO • Pre-milestone B execution • Service 4-Star Acquisition Commander • Dual report to SAE and Service Chief/CNO • Integrate budget, requirements, acquisition • Advocate for technological future • Advocate and manage Acquisition workforce • Oversee day-to-day program execution • Direct and manage preparation of service materiel solution proposals

12. Performance Improvements – Budget and Requirements Budget • Create separate ASA programmed and executed by AT&L • Create management reserve at Service level • Adjust all accounts to 80/20 confidence level in 08 POM submission Requirements • Replace JCIDS with COCOM-led requirements process in which the Services and DoD agencies compete to provide solutions • Create 15-year Joint Capability Acquisitions and Divestment Plan (JCADP), 2-yr cycle • Time-phased, fiscally-informed and prioritized capability needs • AT&L compete among Services and select Materiel Solutions • Require TEMP and IOT&E Plan for Milestone B decision • Add ”operationally acceptable” category to Operational Test evaluation • Require JROC approval to test outside Requirements • PMs can reschedule requirements

13. Performance Improvements – Acquisition Acquisition • Pre-milestone B, PM is operator trained in acquisition, DPM is acquisition professional • Post-milestone B, PM is acquisition professional, DPM is operator trained in acquisition • 4-Star Acq Cmdr is certification authority for Acquisition workforce • Incl budget, reqts, test officers from Service Staffs/other Commands • Make time a KPP • Require Time Certain Development - NGT 6 years from MS A to 1st del • Require Risk Based Source Selections - replace development cost bid with negotiated most-probable cost • Baseline at Milestone B NET Preliminary Design Review • Require TEMP and IOT&E Plan at Milestone B- PEO/PM signator on both • Give PM explicit authority to defer requirements post Milestone B • Appoint PM accountable for each baseline with tenure from Milestone B through Beyond Low Rate Initial Production report

14. Performance Improvements –Workforce and Industry Workforce • 4-Star Acq Cmdr is certification authority for Acq workforce • Workforce includes personnel from budget, requirements, test, etc. • Establish mentor program for PMs • Stabilize PM tour – NLT MS B - Beyond Low Rate Initial Prod Report Industry • Establish Roundtable hosted by SECDEF to share Joint Capability Acquisition and Divestment Plan • Align industry and defense strategic planning • Convert to Risk-based Source Selections • Award to minimum risk proposals at negotiated most probable cost • Favor formal competitions by primes vice traditional make/buy

15. DAPA – Closure • Results presented in public forum 14 Dec 05 • Release of full report expected 27 Jan 06 • Results provided to QDR panel http://www.acq.mil/dapaproject- 1 Feb 06 http://www.dau.mil/library/- Date TBD

16. Air Force Acquisition Transformation Council • The Umbrella – “SMART OPS 21” – LEAN • Process Efficiency • Balanced Scorecard • Acquisition Improvement Efforts • Transparency in Governance - Program Stability • Risk Assessment Methodology - Program Planning & Baselines • Oversight - Test – OT Evaluations • Risk Assessment Methodology – Ms. Betsy Thorn • “Center of Gravity” for Acquisition Improvements • SPIRAL 1, Beta Tests, Operating Guide by 30 Sept 06 • Acquisition Strategies, Source Selections, Milestone/Program Decisions WAR-WINNING CAPABILITIES… ON TIME, ON COST

17. AF Goal “GOING GREEN” Reset Program Success Factors to Risk Based 95% By 2010 (New Culture!) Majority Objective Now- Much is Subjective (Old Culture!) Source: AF PEO Portfolio, Oct 05 MAR

18. Acquisition Focus Areas at AAC • Credibility • Risk Assessment Methodology • Risk-focused Source Selections • Sufficiency Reviews • College of Acquisition Curriculum • Expectation Management Agreements – Annual Commitments • PEO reviews – Balanced Scorecard • Financial Execution • Capability Needs • Counter MANPADS • Net-ready weapon data links • Chemical Biological Radiological Nuclear & Explosive (CBRNE) • Universal Armament Interface • Urban CAS • Reliability • Air Armament Symposium – 3-4 October 06

19. Words From The War “My concern is that this war has reached a point where a tactical error can have strategic implications so everything in our arsenal needs to work first time, every time. We have also become the victim of our own success in that the ground troops “know” we can shack the target every time and pretty much control collateral damage. As such, we only drop one at a time so when one doesn’t work as advertised it becomes obvious.” • Lt Gen Walter Buchanan Commander of 9th Air Force

20. Summary War-Winning Capabilities… On Time, On Cost Thank You for All You Do