Acquisition Planning NCMA

1. Acquisition Planning NCMA Laurie Carpentier ESC Acquisition Center of Excellence Date: 10 Mar 10

2. Overview • Acquisition Strategy Planning • Defense Acquisition Framework • Overarching Acquisition Considerations • Tailoring Acquisition Considerations to Specific Program Needs • Acquisition Consideration Issues • Acquisition Strategy Panels / Approvals • Challenges to Acquisition Strategy • Keys to Successful Acquisition Planning • Acquisition Planning References

3. Acquisition Strategy Planning – Why? • Anacquisition strategy (AS) is a high-level business and technical management approach designed to achieve program objectives within specified resource constraints. It is the framework for planning, organizing, staffing, controlling, and leading a program. (DSMC Acq Strategy Guide) • AS encompasses entire life cycle of a program (DoDI 5000.02 framework) • AS required for entry to Milestone B and subsequent entry milestones • Tailored to program, documented via LCMP, AS / requirements conveyed in contract instruments • “Agencies shall perform acquisition planning… the purpose of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely manner.” (FAR 7.102)

4. Acquisition Strategy Planning – What? • RESULT of extensive planning and preparation and thorough understandingof • Specific acquisition program AND • General defense / agency acquisition environments • REQUIREScollaborationbetween • Senior Acquisition Official (SAE), Milestone Decision Authority (MDA) (or MDA-equivalent for non-ACAT programs) and program manager and functional communities engaged in and supporting the acquisition NO COOKIE-CUTTER APPROACH LEARN WHERE TO GO FOR HELP GENERAL DEFENSE / AGENCY ACQUISITION REFERENCES DoD Directive 5000.01 - Defense Acquisition System DoD Instruction 5000.02 - Operation of the Defense Acquisition System Defense Acquisition Guidebook FAR-- Part 7,DFARS-- Part 207,AFFARS and IG-- 5307,AFMCFARS and IG-- 5307 4

5. C A CDD CPD Defense Acquisition Management Framework (DoD Instruction 5000.02) User Needs Technology Opportunities & Resources B IOC FOC Materiel Solution Analysis Technology Development Engineering and Manufacturing Development Production & Deployment Operations & Support ICD Materiel Development Decision FRP Decision Review Post PDR Assessment Post CDR Assessment AoA PDR PDR CDR or Pre-Systems Acquisition Systems Acquisition Sustainment Acq Strategy Required Here and subsequent entry milestones GET TO KNOW THE ACQUISITION LIFE CYCLE

6. Overarching Acquisition Strategy Considerations … USE ALL AVAILABLE RESOURCES Excerpts from Acquisition Deskbook 6

7. … Tailored to Program-Specific Needs Acquisition Strategy Foundations INPUTS …Iterative process to determine SOUND strategy for specific program… Competitive or Sole Source? Robust Sys Eng Program Objectives Collaborative Requirements Technology Transition Direction,Funding FAR Part 12 or Part 15? Develop Acq. Strategy Early Industry Involvement… Market Research Findings Contract Form and Type? Evolutionary Acq. Risk Workshop Results Expectation Management Incentives? 7

8. … Tailored to Program-Specific Needs(cont’d) • Development of an Acquisition Strategy can be very COMPLEX • Don’t get stuck going in circles… • Get the right people involved • early in the requirement • identification / definition stages • IPTs must adequately address all regulatory requirements and relevant acquisition considerations in developing SOUND Acquisition Strategies Early Collaboration is Key

9. Acquisition Considerations - Issues • Teams bring programs forward for Acquisition Strategy Approval without well defined requirements or sound acquisition strategy • Acquisition strategy not well thought out • Briefer(s) can’t answer questions when asked • Technology maturity level – strategy doesn’t address • Schedule charts– teams don’t seem to understand schedule fully; can’t answer basic questions on realism or achievability • Future competition not addressed • Next increment / future increments poorly addressed

10. Acquisition Considerations - Issues (cont’d) • Source selection evaluation criteria NOT tied to significant risks discovered • Identifying significant risk via risk assessment activities, but then NOT evaluating them during source selection to ensure offeror(s) has an adequate strategy to mitigate the risk during contract performance • Source selection evaluation criteria established that are NOT key discriminators in best-value decision • Source Selection– strategy does not adequately explain what team plans to do

11. Acquisition Considerations – Issues (cont’d) • Risks poorly addressed; teams don’t understand risk mitigation • Data Mgt and Technical Data Rights not addressed • Contract type not adequately addressed • Should fully address why the contract type is appropriate for the given strategy/risks • Incentives– strategy does not address what they are, or why they will work Risk Management  Identification of Risk  Mitigation of Risk  Flow of biggest risks shape acquisition / business strategy to be adopted  these get conveyed in Section L, Instructions to Offerors  Section M, Evaluation Criteria

12. Acquisition Considerations – Issues (cont’d) • Acquisition Strategy documentation weak / missing • Roles of Players • Small Business Strategy • MOASP Requirement • Bundling / Consolidation Decision Justification • Performance based (SOO vs SOW) • Consideration of GFP / GFI • Reliability, maintainability, quality assurance • Baseline management – technical & product • Use of warranties • Specifications and configuration approach

13. Acquisition Considerations – Issues (cont’d) • Government vs Contractor Support Analysis • Need business case to support determination • Competition considerations: repairs and supply • Open Technology Consideration • Organizational conflict of interest (OCI) concerns

14. Acquisition Strategy Panels AFFARS 5307.104-90(a)-- ASPs (1) ASPs should take place as early as possible in the acquisition planning process to develop a systematic and disciplined approach to achieve an efficient/effective acquisition. The ASP chairperson has the authority to waive the requirement for an ASP. (2) The program manager, or the contracting officer if a program manager is not assigned, shall conduct an ASP for all ACAT programs, CSO acquisitions, and AFPEO/CM acquisitions. (3) For Other Contracting acquisitions, Acquisition Strategy Panels (ASPs) shall be convened for all acquisitions requiring a formal/written Acquisition Plan (AP). The ASP chairperson may establish streamlined ASP procedures for acquisitions <$5.5M.

15. ASP Best Practices • Ideal Entrance Criteria for ASP • Firm Requirements • Official Direction • Approved Budget • Proposed Acquisition Strategy Defined • Program Schedule/Program Office Estimate complete • Coordinated acquisition strategy with cognizant small business specialist • Draft LCMP prepared ready or near ready

16. Solicitation Release • AFFARS 5307.104 (S-90) (a): - Solicitation Release • (1) For non-space related ACAT programs, unless otherwise authorized by the MDA, the contracting officer shall not release the formal solicitation until the MDA has approved the Acquisition Strategy/LCMP strategy in accordance with USD(AT&L) and Air Force guidance. • AFFARS 5307.104 (S-90) (c): - Independent Review • (c) Independent Review. The Clearance Approval Authority will conduct an independent review of the draft Acquisition Strategy Panel brief, or draft Acquisition Plan, or its equivalent in accordance with Mandatory Procedure MP5301.9001(b), Clearance – Multi-functional Independent Review.

17. Challenges to Acquisition Strategy • Changes in the Law • Data Management and Technical Data Rights • New Changes in Services PEO Acquisitions • Changing Trends in Strategies • Types of Incentive Fee -- CPIF in lieu of CPAF • T&M to a minimum • Multiple Award vs Lead System Integrator (LSI) • DO / TO > $10M can be protested • Single Award ID/IQ requires approval

18. Keys to Successful Acquisition Strategy • Know your requirement • Form an IPT early on • All perspectives required to develop products • Defined needs for different disciplines • Strive for cohesive proactive team • Early Involvement of ACE Office • Help develop documentation • Risk Assessment workshops / guidance • Mentor throughout the process • Offer advice from previous experiences

19. Summary To this… Acquisition and Business Strategy Considerations… Is generally very COMPLEX! From this… Use all the available Acquisition Strategy development resources to derive a SOUND strategy meeting Warfighter needs! 19