Re-Issuance of DOD Instruction

Transcription

1 Re-Issuance of DOD Instruction

2 2 Overarching Objectives Decrease emphasis on rules and increase emphasis on process intent and thoughtful program planning Provide program structures and procedures tailored to the dominant characteristics of the product being acquired and to unique program circumstances, e.g., risk and urgency Enhance the discussion of program management responsibility and key supporting disciplines Institutionalize changes to statute and policy since the last issuance of DoD Instruction

3 3 What Changed? (Models and Procedures) Core Document Re-Written to More Clearly Communicate Management Intent Most language related to statutory compliance (i.e., Formatted as Tables) Notes Added to Tables to Clarify Requirement Substantial Revisions to All Enclosures Accommodate community concerns Clarify/Streamline procedures Document Re-Organized

4 4 What Changed? The overall tone of the document from compliance to thoughtful planning Example Program Models tailored for the product being acquired and designed to serve as benchmarks for structuring programs Re-written and Re-focused acquisition process procedures New/Expanded Policy: Program Management Program Protection, including Cybersecurity Intellectual Property Operational Test and Evaluation (significantly expanded) Life-Cycle Sustainment Affordability Defense Business Systems Rapid Acquisition of Urgent Needs

5 5 Revised Document Structure Revised DoDI Structure Core Instruction 13 Enclosures ALL Enclosures have been Revised New Enclosures are highlighted in Red Old Enclosures with Major Revisions are highlighted in Blue 150 Pages Core Instruction - Operation of the Defense Acquisition System Enclosures 1. Acquisition Program Categories and Compliance Requirements 2. Program Management 3. Systems Engineering 4. Developmental Test and Evaluation (DT&E) 5. Operational and Live Fire Test and Evaluation 6. Life-Cycle Sustainment Planning 7. Human Systems Integration (HSI) 8. Affordability Analysis and Investment Constraints 9. Analysis of Alternatives 10. Cost Estimating and Reporting 11. Requirements Applicable to All Programs Containing Information Technology (IT) 12. Defense Business Systems (DBS) 13. Rapid Acquisition of Urgent Needs

6 Statute & Policy Driving the Update POLICY USD(AT&L) Memos Better Buying Power 1 & 2 Designation of Subprograms for MDAPs EVM Systems Performance, Oversight, and Governance Government Performance of Critical Acquisition Functions Preservation and Storage of Tooling for MDAPs Reporting Requirements for Programs Qualifying as Both MAIS & MDAP Should-cost Memos Strengthened Sustainment Governance Improving Technology Readiness Assessment Effectiveness PDUSD(AT&L) Memos Improving Milestone Process Effectiveness Post-CDR Reports and Assessments Milestone Decision Documentation Outlines Other Memos Guidelines for Operational Test and Evaluation of Information and Business Systems DoD CIO Policy for CCA Confirmations DIRECTIVE TYPE MEMOS DTM : Implementation of WSARA 2009 DTM : Space Systems Acquisition Policy DTM : Supply Chain Risk Management (SCRM) to Improve the Integrity of Components Used in DoD Systems DTM : Requirements for Life Cycle Management and Product Support DTM : Development Planning DTM : Reliability Analysis, Planning, Tracking, and Reporting DTM : Acquisition Policy for Defense Business Systems STATUTE Title : Independent cost estimation and analysis 2366: Major systems and munitions programs: survivability and lethality testing required before full scale production 2445c: MAIS Programs NDAA 332 of FY09: Fuel Logistics Requirements 805 of FY10: Life-Cycle Management and Product Support 803 of FY11: Enhancing Rapid Acquisition 804 of FY11: Acquisition Process for Rapid Fielding of Capabilities in Response to Urgent Operation Needs 811 of FY11: Cost Estimates for MDAP and MAIS 812 of FY11: Management of Manufacturing Risk 932 of FY11: Computer Software Assurance 831 of FY11: [Waiver of Nunn-McCurdy for a Change in Quantity] 811 of FY12: Calculation Of Time Period [for MAIS] Critical Changes 801 of FY12: Core Depot-level Maintenance and Repair Capabilities 832 of FY12: Assessment, Management, and Control of Operating and Support Costs for Major Weapon Systems 834 of FY12: Management of Manufacturing Risk in MDAPs 901 of FY12: Revision of DBS Requirements 811 of FY13: Limitation on use of cost-type contracts 812 of FY13: Estimates of Potential Termination Liability 904 of FY13: Additional Responsibilities.. (T&E) ADDITIONAL CONSIDERATIONS JCIDS Reissuance New Emphasis on Cybersecurity New Emphasis on Intellectual Property (IP) Strategy FY10 NDAA, Sec. 804: Agile IT Development 6

7 Better Buying Power 2.0 Initiatives Institutionalized via the INTERIM DoD Instruction Achieve Affordable Programs Mandate affordability as a requirement Institute a system of investment planning to derive affordability caps Enforce affordability caps Control Costs throughout the Product Life Cycle Implement "should cost" based management Eliminate redundancy within warfighter portfolios Institute a system to measure the cost performance of programs and institutions and to assess the effectiveness of acquisition policies Build stronger partnerships with the requirements community to control costs Increase the incorporation of defense exportability features in initial designs lncentivize Productivity & Innovation in Industry and Government Align profitability more tightly with Department goals Employ appropriate contract types Increase use of Fixed Price Incentive contracts in Low Rate Initial Production Better define value in "best value" competitions When LPTA is used, define Technically Acceptable to ensure needed quality Institute a superior supplier incentive program Increase effective use of Performance-Based Logistics Reduce backlog of DCAA Audits without compromising effectiveness Expand programs to leverage industry's IR&D Eliminate Unproductive Processes and Bureaucracy Reduce frequency of OSD level reviews Re-emphasize AE, PEO and PM responsibility and accountability Eliminate requirements imposed on industry where costs outweigh benefits Reduce cycle times while ensuring sound investment decisions Promote Effective Competition Emphasize competition strategies and creating and maintaining competitive environments Enforce open system architectures and effectively manage technical data rights Increase small business roles and opportunities Use the Technology Development phase for true risk reduction Improve Tradecraft in Acquisition of Services Assign senior managers for acquisition of services Adopt uniform services market segmentation Improve requirements definition/prevent requirements creep Increase use of market research Increase small business participation Strengthen contract management outside the normal acquisition chain installations, etc. Expand use of requirements review boards and tripwires Improve the Professionalism of the Total Acquisition Workforce Establish higher standards for key leadership positions Establish stronger professional qualification requirements for all acquisition specialties Increase the recognition of excellence in acquisition management Continue to increase the cost consciousness of the acquisition workforce change the culture 7

8 8 Product-Tailored Acquisition Models Model 1: Hardware Intensive Program Model 2: Defense Unique Software Intensive Program Model 3: Incrementally Fielded Software Intensive Program Hybrid Program A (Hardware Dominant) Hybrid Program B (Software Dominant) Model 4: Accelerated Acquisition Program

9 9 Model 1: Hardware Intensive Program Capability Development Document (CDD) Validation Development Request for Proposals (RFP) Release Decision Full-Rate Production (FRP) Decision Initial Operational Capability (IOC) Full Operational Capability (FOC) Materiel Development Decision A B C Low-Rate Initial Production (LRIP) OT&E Sustainment Disposal Materiel Solution Analysis Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support Legend: = Milestone Decision = Decision Point model of a hardware intensive development program such as a major weapons platform This is the classic model that has existed in some form in all previous editions of this instruction Model 1: Hardware It is the starting point for most military weapon systems; however, these products almost always contain software development resulting in some form of Hybrid Model A Rt:.6 Bottom: 1.7

10 Model 2: Defense Unique Software Intensive Program Materiel Development Decision CDD Validation Development RFP Release Decision Full Deployment Decision (FDD) IOC Full Deployment (FD) A B C Risk Reduction Build 0.1 Build 1.1 Build 1.2 Build 1.3 Build 1.4 Build 1.5 Integration Build 2.1* Limited Deployment OT&E Sustainment Disposal Materiel Solution Analysis Technology Maturation & Risk Reduction Engineering & Manufacturing Development Deployment Operations & Support Legend: = Milestone Decision = Decision Point * The actual number and type of builds during the program will depend on system type. a model of a program that is dominated Model by 2: Software the need to Intensive develop a complex, usually defense unique, Left:.1 software program that will not be deployed until several software builds have been completed The central feature of this model is the planned software builds a series Bottom: of 1.3 testable, integrated subsets of the overall capability which together with clearly defined decision criteria, ensure adequate progress is being made before fully committing to subsequent builds Rt:.2 Top:.2 Examples of this type of product include military unique command and control systems and significant upgrades to the combat systems found on major weapons systems such as surface combatants and tactical aircraft. 10

11 11 Model 3: Incrementally Fielded Software Intensive Program Materiel Development Decision CDD Validation A Development RFP Release Decision B Full Deployment Decision (FDD) Limited Fielding Decisions IOC Full Deployment (FD) Materiel Solution Analysis Risk Reduction Build Build 0 Risk Reduction Increment 2 Build 1 OT&E Build 2... Build n Development & Fielding Development RFP Release Decision B Build 2.1 Limited Fielding Decisions Sustainment FDD Operations & Support IOC FD Left:.5 Right: 1.75 Top:.2 Bottom:.7 Risk Reduction OT&E Build Development & Fielding Build 2.n Sustainment Operations & Support Legend = Milestone Decision = Decision Point Increment n Development RFP Release Decision This model is distinguished from the previous model by the rapid delivery of capability through several limited fieldings in lieu of single Milestones B and C and a single full deployment. Each limited fielding results from a specific build, and provides the user with mature and tested sub-elements of the overall capability. Several builds and fieldings will typically be necessary to satisfy approved requirements for an increment of capability. will apply in cases where commercial off-the-shelf software, such as commercial business systems with multiple modular capabilities, are acquired and adapted for DoD applications B Risk Reduction Build n.1 Limited Fielding Decisions OT&E Build n.2... Development & Fielding FDD Build n.n IOC FD Sustainment Operations & Support Disposal

12 Hybrid Program A (Hardware Dominant) Materiel Development Decision CDD Validation Development RFP Release Decision FRP IOC FOC A B C Risk Reduction Build 0.1 Build 1.1 Build 1.2 Build 1.3 Build 1.4 Build 1.5 Build 2.1 LRIP Integration Build 3.1 OT&E Build 3.2* Sustainment Disposal Materiel Solution Analysis Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support Legend: = Milestone Decision = Decision Point * The actual number and type of builds during the program will depend on system type. a model depicting how a major weapons system Model: combines Hybrid-A hardware development as the basic structure with a software intensive development that is occurring simultaneously Right:.1 with the hardware development program In a hardware intensive development, the design, fabrication, Bottom: and 1.1testing of physical prototypes may determine overall schedule, decision points, and milestones, but software development will often dictate the pace of program execution and must be tightly integrated and coordinated with hardware development decision points software development should be organized into a series of testable software builds These builds should lead up to the full capability needed to satisfy program requirements and Initial Operational Capability (IOC). Software builds should be structured so that the timing of content delivery is synchronized with the need for integration, developmental and operational testing in hardware prototypes Milestone B decision to enter EMD and the Milestone C decision to enter Production and Deployment should include software functional capability development maturity criteria as well as demonstrated technical performance exit criteria Top:.2 12

13 Hybrid Program B (Software Dominant) Materiel Development Decision CDD Validation Development RFP Release Decision FDD IOC FD A Materiel Solution Analysis B Risk Reduction Build Technology Maturation & Risk Reduction Build Build Engineering & Manufacturing Development C Build Integration Build 1.2 Development RFP Release Decision Limited Deployment (LD) Build Build 1.3.2* OT&E Production & Deployment Sustainment Operations & Support FDD FD IOC Increment 2 B Risk Reduction Technology Maturation & Risk Reduction Build LD Build Build Integration Build Build Build 2.2 OT&E Engineering & Manufacturing Development C Production & Deployment Sustainment Disposal Operations & Support Legend: = Milestone Decision = Decision Point * The actual number and type of builds during the program will depend on system type. depicts how a software intensive product development can include a mix of incrementally fielded Left:.6.3 software products or releases that include intermediate software builds Risk Management in Hybrid Models: Right: 1.7 Top:.2 Bottom: 1.3 Highly integrated complex software and hardware development poses special risks to program cost and schedule performance. Technical, cost, and schedule risks associated with hardware and software development must be managed throughout the program s life cycle and will be a topic of special interest at all decision points and milestones. 13

14 14 Model 4: Accelerated Acquisition Program Materiel Development Decision Preliminary Design Review IOC FOC A/B C OT&E Sustainment Disposal Materiel Solution Analysis Concurrent Technology Maturation, Risk Reduction and Development Concurrent Production and Deployment Operations & Support Legend: = Milestone Decision = Decision Point is a model that applies when schedule considerations dominate over cost and technical risk considerations This model compresses or eliminates phases of the process and accepts the potential for Left:.6 inefficiencies in order to achieve a deployed capability on a compressed schedule Right:.8 Top: 0 Bottom: 2 The model shows one example of tailoring for accelerated acquisition and many others are possible For products that must be developed and acquired as quickly as possible, usually motivated by a potential adversary achieving technological surprise, and featuring a greater acceptance of program risk

15 Materiel Development Decision (MDD) ICD Materiel Solution Analysis A Materiel Development Decision Technology Maturation and Risk Reduction (TMRR) B CDD Program Initiation Engineering & Manufacturing Development IOC Production & Deployment FRP Decision Review Approval to Enter the Acquisition Process MDA: Determines acquisition phase of entry Identifies initial review milestone Designates Lead DoD Component Issues Acquisition Decision Memorandum (ADM) CDR Information Requirements: Initial Capabilities Document (ICD) Evidence of strong technical foundation AoA Study Guidance and AoA Study Plan C CPD LRIP/IOT&E FOC Operations & Support

16 Enter: Validated ICD, AoA Study Guidance & Study Plan Major Activities: Conduct AoA Materiel Solution Analysis Phase Purpose: Assess potential materiel solutions Develop Acquisition Strategy (AS) & draft CDD Translate capability gaps into system specific requirements Minimum funding to complete activities and support decision to proceed to next phase Guided by: ICD and AoA Study Plan *Contract: Fixed price ICD Materiel Solution Analysis Materiel Development Decision Exit: MDA approves materiel solution and AS *Final RFP for TMRR Phase cannot be released until Milestone A approval A ICD draft CCD

17 Technology Maturation and Risk Reduction Phase A Purpose: Reduce Technology, Engineering, Integration, and Life Cycle Cost Risks, Demonstrate Critical Technologies on Prototypes, Complete Preliminary Design draft CDD Enter: MDA approved materiel solution and AS Major Activities: Competitive prototyping; Preliminary Design Review (PDR); CDD Validation; Plan for sustainment; Dev RFP Release; TRA Guided by: ICD, AS, draft CDD and SE planning Contract: Cost Reimbursable/Fixed Price Technology Maturation and Risk Reduction source selection Contract award CDD Val Exit: Affordable increment of military-useful capability identified; technology demonstrated in relevant environment; manufacturing risks identified; PDR conducted; ready for production within 5 years (for weapons systems) PDR or Dev RFP Release PDR TRA B final CDD

18 Technology Maturation and Risk Reduction (TMRR) Phase Risk reduction prototypes will be included if they will materially reduce engineering and manufacturing development risk at an acceptable cost. Risk reduction prototypes can be at the system level or can focus on, sub-systems, or components. A competitive prototype, or if this is not feasible, a single prototype or prototyping of critical subsystems prior to Milestone B is statutorily required to be part of the Acquisition Strategy for MDAPs and is a regulatory requirement for all other programs. The MDA may waive the competitive prototyping requirement at or prior to Milestone A

19 CDD Validation ICD Materiel Solution Analysis A Materiel Development Decision TMRR CDD Val B CDD Program Initiation Engineering & Manufacturing Development CDR C CPD IOC Production & Deployment LRIP/IOT&E FRP Decision Review FOC Operations & Support Purpose: The requirements validation authority validates the CDD Major cost-performance trades complete. Risk reduction sufficient to support preliminary design activities MDA and/or CAE and the requirements leadership engage to ensure: o o o o that the validated requirements continue to address the priorities of the users in a cost effective & affordable way. that requirements are achievable, affordable, and testable that requirements trades are fully informed by the systems engineering trade-off analyses completed by the PM or the DoD Component. KPPs and KSAs guide efforts leading to PDR and inform Dev RFP Release Decision Point

20 Development RFP Release Decision Point A B Program Initiation C IOC FOC ICD Materiel Solution Analysis Materiel Development Decision TMRR Dec RFP Rel CDD Engineering & Manufacturing Development CDR CPD Production & Deployment LRIP/IOT&E FRP Decision Review Operations & Support Purpose: Ensure an executable and affordable program has been planned MDA : Authorizes final RFP release and source selection for EMD contract Determines LRIP quantities Documents decision in an ADM

21 Technology Maturation and Risk Reduction (TMRR) Phase Conduct cost performance trade-offs Ensure full funding in FYDP Prepare required documents drafts at Dev RFP Release; final by Milestone B Prepare life-cycle cost estimate (including economic analysis for AIS programs) Prepare contract package for next phase* Conduct PDR Conduct Dev RFP Release Decision Point Meet exit criteria for TMRR Phase; Propose exit criteria for next phase *Final RFP for EMD Phase cannot be released until MDA approves Acq Strategy

22 Summary, Technology Maturation and Risk Reduction Phase Maximum competition and innovation to satisfy needs System can be developed for production within short timeframe (normally less than five years for weapon systems) Thorough planning critical to success BOTTOM LINE: Is New Development Program Justified???

23 Milestone B Materiel Development Decision Capability Development Document (CDD) Validation Development Request for Proposals (RFP) Release Decision Full-Rate Production (FRP) Decision Initial Operational Capability (IOC) Full Operational Capability (FOC) A B C Low-Rate Initial Production (LRIP) OT&E Sustainment Disposal Materiel Solution Analysis Technology Maturation & Risk Reduction Engineering & Manufacturing Development Production & Deployment Operations & Support Legend: = Milestone Decision = Decision Point MDA approves: Model 1: Hardware Program Initiation Entry into Engineering & Manufacturing Development (EMD) Acquisition Strategy* Acquisition Program Baseline (APB) Exit criteria for next phase LRIP Quantities Affordability Requirement (USD(AT&L) s efficiency initiative) Program Certification (10 USC 2366b) Type of Contract* Acquisition Decision Memorandum (ADM) Rt:.6 Bottom: 1.7 *Statutory requirement for MDAPS; however, will be approved at Dev RFP Release Review

24 Milestone B Milestone B requires final demonstration that all sources of risk have been adequately mitigated to support a commitment to design for production. This includes technology, engineering, integration, manufacturing, sustainment, and cost risks. Validated capability requirements, full funding in the FYDP, and compliance with affordability goals for production are also required.

25 Engineering & Manufacturing Development (EMD) Phase B Purpose: Develop a system or increment of capability, develop an affordable manufacturing process, minimize logistics footprint Engineering & Manufacturing Development C if PDR not conducted before MS B CDR Contract Award for EMD PDR Enter: Mature technology; validated requirements; full funding Activities: Define functionality & interfaces; complete detailed design; System-Level PDR (as needed) & CDR. Developmental Testing (DT) assesses progress against technical requirements; Operational Assessments (OA) against CDD Guided by: CDD, Sys Engineering Plan (SEP); Acq Strategy CDR Assessment and establishment of Product Baseline Activities: Exit: System demonstrated in intended environment; meets exit criteria and MS C entrance requirements

26 EMD Purpose: Integrate subsystems reduce systems-level risk Demonstrate the ability of the system to operate in a useful way consistent with KPPs Key Activities: Demonstrate prototype articles Conduct integrated DT, OT and LFT&E Prepare for Critical Design Review (CDR) Prepare RFP for next effort/phase

27 Key Activities: EMD Extensive testing: developmental, operational, interoperability and live fire testing (as appropriate) Technical reviews (as appropriate) Demonstrate system in its intended environment using production-representative articles Prepare RFP for Low Rate Initial Production Prepare for Milestone C Update: Information requirements for Milestone C Contract Type: Fixed Price/Cost Reimbursable consistent with program risk

28 Critical Design Review (CDR) CDR establishes the initial product baseline* to ensure that the system has a reasonable expectation of satisfying the requirements of the CDD Any changes during EMD are incorporated and after CDR the CDD evolves to the CPD required at Milestone C CDR also approves the product baselines for maintainability, supportability, and logistics elements After CDR, production-representative articles will be produced for testing against the KPPs and technical requirements Once the initial product baseline is established, opportunities to influence the design, improve performance or reduce life-cycle costs are severely limited. Any requirements changes after CDR may have major cost and schedule impact. *Product Baseline Documentation describing all necessary functional and physical characteristics of a configuration item; the selected functional and physical characteristics designated for production acceptance testing; and tests necessary for deployment/installation, operation, support, training, and disposal of the configuration item.

29 Summary: Engineering & Manufacturing Development Phase EMD Phase Completion. The EMD Phase will end when: (1) the design is stable; (2) the system meets validated capability requirements demonstrated by developmental and initial operational testing as required in the TEMP; (3) manufacturing processes have been effectively demonstrated and are under control; (4) industrial production capabilities are reasonably available; and (5) the system has met or exceeds all directed EMD Phase exit criteria and Milestone C entrance criteria. EMD will often continue past the initial production or fielding decision until all EMD activities have been completed and all requirements have been tested and verified.

30 Milestone C MDA Approves: Updated Acquisition Strategy and Acquisition Program Baseline Entry into LRIP for systems that require LRIP, into production or procurement for systems that do not require LRIP, or into limited deployment for MAIS programs or software intensive systems with no production components Exit criteria for LRIP if appropriate Acquisition Decision Memorandum No significant manufacturing risks; Properly phased production ramp up and/or fielding support.

31 Production & Deployment Phase C IOC FOC Production & Deployment LRIP/IOT&E FRP Decision Review Full-Rate Production or Full Deployment Enter: System matured for production Activities: IOT&E, LFT&E and Interoperability Testing of LRIP systems; IOC is possible Guided by: CPD, TEMP Exit: System operationally effective, suitable and ready for Full-Rate Production Enter: Beyond LRIP & LFT&E Reports (OSD T&E/LFT&E programs) submitted to congress Activities: Full-Rate Production; field and support fielded systems; IOC/FOC Guided by: Acq Strategy & Life Cycle Sustainment Plan Exit: Full Operational Capability (FOC); Deployment Complete

32 Low Rate Initial Production (LRIP) Purpose: Complete manufacturing development, produce minimum quantities for IOT&E, establish initial production base, and to permit orderly ramp-up to full-rate production. Key Activities: Intensive testing: DT, full-up system level LFT&E, IOT&E and interoperability testing Update support and deployment plans Prepare RFP for full-rate production Prepare for Full-Rate Production Decision Review (FRPDR) Update: all information requirements.

33 Full Rate Production Decision Review (FRPDR) The MDA will conduct a review to assess the results of initial OT&E, initial manufacturing, and initial deployment, and determine whether or not to approve proceeding to Full-Rate Production or Full Deployment. Continuing into Full-Rate Production or Full Deployment requires demonstrated control of the manufacturing process, acceptable performance and reliability, and the establishment of adequate sustainment and support systems. For AIS systems, FRPDR is the Full Deployment Decision Review

34 Full Rate Production or Full Deployment Purpose: Establish stable, efficient production and support base Achieve Initial Operational Capability (IOC) and Full Operational Capability (FOC) Ensure fielded system continues to provide warfighter with required capabilities

35 Full Rate Production and Deployment Key Activities: Monitor and update the threat Produce and deploy the system Monitor system performance and readiness of initial system deployments Identify and correct shortcomings/deficiencies to improve performance and/or supportability Conduct Follow-On Operational Test and Evaluation (FOT&E), as appropriate

36 Operations & Support Phase Life-Cycle Sustainment Disposal Sustainment Sustainment starts immediately upon fielding or deployment. Activities: Maintain readiness and operational capability of deployed system(s). Execute operational support plans. Conduct modifications and upgrades to hardware and software. Measure customer confidence. Disposal Demilitarization & Disposal Activities: Demilitarize and dispose of systems IAW legal and regulatory requirements, particularly environmental considerations and explosives safety.

37 Operations and Support Phase Key Activities* Emphasis shifts from design/development engineering to Performance-Based Life-Cycle Support (PBL) Operational units established & readiness monitored Test and evaluation continues Operational/support problems identified and feedback provided for next increment of a program. Product Improvement/Service Life Extension Programs energized, if required System disposed of at the end of its useful life * Overlaps Production and Deployment Phase since items are deployed prior to the end of production, and must be sustained in the field

38 38 System Engineering Enclosure 3 New Content Development Planning Systems Engineering Trade-Off Analyses Technical Performance Measures and Metrics Manufacturing and Producibility Software Program Protection Reliability and Maintainability (R&M) Open Systems Architectures Insensitive Munitions Design Reviews Program Support Assessments (PSAs)

39 39 System Engineering Enclosure 3 3c. In preparation for Milestone A, and to provide the technical basis for executing the Technology Maturation and Risk Reduction Phase, the Program Manager will conduct an early systems engineering assessment of technical risks and develop the technical approach for acquiring the product. This technical assessment will include software, integration, manufacturing, and reliability risks. The results will be incorporated in the SEP for Milestone A. 4a. During the acquisition life cycle, the Program Manager will conduct systems engineering trade-off analyses to assess system affordability and technical feasibility to support requirements, investment, and acquisition decisions. Systems engineering trade-off analyses will depict the relationships between system life-cycle cost and the system s performance requirements, design parameters, and delivery schedules. The analysis results should be reassessed over the life cycle as system requirements, design, manufacturing, test, and logistics activities evolve and mature.

40 System Engineering Enclosure MANUFACTURING AND PRODUCIBILITY. The Program Manager will ensure manufacturing and producibility risks are identified and managed throughout the program s life cycle. Beginning in the Materiel Solution Analysis Phase, manufacturing readiness and risk will be assessed and documented in the SEP. By the end of the Technology Maturation and Risk Reduction Phase, manufacturing processes will be assessed and demonstrated to the extent needed to verify that risk has been reduced to an acceptable level. During the Engineering and Manufacturing Development Phase, program managers will assess the maturity of critical manufacturing processes to ensure they are affordable and executable. Prior to a production decision, the Program Manager will ensure manufacturing and producibility risks are acceptable, supplier qualifications are completed, and any applicable manufacturing processes are or will be under statistical process control. 40

41 41 Operational and Live Fire T&E Enclosure 5 10.a (7)(b) For hardware acquisitions, productionrepresentative articles should be assembled using the parts, tools, and manufacturing processes intended for use in full-rate production; utilize the intended production versions of software; and the operational logistics systems including mature drafts of maintenance manuals intended for use on the fielded system should be in place. The manufacturing processes to be used in full-rate production should be adhered to as closely as possible, and program managers for programs on DOT&E OT&E oversight will provide DOT&E a detailed description of any major manufacturing process changes.

42 BACKUP INFORMATION 42

43 Process Flexibility The structure of a DoD acquisition program and the procedures used should be tailored as much as possible to the characteristics of the product being acquired, and to the totality of circumstances associated with the program including operational urgency and risk factors. Authorizes Milestone Decision Authorities (MDAs) to tailor the regulatory requirements and acquisition procedures in this instruction to more efficiently achieve program objectives, consistent with statutory requirements and DoD Directive MDAs will tailor program strategies and oversight, including program information, acquisition phase content, the timing and scope of decision reviews and decision levels, based on the specifics of the product being acquired, including complexity, risk factors, and required timelines to satisfy validated capability requirements When there is a strong threat-based or operationally driven need to field a capability solution in the shortest time, MDAs are authorized to implement streamlined procedures designed to accelerate acquisition system responsiveness Statutory requirements will be complied with, unless waived in accordance with relevant provisions 43

44 44 Program Management Enclosure 2 Acquisition Chain of Command and PEO and PM Assignments Enhanced discussion of Program Management Responsibilities Program Office Structure and Organizations Acquisition Strategies Business Approach and Risk Management Competition Intellectual Property (IP) Strategy and Open Systems/Architectures Program Baseline Development and Management Program Management Tools Earned Value Management (EVM) Risk Management Cost Baseline Control and Use of Should Cost Management International Acquisition and Exportability Industrial Base Analysis and Considerations Life-cycle Management of Information and Data Protection

45 45 System Engineering Enclosure 3 New Content Development Planning Systems Engineering Trade-Off Analyses Technical Performance Measures and Metrics Manufacturing and Producibility Software Program Protection Reliability and Maintainability (R&M) Open Systems Architectures Insensitive Munitions Design Reviews Program Support Assessments (PSAs)

46 46 System Engineering Enclosure 3 Program Protection The integrating process for managing risks to DoD warfighting capability from foreign intelligence collection; hardware or software, and cyber vulnerability or supply chain exploitation; and battlefield loss throughout the program life cycle Program Managers will submit the program s Component CIO-approved Cybersecurity Strategy as part of every Program Protection Plan (PPP) The PPP will be submitted for MDA approval at each Milestone review, beginning with Milestone A For Milestone B, the DoD Component-approved draft PPP will be provided to the DASD(SE) 45 days prior to the Development RFP Release Decision Point

47 47 Developmental Test and Evaluation Enclosure 4 Chief Developmental Tester for MDAPs and MAISs Lead DT&E (Government) Organization for MDAPs TEMP at all Milestones (including MS A) Requires the use of Government Test Facilities, unless an exception can be justified Emphasis on: Use of scientific and statistical rigor when developing T&E program Program Protection and Cybersecurity Interoperability Testing Reliability Growth Curve(s) included in the MS B TEMP (updated in all future TEMPS) For accelerated acquisition and urgent programs, levels of developmental testing required will be highly tailored to emphasize schedule over other considerations

48 48 Operational and Live Fire T&E Enclosure 5 T&E planning moved to left T&E WIPT formed at MDD or program start OTAs comment on OT&E implications of CONOPs after MDD TEMP at all Milestones (no more TES) PM s understanding of user s rationale for requirements in MS-A TEMP Start of Design of Experiments for IOT&E in MS-A TEMP Metrics on completeness of design information in MS-A TEMP New section on Software Testing Requires plans for test automation starting at MS-A Plan for use of software logs starting at MS-B Demonstration of regression testing at or before IOT&E Demonstration of software maintenance at or before IOT&E Includes risk-based OT, IA, and interoperability

49 49 Life-Cycle Sustainment Planning Enclosure 6 Reflects increased emphasis on program sustainment and operation and support costs Detailed planning required in support of all acquisition phases Requires a Life-Cycle Sustainment Plan for all programs Logistics Assessments conducted as a focused part of Program Support Reviews Component-conducted Independent Logistics Assessments for ACAT I and II programs prior to key decision points and milestone decisions to assess sustainment strategy Post-IOC assessments required every 5 years

50 Enclosure 7: Human Systems Integrations (HSI) Human Systems Integrations (HSI) is a robust process by which to design and develop systems that effectively and affordably integrate human capabilities and limitations. HSI should be included as an integral part of a total system approach to weapon systems development and acquisition. The PM will plan for an implement HSI at each milestone in the life-cycle HIS planning will address: Human Factors Engineering - to ensure effective human-machine interfaces Personnel - manage special skill requirements Habitability - conditions that impact performance, morale, retention Manpower determine the most efficient/cost-effective mix of support manpower Training develop options for individual, collective, and joint training Safety & Occupational Health integrate HIS and environmental, safety, and occupational health efforts Force Protection and Survivability assess and address risks to personnel 50

51 Enclosure 8: Affordability Analysis & Investment Constraints - New Enclosure Establishes the fundamental concepts and approaches for developing and applying affordability constraints as part of life-cycle investment analysis, decision making, and management Affordability Analysis is a DoD Component responsibility that will address the total life-cycle of the planned program - Nominally, this analysis covers 30 to 40 years into the future Each Component determines the techniques they use for affordability analysis MDA certifies affordability within the FYDP (as required by 10 U.S.C. 2366b) Affordability Constraints determined by the resources a Component can allocate for a system, given inventory objectives and all other fiscal demands on the Component When constraints cannot be met..technical requirements, schedule, and quantities must be revisited..if affordability caps cannot be raised or constraints lowered elsewhere.the program will be canceled 51

52 Enclosure 8: Affordability Analysis & Investment Constraints - New Enclosure For ACAT I and IA programs; Components directed to issue similar guidance for ACAT II and below programs Timing of Affordability Analysis Initial analysis conducted early enough to inform the AoA constraints At MDD: Tentative goals and inventory goals to scope the AoA and provide targets around which to consider alternatives At MS A: Affordability goals for unit procurement and sustainment costs At Development RFP Release Point & Beyond: Binding Affordability Caps captured in ADMs and APB Treated as KPPs Lower ACAT Programs: CAEs will develop and issue similar guidance 52

53 Enclosure 9: Analysis of Alternatives (AoA) Assesses potential materiel solutions that could satisfy requirements documented in the ICD. DCAPE develops and approves study guidance for the AoA for potential ACAT I and IA programs and for joint military and business requirements for which the JROC Chairman or an Investment Review Board (IRB) is the validation authority The final AoA will be provided to the DCAPE not later than 60 days prior to the MS A review (or next decision point designated by the MDA) DCAPE evaluates the AoA and provides a memorandum to the MDA and head of the Component assessing the extent to which the AoA: Examines sufficient feasible alternatives Considers cost/schedule/performance trade-offs Uses sound methodology and addresses key assumptions/variable Bases conclusions on results Considers the fully burdened cost of energy (FBCE) where BCFE is a determinator among alternatives 53

54 Enclosure 10: Cost Estimating DCAPE provides policies and procedures for conducting cost estimates and analysis for DoD programs (per 10 U.S.C 2334) DCAPE conducts Independent Cost Estimates (ICEs) and cost analysis for MDAPs and MAIS programs for which AT&L is the MDA and reviews all cost estimates for MDAP and MAIS programs Per 10 U.S.C. 2434, MDAs may not approve entering EMD or production & deployment of an MDAP unless and ICE of the full life-cycle cost, prepared and approved by the DCAPE, has been considered At Milestones A,B,C, and FRP Decision, the Component must fully fund the program to the Component Cost Position in the current FYDP, and identify specific offsets to address any funding shortfalls 54

55 Enclosure 11: Requirements Applicable to all Programs Containing IT Defines Information Technology (IT, National Security Systems (NSS) and Information Systems Addresses CCA compliance requirements Post Implementation Reviews (PIR) Functional Sponsor, Component CIO, and PM are responsible for planning and conducting a PIR for fully deployed IT, including NSS. PIRs evaluate systems to ensure positive return on investment and decide whether continuation, modification, or termination of the system is necessary 55

56 Enclosure 12: Defense Business Systems (DBS) DBS An information system (other than a NSS) operated by, for, or on behalf of the DoD. (Includes financial systems and management information systems) DBS Management Committee (DBSMC) Chaired by DEPSECDEF. Recommends policy and procedures to improve acquisition of DBS. Includes the MDA. Approval authority for statutorily required DBS Certification required prior to any obligation of funds for acquisition. Programs re-certified annually Investment Review Board (IRB) Chaired as directed by the DEPSECDEF Assists the Chair in: Prioritizing requirements Reviewing problem statements and investment certification requests 56

57 Enclosure 12: Defense Business Systems (DBS) DBS Requirements DBSs generally do not employ JCIDS procedures for the development/validation of requirements documents Documentation required in the DBS Problem Statement suffice DBS Phase Requirements Business capability definition precedes the MDD Analyzes the problem, capability gap, or opportunity Documents results in a Problem Statement Problem Statement used as the requirements document for DBS Prepared and reviewed by the IRB. Approved by the IRB Chair and provided to the MDA 30 days before the MDD. 57

58 Rapid Acquisition of Urgent Needs Enclosure 13 New Enclosure describing policy and procedure for programs that respond to Rapid Acquisition of Urgent Needs Includes Joint Urgent Operational Needs (JUONs), Joint Emergent Operational Needs (JEONs), and DoD Component-Specific UONs General, highly tailorable acquisition business model Applicable to UONs that fall below the cost threshold for ACAT I and IA programs and that can be fielded in less than 2 years activities detailed in this enclosure are not separate from or in addition to activities performed as part of the acquisition system but are a highly tailored version of those activities and are intended to expedite urgent needs by tailoring the documentation and reviews normally required as part of the deliberate acquisition process

59 Enclosure 13: Rapid Acquisition of Urgent Needs Provides policy and procedures for acquisition programs that fulfill urgent needs that can be fielded in less than 2 years and which are below ACAT I/IA cost thresholds Approval authority delegated to levels that promote rapid acquisition Critical warfighter issues identified by the Warfighter Senior Integration Group (SIG) SIG Chairman approves urgent needs and provides instructions to Components on program execution and management SECDEF Rapid Acquisition Authority (RAA) Determination Tasks a Component to fulfill the urgent need. Component designates the MDA Generally, funds will have to be reprioritized and/or reprogrammed to meet urgent needs and expedite the acquisition process. SIG Chairman approves urgent needs and provides instructions to Components on program execution and management 59

60 Enclosure 13: Rapid Acquisition of Urgent Needs Rapid Acquisition Activities Pre-Development - Assess and select a course of action to meet the need. Requires an valid UON statement PM appointed. Courses of Actions (COAs) assessed. COA selected by MDA. Acquisition approach and O&S plans selected. Development PM briefs strategy to MDA. MDA determines whether solution: Can be fielded within 2 years, does not require substantial development effort, is based on proven and available technologies, and can be acquired under fixed-price contracts Production & Deployment PM summarizes development activities and plans for delivery and sustainment, post-fielding assessments, and training of operator and maintenance personnel. Requires MDA approval. Operations and Support IAW plan approved by MDA. Disposition Analysis done NLT 1-year after fielding. Disposition official recommends either: Termination (Demilitarization or Disposal), Sustainment for a Current Contingency, or Transition to a Program of Record 60

61 61 Acquisition of Services Services policy is no longer included in DoDI A separate DoDI 5000 series policy document is in coordination and issue is expected before the re-issuance of DoDI

62 Milestone A MDA approves: Materiel solution Acquisition Strategy (AS) Exit criteria for next phase Demonstrate program funded in FYDP Statutory & Regulatory Requirements Milestone A Certification Affordability Target ADM - Release of RFP and source selection for TMRR Phase Contract Acquisition Decision Memorandum (ADM) Acquisition Strategy (AS) Analysis of Alternatives (AoA) Acquisition Information Assurance Strategy Clinger-Cohen Act (CCA) Compliance CIO Confirmation of CCA Compliance (for MDAPs & MAIS, DoD CIO confirms) Consideration of Technology Issues Component Cost Estimate (CCE) (MDAP & MAIS) Component Cost Position (CCP) (ACAT ID) Cybersecurity Strategy Draft Capability Development Document (CDD) Economic Analysis (MAIS) Request for Proposals (RFP) Independent Cost Estimate (ICE) (ACAT I) Exit Criteria Initial Capabilities Document (ICD) Item Unique Identification (IUID) Implementation Plan Life Cycle Signature Support Plan Life Cycle Sustainment Plan (LSCP) Market Research MDA Program Certification (MDAPs) Program Protection Plan (PPP) Systems Engineering Plan (SEP) Test & Evaluation Master Plan (TEMP)

63 Development RFP Release Decision Point (Dev RFP Rel) Statutory and Regulatory Requirements Programmatic Information: Acquisition Strategy Affordability Requirement Request for Proposal (RFP) (including Statement of Work (SOW) and Specs) Draft Documents: Alternate Live Fire Test & Eval (LFT&E) Plan Acquisition Program Baseline (APB) Exit Criteria Information Support Plan (ISP) Life Cycle Sustainment Plan (LCSP) Life Cycle Signature Support Plan (LCSSP) Manpower Estimate (MDAP) Program Protection Plan (PPP) Systems Engineering Plan SE Trade-off Analysis Test & Eval Master Plan (TEMP) Supporting Information: Cost Analysis Requirements Description (CARD) (MDAP/MAIS) Capability Development Document (CDD) DCAPE ICE (ACAT ID) Component Cost Estimate (CCE) Preliminary Technology Readiness Assessment (TRA) System Threat Assessment Report (STAR) Documents must be provided in final draft form 45 days prior to Dev RFP Release PM may submit acquisition strategy for MDA approval sufficiently prior to Dev RFP Release to facilitate preparation of final RFP

64 CDR Assessment For MDAPs, DASD(SE) provides assessment of CDR results to MDA Assessment of design maturity & technical risks MDA: Reviews CDR assessment Determines whether additional action is necessary to: Satisfy EMD Phase exit criteria Achieve program outcomes specified in the APB

65 Milestone C: Statutory and Regulatory Requirements All programs except where noted (see Encl 1, DoDI ) Acquisition Decision Memorandum (ADM) Analysis of Alternatives (AoA) (update) Acquisition Strategy Affordability Assessment/Requirement Acquisition Program Baseline Acquisition Information Assurance Strategy Benefit Analysis & Determination Capability Production Document (CPD) Title 40/Clinger-Cohen Act (CCA) Compliance CIO Confirmation of CCA Compliance (for MDAPs & MAIS, DoD CIO confirms) Consideration of Technology Issues (ACAT I & II) Competition Analysis Component Cost Estimate (CCE) (MAIS & MDAP) Component Cost Position (CCP) (ACAT ID) Cooperative Opportunities Core Logistics Analysis/Source of Repair Analysis Cost Analysis Requirements Description (CARD) (MDAP & MAIS) Corrosion Prevention Control Plan Data Management Strategy (in acquisition strategy) Exit Criteria Independent Cost Estimate (ACAT I) Information Support Plan (ISP) Industrial Base Capabilities (MDAP) Item Unique Identification Plan (SEP annex) Life Cycle Sustainment Plan (LCSP) Life Cycle Signature Support Plan Manpower Estimate (MDAP) MDA Program Certification (if program initiation) Military Equipment Validation (in acquisition strategy) Net-Centric Data Strategy (in ISP) Operational Test Agency OT&E Report Program Protection Plan (PPP) Programmatic Environmental Safety & Occupational Health Evaluation (PESHE) Selected Acquisition Report (SAR) MDAP (if rebaselined) Spectrum Supportability Determination Systems Engineering Plan (SEP) System Threat Assessment Report (STAR)(ACAT I) Test & Evaluation Master Plan (TEMP)