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GSA Expo 2009

GSA Expo 2009. Overview of Major Acquisition Management. Bruce W. Moler US Department of Homeland Security. What’s So Special About Major Acquisitions ?. Bruce Moler PM, Acquisition Workforce DHS – OCPO bruce.moler@dhs.gov 202-447-5340. Big “A” and Little “a” Acquisition.

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GSA Expo 2009

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  1. GSA Expo 2009 Overview of Major Acquisition Management Bruce W. Moler US Department of Homeland Security

  2. What’s So Special About Major Acquisitions ? Bruce Moler PM, Acquisition Workforce DHS – OCPO bruce.moler@dhs.gov 202-447-5340

  3. Big “A” and Little “a” Acquisition Big “A” Acquisition (AKA “program acquisition”) encompasses everything a program must accomplish, from requirements analysis, planning, technology development, systems engineering, budgeting, procurement, logistics support, testing, system safety, and maintenance--through production, deployment and planning for disposal. Think “cradle to grave” Buying stuff that doesn’t exist - yet Think “procurement” Little “a” acquisition (AKA “stand-alone acquisition”) is, basically, buying stuff. Little “a” may require an Acquisition Plan (subject to thresholds), but don’t confuse Little “a” with Big “A.” Buying stuff that already “exists” 3 3 DHS Acquisition Directive 102-01 reflects “Big A” acquisition

  4. What is a Major Acquisition? “It depends on who you ask” As defined in OMB Circular A–11, Part 7: “Major acquisitions are capital assets that require special management attention because of their importance to the agency mission; high development, operating, or maintenance costs; high risk; high return; or their significant role in the administration of agency programs, finances, property, or other resources. Major acquisitions should be separately identified in the agency's budget. Capital assets are land, (including parklands), structures, equipment (including motor and aircraft fleets), and intellectual property (including software) which are used by the Federal Government and have an estimated useful life of two years or more; and an acquisition cost of $5M or more….”

  5. What is a Major Acquisition? FAR Part 2 - Definitions “Major system” means that combination of elements that will function together to produce the capabilities required to fulfill a mission need. The elements may include hardware, equipment, software, or any combination thereof, but exclude construction or other improvements to real property. A system is a major system if— (1) The Department of Defense is responsible for the system and the total expenditures for research, development, test, and evaluation for the system are estimated to be more than $173.5 million or the eventual total expenditure for the acquisition exceeds $814.5 million; (2) A civilian agency is responsible for the system and total expenditures for the system are estimated to exceed $1.8 million or the dollar threshold for a “major system” established by the agency pursuant to Office of Management and Budget Circular A-109, entitled “Major System Acquisitions,” whichever is greater; or (3) The system is designated a “major system” by the head of the agency responsible for the system (10 U.S.C. 2302 and 41 U.S.C. 403).

  6. What is a Major Acquisition? DHS Acquisition Directive 102-01

  7. What is a Major Acquisition? DoDI 5000.2 • DAB or DSAB review • Designated by USD(AT&L) • Decision by USD(AT&L) ACAT 1D: Major Defense Acq Programs (MDAP) $365M RDT&E or $2.19B Procurement (FY2000 Constant $) • Component review • Designated by USD(AT&L) • Decision by Component Head/CAE ACAT IC: • ITAB review • Designated by USD(AT&L) or ASD(NII)* • Decision by USD(AT&L) or designee* ACAT IAM: $378M Life Cycle Cost or $126M Total Prog. Cost or $32M Prog. Cost in any single year (FY2000 Constant $) Major AIS Acq Programs (MAIS) • Component review • Designated by USD(AT&L) or ASD(NII)* • Decision made by Component Head/CAE ACAT IAC: $140M RDT&E or $660M Procurement (FY2000 Constant $) • Does not meet ACAT I Criteria • Designated by Component Head/CAE • Decision by CAE or as designed by CAE Major Systems ACAT II: all other programs (except for Navy & USMC) • Does not meet ACAT I, IA or II Criteria • Designated IAW Component policy • Decision at lowest appropriate Level No Fiscal Criteria ACAT III: • Not otherwise designated ACAT I, IA, II or III • Designated IAW SECNAV policy • Decision at lowest appropriate level Navy USMC ACAT IV: SECNAVINST 5000.2 (Navy and Marine Corps) *ASD(NII) when delegated by USD(AT&L)

  8. What is a Major Acquisition? Common Themes National Security Cutter • Cost • Level of Interest/Decision Review • Mission Criticality • Risk • “Other” as Determined by the Agency • If Congress Says So…….. Secure Border Initiative Joint Strike Fighter Expeditionary Fighting Vehicle

  9. Who Plays in Major Acquisitions? USD(AT&L) Defense Acquisition Executive DoD DHS Acquisition Decision Authority (ADA) MDA Deputy Secretary Or, if delegated for ACAT IAM - ASD(NII) DoD Chief Information Officer Level 1 Chief Acquisition Officer Under Secretary for Management Component Acquisition Executive (Asst Secretary or Equivalent) CAE Levels 1 & 2 Acquisition Program Management Division (APMD) Program Executive Officer (General Officer/SES Civilian) PEO Component Acquisition Executive (or the HCA) Levels 2 & 3 Program Manager (Col/LtCol/Civilian Equivalent) PM Program Manager Note: some PM’s do not report through a PEO

  10. Who Plays in Major Acquisitions? • Decision Makers • End User • Project/Program Managers • Contracting Officers • Business; Finance Specialists • Logisticians • Systems Engineers • Cost Estimators and Analysts • Test and Evaluation • Information Technology Specialists • Private Industry • Congress • Tax Payers • Foreign Allies Other Stakeholders

  11. A Successful Major Acquisition? Typical Issues at Milestones/Key Decision Points • Cost growth • Schedule delays • High risk technology • Software issues • Supportability issues • Unclear/evolving requirements • Acquisition strategy • Test and evaluation highlights/operational effectiveness/suitability • Co-development concerns • Manpower and training

  12. Requirements Need Driven A Successful Major Acquisition? Decision Loops inFederal Acquisition Planning, Programming, Budgeting, Execution Calendar Driven Acquisition Event Driven Acquisition Life Cycle Contracting

  13. A Successful Major Acquisition? Stay close to your customer Clear; agreed upon requirements Leverage the synergy of people working in teams Manage the “Big Three”: Acquisition; Budget; Requirements Manage Risk: Cost, Schedule; Performance Manage Innovation Use mature technology Be an expert in the “Golden Rule” Pay special attention to software and IT requirements Don’t forget logistics; environmental; producibility; disposal Prudent documentation management Get the cost right – up front Manage your stakeholders; continually communicate Use performance based management approach/metrics Foster competition in the marketplace Lead your people

  14. “ People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf. “ George Orwell

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