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Chemical Biological Defense Acquisition Initiatives Forum (CBDAIF)

UNCLASSIFIED. Chemical Biological Defense Acquisition Initiatives Forum (CBDAIF). January 28, 2009. Stephen V. Reeves Major General, USA Joint Program Executive Officer for Chemical and Biological Defense 703.681.9600.

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Chemical Biological Defense Acquisition Initiatives Forum (CBDAIF)

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  1. UNCLASSIFIED Chemical BiologicalDefense Acquisition Initiatives Forum (CBDAIF) January 28, 2009 Stephen V. Reeves Major General, USA Joint Program Executive Officer for Chemical and Biological Defense 703.681.9600 DISTRIBUTION STATEMENT F: Further dissemination only as directed by the JPEO or higher DoD Authority. 090128 CBDAIF Reeves

  2. Agenda • Updates • People • New DoD 5000 • Bio Surety Regulations • Defense Budget Outlook • Contracting Opportunities 090128 CBDAIF Reeves

  3. 090128 CBDAIF Reeves

  4. New DoD 5000.02 Operation of the Defense Acquisition System December 8, 2008 090128 CBDAIF Reeves

  5. Comparison of 2003 vs. 2008 User Needs & Technology Opportunities Defense Acquisition Management Framework - 2003 Program Initiation A B C FOC IOC ConceptRefinement TechnologyDevelopment System Development & Demonstration Production & Deployment Operations & Support ConceptDecision Design ReadinessReview FRP DecisionReview Defense Acquisition Management Framework - 2008 User Needs Technology Opportunities & Resources Program Initiation A B C FOC IOC Materiel Solution Analysis TechnologyDevelopment Engineering & Manufacturing Development Production & Deployment Operations & Support MaterialDevelopment Decision Post-PDRAssessment Post-CDRAssessment FRP DecisionReview Focus of Major Changes 090128 CBDAIF Reeves

  6. The Defense Acquisition Management System 2008 FCB Technology Opportunities & Resources “Following the Materiel Development Decision (MDD), the MDA may authorize entry into the acquisition management system at any point consistent withphase-specific entrance criteria and statutory requirements.” A B C User Needs ICD MDD Capabilities Based Assessment MaterialSolution Analysis Engineering & ManufacturingDevelopment Strategic Guidance JointConcepts Technology Development Production &Deployment O&S CPD CDD CDD CDD CDD CDD OSD/JCS COCOM JCIDS Acquisition Process 090128 CBDAIF Reeves

  7. Key Changes • More Milestone Decision Authority Involvement in S&T • Adds Material Development Decision (MDD) • Mandatory for Any Acquisition Phase • Requires Test and Evaluation Strategy and Systems Engineering Plan • Mandatory Competing Prototypes Prior to MS B • System Level Specifications Based on ICD • Technology and Manufacturing Process Demonstrated as a Tech Development Exit Criteria • Configuration Control Boards – Required by PMs to Propose Descoping and Cost Control • Post Critical Design Review Updates to MDA 090128 CBDAIF Reeves

  8. So What?Implications for Industry • Early Technology Commitment in the Technology Development Phase • Early Industry Resource Commitments to Compete in Technology Development Phase • Industry Must Understand Requirements Early to Get In Front of Government Process • Dual Prototypes – Competition Early • Shifts More Risk to Industry 090128 CBDAIF Reeves

  9. Challenges • Unity of Command • Tech Base vs. PM • Funding • 6.2/3 Funding Drives Process • Requirements Maturity During Technology Demonstration Phase • Contracting • Limits Ability to Re-Compete in Later Phases 090128 CBDAIF Reeves

  10. New Biosurety Regulations for Biological Select Agents and Toxins (BSAT) • Army Regulation AR 50-1 (October 2008) Applies to ALL Facilities and Personnel Working with DoD-Derived BSAT • Applies to Contractor as Well as Government Facilities • Requires Biological Personnel Reliability Programs (BPRP), Including: • Medical Examinations and Random Drug Testing • Security Investigations to SSBI (Top Secret) Level • Continuous Surveillance (Surety) • BOTH Centers for Disease Control AND the Army Inspector General will Inspect Each Facility • Existing DoD Contracts Will be Modified to Include Compliance With AR 50-1; New Contracts Will be Written to Include Compliance CDC Maintains an Updated List of BSAT at http://www.selectagents.gov AR 50-1 is Available at http://www.army.mil/usapa/epubs/pdf/r50_1.pdf 090128 CBDAIF Reeves

  11. Defense Priorities of President Obama • Readiness • Build Up Our Special Operations Forces, Civil Affairs, Information Operations, and Other ‘In Demand’ Units • Increase the Size of the Army by 65,000 Soldiers and the Marine Corps by 27,000 Marines • End Stop-loss • Provide the Equipment Needed by the National Guard and Reserve Component for Domestic and Foreign Emergencies and Allow Time to Refit Before Deploying • Make the Head of the National Guard a Member of the Joint Chiefs of Staff 090128 CBDAIF Reeves

  12. Defense Priorities ofPresident Obama (Cont’d) • Procurement • Review Each Major Defense Program Against Current Needs and Future Threats • Rebalance Capabilities to Succeed in Both Conventional and Unconventional Operations • Air Power: Invest More in Advanced Technology Ranging from the Revolutionary to the Essential • Sea Power: Invest in Smaller, More Capable Ships with the Agility to Operate Close to Shore and the Reach to Rapidly Deploy Marines to Global Crises • Space Power: Promote Ban on Weapons that Interfere with Satellites and Assess Threats to U.S. Space Systems, Establishing Contingency Plans to Ensure Continuity of Space Assets • Missile Defense: Program Should Not Divert Resources from Other National Security Priorities Until We are Positive the Technology Will Protect the American Public 090128 CBDAIF Reeves

  13. Defense Priorities ofPresident Obama (Cont’d) • Acquisition Reform • Launch a Program of Acquisition Reform and Management, Which Ends No-bid Contracting and the Abuse of Supplemental Budgets • Rebuild our Contract Officer Corps • Order the Justice Department to Prioritize Prosecutions that will Punish and Deter Fraud, Waste and Abuse • Require DoD and State Department to Develop a Strategy for Balancing Private Sector/Public Sector Workload • Establish the Legal Status of Contractor Personnel, Making Possible Prosecution of Any Abuses Committed by Private Military Contractors Full listing of priorities can be found at: http://www.change.gov/agenda/defense_agenda/ 090128 CBDAIF Reeves

  14. 090128 CBDAIF Reeves

  15. FY09 CBDP Portfolio ($M) $51 $101 $141 $322 $41 $66 $193 $559 $82 090128 CBDAIF Reeves

  16. FY09 CDBP Appropriated Budget ($M) $351,124 $454,037 $106,930 $644,144 Total Budget: $1,556,235,000 090128 CBDAIF Reeves

  17. FY10 CDBP President’s Budget Request ($M) 7.8% 2.2% $480,881 $427,192 $166,222 $505,706 9.4% 3.6% Total Budget: $1,580,001 090128 CBDAIF Reeves

  18. 090128 CBDAIF Reeves

  19. The Defense Acquisition Management System 2008DoDI 5000. 02 John Gorrell Deputy Director, Current Acquisition Directorate (703) 681-0808 john.gorrell@jpeocbd.osd.mil

  20. The Defense Acquisition Management System 2008 DoDI 5000.02 • New Policy Directed by Congress • New or Revised Regulatory Policy • Statutory & Regulatory Information & Milestone Requirements • The Defense Acquisition Management System - Milestones, Phases and Key Activities

  21. DoDI 5000.05 Policy • Policy Flowing from Numerous New/Revised sections of Public Law since 2003 (some with Multiple Requirements) • Approved Policy Appearing in over 25 Policy Memos and DoD Responses to the GAO, IG, and Congress • Reference to 10 Updated or Newly Issued DoD Publications • Consideration of Over 700 Defense Acquisition Policy Working Group (DAPWG) Comments

  22. Comparison DoD Acquisition Processes 2003 vs. 2008 B A C B C A Focus of major changes Defense Acquisition Management Framework- 2003 User Needs & Technology Opportunities Program Initiation FOC IOC Concept Refinement Technology Development System Development & Demonstration Production & Deployment Operations & Support Design Readiness Review FRP Decision Review Concept Decision Defense Acquisition Management System - 2008 User Needs Technology Opportunities & Resources Acquisition ProgramInitiation IOC FOC MaterielSolutionAnalysis Technology Development Engineering and Manufacturing Development Production & Deployment Operations & Support Post PDR Assessment FRP Decision Review Materiel Development Decision Post-CDR Assessment PDR PDR 6 or

  23. C A CDD CPD The Defense Acquisition Management System 2008 Changes to Phases User Needs Technology Opportunities & Resources 1 2 3 B IOC FOC Materiel Solution Analysis Technology Development Engineering and Manufacturing Development Production & Deployment Operations & Support Materiel Development Decision FRP Decision Review Post PDR Assessment Post CDR Assessment AoA PDR PDR CDR ICD or Pre-Systems Acquisition Systems Acquisition Sustainment Old (2003) New (2008) Change from 2003 Concept Refinement (CR) Materiel Solution Analysis 1 - More robust AoA Technology Development (TD) 2- Competitive prototyping Technology Development (TD) Systems Development & Demonstration (SDD) Engineering & Manufacturing Development (EMD) 3 - More robust system engineering SEP required

  24. C A CDD CPD The Defense Acquisition Management System 2008 Changes to Acquisition Decision Points 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 1 3 Sustainment Pre-Systems Acquisition 2 Systems Acquisition Old (2003) New (2008) Change from 2003 Concept Decision (CD) Materiel Development Decision (MDD) 1 -MDD required prior to entering the process at any point N/A Post-PDR Assessment 2 -MDA’s assessment of PM’s PDR Report (if PDR after MS B) Design Readiness Review DRR Post-CDR Assessment 3 -MDA’s assessment of PM’s CDR Report

  25. B CDD CPD MDD O&S FCB The Defense Acquisition Management System 2008 Entry into the Acquisition Process Technology Opportunities & Resources User Needs A C Operations & Support Production & Deployment Materiel Solution Analysis Strategic Guidance Capabilities - Based Assessment Technology Development Engineering & Manuf Development ICD Joint Concepts Incremental Development COCOM OSD/JCS Acquisition Process “Following the Materiel Development Decision (MDD), the MDA may authorize entry into the acquisition management system at any point consistent with phase-specific entrance criteria and statutory requirements.”

  26. No spirals! The Defense Acquisition Management System 2008 Evolutionary Acquisition From two processes… To one process… • Capability delivered in increments, recognizing up front need for future capability improvements • Each increment: • depends on mature technology • is a militarily useful and supportable operational capability • Successive Technology Development Phases may be needed to mature technology for multiple increments • Incremental Development: End-state is known; requirements met over time in several increments • Spiral Development: End-state is not known; requirements for increments dependent upon technology maturation and user feedback.

  27. C A CDD CPD The Defense Acquisition Management System 2008 Prototyping and Competition “The TDS and associated funding shall provide for two or more competing teams producing prototypes of the system and/or key system elements prior to, or through, Milestone B. Prototype systems or appropriate component-level prototyping shall be employed to reduce technical risk, validate designs and cost estimates, evaluate manufacturing processes, and refine requirements. . . .” B IOC FOC Technology Development Engineering and Manufacturing Development Production & Deployment Operations & Support Materiel Solution Analysis ICD Materiel Development Decision FRP Decision Review Post PDR Assessment Post CDR Assessment AoA PDR PDR CDR or Systems Acquisition Sustainment Pre-Systems Acquisition

  28. The Defense Acquisition Management System 2008 C A CDD CPD Technology Development Phase “Entrance into this phase depends on the completion of the AoA, a proposed materiel solution, and full funding for planned Technology Development Phase activity. At Milestone A, the MDA reviews the proposed materiel solution and the draft Technology Development Strategy (TDS). The Technology Development Phase begins when the MDA has approved a materiel solution and the TDS. • Decision is documented the decision in an ADM. • Technology development for an MDAP shall not proceed without Milestone A approval. For business area capabilities, commercially available solutions shall be preferred. A favorable Milestone A decision DOES NOT mean that a new acquisition program has been initiated.” B IOC FOC Technology Development Production & Deployment Operations & Support Materiel Solution Analysis Engineering and Manufacturing Development ICD Materiel Development Decision FRP Decision Review Post PDR Assessment Post CDR Assessment AoA PDR PDR CDR or Systems Acquisition Sustainment Pre-Systems Acquisition

  29. Challenges • Transitions from Tech Base to Acquisition Program • Funding • 6.2/6.3 transitions to 6.3/6.4 • Requirements Maturation • From MDD to Material Solution Analysis through Technology Development Phase • Contracting • Dual Prototyping • Limits to Recompete in Later Phases

  30. So What?Implications to Industry • DUAL PROTOTYPE – Technology Development Phase • Early Technology Commitment in the Technology Development Phase • Early Industry Resource Commitments to Compete in Technology Development Phase • Industry Must Understand Requirements Early to Get in Front of the Government Process • Shifts more Risk to Industry

  31. GAO Interpretation of the“Rule of Two” Ron Blue Contracting Officer (703) 681-5191 Ronald.Blue@jpeocbd.osd.mil

  32. “Rule of Two” • FAR Rule (Part 19.502-2) Requires a Set Aside if There is an Expectation That at Least 2 Small Businesses Will Present Reasonable Offers • GAO Held that ID/IQ Contracts with a Mix of Small and Large Business Were Subject to the Rule (Delex Systems Oct 2008 #B-400403) • The Contracting Officer Applies the Rule of Two FIRST in Multiple Award ID/IQ Contracts BEFORE Applying ID/IQ Delivery Order Provisions

  33. What Can Industry Do? • Carefully review the ordering procedures under existing ID/IQ contracts in light of the decision. • Look for new business opportunities for smaller firms under the new process. • Evaluate your subcontracting and teaming strategies. New partnerships might compete for a wider range of task orders.

  34. References FAR Part 16.5 Indefinite Delivery Contracts FAR Part 19.502.2 Total Small Business Set-Asides http://farsite.hill.af.mil GAO Decision B-400403 www.gao.gov/decisions/bidpro/400403.htm Agencies Have Not Yet Issued Regulatory Implementation of the GAO Decision

  35. New BioSurety RegulationAR 50-1 Larry Wakefield Special Assistant for Strategic Initiatives (703) 681-9678 Larry.wakefield@jpeocbd.osd.mil

  36. New BSAT Regulations • New Biosurety Regulations for Biological Select Agents and Toxins (BSAT) • New Rules Apply to ALL Facilities and Personnel Working With DoD BSAT • CDC Maintains an Updated List of BSAT at http://www.selectagents.gov

  37. New Army Regulation • Army Regulation AR 50-1 (October 2008) • DoD Using Army to Lead • Applies to Contractor as well as Government Facilities – Anyone Using ‘DoD BSAT’ • Requires Biological Personnel Reliability Programs (BPRP) With: • Medical Examinations • Drug Testing • Security Investigations • Continuous Surveillance (Surety)

  38. Implementing New Rules • Both the Centers for Disease Control AND the Army Inspector General Will Inspect Facilities • DoD Contracts will be Modified to Include Compliance with AR 50-1 • AR 50-1 is Available at: http://www.army.mil/usapa/epubs/pdf/r50_1.pdf

  39. Laboratory BioSecurity – Executive Order • Secretary Level Working Group Established January 2009 to Review Laboratory BioSecurity • Chaired by Secretary of Defense and Secretary of Health and Human Services • Will Review Laws, Regulations, and Practices of Federal and Non-Federal Facilities that Handle BSAT • Specifically Includes Review of Personnel Security and Assurance Programs and Recommendations • Working Group Recommendations for New Legislation, Regulations, and Oversight Due in 180 Days

  40. Clearances Progress Report • The Reform Team: Department of Defense Office of Mgmt. & Budget Dir. Natl. Intelligence Office of Personnel Mgmt. • Will Meet 60 Day Goal for Clearances in 2009 • Established a Governance Council to Drive Reforms Across Agencies • Will Focus on Decreasing Duplication and Increasing Sharing Between Agencies Full Report is at: www .whitehouse.gov

  41. Army Officers Speaking to Industry Partners Officers Attending Command and General Staff College are Available to Speak at Your Facility Get the Army Story Straight from Future Senior Leaders To Request a Speaker for Your Group of 25 or More Contact: Brandon Pollacheck 732 427-0651 Brandon.Pollachek@us.army.mil 24

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