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Acquisition and the ICM

Acquisition and the ICM

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Acquisition and the ICM

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  1. Acquisition and the ICM CSSE ARR, March 2008 Bruce Amato, Barry Boehm, Les DeLong, Gary Hafen, Adrian Pitman, Don Reifer, Peter Suk, Denton Tarbet, Rich Turner

  2. Team Activities • Seeded discussion with initial candidate issues • Established a context as a guide for thoughts • Brainstormed (and discussed) issues and possible solution strategies • Rich tried to make sense of it all and created a set of research areas based on issues • Team scored the issues as to value and difficulty

  3. Contracting • Progress payments • Award protests • Flexibility • Changing requirements • Changing schedules • Too many contract actions due to iterations, fly-offs, etc. • IDIQ as possibility • Non-recurring cost risks with developers (tooling/technology) • Government can share risk • Time-certain delivery scheduling • SAIV vs. CAIV vs. PAIV • Rethink profit incentives for software/systems • Value-based award fees (part for core, remainder for special desirements) • Penalty fees

  4. Program Management • Risk-averse culture • Vocabulary (iteration vs. increment vs. spiral vs. delivery cycle) • Deployment/Sustainment/Logistics • Short release cycle causes serious issues • CM of multiple releases in use • Recertification/rapid release minimum schedules • Delay recertification until last moment • Satisficing mechanisms • JCIDS process needs better adjudication of joint requirements • Stakeholders involved earlier and more consistently • Need tight communication within deep acq/dev/supplier chain • Evolution of documentation more dynamic • Feasibility rationale development and validation • Consortia/open source/domain-specific open source distribute risk • Three-layer technical team structure (agile/execute/V&V)

  5. Life Cycle • Merging of development and sustainment lifecycles • Elimination of traditional SE reviews (PDR/CDR) • Construction phase is ICM anchor points writ small • Long-lead items • Need guidelines for fly-offs • Funding of failed anchor point milestones • Awarding construction to team other than concept creator; need continuity • Concept and practice of acquisition baseline management may need to be redefined • No skipping of phases for developmental acquisitions

  6. Earned value • Determining value of systems • Software value vs. software cost (VBSE) • ICE looks at cost, not value • Allocating progress • Defining WBS in ICM; sufficient visibility of software • “Rolling wave” WBS: Long-term WBS for planning; Short-term WBS (per phase/increment) for execution • Separate entry bookkeeping for software to highlight software work (alternate view of WBS)

  7. Budgeting • POM Cycle is serious concern • Congressional constraints/oversight/control issues • Funding Profiles • Requires better intra-service prioritization of pre-program funding • Gov’t prototyping and competition plan and funds (PEO/PM/SAE) • Fewer programs can be initiated in a given POM cycle

  8. Necessary Competency Upgrades • Government/Acquirer • Service Acquisition Executive/Program Executive Office/Program Manager • Program staff members/contractor support • Contracting Officer/Independent cost estimate developers • GAO, Inspectors General • Development T&E, Independent Operational T&E • Developer • Executives/PM • COs/Subcontract managers • Oversight offices

  9. Research Opportunities -1 (I,D) • Strategies for RW WBS development for ICM (H,L) • Identification of changes required in government and developer workforce (H,L) • Study workload and competency changes and their effect across full acquisition organization • Acquisition strategy development guidance (H,M) • Enhanced communication mechanisms for timely synchronization of acquirers, developers and supplier chain (H,H) • Impact of ICM on Lead System Integrator/Prime Contractor role • Models for analysis of organizational strategies

  10. Research Opportunities -2 (I,D) • Value estimation techniques (e.g. value vs. cost of software) (H,H) • Model impact of software-related risks to overall system cost and schedule (H,H) • Mechanisms for managing large numbers of fielded and development system versions (H,H) • Satisficing mechanisms beyond win-win for large number of stakeholders (H,H) • New approaches to baseline establishment and management to support ICM (M,L)

  11. Research Opportunities -3 (I,D) • Continue VBSE work with special focus on implementation of concepts within ICM (M,L) • Review of profit model for system developers in view of ICM principles (M,M) • Guidelines/pilots for three-tiered technical team implementation (roles, responsibilities, etc.) (M,M) • Review of Federal Acquisition Regulations and other legal references for impediments (M,H) • Expedited re-certification/validation approaches (M, H)