New Acquisition Policy and Its Impact on Programs from a Systems Engineering Perspective

1. New Acquisition Policyand Its Impact on Programs froma Systems Engineering Perspective Systems Engineering Summit March 4, 2009 Sharon Vannucci Assistant Deputy Director for SE Policy and Guidance Systems and Software EngineeringOffice of the Deputy Under Secretary of Defense(Acquisition and Technology)

2. Topics • DoDI 5000.02: 2003 vs. 2008 • New Policy Directed by Congress • New or Revised Regulatory Policy • Impact on Programs and Systems Engineering – A Discussion Backup (for hardcore policy wonks!): • Statutory and Regulatory Information • Milestone Requirements • New/Revised Enclosures to DoDI 5000.02

3. Comparison of 2003 vs. 2008: Subtle, But Substantial Changes User Needs and Technology Opportunities Defense Acquisition Management Framework - 2003 Program Initiation C A B 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 Focus of major changes User Needs Technology Opportunities & Resources ProgramInitiation C A B IOC FOC MaterielSolutionAnalysis Technology Development Engineering & Manufacturing Development Production & Deployment Operations & Support Post PDR Assessment FRP Decision Review Materiel Development Decision Post-CDR Assessment PDR PDR 3 or

4. Sources of Change • 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 ten updated or newly issued DoD publications • Consideration of over 700 Defense Acquisition Policy Working Group (DAPWG) comments

5. CDD CPD O&S FCB MDD In the beginning . . . Technology Opportunities & Resources User Needs A A B C Operations & Support Production & Deployment Materiel Solution Analysis Engineering & Manuf Development ICD Strategic Guidance Joint Concepts Capabilities - Based Assessment Technology Development Incremental Development COCOM OSD/JCS Acquisition Process JCIDS “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.”

6. C A CDD CPD Changes to 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 CDR AoA PDR PDR or Pre-Systems Acquisition Systems Acquisition Sustainment Old (2003) New (2008) Change from 2003 Concept Decision (CD) Materiel Development Decision (MDD) MDD required prior to entering the acquisition lifecycle at any point Post-PDR Assessment MDA’s assessment of PM’s PDR Report (if PDR is after MS B) N/A Design Readiness Review (DRR) Post-CDR Assessment MDA’s assessment of PM’s Post-CDR Report

7. C A CDD CPD Changes to Phases 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 CDR Assessment Post PDR Assessment AoA PDR PDR CDR or Systems Acquisition Sustainment Pre-Systems Acquisition Old (2003) New (2008) Change from 2003 More robust AoA (result of changes to JCIDS) Concept Refinement (CR) Materiel Solution Analysis Technology Development (TD) Competitive prototyping Systems Development & Demonstration (SDD) Engineering & Manufacturing Development (EMD) More robust system engineering

8. Mandated Milestone A for MDAPs Mandates Milestone A approval prior to technology development for a major weapon system Requires MDA Certification prior to Milestone A for MDAPs Changed Milestone B Certification Requirements Mandates reporting and notification of program cost changes

9. CDD CPD Preliminary Design Review B C Engineering & Manufacturing Development Technology Development Post CDR Assessment Post PDR Assessment PDR PDR CDR or PDR Before Milestone B PDR After Milestone B • Planned in Technology Development Strategy (TDS) • PDR Report provided to MDA at MS B • Includes recommended requirements trades • Planned in Acquisition Strategy (AS) • PDR Report provided to MDA before the Post-PDR Assessment • Reflects requirements trades • At Post-PDR Assessment, MDA considers PDR Report; determines action(s) required to achieve APB objectives, and issues ADM

10. CDD CPD Engineering and Manufacturing Development B C System Capability and Manufacturing Process Demonstration Integrated System Design Post-CDR Assessment Post PDR Assessment CDR PDR PDR or Old (2003) New (2008) Change from 2003 At CDR, PM assumes control of the initial product baseline for all Class 1 Configuration Items. Integrated System Design System Design System Demonstration System Capability and Manufacturing Process Demonstration Manufacturing processes effectively demonstrated; production-representative article(s) demonstrated in intended environment; T&E assesses improvements to mission capability and operational support based on user needs.

11. New Policy Directed by Congress • Military Equipment Valuation (accounting for military equipment) • MDA Certification at Milestones A & B • Cost type contract for EMD Phase requires written determination by MDA • Lead Systems Integrator Restrictions • Replaced System Sustainment Plan • Configuration Steering Boards (CSBs)

12. New Policy Directed by Congress Continued… • New MAIS Reporting Requirements • “Time-Certain” IT Business Systems Development • Defense Business Systems Oversight • MDA assessment of compliance with chemical, biological, radiological, and nuclear survivability (CBRN) requirements at Milestones B and C • Data Management Strategy

13. New Policy Directed by Congress Continued… • Detailed Acquisition of Services Policy • Independent management reviews (Peer Reviews) for supplies and services contracts • Interim Beyond-LRIP Report • DOT&E’s Role in Testing Force Protection Equipment / Non-Lethal Weapons • Nunn-McCurdy breach / APB Revision Procedure • Cost of energy in AoA and resource estimate

14. New or Revised Regulatory Policy • Contract Incentives Strategy • Program Support Reviews (PSRs) • Integrated Developmental and Operational Test and Evaluation • Restricted use of performance requirements that do not support KPPs • Comparison with current mission capabilities during OT&E • Assessment of Operational Test Readiness (AOTR) • Detailed Systems Engineering Policy • RAM Strategy

15. New or Revised Regulatory Policy Continued… • Contracting for Operational Support Services • Approval of Technology Development Strategy prior to release of final RFP for TD Phase • Configuration Management policy • Approval of Acquisition Strategy prior to release of final RFP for EMD or any succeeding phase • Life-Cycle Sustainment Plan (LCSP) • Review and assessment of new or modified communications waveforms • Evolutionary Acquisition Revised

16. Evolutionary Acquisition From two processes To one process • Capability is 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 No spirals!

17. Policy Enabling Systems Engineering Technical Reviews Preliminary Design Review (PDR) – Required • Before MS B: PDR Report to the MDA for MS B • After MS B: • PDR Report to the MDA • Post-PDR Assessment and ADM • Critical Design Review (CDR) – Required • Post-CDR Report to the MDA • Post-CDR Assessment and ADM

18. Preliminary Design Review When consistent with Technology Development Phase objectives, associated prototyping activity, and the MDA approved TDS, the PM shall plan a Preliminary Design Review (PDR) before Milestone B. PDR planning shall be reflected in the TDS and shall be conducted for the candidate design(s) to establish the allocated baseline (hardware, software, human/support systems) and underlying architectures to define a high-confidence design. All system elements (hardware and software) shall be at a level of maturity commensurate with the PDR entrance and exit criteria. A successful PDR will inform requirements trades; improve cost estimation; and identify remaining design, integration, and manufacturing risks. The PDR shall be conducted at the system level and include user representatives and associated certification authorities. The PDR Report shall be provided to the MDA at Milestone B and include recommended requirements trades based upon an assessment of cost, schedule, and performance risk. OR

19. Preliminary Design Review Post-PDR Assessment. If a PDR has not been conducted prior to Milestone B, the PM shall plan for a PDR as soon as feasible after program initiation. PDR planning shall be reflected in the Acquisition Strategy and conducted consistent with the policies specified in paragraph 5.d.(6). Following PDR, the PM shall plan and the MDA shall conduct a formal Post-PDR Assessment. The PDR report shall be provided to the MDA prior to the assessment and reflect any requirements trades based upon the PM’s assessment of cost, schedule, and performance risk. The MDA will consider the results of the PDR and the PM’s assessment, and determine whether remedial action is necessary to achieve APB objectives. The results of the MDA's Post-PDR Assessment shall be documented in an ADM.

20. DAG* PDR Report Guidance 10.5.3. Preliminary Design Review (PDR) Report. The PDR Report shall be provided as a memorandum to the MDA. 1. When consistent with Technology Development Phase objectives, associated prototyping activity, and the MDA-approved TDS, the PM shall plan a Preliminary Design Review (PDR) before Milestone B. PDR planning shall be reflected in the TDS with details in the SEP and shall be conducted consistent with the policies specified in paragraph 5.d.(6). Additionally, the Report should address: a. A comprehensive list of the systems engineering products that make up the allocated baseline (to include the preliminary design specifications for all configuration items) and that were subject to review; b. A list of the participants in the review including the PDR chair, applicable technical authorities, independent subject matter experts, and other key stakeholders; c. A summary of the Action Items from the review and their closure status/plan; d. A risk assessment using the PDR risk assessment checklist (https://acc.dau.mil/TechRevChklst) or similar to determine readiness to commit to full detail design; and e. A recommendation from the PDR as to the approval of the program's system allocated baseline to support detail design. Note: Blue text is guidance, black is policy. * Defense Acquisition Guidebook

21. DAG PDR Report GuidanceContinued… The PDR Report shall be provided to the MDA at Milestone B and include recommended requirements trades based upon an assessment of cost, schedule, and performance risk. 2. If a PDR has not been conducted prior to Milestone B, the PM shall plan for a PDR as soon as feasible after program initiation. PDR planning shall be reflected in the Acquisition Strategy and conducted consistent with the policies specified in paragraph 5.d.(6). 3. For programs whose MDA is the USD(AT&L), the PDR Report should be a memorandum to the USD(AT&L) through the Director, Systems and Software Engineering and the OIPT lead. Note: Blue text is guidance, black is policy.

22. DAG Post-PDR-A Guidance 10.5.4. Post-Preliminary Design Review (PDR) Assessment.When the system-level PDR is conducted after Milestone B, the PM shall plan and the MDA shall conduct a formal Post-PDR Assessment. The MDA shall conduct a formal program assessment and consider the results of the PDR and the PM’s assessment in the PDR Report, and determine whether remedial action is necessary to achieve APB objectives. The results of the MDA's Post-PDR Assessment shall be documented in an ADM. The Post-PDR assessment shall reflect any requirements trades based upon the PM’s assessment of cost, schedule, and performance risk. Note: Blue text is guidance, black is policy.

23. Post-CDR Report The PM shall provide a Post-CDR Report to the MDA that provides an overall assessment of design maturity and a summary of the system-level CDR results which shall include, but not be limited to: a. The names, organizations, and areas of expertise of independent subject matter expert participants and CDR chair; b. A description of the product baseline for the system and the percentage of build-to packages completed for this baseline; c. A summary of the issues and actions identified at the review together with their closure plans; d. An assessment of risk by the participants against the exit criteria for the EMD Phase; and e. Identification of those issues/risks that could result in a breach to the program baseline or substantively impact cost, schedule, or performance. The MDA shall review the Post-CDR Report and the PM's resolution/ mitigation plans and determine whether additional action is necessary to satisfy EMD Phase exit criteria and to achieve the program outcomes specified in the APB. The results of the MDA's Post-CDR Assessment shall be documented in an ADM. Successful completion of the Post-CDR Assessment ends Integrated System Design and continues the EMD Phase into System Capability and Manufacturing Process Demonstration.

24. Post-CDR Assessment Post-CDR Assessment. The MDA shall conduct a formal program assessment following system-level CDR. The system-level CDR provides an opportunity to assess design maturity as evidenced by measures such as: successful completion of subsystem CDRs; the percentage of hardware and software product build-to specifications and drawings completed and under configuration management; planned corrective actions to hardware/software deficiencies; adequate developmental testing; an assessment of environment, safety and occupational health risks; a completed failure modes and effects analysis; the identification of key system characteristics;, manufacturing feasibility, and the maturity ofcritical manufacturing processes; and an estimate of system reliability based on demonstrated reliability rates.

25. DAG Post-CDR-A Guidance 10.5.5. Post-Critical Design Review (CDR) Assessment. The MDA shall conduct a formal program assessment following system-level CDR. 1. The PM shall provide a Post-CDR Report as a memorandum to the MDA that provides an overall assessment of design maturity and a summary of the system-level CDR results which shall include, but not be limited to: a. The names, organizations, and areas of expertise of independent subject matter expert participants and CDR chair; b. A description of the product baseline for the system and the percentage of build-to packages completed for this baseline; c. A summary of the issues and actions identified at the review together with their closure plans; d. An assessment of risk by the participants against the exit criteria for the EMD Phase; and e. Identification of those issues/risks that could result in a breach to the program baseline or substantively impact cost, schedule, or performance. The CDR risk assessment checklist is designed as a technical review preparation tool, and should be used as the primary guide for assessing risk during the review. This checklist is available on the SE COP (https://acc.dau.mil/TechRevChklst). Note: Blue text is guidance, black is policy.

26. DAG Post-CDR-A GuidanceContinued… 2. For programs whose MDA is the USD(AT&L), the Post-CDR Report should be a memorandum to the USD(AT&L) through the Director, Systems and Software Engineering and the OIPT lead. 3. The MDA shall review the Post-CDR Report and the PM’s resolution/ mitigation plans and determine whether additional action is necessary to satisfy EMD Phase exit criteria and to achieve the program outcomes specified in the APB. The results of the MDA’s Post-CDR Assessment shall be documented in an ADM. Note: Blue text is guidance, black is policy.

27. Codifies OSD SE Role in Program Oversight Program Support Reviews (PSRs). PSRs are a means to inform an MDA and Program Office of the status of technical planning and management processes by identifying cost, schedule, and performance risk and recommendations to mitigate those risks. PSRs shall be conducted by cross-functional and cross-organizational teams appropriate to the program and situation. PSRs for ACAT ID and IAM programs shall be planned by the Director, Systems and Software Engineering (SSE) to support OIPT program reviews, at other times as directed by the USD(AT&L), and in response to requests from PMs. Enclosure 6: The DUSD(A&T) shall conduct an independent Assessment of Operational Test Readiness (AOTR) for all ACAT ID and special interest programs designated by the USD(AT&L). Each AOTR shall consider the risks associated with the system’s ability to meet operational suitability and effectiveness goals. This assessment shall be based on capabilities demonstrated in DT&E and OAs and criteria described in the TEMP. Where feasible, the AOTR shall be performed in conjunction with the program's review and reporting activities as described in subparagraph 4.a.(1) of this Enclosure. The AOTR report shall be provided to the USD(AT&L), DOT&E, and CAE. The CAE shall consider the results of the AOTR prior to making a determination of materiel system readiness for IOT&E.

28. Enclosures to DoDI 5000.02 1. References 2. Procedures 3. ACAT and MDA 4. Statutory and Regulatory Information and Milestone Requirements Table 5. EVM Implementation Policy Table 6. APB Policy Table 7. Unique Decision Forums 5. IT Considerations 6. Integrated T&E 7. Resource Estimation 8. Human Systems Integration 9. Acquisition of Services 10. Program Management 11. Management of Defense Business Systems 12. Systems Engineering Tables Updated, More User Friendly ▀New

29. New Systems Engineering Enclosure • Codifies three previous SE policy memoranda • Codifies a number of SE-related policies and statutes since 2003: • Environmental Safety and Occupational Health • Corrosion Prevention and Control • Modular Open Systems Approach • Data Management and Technical Data Rights • Item Unique Identification • Spectrum Supportability • Introduces new policy on Configuration Management

30. Other ImportantStatutory and Regulatory Policy Changes

31. Other Major Policy ChangesContinued… • Acquisition of Services • Replaces, and adds structure and discipline to, former 5000.2 policy • Implements Independent Management Reviews, required by Sec. 808 of the ’08 NDAA, as “Peer Reviews” • Defines Senior Officials and Management Thresholds • Requires: Performance-Based Requirements; identifiable and measurable cost, schedule, and performance outcomes; a strategic, enterprise-wide approach for both planning and execution; and formal executive review before contract initiation • Assessment of Operational Test Readiness • Complements the DoD Component’s Operational Test Readiness Process • Considers the risks associated with the system’s ability to meet operational suitability and effectiveness goals • Based on capabilities demonstrated in DT&E and OA and TEMP criteria • Report provided to the USD(AT&L), DOT&E, and CAE • AIS Reporting • FY ’09 NDAA • §811 Establishes “pre-MAIS” reporting requirements • No longer need to “Certify” CCA compliance to Congress FY ’07 NDAA • §816 SAR-like and DAES-like reporting • §816 (Nunn-McCurdy-like) Assessment and Certification • §811 Time-Certain IT Business System development FY ’06 NDAA • §806, MAIS Cancellation/Reduction in Scope: Notify Congress before any MDA cancels or significantly reduces the scope of a MAIS program that has been fielded or has received Milestone C approval • APB Policy • Clarifies when and on what basis the APB will be updated • Provides statutory basis for Nunn-McCurdy reporting

32. Other Major Policy ChangesContinued… • Changes to the Technology Development Strategy • Statutory requirement for Test Plan in TD Phase is now accomplished in T&E Strategy (TES) • Now requires a summary of the CAIG-approved Cost and Software Data Reporting (CSDR) Plan(s) for the Technology Development phase • Data Rights • PMs assess the long-term technical data needs of their systems • The assessment reflected in a Data Management Strategy (included in the Acquisition Strategy) • Addresses the merits of including a priced contract option for the future delivery of technical data • Considers the contractor’s responsibility to verify any assertion of restricted use and release of data • Enhanced Focus on Manufacturing Readiness • Fully-Burdened Cost of Energy • The Analysis of Alternatives considers — • Alternative ways to improve the energy efficiency of DoD tactical systems with end items that create a demand for energy • The fully burdened cost of delivered energy shall be used in trade-off analyses conducted for all DoD tactical systems with end items that create a demand for energy • Incentives • PM required to describe how incentives will be used to achieve required cost, schedule, and performance outcomes • Captured in Acquisition Strategy • Institutionalizes current incentive fee policy • Institutionalizes Program Management Agreements (PMAs)

33. Other Major Policy ChangesContinued… • Lead Systems Integrator • MDA ensures that the LSI does not have, nor is expected to acquire, a financial interest in development or construction • PM stresses appropriate checks and balances; insists the government performs inherently governmental functions • Milestone Requirements • FY’07/’08/’09 NDAAs • Mandate Milestone A approval prior to technology development for an MDAP • Require MDA Certification prior to Milestone A for MDAPs with Technology Development Phase efforts • Mandate reporting and notification of program cost changes • Changed Milestone B Certification Requirements FY’06 NDAA • Requires MDA Certification prior to Milestone B for MDAPs • MDA Determination of Contract Type • Consistent with level of program risk: fixed price or cost contract • Cost-type only upon written determination that (1) the program is so complex and technically challenging that it would not be practicable to reduce program risk to a level that would permit the use of a fixed-price contract; and, (2) the complexity and technical challenge of the program is not the result of a failure to meet the requirements of the MDA Milestone B Certification • Modified “Enclosure 3” Tables • Now Enclosure 4 • Clarifies Applicability by program type and ACAT • New Challenges • Addresses Waveform, Electromagnetic Spectrum, and Life-Cycle Signature Management • Requires early consideration of Data Assets, Critical Program Information, and the workforce mix

34. Other Major Policy ChangesContinued… • New Enclosure 11, Management of Defense Business Systems • Describes the Defense Business Systems Management Committee (DBSMC) Certification Approval Process • DBSMC Certification Approval required for all defense business systems funded over $1,000,000 • Investment Review Boards (IRB) assess programs and advise the DBSMC • Enclosure details the business process supporting IRB and DBSMC activity • New Enclosure 12, Systems Engineering • Requires the Systems Engineering Plan and Technical Reviews • Also covers— • Corrosion Control • Configuration Management • Pre-Award “Peer Reviews” • Recognizes Unique Decision Forums for Space, Missile Defense, and Joint Intelligence • Performance-Based Life-Cycle Product Support (PBL) Document performance and sustainment requirements in performance agreements specifying objective outcomes, measures, resource commitments, and stakeholder responsibilities • Program Support Reviews • On-site review of program information before each milestone and release of the RFP • Assesses technical planning and management processes • Assists in identifying and mitigating cost/schedule/performance risk • Informs decision making • Reliability, Availability, and Maintainability (RAM) • Requires a strategy that includes a reliability growth program • RAM integrated with Systems Engineering processes; assessed during technical reviews, T&E, and Program Support Reviews (PSRs)

35. Other Major Policy ChangesContinued… • Small Business Innovation Research (SBIR) • Directs consideration of SBIR technologies • Updated EVM Policy • Cost/Incentive Contracts: At PM’s discretion, based on cost-benefit analysis • Firm Fixed-Price Contracts: Limited. Requires MDA approval based on a business case analysis • Workforce Considerations • Manpower mix • Inherently governmental • PM tenure • PM / PEO shall be experienced and certified • Replaced-System Sustainment Plan • DoD Component plan to sustain the system being replaced if the capability provided by the existing system remains necessary and relevant during fielding of and transition to the new system • The plan must provide for the budgeting to sustain the existing system until the new system assumes the majority of mission responsibility • Requests for Proposal • Technology Development Strategy or Acquisition Strategy must be approved before release

36. Implications for Systems Engineering

37. Production and Deployment O&S Increased Focus on Early Acquisition Early Acquisition MS A MS B MS C JCIDS Process Engineering and Manufacturing Development Materiel Solution Analysis Joint Concepts CBA ICD CDD CPD Technology Development Strategic Guidance MDD Full Rate Production Decision Review PDR or PDR CDR Materiel Development Decision(MDD) PDR and a PDR report to the MDA if pre-MS B or PDR and Post-PDR report and assessment if post-MS B Competing prototypes before MS B • What are the implications of these changes for programs? • How can systems engineering enable the program during this early phase?

38. O&S New Opportunities for Systems Engineering –Starting Programs Right What’s relevant:Mandatory Materiel Development Decision Mandatory Milestone A for all “major weapon systems” Mandatory PDR* and CDR* with reports to the MDA* MS A MS B MS C Engineering and Manufacturing Development Materiel Solution Analysis CDD CPD Production and Deployment CBA ICD Strategic Guidance Joint Concepts Technology Development MDD JCIDS Process Full Rate Production Decision Review OR PDR PDR CDR • Pre-MDD “SE Touch Points” • Initial Capabilities Document (ICD) • Analysis of Alternatives • study plan • Pre-Milestone A “SE Touch Points” • Systems Engineering Plan • Technology Development Strategy • Test and Evaluation Strategy • Analysis of Alternatives * PDR – Preliminary Design Review * CDR – Critical Design Review * MDA - Milestone Decision Authority

39. New Opportunities for Independent Reviews O&S What’s relevant:Mandatory Milestone A for all “major weapon systems”  MS B after system-level PDR* and a PDR Report to the MDA EMDD with Post-CDR* Report and MDA Assessment PSR and AOTR in policy MS A MS B MS C Materiel Solution Analysis Engineering and Manufacturing Development and Demonstration Production and Deployment CDD CPD CBA ICD Strategic Guidance Joint Concepts Technology Development MDD Full Rate Production Decision Review Potential Independent Technical Reviews - PSRs and AOTRs OTRR • Program Support Reviews (PSRs) • All ACAT ID and IAM • To inform the MDA on technical planning and management processes thru risk identification and mitigation recommendations • To support OIPT program reviews and others • as requested by the MDA • Non-advocate reviews requested by the PM • Assessments of Operational Test • Readiness (AOTRs) • All ACAT ID and special interest programs • To inform the MDA, DOTE, & CAE of risk of a system failing to meet operational suitability and effectiveness goals • To support CAE determination of materiel readiness for IOT&E * PDR – Preliminary Design Review * CDR – Critical Design Review * OTRR – Operational Test Readiness Review

40. New Challenges for Programs • PM skill-sets after MDD and prior to MS A • Increased importance of the Technology Development Strategy (TDS) at MS A • PM skill-set and PM organization for TD phase • Funding implications (shifting resources from EMD to TD) • Possible contracting strategies – constraints, competitive prototyping, data rights, etc. • Early engagement with industry • Tailoring the process to specific domains and/or complexity • Others?

41. New Challenges for SEPs • Explicit technical planning for the Technology Development phase at Milestone A including: • Technology maturation • Competitive prototyping • Manufacturing maturity • Critical Program Information in design • Item Unique Identification (IUID) • Mandatory system-level PDR with rationale for its placement before or after Milestone B • PDR Report to the MDA either side of MS B • Post-PDR Assessment by the MDA with ADM if after MS B • Mandatory system-level CDR • Post-CDR Report to and Assessment by the MDA followed by an ADM • IUID Implementation Plan as SEP Annex at Milestones B and C

42. Why is this hard? • Programs have very little experience with current pre-Milestone B SE activities – makes it difficult to know what to ‘adjust’ given changes. • The current DAG guidance is voluminous – online resource with over 500 printed pages of information without hotlinks. • PMOs have limited understanding about interdependencies within the this Guidance. • For SE to be an effective enabler, Systems Engineers need to understand the activities, products, and their integration with the program, particularly in the unfamiliar realm of pre-Milestone B.

43. Production and Deployment O&S Review of Policy Changes • Mandatory Materiel Development Decision (MDD) • Mandatory competing prototypes before MS B • Mandatory PDR and a report to the MDA (“the sliding PDR”) [PDR Report to MDA if before MS B; formal PDR Assessment by MDA if after MS B] • Configuration Steering Boards at Component level to review all requirements changes MS A MS B MS C Materiel Solution Analysis Engineering and Manufacturing Development CPD Joint Concepts CBA ICD CDD Technology Development Strategic Guidance MDD Full Rate Production Decision Review JCIDS Process or PDR PDR CDR • Renewed emphasis on manufacturing during system development: • Re-titles SDD phase to EMD with two sub phases: Integrated System • Design and System Capability and Manufacturing Process Demonstration • Establishes consideration of manufacturing maturity at key decision points • Mandatory system-level CDR with an initial product baseline and followed by a Post-CDR Report to the MDA • Post-CDR Assessment by the MDA between EMD sub phases

44. In Conclusion . . . Make acquisition decisions when you have solid evidence and acceptable risk MDD MS A MS B Agreement to pursue a material solution BusinessDecisions Selection of a proposed materiel solution Materiel Solution Analysis Program Initiation Uncertainty EngineeringSupport Proposed Materiel Solution Technology Maturation and Prototyping P-PDR Assessment PDR System Level Specs P-CDR Assessment PDR AoA OR CDR Preliminary Design Completed Design Materiel Solution Analysis Technology Development

45. SE Planning for Milestone A and Technology Development Phase Documents / activities / data requiring technical input from the Systems Engineer BEFORE Milestone A: • Analysis of Alternatives • Technology Development Strategy • Critical Program Information • Technology maturation plans • Competitive Prototyping plans • Net-Centric Data Strategy • Market Research • Data Management Strategy • Component Cost Estimate • Systems Engineering Plan • Test and Evaluation Plan The Systems Engineer’s Challenge: Where to find the data!?

46. Call Me… Sharon Vannucci sharon.vannucci@osd.mil (703) 695-7853 www.acq.osd.mil/sse

47. Backup

48. Material Solution Analysis MS A MDD Materiel Solution Analysis JCIDS Initial user assessment ICD of capability needs Engineering Analysis of Potential Material Technical Systems Solution Planning Solution(s) Program Office Options for TD Study SEP Efforts TES Program Planning For TD TDS AoA AoA Plan Report AoA Guidance Conduct AoA

49. MSA Starting & Closing Conditions JROC Approved ICD Understanding of capability gaps Successful MDD Agreement by MDA to proceed MDA Approved AoA Guidance Direction for initial scoping of solution Closing Conditions Starting Conditions Materiel Solution Analysis (MSA) • Technology Development Strategy (TDS) • Understanding of risks – technology, design, manufacturing, security, etc. • Plans for competitive prototyping and initial design (to PDR) • Plans for SE and T&E for technology development

50. MSA – Materiel Development Decision Materiel Development Decision New in 5000.02 Provides early visibility to MDA and opportunity for better upfront guidance MS A MDD Materiel Solution Analysis JCIDS Initial user assessment ICD of capability needs Engineering Analysis of Potential Material Technical Systems Solution Planning Solution(s) Program Office Options for TD Study SEP Efforts TES Program Planning For TD TDS AoA AoA Plan Report AoA Guidance Conduct AoA