Recent changes in DOD Acquisition Rules Professor Woody Spring DAU woody.spring@dau.mil 619 524 5098 Purpose • Inform you of recent changes in OSD policies regarding Acquisition • DAU Charter is to help improve acquisition outcomes – Helping industry understand the rules programs are supposed to be follow can help you prepare better proposals and better give the Program Managers what they need 2
DoDI 5000.02 Interim: November 25, 2013 Final: 7 January 2015 Overview – Some of the Interim DoDI 5000.02 Changes Affecting T&E • DoDI 5000.02 to be revised within 180 days. (7 Jan 2015) – Interim DoDI 5000.02 was effective 11/25/2013 – Interim DoDI 5000.02 incorporates BBP initiatives, & several directive type memos (DTMs) • New Generic Acq Program Structure & Decision Points – Four Defense Acq Program Models, and two hybrids • New Encl 4 (DT&E), and Encl 5 (OT&E, LFT&E) – Milestone A TEMP (vice TES) – Lots of changes / additions to the TEMP content – Expect DAG Chapter 9 TEMP format to reflect these changes 4 (the next time they update DAG Chapter 9 – probably soon)
Interim DoDI 5000.02 TEMP Changes • Some of the TEMP changes are as follows. – For a complete list, see Encl. 4, Para 5; & Encl. 5, Paragraphs 5 through 9 • Milestone A TEMP (vice TES) • Identify each major DT phase or event as contractor or Govt. DT • More Cybersecurity testing required • A TEMP annex, with the component’s rationale for requirements • More software maturity metrics and software testing • An OT evaluation overview, including synopsis of the intended analysis for each major OT test phase or event • Table of variables (factors & conditions) that may have a significant effect on operational performance – Starting at MS B, the “levels”, and methods of controlling variables during test events must be stated 5 • Incorporates elements from BBP 1.0, 2.0, and some of 3.0 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 5000.02 6
Statute & Policy Driving the Update 7 Revised Document Structure 8
Document Comparison 9 What Has Really 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 Information Assurance −Intellectual Property −Operational Test and Evaluation (significantly expanded) −Life-Cycle Sustainment −Affordability −Defense Business Systems −Rapid Acquisition of Urgent Needs 10
Tailored Applicability 11 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 12
13 Example 1 of 4 14
Example 2 of 4 15 Example 3 of 4 16
Example 4 of 4 17 Example Hybrid 1 of 2 18
Example Hybrid 2 of 2 19 DAG revised 9 Oct 2012 DAG Changes BBP
Better Buying Power Better Buying Power (BBP) is based on the principle that continuous improvement is the best approach to improving the performance of the defense acquisition enterprise. The evolution from BBP 1.0 to BBP 2.0 was based on the premise that emphasis would shift as initiatives were put in place, experience was accumulated, data was collected and analyzed, and conditions changed. BBP 3.0 continues that approach with a shift in emphasis toward achieving dominant capabilities through innovation and technical excellence. Better Buying Power 2.0 to 3.0 Overview
Overarching Principles 1. Think: The first responsibility of the Acquisition Workforce 2. People: Qualified people are essential to successful outcomes 3. Start with the basics: a) Effective incentives to industry b) Understand and actively manage technical risk c) Insist on demonstrated performance before major commitments d) Get the big, early decisions right e) Use the right contract type for the job 4. Streamline decisions: Streamline processes and oversight The 5 7 8 Major Areas BBP 1.0, 2.0, and 3.0 1. Achieve Affordable Programs 2. Achieve Dominant Capabilities While Controlling Lifecycle Costs 3. Incentivize Productivity in Industry and Government 4. Incentivize innovation in Industry and Government 5. Eliminate Unproductive Processes and Bureaucracy: 6. Promote Effective Competition 7. Improve Tradecraft Acquisition of Services 8. Improve the Professionalism of the Total Acquisition Workforce
Achieve Affordable Programs 1-1. Continue to set and enforce affordability caps Achieve Dominant Capabilities While Controlling Lifecycle Costs 2-1. Strengthen and expand “should cost” base cost management 2-2. Build stronger partnerships between the acquisition, requirements and intelligence communities 2-3. Anticipate and plan for responsive and emerging threats 2-4. Institutionalize stronger DoD level Long Range R&D planning
Incentivize Productivity in industry and Government 3-1. Align profitability more tightly with Department goals 3-2. Employ appropriate contract types, but increase the use of incentive type contracts 3-3. Expand the superior supplier incentive program across DoD 3-4. Increase effective use of Performance-Based Logistics 3-5. Remove barriers to commercial technology utilization 3-6. Improve the return on investment in DoD laboratories Increase the productivity of IR&D and CR&D Incentivize Innovation in Industry and Government 4-1. Increase the use of prototyping and experimentation 4-2. Emphasize technology insertion and refresh in program planning 4-3. Use Modular Open Systems Architecture to stimulate innovation 4-4. Increase the return on Small Business Innovation Research (SBIR) 4-5. Provide draft technical requirements to industry early and involve industry in funded concept definition to support requirements definition 4-6. Provide clear “best value” definitions so industry can propose and DoD can choose wisely
Eliminate Unproductive Processes and Bureaucracy 5-1. Emphasize Acquisition Executive, Program Executive Officer, and Program Manager responsibility, authority, and accountability 5-2. Reduce cycle times while ensuring sound investments 5-3. Streamline documentation requirements and staff reviews Promote Effective Competition 6-1. Create and maintain competitive environments 6-2. Improve technology search and outreach in global markets
Improve Tradecraft in Acquisition of Services 7-1. Increase small business participation including through more effective use of market research 7-2. Strengthen contract management outside the normal acquisition chain 7-3. Improve requirements definition 7-4. Improve the effectiveness and productivity of contracted engineering and technical services Improve the Professionalism of the Total Acquisition Workforce 8-1.Establish higher standards for key leadership positions 8-2. Establish stronger professional qualification requirements for all acquisition specialties 8-3. Strengthen organic engineering capabilities 8-4. Ensure the DoD leadership for development programs is technically qualified to manage R&D activities 8-5. Improve our leader’s ability to understand and mitigate technical risk 8-6 Increase DoD support for Science, Technology, Engineering, and Mathematics (STEM) education
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