edu Major Capability Acquisition September 1 2020 The

edu Major Capability Acquisition September 1, 2020 “The Adaptive Acquisition Framework will be the most transformational acquisition policy change we’ve seen in decades. ” - The Honorable Ellen Lord, USD (A&S) Professor Dave Riel, david. riel@dau. edu

Adaptive Acquisition Framework Enable Execution at the Speed of Relevance Do. DD 5000. 01: The Defense Acquisition System Do. DI 5000. 02: Operation of the Adaptive Acquisition Framework t t en en n & ent pm lopm uctioloym o l d e Pre. Deve Dev Pro Dep DD Urgent Capability Acquisition Do. DI 5000. 81 OD < 2 years Rapid Fielding OD Middle Tier of Acquisition Rapid Prototyping Major Capability Acquisition Do. DI 5000. 85 Software Acquisition Interim Policy Defense Business Systems Do. DI 5000. 75 Acquisition of Services Do. DI 5000. 74 ≤ 5 years MDD MS A 0 MS B Technology Maturation and Risk Reduction Materiel Solutions Analysis MS C IOC FOC Production and Deployment Engineering and Manufacturing Development 1 Planning Phase Path Selection xx. Cybersecurity Do. DI 5000. 80 OPERATIONS AND SUSTAINMENT Tenets of the Defense Acquisition System 4. Conduct Data Driven Analysis 1. Simplify Acquisition Policy 2. Tailor Acquisition Approaches 5. Actively Manage Risk 3. Empower Program Managers 6. Emphasize Sustainment I 1 I 2… Execution Phase In In MVP MVCR In Rn Legend: ATP: Authority to Proceed ATP DD: Disposition Decision Functional Capability Acquisition, FOC: Full Operational Capability Solution Capability Requirements and Need Testing, and I: Iteration Analysis Support Acquisition Identification Deployment Planning IOC: Initial Operational Capability MDD: Materiel Development Decision Business Capability Acquisition Cycle MS: Milestone PLAN DEVELOP EXECUTE MVCR: Minimum Viable Capability Release 1 2 3 4 5 6 7 MVP: Minimum Viable Product Form Review Perform Define Develop Execute Manage the Current Market Require- Acquisition Strategy Performance OD: Outcome Determination R: Release Team Strategy Research ments Strategy < 1 year ATP January 2020

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Transforming Acquisition Policies

Adaptive Acquisition Framework Enable Execution at the Speed of Relevance Do. DD 5000. 01: The Defense Acquisition System Do. DI 5000. 02: Operation of the Adaptive Acquisition Framework t t en en n & ent pm lopm uctioloym o l d e Pre. Deve Dev Pro Dep DD Urgent Capability Acquisition Do. DI 5000. 81 OD < 2 years Rapid Fielding OD Middle Tier of Acquisition Rapid Prototyping Major Capability Acquisition Do. DI 5000. 85 Software Acquisition Interim Policy Defense Business Systems Do. DI 5000. 75 Acquisition of Services Do. DI 5000. 74 ≤ 5 years MDD MS A 0 MS B Technology Maturation and Risk Reduction Materiel Solutions Analysis MS C IOC FOC Production and Deployment Engineering and Manufacturing Development 1 Planning Phase Path Selection xx. Cybersecurity Do. DI 5000. 80 OPERATIONS AND SUSTAINMENT Tenets of the Defense Acquisition System 4. Conduct Data Driven Analysis 1. Simplify Acquisition Policy 2. Tailor Acquisition Approaches 5. Actively Manage Risk 3. Empower Program Managers 6. Emphasize Sustainment I 1 I 2… Execution Phase In In MVP MVCR In Rn Legend: ATP: Authority to Proceed ATP DD: Disposition Decision Functional Capability Acquisition, FOC: Full Operational Capability Solution Capability Requirements and Need Testing, and I: Iteration Analysis Support Acquisition Identification Deployment Planning IOC: Initial Operational Capability MDD: Materiel Development Decision Business Capability Acquisition Cycle MS: Milestone PLAN DEVELOP EXECUTE MVCR: Minimum Viable Capability Release 1 2 3 4 5 6 7 MVP: Minimum Viable Product Form Review Perform Define Develop Execute Manage the Current Market Require- Acquisition Strategy Performance OD: Outcome Determination R: Release Team Strategy Research ments Strategy < 1 year ATP August 2020

Do. DI 5000. 02 Table 1 – The Transition Plan

Do. DI 5000. 02 Table 1 – The Transition Plan Due out: Do. DI 5000. psm, Product Support Management -Interim policy in Do. DI 5000. UQ. Do. DI 5000. psm will apply to

Quick Ad: Thinking Fast and Slow – 2 Sep 1230 -1400 EDT 11

So, let’s take a looksee! Vs. 12

Section 1: General Issuance Information -- Setting Expectations -- Do. DI 5000. 02 T Do. DI 5000. 85 Speed Counts! Even in stodgy, old traditional acquisition 13

Why is “Rapid” So Important Today? “We are emerging from a period of strategic atrophy, aware that our competitive military advantage has been eroding. We are facing increased global disorder, characterized by decline in the longstanding rules-based international order – creating a security environment more complex and volatile than any we have experienced in recent memory. Inter-state strategic competition, not terrorism, is now the primary concern in U. S. national strategy. ” Former Sec. Def James Mattis, 19 Jan 18 • Challenges to US Military advantage … today, every domain is contested – air, land, sea, space, cyberspace • Rapid technological advancements in past gave us advantage – Today, state/non-state competitors also have access to them … offsetting our advantage • We must deliver performance at the speed of relevance • We must provide streamlined, rapid, iterative approaches from development to fielding Source: 2018 National Security Strategy We must adapt the way that we acquire systems and components 14

Why is “Rapid” So Important Today? “ The weapons systems the Department delivers to the warfighter today are the finest in the world … current pace at which we develop advanced capability is being eclipsed by those nations that pose the greatest threat to our security, seriously eroding our measure of overmatch … increasing cost of our major weapons systems has placed at risk our ability to acquire and sustain these systems at the level required by our fighting forces. ” Source: Testimony of the Honorable Ellen Lord, USD(AT&L) before the SASC December 7, 2017 15

Section 1: General Issuance Information -- Setting Expectations -- Do. DI 5000. 02 T Do. DI 5000. 85 However, so does security! 16

Do. DI 5000. 83 Technology and Program Protection to Maintain Technological Advantage 17

Do. DI 5000. 83 Technology and Program Protection to Maintain Technological Advantage 18

Section 2: Responsibilities -- Increased Responsibilities for Service Chiefs -FY 16 NDAA Do. DI 5000. 02 T Do. DI 5000. 85 19

Section 3: Major Capability Acquisition Procedures -- Section 3. 1 General Procedures -- PPBE Req’ts DAS 20

Section 3: Major Capability Acquisition Procedures -- Section 3. 2 Flexible Implementation -- Interim Do. DI 5000. 02 (Nov 2013) Do. DI 5000. 85 Tailor In Vs. Unsplash. com Tailor Out Unsplash. com 21

Section 3: Major Capability Acquisition Procedures -- Section 3. 3 Program ACATs-- FY 2014 FY 2020 Tailor In 22

Section 3: Major Capability Acquisition Procedures -- Section 3. 4 Acquisition Process Decisions and Phases -Do. DI 5000. 02 T Tailor In 23

Section 3: Major Capability Acquisition Procedures -- Section 3. 4 Acquisition Process Decisions and Phases -- Hey, where did all my models go? ? ? Do. DI 5000. 85 Tailor In 24

Section 3: Major Capability Acquisition Procedures -- Section 3. 4 Acquisition Process Decisions and Phases -- The one and only … Tailor In Do. DI 5000. 85 25

Section 3: Major Capability Acquisition Procedures -- Section 3. 4 Acquisition Process Decisions and Phases -- However, may not be as simple as you thought … Tailor In 26

Section 3: Major Capability Acquisition Procedures -- Sections 3. 5 -15 Phases and Decision Points -- Do. DI 5000. 02 T Do. DI 5000. 85 Nuanced changes 27

Section 3: Major Capability Acquisition Procedures -- Sections 3. 5 -15 Phases and Decision Points -- As long as we’re talking about Ao. As, though … Do. DI 5000. 02 T Do. DI 5000. 85 28

Do. DI 5000. 84 Analysis of Alternatives August 4, 2020 29

Appendix 3 B: Program Information Moved online Do. DI 5000. 02 T “Substantive changes to online content not required by law must be formally coordinated” IAW Do. DI 5025. 01 “ Regulatory requirements will follow a “tailored-in” approach, as described in Paragraph 3. 2. b” www. dau. edu/mdid 30

Appendix 3 C: Additional Program Management Considerations Unsplash. com 31

Appendix 3 C: Additional PM Considerations • 3 C. 2 Program Office Structure and Organizations – Very similar to Do. DI 5000. 02 T • 3 C. 3. a Program Management Responsibilities: Acquisition Strategies – Similar to Do. DI 5000. 02 T; however • Added section on “PS and Supportability Planning” – part of increased emphasis on “up front and early” sustainment considerations • Increased content on Modular Open Systems Approach, including: – Identify where, why and how MOSA will be used – By law, MDAP with Milestone A or B approval after 1 Jan 19, shall be designed and developed, to the maximum extent practicable, with MOSA – Include MOSA in RFPs for EMD and P&D phase contract – More info at www. dau. edu/aaf 32

Appendix 3 C: Additional PM Considerations • 3 C. 3. b PM Responsibilities: Program Baseline Development and Management – Very similar to Do. DI 5000. 02 T • 3 C. 3. c PM Responsibilities: Investment Management (new section!) – (1) MDAP Goal Development Procedures (MDAPs initiated after 1 Oct 17) 33

Appendix 3 C: Additional PM Considerations -- Appendix 3. C. 3. b (1) Investment Mgt: MDAP Goals Development Procedures -- 34

Appendix 3 C: Additional PM Considerations • 3 C. 3. c PM Responsibilities: Investment Management – (2) Cost Baseline Control and Use of “Should Cost” Management • Very similar to Do. DI 5000. 02 T – (3) EVM • Very similar to Do. DI 5000. 02 T; except, applicability and reporting tables moved to www. dau. edu. mdid • 3 C. 3. d PM Responsibilities: Risk Management – Similar to Do. DI 5000. 02 T, except added emphasis on ESOH – currently found only in Do. DI 5000. 02 T, Enclosure 3 35

Appendix 3 C/D: Environmental, Safety and Occupational Health (ESOH) Para. 3 C. 3. d (2) Para. 3 D. 2. b. (2)(a) 36

Appendix 3 C: Additional PM Considerations • 3 C. 3. e PM Responsibilities: Configuration Steering Board (CSB) – Similar to Do. DI 5000. 02 T, except simplified • 3 C. 4. International Acquisition and Exportability – Similar to Do. DI 5000. 02 T, but with added emphasis 37

Appendix 3 C: Additional PM Considerations • 3 C. 5. Industrial Base Analysis and Considerations – Virtually verbatim with Do. DI 5000. 02 T, adds FOCI (foreign ownership, control or influence) concerns • 3 C. 6. Records Management – Similar to Do. DI 5000. 02 T, includes statute req’t, Chapter 31, Title 44, U. S. C. 38

Appendix 3 D: Product Support 39

Appendix 3 D: Product Support Unsplash. com Tomato? 40

Appendix 3 D: Product Support 41

Appendix 3 D: Product Support -- Added Points of Emphasis -- • Early and Continuous Consideration of Sustainment Factors • Software Product Support Planning • Critical Sustainment Cost Driver Management – include O&S costs in TMRR, EMD, and P&D source selection • “Should Cost” Management – annual review of established targets • Replaced System Sustainment Plan – mitigate risks and gaps between disposal of legacy system and fielding of new • Product Support Strategy focus by decision points (similar to Enc 6) • ILAs and Sustainment Metrics (similar to Enc 6) • Sustainment Reviews – MDAPs 5 years post-IOC to assess PS performance and O&S cost 42

What’s Left? 43

Recommendations The more things change, the more they stay the same! Jean-Baptiste Alphonse Karr Public Domain, https: //commons. wikimedia. org/w/index. php? curid=736262

Recommendations The more things change, the more they stay the same! Jean-Baptiste Alphonse Karr Public Domain, https: //commons. wikimedia. org/w/index. php? curid=736262 The more things stay the same, the more they change!

Speed is King! “it is critical to accelerate the speed of acquisition … to continually deliver competitive advantage to our warfighters” “We need light speed in all of our endeavors … keep our foot on the accelerator” Deliver performance at the speed of relevance “Maximize use of law and policy in order to rapidly prototype, produce and field products” 47

Speed is King, but Rigor is not the enemy … 3. 3 PM. Under the supervision of PEOs and CAEs, PMs: … “Employ a thoughtful, innovative and disciplined approach to program management” Do. DI 5000. 02 Source: pintrest. com Speed and Rigor are NOT mutually exclusive!

Recommendations Focus on unique aspects of YOUR acquisition Source: mha-it. com Technology maturity Source: Microstrat. com The Need for Speed Source: networkworld. com

In the words of Winnie-the-Pooh, “Think, think …” Start with a Blank Sheet … Source: zazzle. com Source: westpress. com Need to be CREATIVE and do some Critical Thinking

Recommendations “Tailor-In” what makes sense “A cook can follow a recipe and prepare a nice meal, but a chef can take a variety of wide-ranging ingredients, understand how they complement each other, and create a gourmet feast. ” “What do we need” vs. “What we have to” mindset

Recommendations Get user involved – early and often “As the design for each of our weapon systems matures, an enduring conversation needs to occur between the acquirer and the warfighter, carefully explaining the producibility, maintainability, reliability and subsequent cost impacts of each additional mile of range, or mile per hour of speed desired. ” Create an enduring conversation with your user!

Recommendations Be collaborative with key Stakeholders -- “How can we…” FM T&E OSD PM PCO Source: wruf. com

If Speed is King, Sustainment is the Prince! The Impact of Design Decisions on Life Cycle Cost And don’t forget Producibility!

Recommendations Be persistent – Innovation is hard! • Engage the entire team • Reach out to DAU – that’s why we’re here Need help? Don’t be afraid to ask

DAU Resources Acquisition workforce will access revised policies and training via DAU hosted website: https: //www. dau. edu/aaf/ Find documents, guidebook, tables and instructions to help understand integrate new policies

Questions Dave Riel Defense Acquisition University/MW David. riel@dau. edu 937 -781 -1060 57

Adaptive Acquisition Framework Enable Execution at the Speed of Relevance Do. DD 5000. 01: The Defense Acquisition System Do. DI 5000. 02: Operation of the Adaptive Acquisition Framework t t en en n & ent pm lopm uctioloym o l d e Pre. Deve Dev Pro Dep DD Urgent Capability Acquisition Do. DI 5000. 81 OD < 2 years Rapid Fielding OD Middle Tier of Acquisition Rapid Prototyping Major Capability Acquisition Do. DI 5000. 85 Software Acquisition Interim Policy Defense Business Systems Do. DI 5000. 75 Acquisition of Services Do. DI 5000. 74 ≤ 5 years MDD MS A 0 MS B Technology Maturation and Risk Reduction Materiel Solutions Analysis MS C IOC FOC Production and Deployment Engineering and Manufacturing Development 1 Planning Phase Path Selection xx. Cybersecurity Do. DI 5000. 80 OPERATIONS AND SUSTAINMENT Tenets of the Defense Acquisition System 4. Conduct Data Driven Analysis 1. Simplify Acquisition Policy 2. Tailor Acquisition Approaches 5. Actively Manage Risk 3. Empower Program Managers 6. Emphasize Sustainment I 1 I 2… Execution Phase In In MVP MVCR In Rn Legend: ATP: Authority to Proceed ATP DD: Disposition Decision Functional Capability Acquisition, FOC: Full Operational Capability Solution Capability Requirements and Need Testing, and I: Iteration Analysis Support Acquisition Identification Deployment Planning IOC: Initial Operational Capability MDD: Materiel Development Decision Business Capability Acquisition Cycle MS: Milestone PLAN DEVELOP EXECUTE MVCR: Minimum Viable Capability Release 1 2 3 4 5 6 7 MVP: Minimum Viable Product Form Review Perform Define Develop Execute Manage the Current Market Require- Acquisition Strategy Performance OD: Outcome Determination R: Release Team Strategy Research ments Strategy < 1 year ATP January 2020