Middle Tier Acquisition Accelerating the Process for Rapid

Middle Tier Acquisition: Accelerating the Process for Rapid Prototyping and Fielding Panelists: Col Elliott Caggins, USA, PM Soldier Weapons Ms. Gina Fachini, USN, APM Standard Missile Col Lance Reynolds, USAF, PM B-1 & B-52 Sys April 3, 2019 Moderators: Lynne Giordano, DSMC (lynne. Giordano@dau. mil) Jerry La. Camera, DSMC (jerry. lacamera@dau. mil) DAU Acquisition Training Symposium

Rapid Acquisition DODI 5000. 02 Enclosure 13 Type Sec 804 FY 2016 NDAA Middle Tier of Acquisition DODI 5000. 02 Model 4 Urgent Capability Acquisition Rapid Prototyping Rapid Fielding Accelerated Acquisition Technology - Innovative Proven - Requirement Validated UON Exempt from JCIDS Timeline Field ≤ 2 years Field prototype ≤ 5 years Start production ≤ 6 months; Complete fielding ≤ 5 years None Other Below ACAT I and IA Exempt from DODI 5000; PM reports to SAE Statutory requirements for MDAPs 2

CONCEPT / NEED Path Selection Urgent Operational Needs 5000. 02 Encl 13 UONs, JEONs ≤ 2 Years Middle Tier Acquisition Section 804 Tailorable Traditional DODI 5000. 02 Rapid Fielding (Production) ≤ 5 Years Rapid Prototyping ≤ 5 Years MDD MS A Materiel Solutions Analysis MS B Tech Maturation & Risk Reduction MS C Engineering & Manufacturing Development IOC FOC OPERATIONS AND SUSTAINMENT A Few Potential Rapid Pathways Production and Deployment * Can also go from Tailorable Traditional to Middle Tier 3

Backup 4

Rapid Acquisition Challenges 5

Acronyms Acronym Description JCIDS Joint Capabilities Integration and Development System JROC Joint Requirements Oversight Council MTA Middle Tier of Acquisition NDAA National Defense Authorization Act OTA Other Transaction Authority PM Program Manager SAE Service Acquisition Executive 6

FY 16 -18 NDAA Acquisition Language NDAA 2016: Sec 801: Reqd Review of Acq Related Functions of the Co. Ss of Armed Forces Sec 802: Role of the Chiefs of Staff in the Acquisition Process Sec 803: Expansion of Rapid Acquisition Authority ($200 M in each of 3 cases) Sec 804: Middle Tier of Acquisition for Rapid Prototyping and Rapid Fielding Sec 805: Use of Alt. Acquisition Paths to Acquire Critical Natl Security Capabilities Sec 806: SECDEF Waiver of Laws To Acquire Vital Natl Sec Capabilities Sec 807: Acq Auth of the Commander of United States Cyber Command Sec 808: Report on Linking and Streamlining Rqmts, Acq, and Budget Processes (Co. Ss) Sec 809: Advisory Panel on Streamlining and Codifying Acquisition Regulations Sec 815: Amendment to Other Transactions Authority (Repeals Sec 845, est 2371 b) NDAA 2017: Sec 806: Devel. , Prototyping, and Deployment of Weapons Syst Comps/Technology Sec 864: Dept of Defense Acq Workforce Devel Fund Determination Adjustment Sec 884: Non-Trad & Small Contractor Innovation Prototyping Program Sec 901*: Organization of the Office of the SECDEF (R&E, A&S, CMO, etc) NDAA 2018: Sec 864: Other Transaction Auth for Certain Prototype Projects Sec 866: Middle Tier of Acquisition for Rapid Prototype and Fielding Sec 867: Preference for Use of OTA and Experimental Auth for S&T, Prototyping & Experiments 7

Rapid Prototyping Program 8

DAVE Data • • • Program Information Capability Requirement Program Quantity Program Schedule Technology Performing Activity Contract(s) Outcome (upon program completion) Sustainment Program Budget Details 9

Do. DI 5000. 02 Model 4: Accelerated Acquisition Program • Schedule considerations dominate over cost & technical considerations • Schedule compression, concurrent development/production • Used when technological surprise by potential adversary necessitates a higher-risk acquisition program (past tense) • Milestones and phases are to be TAILORED to program needs and urgency of need • Model 4 and Enclosure 13 specifically included for Accelerated and URGENT (< 2 years) Acquisitions Think MRAP! 10

JCIDS and the DAS (Deliberate Lane) CDD Validation ICD Strategic Joint Guidance Concepts President SECDEF CJCS MDD Capabilities - Based Assessment Draft CDD Materiel Solution Analysis A Development RFP Release CDD Technology Maturation & Risk Reduction B CPD Engineering & Manufacturing Development FRP C Production & Deployment Operations & Support Sustainment Disposal Joint Community JCIDS DAS • CDD: Capability Development Document • CPD: Capability Production Document • FRP: Full-Rate Production • ICD: Initial Capabilities Document • MDD: Materiel Development Decision • RFP: Request for Proposal 11

Commercial Items (FAR 12) Description § § Statute* establishes a preference for commercial item procurement May include minor modifications that do not change – Nongovernmental function – Essential physical characteristics – Purpose of a process § Non-Developmental Item (NDI) and Commercial Off-the-Shelf (COTS) considered subsets of commercial items § Supplies and services provided by nontraditional contractors may be treated as commercial items to enhance innovation and investment IAW DFARS 212. 102 *10 U. S. C. § 2375 Benefits § § § Availability of commercial market pricing data reduces procurement lead time and administrative cost Streamlined procedures and terms and conditions reduces administrative burden and procurement lead time Leveraging commercial technology supports rapid delivery of capability Limitations § § § Inability to tailor to unique requirements (e. g. product customization) reduces flexibility for complex acquisitions Limited to FFP (supplies) and T&M (services) contract types Standard commercial data rights and licensing apply 12

Indefinite Delivery Indefinite Quantity (IDIQ) Contracts (FAR 16. 5) Description § § Issue Task Order (services) or Delivery Order (supplies) against an existing agencywide IDIQ “umbrella” contract Includes Government-wide Acquisition Contracts (GWAC) (for IT) or Multiple Agency Contracts (MAC) (for supplies & services, to include IT) Single Award IDIQ: Single contract awarded to single contractor who is awarded task/delivery orders Multiple Award IDIQ: Single contract awarded to multiple contractors; subsequent task/delivery orders are competed among IDIQ contract awardees Benefits § § Pre-negotiated prices/rates and streamlined ordering procedures reduces lead time to award individual task/delivery orders Multiple award vehicles provide built-in competition and competitive pricing Limitations § Scope/ceiling limitations may not offer suitable flexibility for rapid acquisitions when leveraging existing IDIQ 13

Small Business Innovation Research (SBIRS) (15 U. S. C. § 637 c) Description § § R&D program to stimulate small business innovation with potential for commercialization 3 phase gated process executed via BAA contracts, grants, or agreements Phase I/II awards funded by SBIR program Phase III awards must expand Phase I/II work Phase I: Explore technical merit and feasibility. Awards no more than 6 months in duration, typically less than $150, 000 Phase II: Continue R&D efforts initiated in Phase I. Awards no more than 24 months in duration, typically less than $1 million Phase III: Awards may be for products (including T&E), production contracts, and/or R&D activities. No limit on award duration, type, or dollar value Benefits § § Phase III awards can be sole sourced to Phase I/II vendors; reduces time to award Phase III awards enable rapid development and delivery of capability to fulfil mission needs Limitations § § Phase III awards may not be appropriate if sources available in open market for similar product SBIR data rights protection may limit Government IP strategy 14

Defense Commercial Solutions Opening (CSO) Pilot (Section 879 of FY 17 NDAA) Description § § Program designed to competitively obtain solutions or new capabilities to fulfill requirements, close capability gaps, or provide potential technological advances Similar to BAAs, but can be used to acquire innovative commercial items, technologies, or services that directly meet program requirements; whereas BAAs restricted to basic and applied research § Innovation defined as any technology, process, or method, including R&D new as of date of proposal submission; or any application of a technology, process, or method that is new as of proposal submission § Awards greater than $100 million require approval from USD A&S or Service SAE Benefits § § May be used to acquire R&D solutions from component development through operational systems development Enables rapid selection of innovative commercial solutions Limitations § § Limited to fixed-price or fixed-price incentive contract arrangements Authority expires 9/30/2022 15

Recently Released Guidance on Middle Tier USD A&S Memo 16 April 2018 3 Pages CAPE Memo 30 August 2018 4 Pages USD A&S Memo 9 Oct 2018 2 Pages ASA(ALT) Memo 15 Dec 2017 20 Pages ASA(ALT) Memo 25 Sep 2018 14 Pages ASN RDA Memo 24 April 2018 20 Pages ASN RDA Memo 11 June 2018 4 Pages ASN RDA Memo 10 Jan 2019 3 Pages ASAF-ALT Memo 10 April 2018 2 Pages ASAF-ALT Memo 13 June 2018 14 Pages ASAF-ALT Memo 10 August 2018 2 Pages 16

A&S Interim Governance (9 Oct 2018) • CAEs will formally identify MTA programs – – Within 30 days for existing MTA programs 30 days before obligation of funds for new efforts Quarterly updates Authoritative spreadsheet in DAVE • Governance – Monthly with representation from VCJCS, USD(R&E), USD(A&S) and CAPE – Quarterly meetings with CAE, Director J 8, USD(R&E), USD(A&S) and D, CAPE – MTA programs do not require OSD approval; however, OSD may determine programs are not appropriate for MTA – 5 year clock starts with obligation of funds 17

Schedule and RDT&E Funding ($4861) 2, 500 Schedule Risk and Funding Watch Area Schedule Not Compliant with 5 year limit 2, 000 RDT&E Funding ($M) 1 / 2 2 / 2 0 1 9 1, 500 1, 000 ACAT I Threshold $526 (CY 20$M) 500 - 1 2 3 Schedule Risk 4 5 Duration (Years to Complete Program) 6 7 Rapid Prototyping Higher dollars can drive schedule risk. Programs with budgets greater than ACAT I thresholds and 4+ year schedules merit attention. 18

Rapid Contracting Strategies • • Investigate all contracting options available - some offer more speed and flexibility Leverage existing contracts before developing new ones Engage contracting officers early as partners Treat relationship with contractor as a partnership 19

Reviewed Army Middle Tier Programs Program Initial Plan Extended Range Cannon Artillery (ERCA) Rapid Prototyping Integrated Visual Augmentation System (IVAS) Rapid Prototyping Lower Tier Air and Missile Defense Sensor (LTAMDS) Mobile Protected Firepower (MPF) Next Generation Squad Weapon (NGSW) Optionally Manned Fighting Vehicle (OMFV) Rapid Prototyping/Rapid Fielding Rapid Prototyping/Transition to Traditional Rapid Prototyping/Rapid Fielding/Rapid Prototyping (Inc II) Rapid Prototyping/Transition to MDAP (May investigate Rapid Fielding) Rapid Opioid Countermeasure System (ROCS) Rapid Prototyping Standoff Activated Volcano Obstacle (SAVO) Rapid Prototyping/Rapid Fielding 20

Tailored Documentation Example Simplified Acquisition Management Plan • Acquisition approach • Business and contracting • Intellectual property • Program management • Sustainment approach • System engineering • Risk management • Test and evaluation approach Color Code Planned Tailored Out, Not Required or Substituted Planned and Completed Statutory Requirements 1. Core Logistics Determination/Sustaining Workload estimate 2. Low Rate Initial Production Quantity - Acquisition Procurement Objective 3. Operational Test Plan 4. Programmatic Environmental, Safety and Occupational Evaluation/National Environmental Policy Act 5. Acquisition Approach - Simplified Acquisition Management Plan (SAMP) 6. Business Strategy - SAMP 7. Contracting Strategy - SAMP 8. Contract-type Determinations SAMP 9. Cooperative Opportunities - SAMP 10. Intellectual Property (IP) Strategy SAMP 11. Market Research 12. Modular Open Systems Approach SAMP 13. Risk Management - SAMP Regulatory Requirements 1. Clinger-Cohen Act Compliance 2. Defense Intelligence Threat Library (Threat Module) 3. Item Unique Identification Implementation Plan 4. Program Protection Plan 5. Validated Online Lifecycle Threat Report DOD-5000 1. Acquisition Strategy 2. Acquisition Decision Memorandum (ADM) 3. Acquisition Program Baseline (APB) 4. Affordability Analysis 5. Exit Criteria 6. Life Cycle Sustainment Plan (LSCP) 7. Operational Test Agency Report of Operational Test and Evaluation Results 8. Request for Proposal 9. Should Cost Target 10. Systems Engineering Plan 11. Test and Evaluation Master Plan JCIDS 1. Capability Development Document 2. Capability Production Document 3. Concept of Operations/Operational Mode Summary/Mission Profile (CONOPS/OMS/MP) 21

Reviewed Navy Middle Tier Programs Program STANDARD Missile-2 Block IIIC Comments SM-6 Active Seeker on SM-2 STANDARD Missile-6 Block IB Phase IA Leveraging labs STANDARD Missile-6 Block IB Phase IB 22

Reviewed Air Force Middle Tier Programs Program AOC Pathfinder Comments Air-Launched Rapid Response Weapon (ARRW) AWACS Comm and Nav Upgrade B-52 CERP F-22 Capability Pipeline Hypersonic Conventional Strike Weapon (HCSW) ISPAN Inc 5 Rapid Fielding Next Gen Overhead Persistent Infrared Nuclear Planning and Execution System Recap Open Skies Recapitalization Program (OSAR) Rapid Fielding Protected Tactical Enterprise Service (PTES) Unified Platform (UP) 23

Reviewed Middle Tier Programs DISA Program Comments National Background Investigation Services (NBIS) SOCOM Program Comments Counter Small Unmanned Aerial Systems Skyview (C-s. UAS Skyview) Counter Small Unmanned Aerial Systems Family of Systems (C-s. UAS FOS) Maritime Environmental Protection Rapid Fielding 24

Golden Kite Exercise 1. What acquisition pathway do you recommend and why? 2. What contracting strategy do you recommend and why? 3. What critical decision points do you recommend? 4. What major assumptions did you make? 5. What are your next steps?

Other Transactions for Prototypes (10 U. S. C. § 2371 b) Description § § § Transactions other than contract, grant, or CRADA to which most laws and regulations governing federal contracts do not apply Authorizes prototype projects relevant to enhancing mission effectiveness of military personnel and supporting platforms, systems, components, or materials Agreements may be fixed-price, expenditure based, or hybrid § Requirements for use: § At least one non-traditional contractor participates to significant extent or § All significant participants are small or nontraditional contractors or § 1/3 cost from by sources other than gov (if no non-traditional participation) or § Agency SPE justifies use of OT § Benefits § § R&D to advance new technologies; evaluate feasibility/utility of technology Flexibility to negotiate terms & conditions more suitable to commercial entities Reduce barriers to entry for non-traditional defense contractors increasing government access to commercial innovation Established streamlined path to production vehicle Intent for follow-on production award must be clearly identified Limitations § § Sole source follow-on production OT or contract can only be awarded if: § Awarded to prototype OT participant(s) § Competitive procedures used for selection of prototype OT participant(s) § Prototype OT successfully completed Awards >$100 M require SPE approval; awards >$500 M require USD A&S or R&E approval 26

Other Transaction Pathways PROS Internal OTs § § Agency has complete control of OT agreement No consortium fee Expands in-house acquisition capability to more quickly prototype and field new technology No “getting in line” to use consortium CONS § § § External OTs (Consortia) § § § Access to pool of vendors aligned § to consortium focus area (i. e. , C 4 I, space, cyber) Consortium handles administrative aspects (i. e. , § contracting) Consortia have established processes for quick OT awards Resource intensive to “figure it out” the first time Agency must do leg work to reach right vendors (FBO doesn’t reach non-traditionals) Agency must develop internal processes to execute OTs Unchartered territory for many PMs/Contracting Officers Requires skilled staff to execute Some consortia in high demand resource constrained; not always available to take on new work Consortia OT vehicles may have ceilings that challenge larger projects 27

Procurements for Experiments (10 U. S. C. § 2373) § § § Description Competitive or non-competitive § Can be combined with other authorities contract or agreement for experimental or test purposes Purchase ordnance, signal, chemical activity, transportation, energy, medical, space-flight, and aeronautical supplies, necessary to develop best supplies for national defense FAR/DFARS N/A such as OTs or incentive prize competitions to enable rapid transition of emerging technologies into fielded systems for testing and evaluation § SECDEF delegation required to use; currently delegated to DARPA and selectively within Air Force Benefits § § Broad interpretation of “best supplies for national defense” and “quantities necessary” increases flexibility to acquire critical supplies within scope of test and evaluation purposes Can be executed quickly and noncompetitively; sole source J&A N/A (D&F only) Limitations § § Purchases limited to quantities necessary for experimentation, technical evaluation, assessment of operational utility, or safety or to provide a residual operational capability Funding types for use unclear; RDT&E and O&M used in past 28

Middle Tier of Acquisition Overview • Highlights of Section 804 of the FY 2016 NDAA on the Middle Tier of Acquisition • How the Middle Tier of Acquisition fits within the acquisition framework • Challenges with implementing the Middle Tier of Acquisition in today’s acquisition environment 29

3 0 …Why is “Rapid” So Important Today? • Technology advancing at exponential rates • Many Adversaries operate as Networks not within rigid Hierarchical Structures • Peer, Near Peer & Asymmetric Threats able to rapidly adapt technology and turn inside our “Acquisition OODA Loop” • What can we do operating within our Hierarchical Structures to achieve needed innovation and speed? We must adapt the way that we acquire systems and components 30

What Do We Mean by Rapid? Rapid Acquisition A streamlined and highly integrated, iterative approach to rapidly produce and deliver required capabilities Rapid Prototyping A set of design and development activities intended to reduce technical uncertainty, generate information, or experiment/fail early to mature the technology faster, and improve the quality of subsequent decision-making Rapid Fielding Getting to the Warfighter the best equipment, sensors, protective body armor, technology, and whatever else they need to respond to a changing threat and go into a fight with serious overmatch Rapid Acquisition or Acquisition More Rapidly? 31

Terminology • Section 804 = Middle Tier of Acquisition = MTA • Middle Tier of Acquisition ≠ OTA 32

Initial Middle Tier Analysis Schedule Risk and Funding Watch Area 2, 000 RDT&E Funding ($M) 1, 800 Schedule Not Compliant with 5 year limit 1, 600 1, 400 1, 200 1, 000 800 600 ACAT I Threshold $526 (CY 20$M) 400 Schedule Risk 200 - 1 2 3 4 5 Duration (Years to Complete Program) 6 7 8 Rapid Prototyping 33

Some Final Thoughts…. on Rapid • Standard Acquisition and Requirements processes are not applicable, …. so critical and innovative thinking IS REQUIRED – Empowered to tailor program artifacts and even requirements…. Tailor IN what is needed vice Tailoring OUT – Measurements and metrics are essential – Production and sustainment strategy MUST be considered from the beginning – Applying robust risk and opportunity management are key to your success • Remember…. – RAPID ≠ RECKLESS – MTA ≠ OTA Panel Discussion on Middle Tier of Acquisition https: //media. dau. mil/media/1_me 3 rb 1 m 2 Interactive Adaptive Acquisition Framework Tool https: //www. dau. mil/tools/t/Interactive-Adaptive-Acquisition-Framework-Tool 34