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UNCLASSIFIED. Chemical Biological Defense Acquisition Initiatives Forum (CBDAIF). January 28, 2009. Stephen V. Reeves Major General, USA Joint Program Executive Officer for Chemical and Biological Defense 703.681.9600.

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Chemical biological defense acquisition initiatives forum cbdaif l.jpg

UNCLASSIFIED

Chemical BiologicalDefense Acquisition Initiatives Forum (CBDAIF)

January 28, 2009

Stephen V. Reeves

Major General, USA

Joint Program Executive Officer forChemical and Biological Defense

703.681.9600

DISTRIBUTION STATEMENT F: Further dissemination only as directed by the JPEO or higher DoD Authority.

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Agenda

  • Updates

    • People

    • New DoD 5000

    • Bio Surety Regulations

  • Defense Budget Outlook

  • Contracting Opportunities

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New DoD 5000.02

Operation of the Defense Acquisition System

December 8, 2008

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Comparison of 2003 vs. 2008

User Needs & Technology

Opportunities

Defense Acquisition Management Framework - 2003

Program Initiation

A

B

C

FOC

IOC

ConceptRefinement

TechnologyDevelopment

System Development & Demonstration

Production & Deployment

Operations & Support

ConceptDecision

Design ReadinessReview

FRP DecisionReview

Defense Acquisition Management Framework - 2008

User Needs

Technology Opportunities & Resources

Program Initiation

A

B

C

FOC

IOC

Materiel Solution Analysis

TechnologyDevelopment

Engineering & Manufacturing Development

Production & Deployment

Operations & Support

MaterialDevelopment Decision

Post-PDRAssessment

Post-CDRAssessment

FRP DecisionReview

Focus of Major Changes

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The Defense Acquisition Management System 2008

FCB

Technology Opportunities & Resources

“Following the Materiel Development Decision (MDD), the MDA may authorize entry into the acquisition management system at any point consistent withphase-specific entrance criteria and statutory requirements.”

A

B

C

User Needs

ICD

MDD

Capabilities Based Assessment

MaterialSolution

Analysis

Engineering & ManufacturingDevelopment

Strategic Guidance

JointConcepts

Technology Development

Production &Deployment

O&S

CPD

CDD

CDD

CDD

CDD

CDD

OSD/JCS

COCOM

JCIDS

Acquisition Process

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Key Changes

  • More Milestone Decision Authority Involvement in S&T

  • Adds Material Development Decision (MDD)

    • Mandatory for Any Acquisition Phase

    • Requires Test and Evaluation Strategy and Systems Engineering Plan

  • Mandatory Competing Prototypes Prior to MS B

  • System Level Specifications Based on ICD

  • Technology and Manufacturing Process Demonstrated as a Tech Development Exit Criteria

  • Configuration Control Boards – Required by PMs to Propose Descoping and Cost Control

  • Post Critical Design Review Updates to MDA

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So What?Implications for Industry

  • Early Technology Commitment in the Technology Development Phase

  • Early Industry Resource Commitments to Compete in Technology Development Phase

  • Industry Must Understand Requirements Early to Get In Front of Government Process

  • Dual Prototypes – Competition Early

  • Shifts More Risk to Industry

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Challenges

  • Unity of Command

    • Tech Base vs. PM

  • Funding

    • 6.2/3 Funding Drives Process

  • Requirements Maturity During Technology Demonstration Phase

  • Contracting

    • Limits Ability to Re-Compete in Later Phases

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New Biosurety Regulations for Biological Select Agents and Toxins (BSAT)

  • Army Regulation AR 50-1 (October 2008) Applies to ALL Facilities and Personnel Working with DoD-Derived BSAT

    • Applies to Contractor as Well as Government Facilities

    • Requires Biological Personnel Reliability Programs (BPRP), Including:

      • Medical Examinations and Random Drug Testing

      • Security Investigations to SSBI (Top Secret) Level

      • Continuous Surveillance (Surety)

  • BOTH Centers for Disease Control AND the Army Inspector General will Inspect Each Facility

  • Existing DoD Contracts Will be Modified to Include Compliance With AR 50-1; New Contracts Will be Written to Include Compliance

CDC Maintains an Updated List of BSAT at http://www.selectagents.gov

AR 50-1 is Available at http://www.army.mil/usapa/epubs/pdf/r50_1.pdf

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Defense Priorities of President Obama

  • Readiness

    • Build Up Our Special Operations Forces, Civil Affairs, Information Operations, and Other ‘In Demand’ Units

    • Increase the Size of the Army by 65,000 Soldiers and the Marine Corps by 27,000 Marines

    • End Stop-loss

    • Provide the Equipment Needed by the National Guard and Reserve Component for Domestic and Foreign Emergencies and Allow Time to Refit Before Deploying

    • Make the Head of the National Guard a Member of the Joint Chiefs of Staff

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Defense Priorities ofPresident Obama (Cont’d)

  • Procurement

    • Review Each Major Defense Program Against Current Needs and Future Threats

    • Rebalance Capabilities to Succeed in Both Conventional and Unconventional Operations

    • Air Power: Invest More in Advanced Technology Ranging from the Revolutionary to the Essential

    • Sea Power: Invest in Smaller, More Capable Ships with the Agility to Operate Close to Shore and the Reach to Rapidly Deploy Marines to Global Crises

    • Space Power: Promote Ban on Weapons that Interfere with Satellites and Assess Threats to U.S. Space Systems, Establishing Contingency Plans to Ensure Continuity of Space Assets

    • Missile Defense: Program Should Not Divert Resources from Other National Security Priorities Until We are Positive the Technology Will Protect the American Public

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Defense Priorities ofPresident Obama (Cont’d)

  • Acquisition Reform

    • Launch a Program of Acquisition Reform and Management, Which Ends No-bid Contracting and the Abuse of Supplemental Budgets

    • Rebuild our Contract Officer Corps

    • Order the Justice Department to Prioritize Prosecutions that will Punish and Deter Fraud, Waste and Abuse

    • Require DoD and State Department to Develop a Strategy for Balancing Private Sector/Public Sector Workload

    • Establish the Legal Status of Contractor Personnel, Making Possible Prosecution of Any Abuses Committed by Private Military Contractors

Full listing of priorities can be found at:

http://www.change.gov/agenda/defense_agenda/

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FY09 CBDP Portfolio ($M)

$51

$101

$141

$322

$41

$66

$193

$559

$82

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FY09 CDBP Appropriated Budget ($M)

$351,124

$454,037

$106,930

$644,144

Total Budget: $1,556,235,000

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FY10 CDBP President’s Budget Request ($M)

7.8%

2.2%

$480,881

$427,192

$166,222

$505,706

9.4%

3.6%

Total Budget: $1,580,001

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The Defense Acquisition Management System 2008DoDI 5000. 02

John Gorrell

Deputy Director,

Current Acquisition Directorate

(703) 681-0808

[email protected]


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The Defense Acquisition Management System 2008

DoDI 5000.02

  • New Policy Directed by Congress

  • New or Revised Regulatory Policy

  • Statutory & Regulatory Information & Milestone Requirements

  • The Defense Acquisition Management System - Milestones, Phases and Key Activities


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DoDI 5000.05 Policy

  • 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 10 Updated or Newly Issued DoD Publications

  • Consideration of Over 700 Defense Acquisition Policy Working Group (DAPWG) Comments


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Comparison

DoD Acquisition Processes

2003 vs. 2008

B

A

C

B

C

A

Focus of major changes

Defense Acquisition Management

Framework- 2003

User Needs &

Technology Opportunities

Program

Initiation

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

User Needs

Technology Opportunities & Resources

Acquisition ProgramInitiation

IOC

FOC

MaterielSolutionAnalysis

Technology Development

Engineering and

Manufacturing Development

Production & Deployment

Operations &

Support

Post PDR

Assessment

FRP Decision

Review

Materiel Development Decision

Post-CDR

Assessment

PDR

PDR

6

or


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C

A

CDD

CPD

The Defense Acquisition Management System 2008

Changes to Phases

User Needs

Technology Opportunities & Resources

1

2

3

B

IOC

FOC

Materiel

Solution

Analysis

Technology Development

Engineering and

Manufacturing Development

Production & Deployment

Operations &

Support

Materiel Development

Decision

FRP

Decision

Review

Post PDR

Assessment

Post CDR

Assessment

AoA

PDR

PDR

CDR

ICD

or

Pre-Systems Acquisition

Systems Acquisition

Sustainment

Old (2003)

New (2008)

Change from 2003

Concept Refinement (CR)

Materiel Solution Analysis

1 - More robust AoA

Technology Development (TD)

2- Competitive prototyping

Technology Development (TD)

Systems Development & Demonstration (SDD)

Engineering & Manufacturing Development (EMD)

3 - More robust system engineering SEP required


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C

A

CDD

CPD

The Defense Acquisition Management System 2008

Changes to

Acquisition 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

AoA

PDR

PDR

CDR

or

1

3

Sustainment

Pre-Systems Acquisition

2

Systems Acquisition

Old (2003)

New (2008)

Change from 2003

Concept Decision (CD)

Materiel Development Decision (MDD)

1 -MDD required prior to entering the process at any point

N/A

Post-PDR Assessment

2 -MDA’s assessment of PM’s PDR Report (if PDR after MS B)

Design Readiness Review DRR

Post-CDR Assessment

3 -MDA’s assessment of PM’s CDR Report


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B

CDD

CPD

MDD

O&S

FCB

The Defense

Acquisition Management System

2008

Entry into the Acquisition

Process

Technology Opportunities & Resources

User Needs

A

C

Operations & Support

Production & Deployment

Materiel

Solution

Analysis

Strategic Guidance

Capabilities - Based Assessment

Technology

Development

Engineering & Manuf

Development

ICD

Joint Concepts

Incremental Development

COCOM

OSD/JCS

Acquisition Process

“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.”


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No spirals!

The Defense Acquisition Management System

2008

Evolutionary Acquisition

From two processes…

To one process…

  • Capability 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.


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C

A

CDD

CPD

The Defense

Acquisition Management System

2008

Prototyping

and

Competition

“The TDS and associated funding shall

provide for two or more competing teams

producing prototypes of the system

and/or key system elements prior to, or

through, Milestone B.

Prototype systems or appropriate component-level

prototyping shall be employed to reduce

technical risk, validate designs and cost

estimates, evaluate manufacturing

processes, and refine requirements. . . .”

B

IOC

FOC

Technology Development

Engineering and

Manufacturing Development

Production & Deployment

Operations &

Support

Materiel

Solution

Analysis

ICD

Materiel Development

Decision

FRP

Decision

Review

Post PDR

Assessment

Post CDR

Assessment

AoA

PDR

PDR

CDR

or

Systems Acquisition

Sustainment

Pre-Systems Acquisition


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The Defense Acquisition Management System 2008

C

A

CDD

CPD

Technology Development

Phase

“Entrance into this phase depends on the completion of the AoA, a proposed materiel solution, and full funding for planned Technology Development Phase activity.

At Milestone A, the MDA reviews the proposed materiel solution and the draft Technology Development Strategy (TDS).

The Technology Development Phase begins when the MDA has approved a materiel solution and the TDS.

  • Decision is documented the decision in an ADM.

  • Technology development for an MDAP shall not proceed without Milestone A approval.

    For business area capabilities, commercially available solutions shall be preferred.

    A favorable Milestone A decision DOES NOT mean that a new acquisition program has been initiated.”

B

IOC

FOC

Technology Development

Production & Deployment

Operations &

Support

Materiel

Solution

Analysis

Engineering and

Manufacturing Development

ICD

Materiel Development

Decision

FRP

Decision

Review

Post PDR

Assessment

Post CDR

Assessment

AoA

PDR

PDR

CDR

or

Systems Acquisition

Sustainment

Pre-Systems Acquisition


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Challenges

  • Transitions from Tech Base to Acquisition Program

  • Funding

    • 6.2/6.3 transitions to 6.3/6.4

  • Requirements Maturation

    • From MDD to Material Solution Analysis through Technology Development Phase

  • Contracting

    • Dual Prototyping

    • Limits to Recompete in Later Phases


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So What?Implications to Industry

  • DUAL PROTOTYPE – Technology Development Phase

    • Early Technology Commitment in the Technology Development Phase

    • Early Industry Resource Commitments to Compete in Technology Development Phase

    • Industry Must Understand Requirements Early to Get in Front of the Government Process

    • Shifts more Risk to Industry


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GAO Interpretation of the“Rule of Two”

Ron Blue

Contracting Officer

(703) 681-5191

[email protected]


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“Rule of Two”

  • FAR Rule (Part 19.502-2) Requires a Set Aside if There is an Expectation That at Least 2 Small Businesses Will Present Reasonable Offers

  • GAO Held that ID/IQ Contracts with a Mix of Small and Large Business Were Subject to the Rule (Delex Systems Oct 2008 #B-400403)

  • The Contracting Officer Applies the Rule of Two FIRST in Multiple Award ID/IQ Contracts BEFORE Applying ID/IQ Delivery Order Provisions


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What Can Industry Do?

  • Carefully review the ordering procedures under existing ID/IQ contracts in light of the decision.

  • Look for new business opportunities for smaller firms under the new process.

  • Evaluate your subcontracting and teaming strategies. New partnerships might compete for a wider range of task orders.


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References

FAR Part 16.5 Indefinite Delivery Contracts

FAR Part 19.502.2 Total Small Business Set-Asides http://farsite.hill.af.mil

GAO Decision B-400403 www.gao.gov/decisions/bidpro/400403.htm

Agencies Have Not Yet Issued Regulatory Implementation of the GAO Decision


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New BioSurety RegulationAR 50-1

Larry Wakefield

Special Assistant for Strategic Initiatives

(703) 681-9678

[email protected]


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New BSAT Regulations

  • New Biosurety Regulations for Biological Select Agents and Toxins (BSAT)

  • New Rules Apply to ALL Facilities and Personnel Working With DoD BSAT

  • CDC Maintains an Updated List of BSAT at http://www.selectagents.gov


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New Army Regulation

  • Army Regulation AR 50-1 (October 2008)

  • DoD Using Army to Lead

  • Applies to Contractor as well as Government Facilities – Anyone Using ‘DoD BSAT’

  • Requires Biological Personnel Reliability Programs (BPRP) With:

  • Medical Examinations

  • Drug Testing

  • Security Investigations

  • Continuous Surveillance (Surety)


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Implementing New Rules

  • Both the Centers for Disease Control AND the Army Inspector General Will Inspect Facilities

  • DoD Contracts will be Modified to Include Compliance with AR 50-1

  • AR 50-1 is Available at: http://www.army.mil/usapa/epubs/pdf/r50_1.pdf


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Laboratory BioSecurity – Executive Order

  • Secretary Level Working Group Established January 2009 to Review Laboratory BioSecurity

  • Chaired by Secretary of Defense and Secretary of Health and Human Services

  • Will Review Laws, Regulations, and Practices of Federal and Non-Federal Facilities that Handle BSAT

  • Specifically Includes Review of Personnel Security and Assurance Programs and Recommendations

  • Working Group Recommendations for New Legislation, Regulations, and Oversight Due in 180 Days


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Clearances Progress Report

  • The Reform Team: Department of Defense

    Office of Mgmt. & Budget

    Dir. Natl. Intelligence

    Office of Personnel Mgmt.

  • Will Meet 60 Day Goal for Clearances in 2009

  • Established a Governance Council to Drive Reforms Across Agencies

  • Will Focus on Decreasing Duplication and Increasing Sharing Between Agencies

Full Report is at: www .whitehouse.gov


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Army Officers Speaking to Industry Partners

Officers Attending Command and General Staff College are Available to Speak at Your Facility

Get the Army Story Straight from Future Senior Leaders

To Request a Speaker for Your Group of 25 or More Contact:

Brandon Pollacheck

732 427-0651

[email protected]

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