Overview of 804: Accelerating Acquisition Process

1. 804s What we know… so far Dan Procopio Bill Bowley 28 Mar 2019

2. Agenda • What is 804 • Authorization Process • Documentation Requirements • Types of 804s • How we fund 804s • Technical Requirements • Phases of 804s • Examples • MTA Cost Requirements • What does this mean for you

3. What is 804 2016 NDAA - SEC. 804. Middle Tier of Acquisition (MTA) for Rapid Prototyping and Rapid Fielding “The guidance required by subsection (a) shall provide for a streamlined and coordinated requirements, budget, and acquisition process that results in the development of an approved requirement for each program in a period of not more than six months from the time that the process is initiated. Programs that are subject to the guidance shall not be subject to the Joint Capabilities Integration and Development System Manual and Department of Defense Directive 5000.01, except to the extent specifically provided in the guidance.” Middle Tier Acquisition Interim Authority and Guidance USD (A&S) Memo (16 Apr 18) “This memo provides to DOD Components the authority to implement Section 804 on an interim basis until September 2019. … DOD Components are encouraged to immediately further implement the Section 804 authority by developing rapid prototype and fielding processes and procedures.”

4. Seven Steps to Incorporating Rapid Prototyping into Acquisition SAF/AQ Memo (10 Apr 18) Authorization Process What 804 allows us to do • Shave years off programs • Streamline metrics, decisions and reporting • Take risks and explore options What 804 does NOT do • Sacrifice safety or quality. Speed = greater rigor! • Skip essential reviews – we are accountable • Keep info from us – generate tri-yearly reports 804 is preferred USAF starting point AFI 65-508 Compliant Life Cycle Cost Estimate is required to determine ACAT Equivalency and subsequently MDA

5. Minimum Tailored Documentation to Consider (while complying w/statutory requirements & FAR/DFAR/AFFARS): Tailored Acquisition Baseline & Tailored IMS Tailored Acquisition Strategy Document (ASD) Tailored Concept Analyses Cyber (CCA, RMF, Cybersecurity Strategy) Environment (PESHE, NEPA/EO 12114 Compliance Schedule) Frequency Allocation Application (DD 1494) Program Protection (CPI, SCRM, Anti-Tamper) Intel/Threat (LCMDP) ASD will describe: Acquisition & Funding Requirements, including how applicable competition requirements will be met Prototype demo & evaluation in ops environment within 5 years “Upgradeable & Sustainable” Design Considerations Risk Management Transition planning for prototypes to new or existing acquisition programs Life Cycle Costs, Sustainment, Logistics Support, & System Interoperability (if fielding, may be addressed in tailored LCSP) Test Planning (may be addressed in tailored TEMP) Intellectual Property Strategy Software Development Strategy (where applicable) Documentation Requirements AF Guidance Memorandum for Rapid Acquisition ActivitiesSAF/AQ Memo (13 Jun 18) “Throw away pens and carry pencils.” PM Propose at program initiation (get approved by MDA/document in ASD): • Required Program Documentation • Decision Points • Metrics • Guardrails (thresholds that trigger a notice to and/or review by the MDA) • Timing & Scope of Decision Reviews • Cost, Schedule, Risk, & Performance Objectives Validated Requirements • Previously approved doc or subsequently coordinated doc • System Specification sheet attached when available Tailor, tailor, tailor! Apply Critical Thinking and rigor! Transparent & Accountable!

6. Types of 804s AF Guidance Memorandum for Rapid Acquisition ActivitiesSAF/AQ Memo (13 Jun 18)

7. How We Fund 804s • NDAA 2016 established a Middle Tier Acquisition Fund to add flexibility to the process • To date there is no actual funding in this account • Programs can use available funding and the PPBE process for requesting changes • Existing Program Elements (PE) with existing R-docs are leveraged so the effort must fall within the Purpose, Time and Amount of the already established accounts

8. SAF/AQ Section 804 Requirements Process(Approved by Gen Goldfein23 Aug 2018) Technical Requirements Rapid Prototyping w/Existing Requirements (ICD/dCDD/CDD) Fielded to the Warfighter RapidFielding w/Existing Requirements (CPD) Rapid Prototyping Document Rapid Fielding Document SAF/AQ Rapid Prototyping SAF/AQ Rapid Prototyping SAF/AQ Rapid Fielding SAF/AQ Rapid Prototyping Validated Requirements Document Validated Requirements Document 804 RequestMemo 10 Day GO Staffing 10 Day GO Staffing 804 RequestMemo Rapid Prototyping Requirements Document (RPRD) 9 Days CSAF/VCSAF Signature/ Validation 9 Days CSAF/VCSAF Signature/ Validation 14 Days Comment Adjudication 14 Days Comment Adjudication RapidFielding Requirements Document (RFRD) Fielded to the Warfighter An approved requirements document is needed before proceeding with 804

9. Phases of 804s(SAF/AF Memo 13 Jun 2018) • Alpha: Prototyping • Prudent risk-taking encouraged (unless mission criticality or ops urgency mandate lower risk approach) • Risk/reward balance addressed/documented in Acquisition Strategy Document (ASD) • Additional Design goals--those that “enable easier capability improvement and sustainment” • Schedule/budget should be considered relatively fixed--performance tradeoffs to maintain sched/budget • Successive rapid prototypes acceptable—strive to overachieve early on & fallback as reality intervenes • Beta: Fielding & Initial Production • Beta Decision of paramount importance • Becomes “Program of Record” on entering Beta Phase • C/S/P-driving risks aggressively tackled in prototyping (Alpha phase); capability verified in ops relevant environment before rapid fielding decision • Gamma: Modernization & Follow-on Production • Gamma Decision based on balancing needed quantities, purchasing efficiencies, & upgrade options • Smart modernization preferred over sustaining older less-effective systems • Delta: Operations & Sustainment • End of production, but not improvement—improved vice replaced or refreshed components, esp software

10. Phases of 804s (Cont.)ACAT Program vs Middle Tier Acquisition During Guardrail breach MDA may redirect effort Middle Tier Acquisition 5 years 5 years Γ CA B FOC ROC IOC A Rapid Fielding Rapid Prototype ICD or RPRD CPD or RFRD Residual Operational Capability (ROC) MDA may redirect effort ACAT Program MDD A CDD RFP B C FRPDR IOC FOC P&D Phase EMD Phase MSA Phase TMRR Phase Draft CDD CDD CPD ICD AoA Prototypes Design Develop Produce

11. Example – AWACS Mode 5 • AWACS Mode 5 • Mode 5 is a IFF mode that is used to provide more trusted and accurate aircraft identification and is mandated for all military aircraft by 2020 • AWACS had this upgrade as part of the DRAGON program originally but the modifications for DRAGON is scheduled for completion in FY27 • By taking a new approach, which includes buying GOTS solution for Mode 5 and performing installations on the ramp so the aircraft does not have to wait until depot maintenance, AWACS can complete the effort by FY22 which dramatically cuts the amount of time they would be non-compliant with the mandate

12. Example – B-52 CERP • B-52 Commercial Engine Replacement Program 804 effort includes Virtual Prototypes used to down select the design and then a follow on Physical Prototype that will be used for testing • This will help cut significant time in the source selection process while also helping the AF make a better selection as this is a virtual fly off of the design

13. MTA Cost Requirements A POE that is in compliance with AFI 65-508 is Still Required to support the Budgeting Process and Authorization to Proceed for the program

14. What Does this Mean for the AFLCMC Cost Community? Given SAF/AQ’s emphasis on implementing the rapid acquisition strategies whenever possible, we should expect: • An increase in the number of rapid prototype projects, thus an increase in demand for our high quality cost estimating products and services • A faster turn-around time to get these products to our customers on time • Updating existing estimates to account for changes in Phasing/transition timelines, increased risk/uncertainty, increased capabilities and overall strategy • Supporting requirements trades and other programmatic decisions • Ensuring bona fide need and other financial laws are followed