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DoD/DON Acquisition Instructions and DON Cost Estimating Standard. Naval Center for Cost Analysis 19 February 2010. Outline. Context Managing the Defense Enterprise Whole of Government DoD Instruction 5000.02 Perspective Update Plan DON Instruction 5000.2E Changes Status

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naval center for cost analysis 19 february 2010

DoD/DON Acquisition Instructions

and

DON Cost Estimating Standard

Naval Center for Cost Analysis

19 February 2010

outline
Outline
  • Context
    • Managing the Defense Enterprise
    • Whole of Government
  • DoD Instruction 5000.02
    • Perspective
    • Update Plan
  • DON Instruction 5000.2E
    • Changes
    • Status
  • Cost Estimating Standard
    • Process
    • Timeline
context
Managing the defense enterprise

“Canonical post-cold war”

U.S. DoD decision support systems

JCIDS

Identification and analysis of capability requirements

PPBE

Strategic planning; program and budget development

Acquisition

Development and procurement of weapon systems and AISs

Light

Heavy

Context

Cost-Analysis Support

other approaches
D3

Defense

Diplomacy

Development

Whole of Government

Netherlands

2008 analysis

Other Approaches

Ergst Denkbare Overstroming

history
History
  • First acquisition framework in 1971
slide6

The 5000 Process

1971

Major Programs

$50M RDT&E or

$200M Procurement

FULL-

SCALE

DEVELOPMENT

CONCEPTUAL

EFFORT

PRODUCTION/ DEPLOYMENT

Program

Initiation

Full-Scale

Development

Decision

Production

Go-ahead

Decision

Deputy Secretary of Defense Packard signed the first DoD Directive 5000.1 in 1971. This 8 page document created the Defense Systems Acquisition Review Council (DSARC), and required three major decision points (milestones) with one supporting document. Over the next 37 years this “DoD 5000 process” will be revised 14 times...

The 5000 documents have been issued as a directive, two directives, a directive and an instruction, a directive and a regulation, a directive an instruction and a manual, and a directive an instruction and a regulation, with combined page count of as little as eight (1971) to as many as 840 (1991). Currently a directive and an instruction with 90 pages total.

Phases of the process have ranged from three (1971 to 1977) to four (1977 to 1991 & 1996 to 2000), to five (1991 & 2003 to 2008).

Program initiation has been: SECDEF approval of the MENS (1977 to 1980), POM approval (1982 to 1985), and at a milestone: Milestone 0 (1985 to 1991), Milestone I (1991 to 2000), and Milestone B (2000 to 2008).

The number of milestones and other decision points requiring a DoD level review have been as few as two (1982 - 1985) and as many as seven (2008).

Milestone review requirements have ranged from as fewas one document (1971) to over 50 requirements (2008).

The Secretary of Defense was the Milestone Decision Authority for MDAPs from 1971 to 1991. Currently, it is the USD(AT&L).

The first DoD - level requirements document appeared in 1977, the Mission Element Need Statement (MENS). The second in 1991, the Operational Requirements Document (ORD). The format and content of both were directed by the DoD 5000 until transferred to the Joint Staff in 1996.

And the saga continues...,

But, let us return to the beginning

slide7

FULL-

SCALE

DEVELOPMENT

FULL-SCALE

ENGINEERING

DEVELOPMENT

Full-Scale

Development

Decision

Full-Scale

Engineering

Development

Decision

The 5000 Process

1971

1975

Major Programs

$50M RDT&E or

$200M Procurement

(FY1972 dollars

CONCEPTUAL

EFFORT

VALIDATION

PHASE

PRODUCTION/ DEPLOYMENT

Program

Initiation

Production &

Deployment

Decision

Production

Go-ahead

Decision

  • DSARC Created
  • SECDEF decisions documented in approved Decision Coordinating Paper (DCP)
slide8

0

I

II

III

Phase 0

Phase I

Phase II

Phase III

EXPLORATION

OF ALTERNATIVE

SYSTEM

CONCEPTS

FULL-SCALE

ENGINEERING

DEVELOPMENT

FULL-SCALE

ENGINEERING

DEVELOPMENT

DEMONSTRATION

& VALIDATION

PRODUCTION &

DEPLOYMENT

PRODUCTION/ DEPLOYMENT

MENS Approved

By SECDEF

Program

Initiation

Program

Initiation

Full-Scale

Engineering

Development

Decision

Approval to

Enter

Demonstration

& Validation

Production &

Deployment

Decision

Approval to

Enter

Full-Scale

Engineering

Development

Approval to

Enter

Production

& Deployment

The 5000 Process

1975

1977

Major Programs

(FY1972 dollars)

$75M RDT&E or

$300M Procurement

$75M RDT&E or

$300M Procurement

VALIDATION

PHASE

Milestones are numbered

Mission Element Need Statement (MENS) appears as first DoD-level requirements document

slide9

Major Programs

(FY1972 dollars)

$75M RDT&E or

$300M Procurement

III

Phase III

FULL-SCALE

ENGINEERING

DEVELOPMENT

FULL-SCALE

DEVELOPMENT

PRODUCTION &

DEPLOYMENT

Approval to

Enter

Full-Scale

Engineering

Development

Approval to

Enter

Full-Scale

Development

Approval to

Enter

Production

& Deployment

The 5000 Process

1977

1980

Major Programs

$100M RDT&E or

$500M Procurement

(FY1980 dollars)

0

I

II

Phase 0

Phase I

Phase II

EXPLORATION

OF ALTERNATIVE

SYSTEM

CONCEPTS

CONCEPT

EXPLORATION

DEMONSTRATION

& VALIDATION

MENS Approved

By SECDEF

Program

Initiation

Approval to

Enter

Demonstration

& Validation

  • SECDEF Decision Memorandum (SDDM) implemented to document milestone decisions

Milestones are numbered

Mission Element Need Statement (MENS) appears as first DoD-level requirements document

slide10

0

Phase 0

The 5000 Process

1980

1982

Major Programs

(FY1980 dollars)

$200M RDT&E or

$1B Procurement

$100M RDT&E or

$500M Procurement

I

II

III

Phase I

Phase II

Phase III

DEMONSTRATION

& VALIDATION

PRODUCTION &

DEPLOYMENT

CONCEPT

EXPLORATION

FULL-SCALE

DEVELOPMENT

MENS Approved

By SECDEF

Program

Initiation

Approval to

Enter

Demonstration

& Validation

Approval to

Enter

Full-Scale

Development

Approval to

Enter

Production

& Deployment

Approval of

JMSNS

In PPBS is

Program

Initiation

Concept

Selection

Program

Go-Ahead

Production

Decision

(Delegated

To Components)

  • SECDEF Decision Memorandum (SDDM) implemented to document milestone decisions
  • Milestone 0 deleted
  • May proceed into FSD with delayed MS II – contracts must be written so program can be terminated at least cost to government
slide11

0

Phase 0

The 5000 Process

1982

1985

Major Programs

$200M RDT&E or

$1B Procurement

(FY1980 dollars)

I

II

III

Phase I

Phase II

Phase III

DEMONSTRATION

& VALIDATION

PRODUCTION &

DEPLOYMENT

CONCEPT

EXPLORATION

FULL-SCALE

DEVELOPMENT

Approval of

JMSNS

In PPBS is

Program

Initiation

Concept

Selection

Program

Go-Ahead

Production

Decision

(May Be Delegated

To Components)

Production

Decision

(Delegated

To Components)

  • Milestone 0 deleted
  • May proceed into FSD with delayed MS II – contracts must be written so program can be terminated at least cost to government
  • Milestone 0 returns
slide12

IV

V

PRODUCTION, FIELDING/

DEPLOYMENT, &

OPERATIONAL SUPPORT

FULL-SCALE

DEVELOPMENT

& LRIP

PRODUCTION &

DEPLOYMENT

FULL-SCALE

DEVELOPMENT

Logistics

Readiness

& Support

Review

Major

Upgrade\

Replace

Decision

Approval to

Enter Full-

Scale

Development

& LRIP

Approval

For Full-Rate

Production &

Deployment

Program

Go-Ahead

Production

Decision

(May Be Delegated

To Components)

The 5000 Process

1987

1985

Major Programs

$200M RDT&E or

$1B Procurement

(FY1980 dollars)

0

I

II

III

Phase 0

Phase I

Phase II

Phase III

CONCEPT

EXPLORATION/

DEFINITION

CONCEPT

DEMONSTRATION/

VALIDATION

DEMONSTRATION

& VALIDATION

CONCEPT

EXPLORATION

Approval to

Enter

Concept

Demonstration/

Validation

Approval of

JMSNS

In PPBS is

Program

Initiation

Concept

Selection

  • Joint Requirements Management Board (JRMB) renamed JROC
  • DSARC renamed JRMB; JRMB renamed DAB
  • Competitive Prototyping Strategy required by law and DoDI 5000.2
  • Milestone 0 returns
slide13

IV

IV

V

Phase III

Phase III

Phase IV

PRODUCTION, FIELDING/

DEPLOYMENT, &

OPERATIONAL SUPPORT

CONCEPT

DEMONSTRATION/

VALIDATION

FULL-SCALE

DEVELOPMENT

& LRIP

ENGINEERING &

MANUFACTURING

DEVELOPMENT

DEMONSTRATION

&

VALIDATION

PRODUCTION

&

DEPLOYMENT

OPERATIONS

&

SUPPORT

Determination

of Mission

Need

Logistics

Readiness

& Support

Review

Major

Upgrade\

Replace

Decision

Major

Modification

Approval

Approval to

Enter

Concept

Demonstration/

Validation

Approval to

Enter Full-

Scale

Development

& LRIP

Concept

Demonstration

Approval

Development

Approval

The 5000 Process

1987

1991

Major Programs

(FY1980 dollars)

$300M RDT&E or

$1.8B Procurement

$200M RDT&E or

$1B Procurement

0

I

II

III

Phase 0

Phase I

Phase II

CONCEPT

EXPLORATION/

DEFINITION

Approval

For Full-Rate

Production &

Deployment

Approval of

JMSNS

In PPBS is

Program

Initiation

Approval to

Conduct

Concept

Studies

Production

Approval

  • Joint Requirements Management Board (JRMB) renamed JROC
  • DSARC renamed JRMB; JRMB renamed DAB
  • Competitive Prototyping Strategy required by law and DoDI 5000.2
  • Acquisition Decision Memorandum (ADM) signed by USD(Acq) replaces SDDM
  • Provision for delayed MS II eliminated
  • ACAT structure created
  • JROC approved MNS replaces SECDEF approved JMSNS at MS 0
  • Operational Requirements Document (ORD) appears in DoDI 5000.2, required at MS II and III
slide14

I

IV

I

Phase III

Phase III

Phase IV

ENGINEERING &

MANUFACTURING

DEVELOPMENT

PROGRAM

DEFINITION & RISK

REDUCTION

DEMONSTRATION

&

VALIDATION

ENGINEERING &

MANUFACTURING

DEVELOPMENT

PRODUCTION, FIELDING/

DEPLOYMENT, &

OPERATIONAL SUPPORT

PRODUCTION

&

DEPLOYMENT

OPERATIONS

&

SUPPORT

Demilitarization

&

Disposal

Determination

of Mission

Need

Major

Modification

Approval

Approval to

Begin a New

Acquisition

Program

Approval to Enter

Engineering &

Manufacturing

Development

Concept

Demonstration

Approval

Development

Approval

The 5000 Process

1991

1996

Major Programs

$300M RDT&E or

$1.8B Procurement

(FY1990 dollars)

0

II

III

Phase 0

Phase I

Phase II

CONCEPT

EXPLORATION/

DEFINITION

CONCEPT

EXPLORATION

Production or

Fielding/

Deployment

Approval

Approval to

Conduct

Concept

Studies

Production

Approval

  • Acquisition Decision Memorandum (ADM) signed by USD(Acq) replaces SDDM
  • Provision for delayed MS II eliminated
  • ACAT structure created
  • JROC approved MNS replaces SECDEF approved JMSNS at MS 0
  • Operational Requirements Document (ORD) appears in DoDI 5000.2, required at MS II and III
  • Program Initiation moved to Milestone I
  • AIS acquisition programs folded into the DoD 5000 process
  • Competitive Prototyping requirement eliminated
slide15

A

B

C

0

I

II

III

Phase 0

Phase I

Phase II

Phase III

SYSTEM DEVELOPMENT

& DEMONSTRATION

PRODUCTION &

DEPLOYMENT

OPERATIONS &

SUPPORT

CONCEPT & TECHNOLOGY

DEVELOPMENT

PROGRAM

DEFINITION & RISK

REDUCTION

ENGINEERING &

MANUFACTURING

DEVELOPMENT

PRODUCTION, FIELDING/

DEPLOYMENT, &

OPERATIONAL SUPPORT

Demilitarization

&

Disposal

Determination

of Mission

Need

CONCEPT

EXPLORATION

Interim

Progress

Review

FRP

Decision

Review

Decision

Review

Approval to

Enter Concept &

Technology

Development

Approval to

Enter Systems

Development &

Demonstration

Approval to

Enter LRIP/

Production &

Deployment

Approval to

Conduct

Concept

Studies

Approval to

Begin a New

Acquisition

Program

Approval to Enter

Engineering &

Manufacturing

Development

Production or

Fielding/

Deployment

Approval

The 5000 Process

1996

2000

Major Programs

$300M RDT&E or

$1.8B Procurement

(FY1990 dollars)

Major Programs

$365M RDT&E or

$2.19B Procurement

(FY2000 dollars)

Technology Opportunities &

User Needs

  • Program Initiation moved to Milestone I
  • AIS acquisition programs folded into the DoD 5000 process
  • Competitive Prototyping eliminated
  • Program Initiation at MS B
  • Commitment to Production at MS C (LRIP)
  • Evolutionary Acquisition (EA) becomes preferred approach
slide16

The 5000 Process

2002

2000

Major Programs

$365M RDT&E or

$2.19B Procurement

(FY2000 dollars)

Technology Opportunities &

User Needs

User Needs &

Technology Opportunities

A

B

C

SYSTEM DEVELOPMENT

& DEMONSTRATION

PRODUCTION &

DEPLOYMENT

OPERATIONS &

SUPPORT

CONCEPT & TECHNOLOGY

DEVELOPMENT

Critical

Design

Review

Interim

Progress

Review

FRP

Decision

Review

Decision

Review

Approval to

Enter Concept &

Technology

Development

Approval to

Enter Systems

Development &

Demonstration

Approval to

Enter LRIP/

Production &

Deployment

  • DEPSECDEF cancels all three DoD 5000 documents
  • Interim Guidance documents issued: “Defense Acquisition” for basic policy, and “Operation of the Defense Acquisition System” for implementation procedures
  • DoD 5000.2-R becomes “Interim Defense Acquisition Guidebook”
  • Program Initiation at MS B
  • Commitment to Production at MS C (LRIP)
  • Evolutionary Acquisition (EA) becomes preferred approach
slide17

CONCEPT

REFINEMENT

CONCEPT & TECHNOLOGY

DEVELOPMENT

TECHNOLOGY

DEVELOPMENT

Concept

Decision

Decision

Review

Approval to

Enter

Technology

Development

The 5000 Process

2002

2003

Major Programs

$365M RDT&E or

$2.19B Procurement

(FY2000 dollars)

User Needs &

Technology Opportunities

A

B

C

SYSTEM DEVELOPMENT

& DEMONSTRATION

PRODUCTION &

DEPLOYMENT

OPERATIONS &

SUPPORT

Critical

Design

Review

Design

Readiness

Review

FRP

Decision

Review

Approval to

Enter Concept &

Technology

Development

Approval to

Enter Systems

Development &

Demonstration

Approval to

Enter LRIP/

Production &

Deployment

Approval to

Enter

Concept

Refinement

  • DEPSECDEF cancels all three DoD 5000 documents
  • Interim Guidance documents issued: “Defense Acquisition” for basic policy, and “Operation of the Defense Acquisition System” for implementation procedures
  • DoD 5000.2-R becomes “Interim Defense Acquisition Guidebook”
  • Defense Acquisition Guidebook (DAG) comes on-line
  • Joint Capabilities Integration and Development System (JCIDS) is born. MNS and ORD replaced.
  • Initial Capabilities Document required prior to Concept Decision
  • Capability Development Document required at MS B; Capability Production Document at MS C
slide18

User Needs

Technology Opportunities & Resources

The 5000 Process

2008

2003

Major Programs

$365M RDT&E or

$2.19B Procurement

(FY2000 dollars)

User Needs &

Technology Opportunities

A

B

C

MATERIEL

SOLUTION

ANAYLSIS

ENGINEERING & MANUFACTURING DEVELOPMENT

SYSTEM DEVELOPMENT

& DEMONSTRATION

PRODUCTION &

DEPLOYMENT

OPERATIONS &

SUPPORT

CONCEPT

REFINEMENT

TECHNOLOGY

DEVELOPMENT

Design

Readiness

Review

FRP

Decision

Review

Materiel

Development

Decision

Concept

Decision

Post-

CDR A

Post-

PDR A

Approval to

Enter

Acquisition

Process

Approval to

Enter

Concept

Refinement

Approval to

Enter

Technology

Development

Approval to

Enter

Systems

Development

& Demonstration

Approval to

Enter LRIP/

Production &

Deployment

Engineering &

Manufacturing

Development

  • Materiel Development Decision precedes entry into any phase of the acquisition process
  • Competitive Prototyping returns; required during Technology Development Phase
  • Preliminary Design Review (PDR) after MS B requires a Post-PDR Assessment by the MDA
  • Defense Acquisition Guidebook (DAG) comes on-line
  • Joint Capabilities Integration and Development System (JCIDS) is born. MNS and ORD replaced.
  • Initial Capabilities Document required prior to Concept Decision
  • Capability Development Document required at MS B; Capability Production Document at MS C
slide19

The 5000 Process

2008

Major Programs

$365M RDT&E or

$2.19B Procurement

(FY2000 dollars)

User Needs

Technology Opportunities & Resources

A

B

C

MATERIEL

SOLUTION

ANAYLSIS

ENGINEERING & MANUFACTURING DEVELOPMENT

TECHNOLOGY

DEVELOPMENT

PRODUCTION &

DEPLOYMENT

OPERATIONS &

SUPPORT

FRP

Decision

Review

Materiel

Development

Decision

Post-

CDR A

Post-

PDR A

Approval to

Enter

Technology

Development

Approval to

Enter

Engineering &

Manufacturing

Development

Approval to Enter

LRIP/Production &

Deployment

Approval to

Enter

Acquisition

Process

  • Materiel Development Decision precedes entry into any phase of the acquisition process
  • Competitive Prototyping returns; required during Technology Development Phase
  • Preliminary Design Review (PDR) after MS B requires a Post-PDR Assessment by the MDA
history20
History
  • Acquisition framework in 2008
planned update
Schedule

“Another year” before start

AT&L staff needs to work many issues

Anticipated changes

Policy on Business Capability Lifecycle (BCL) processes

Policy, processes, roles, and responsibilities for DCAPE and Deputy Assistant Secretaries for Cost and Economics in the military departments

Other WSARA implications. E.g., creation of

Director of Developmental Test and Evaluation

Director of Systems Engineering

Office of Performance Assessment and Root -Case Analysis

NDAA 2011 provisions

Planned Update

BCL Process

wsara impact23
WSARA Impact
  • Attempts to drive risk out of MS B decisions
    • Difficulty: lack of experience and data
planned update24
Policy changes from GAO audit on shipbuilding (May 2009)

In commercial shipbuilding,

Agreement before contract signing on:

Ship concept

Cost

Delivery schedule

Performance attributes

Use of FFP contracts

Planned Update

Commercial Construct

planned update25
Recommendations

Balance requirements, cost, technology by preliminary design review

Retire technical risk and close gaps in requirements before contract award for ship design

Use prototypes

Demonstrate success

Stabilize ship design before start of construction

Identify steps for using fixed-price contracts for lead-ship design and construction

AT&L only partially concurs

Planned Update

DON Construct

don 5000 2e status
DON 5000.2E Status
  • Schedule
    • “Remains on-track for 15 FEB 2010 submit to ASN RD&A/VCNO/ACMC for signature”
don 5000 2e changes
DON 5000.2E Changes
  • Decrease Volume / Page Count of SECNAVINST 5000.2E
  • ASN RDA Active Policy (Memo) Scrub (ASN RDA)
  • C4I For New Construction and Conversion Ships (OPNAVINST 2300.xx) (ASN RDA / N6)
  • Service Cost Position Requirement (OSD AT&L / ASN FMC)
  • Independent Cost Assessments for MDAPs (ASN FMC)
  • Gate Review Process Changes (ASN RDA / DON CIO / N8)
  • CCA Confirmation Reporting Requirements for ACAT III & Below (DON CIO)
  • Work Breakdown Structure Standardization (OSD AT&L)
  • Navy Training Systems Requirements Update (OPNAVINST 1500.76B) (N151)
  • Key System Attributes in the Acquisition Program Baseline (J8 / OSD AT&L)
  • Life Cycle Signature Support Plan – Instructions and Template (OSD AT&L / N4)
  • Probability of Program Success (PoPS) Criteria (ASN RDA)
  • 09 NDAA SEC 815 – Unique Tooling Storage (OSD AT&L) (placeholder)
  • Business Capability Life Cycle Process (OSD AT&L / BTA) (placeholder)
don 5000 2e changes28
DON 5000.2E Changes
  • Manufacturing Readiness Assessments / Levels (DASN ALM & N4) (placeholder)
  • Integration Readiness Levels (DASN ALM & RDA CHSENG) (placeholder)
  • Contracting for Open Architecture (DASN ALM & RDA CHSENG)
  • Independent Logistics Assessment (DASN ALM)
  • Earned Value Management Updates (ASN RDA / CEVM / NCCA)
  • Urgent Requirements / Rapid Acquisition Updates (ASN RDA / N8)
  • Updated OPNAVINST 1500.76B – Naval Training Systems Plan (N125)
  • Minimizing Use of Ozone Depleting Substances (OSD AT&L / ONR)
  • Deputy Chief Management Officer Procurement Planning Agreements (OSECNAV) (placeholder)
  • ForceNet Changes (N6)
  • Program Management Agreements (DASN ALM)
  • Program Office Staffing Plans (DACM)
  • SECNAVINST 5420.188F (DASN ALM) (update vs cancel)
  • Oversight of DON-Originated IT contracts/procurements (INSIGHT) (DASN C4I)
  • Designation of Acquisition Sub-Programs (DASN C4I)
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