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Contracting Challenges in the Missile Defense Agency. Andrew C. Obermeyer, Director of Contracting Tests, Targets & Countermeasures Missile Defense Agency Date August 5, 2008 Time 10:45 – 11:45. The Challenge. So you think you want to be

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Contracting Challenges in the Missile Defense Agency

Andrew C. Obermeyer, Director of Contracting

Tests, Targets & Countermeasures

Missile Defense Agency

Date August 5, 2008

Time 10:45 – 11:45


The challenge
The Challenge

So you think you want to be

the Director of Contracts for a large organization…….?


Missile Defense Agency (MDA)

Who and What is MDA?


A Little Background…

  • What exactly is MDA? (Timeframe: November 2004)

  • - A new “Other Defense Agency” under DoD AT&L

  • - Previous heritage was SDIO and BMDO (circa 1984)

  • - Numerous, quasi-independent systems – “Elements”

    • Each element managed and “optimized” separately

    • Individual budgets and resources – Few constraints

    • Most contracting was done by Services (Army, Navy Air Force)

    • Very little centralized control of contracts or programs at MDA

    • No demonstrated missile defense capability to warfighter

  • - MDA was chartered in 2002 by Presidential Mandate

    • Goal: integrated “system of systems” w/C2BMC capability

    • Control and integrate all assets, then integrate with warfighters

    • MDA given leeway from DODD 5000 series, other flexibilities

  • - Approximately 65% of MDA Personnel are Contractors

    • SETA Support: Does not count personnel from R&D Contracts

  • MDA “dares to be different” – for better or worse!!


Integrated ballistic missile defense system
Integrated Ballistic Missile Defense System

Sensors

Forward-Based Radar

With Adjunct Sensor

Midcourse

X-Band Radar

Early Warning Radar

Defense Support Program

Space Tracking And Surveillance System

Sea-Based Radars

Boost Defense Segment

Terminal Defense Segment

Midcourse Defense Segment

Sea-Based Terminal

Airborne Laser

Kinetic Energy

Booster

Aegis Ballistic Missile Defense / Standard Missile-3

Terminal High Altitude Area Defense

Patriot Advanced Capability-3

Ground-Based Midcourse Defense

Multiple Kill Vehicle

Command, Control, Battle Management & Communications

NMCC

USSTRATCOM

USNORTHCOM

USPACOM

EUCOM

CENTCOM


An integrated approach to ballistic missile defense
An Integrated Approach To Ballistic Missile Defense

6

Intercept

Fylingdales

UEWR

Kill Vehicle

5

Space

Sensors

Interceptor

Acquisition

4

Refinement and

Interceptor Updates

3

Location and

Interceptor

Commit

Fire

Control

Node (FDC)

Missile

Field

Fire

Control

Node (MDE)

Interceptor

Launch

Surveillance

and Track

2

Cobra Dane Radar

1

Aegis Radar

Beale

UEWR

Sea-Based

Radar

Launch

Detection

Standard Missile

AN/TPY-2 Radar

Intercept


Capability based acquisition
Capability-Based Acquisition

MDA

Capability Delivery

Funding Profile

Early

Delivery

Early

Delivery

Early

Delivery

Operations

Procurement

Warfighter Feedback

Warfighter Feedback

Testing

TRADES

Development

R&D

Requirement and Threat Definition

2 Year Cycle

IOC

DoD

Capability

Funding

Rqmt Def.

R&D

Development

Testing

Procurement

Service Prog. Mgt.

Test Auth.

JCIDS

Fielding Auth.

  • Strengths

    • Fully flexible funding

    • Combined development and operational testing

    • Integrated capability management

  • Risks

    • Transition to services

Approved for Public Release

07-MDA-2362 (27 MAR 07)


The scene november 2004 1 of 2
The Scene: November 2004 (1 of 2)

  • New MDA Director – Lt Gen “Trey” Obering

    • Focused on Integrated Ballistic Missile Defense System (BMDS)

      • Completely integrated mission capability for warfighter

      • “Limited Defensive Operations” established per president’s mandate

    • Desire to transition from loose confederation of R&D organizations into an integrated, interdependent systems acquisition organization

    • “Capability Based” Acquisition and management

    • MDA Director is SAE, HCA and BMDS Program Manager


The scene november 2004 2 of 2
The Scene: November 2004 (2 of 2)

  • Most MDA contracting accomplished externally

    • Service contract numbers, policies and procedures – not MDA

    • MDA desired more centralized control, decision making via:

      • MDA contracting personnel awarding and administering……

      • MDA contracts (pursuant to contracting authority from MDA HCA)

      • Notwithstanding “quality of service” provided by services

  • Director’s Mandate: establish an MDA “system contracting” organization with robust capability across the entire BMDS!


The scene cont d
The Scene Cont’d…

  • MDA Contracting Locations

    • National Capital Region (NCR) – MDA

    • Aegis BMD (NCR) - Navy

    • Huntsville (HSV) - Army

    • Colorado Springs (COS) - MDA

    • Albuquerque (ABQ) – Air Force

    • Los Angeles (LOS) – Air Force

  • Lots of Dispersion, No Control

  • Goal: Develop an Organic MDA Workforce


Fast forward spring 2005
Fast Forward – Spring 2005

  • New, evolving agency – “herding cats”

  • BRAC move to Huntsville by 2010

  • Transition from R&D to system acquisition

  • Transition to organic capability to do MDA contracting and program management

  • Focus on the future vice precedence

  • Reengineering of policies and processes

  • Everything was changing - and still is!!


Wanna be a contracts director
Wanna Be A Contracts Director?

  • Your mission, should you choose to accept it, is to recruit, retain, and develop a highly competent system contracting organization to support transition of advanced technology into an operational mission

  • Your constraints:

    • You must provide immediate, high-quality support

    • The mission and workload are rapidly expanding

    • You’re already severely undermanned

    • You must “take back” programs from services

    • MDA is BRAC’d to Huntsville by NLT 2011

    • Govt 1102 availability is scarce in NCR, elsewhere

    • The HR hiring system is seriously deficient

    • MDA is suffering significant budget cuts

    • OSD opposes using contractor support vice 1102


Perspective nov 2004 1 of 2
Perspective: Nov 2004 (1 of 2)

  • MDA senior leadership criticism

    • Contracting directorate was too “top heavy”

      • Too many chiefs, not enough Indians

      • Result of specific direction of previous MDA Director

    • Contracting directorate was overmanned

      • Number of slots were cut based on this assumption

    • Frustration over external support by services; inability to account for specific quantity of support acquired


Perspective nov 2004 2 of 2
Perspective: Nov 2004 (2 of 2)

  • Actions taken by Contracting Directorate (DAC)

    • Reduced number of directors, gave more responsibility

    • Maintained workload level; previous cuts were restored after recognition that Contracting was actually undermanned

    • Prepared plan for MDA Director to stand up completely “organic” MDA contracting directorate by 2010 – approved!


The challenge creating an organization in huntsville 1 of 2
The Challenge: Creating an Organization in Huntsville (1 of 2)

  • Spring 2006

    • Accelerated BRAC transition already evident

    • Largest MDA program – Ground Based Midcourse Defense (GMD) had major disconnect/problem

      • Program Office in Huntsville, Contracting Office in NCR

      • GMD Program Director expressed desire for collocation

        • Mandated significant acceleration of planned schedule


The challenge creating an organization in huntsville 2 of 2
The Challenge: Creating an Organization in Huntsville (2 of 2)

  • Other MDA programs needed HSV presence

    • THAAD – already in HSV, but not MDA contracting

    • Targets - same as above

    • NCR programs – some moving to HSV ahead of schedule

    • Numerous programs in HSV administered by SMDC for MDA

  • The Goal: Create major presence in HSV ASAP!!


  • Desired attributes huntsville
    Desired Attributes - Huntsville 2)

    • Diverse backgrounds and experience – “jointness”

      • Recruit personnel from around the country

    • “Best and Brightest” capability

    • Strong work ethic and dedication

    • Ability to perform well under continuous pressure

    • Adaptability, flexibility and creativity – “risk taking”

      • “Find a way to get the mission accomplished”

    • Teamwork: with program office, contracting office

    • Willingness and ability to accept ambiguity

    • Bottom Line: “Delight the Customer!”


    Standing up the new organization management concerns
    Standing up the New Organization: Management Concerns 2)

    • Who to recruit?

      • Majority of NCR personnel unwilling to relocate to HSV

      • Majority of available 1102s are in Huntsville

      • Desire to avoid “raiding” existing agencies in Huntsville

        • But most SMDC personnel already doing work for MDA

        • Market for 1102s increasingly scarce – even in Huntsville

      • Avoid “Huntsville-centric” way of thinking

        • Desire of agency to do things differently

        • Want to avoid established paradigms and “groupthink”

    • Where to put them?

      • Acceptable office space critically short – “quality of life”


    Standup concerns cont d
    Standup Concerns Cont’d 2)

    • Timing

      • If you need people now based on workload, do you hire “best currently available” instead of taking longer to hire “best ultimately available” – may be a big difference!

    • Contractor Support Services (CSS)

      • An established part of the MDA workforce in the NCR

        • Perform Contract Specialist duties

        • Critical to mission accomplishment in NCR

        • Can be recruited more easily and faster than normal govt process

      • Not generally used in most agencies – but increasing

      • Augment with CSS if can’t hire desired quality/quantity?

    • Critical Issue: What is the right balance?

    • Tradeoff: How much “hurt” can we accept if delay?

    • Decision: Hire best available, let market sort out


    The current environment 1 of 2
    The Current Environment (1 of 2) 2)

    • NCR programs are moving faster than anticipated

    • NCR personnel are leaving MDA faster than anticipated

      • Difficult to hire replacement personnel in the NCR – BRAC impact

    • Overall MDA workload is increasing – everywhere!


    The current environment 2 of 2
    The Current Environment (2 of 2) 2)

    • Creates need for accelerated recruitment for HSV

      • But are there enough qualified people? By what standard?

      • 1102s are in short supply everywhere – especially 1102s with systems acquisition backgrounds

      • What is impact to losing agencies? How much control do we have?

    • MDA “reengineering” – different structure, processes

      • Agency will do most of its contracting in Huntsville by Summer 2008




    Huntsville projections
    Huntsville Projections 2)

    • Fall 2005: 0

    • Fall 2006: 10

    • Fall 2007: 100

    • Fall 2008 130

    • Fall 2009 150

    • Fall 2010 200


    Organic contracting capability
    Organic Contracting Capability 2)

    • NCR (Aegis) – Conversion to MDA by end of 2007

    • LOS (STSS) – Conversion to MDA by end of 2007

    • ABQ (ABL) – Conversion to MDA by end of 2009

    • COS (MDIOC) – No conversion necessary

    • HSV (SMDC) – Conversion NLT 2010

    • Goal is consistency and transparency across MDA

      • Common policies

      • Common processes

      • Common culture

    • Contracting is leading the way in MDA


    Current status huntsville
    Current Status - Huntsville 2)

    • Contracting directorates stood up to support:

      • GMD

      • THAAD

      • European Site

      • Kinetic Energy Interceptor

      • Multiple Kill Vehicle

      • Targets and Countermeasures

      • Advanced Research Center

      • Simulation Center

      • International Support

    • More programs are on the way!


    Current environment for mda
    Current Environment for MDA 2)

    • Congressional mandate: restore quantity and quality of acquisition workforce – MAJOR DPAP Objective

    • Congress/OSD concern over inherently governmental functions – are we operating as we’re supposed to?

    • 2007 DPAP PMR Audit of MDA Contracting

      • Criticized heavy use of contractor support personnel and the way in which they are used (at MDA, KR support perform all functions (including negotiations) except PCO decisions and signature)

      • Perceived abuse of authority, potential COI

    • Subsequent DPAP Direction to MDA to create plan to eliminate use of contractor support personnel

    • Okay, Director: What would you do??


    What else lies ahead
    What Else Lies Ahead? 2)

    • Building a replacement workforce

      • Focus on a robust intern program

        • Nationwide recruiting

        • Intense training program with rotational assignments

      • Increased national recruiting at journeyman level

        • Good people want to come to Huntsville – we need to find them

    • Major emphasis on internal training

      • Cross-pollination based on diverse backgrounds

      • Challenge workforce to improve their capabilities

    • Ultimate goal: a “world class” workforce



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