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Acquisition and the ICM

Acquisition and the ICM. CSSE ARR, March 2008 Bruce Amato, Barry Boehm, Les DeLong, Gary Hafen, Adrian Pitman, Don Reifer, Peter Suk, Denton Tarbet, Rich Turner. Team Activities. Seeded discussion with initial candidate issues Established a context as a guide for thoughts

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Acquisition and the ICM

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  1. Acquisition and the ICM CSSE ARR, March 2008 Bruce Amato, Barry Boehm, Les DeLong, Gary Hafen, Adrian Pitman, Don Reifer, Peter Suk, Denton Tarbet, Rich Turner

  2. Team Activities • Seeded discussion with initial candidate issues • Established a context as a guide for thoughts • Brainstormed (and discussed) issues and possible solution strategies • Rich tried to make sense of it all and created a set of research areas based on issues • Team scored the issues as to value and difficulty

  3. Contracting • Progress payments • Award protests • Flexibility • Changing requirements • Changing schedules • Too many contract actions due to iterations, fly-offs, etc. • IDIQ as possibility • Non-recurring cost risks with developers (tooling/technology) • Government can share risk • Time-certain delivery scheduling • SAIV vs. CAIV vs. PAIV • Rethink profit incentives for software/systems • Value-based award fees (part for core, remainder for special desirements) • Penalty fees

  4. Program Management • Risk-averse culture • Vocabulary (iteration vs. increment vs. spiral vs. delivery cycle) • Deployment/Sustainment/Logistics • Short release cycle causes serious issues • CM of multiple releases in use • Recertification/rapid release minimum schedules • Delay recertification until last moment • Satisficing mechanisms • JCIDS process needs better adjudication of joint requirements • Stakeholders involved earlier and more consistently • Need tight communication within deep acq/dev/supplier chain • Evolution of documentation more dynamic • Feasibility rationale development and validation • Consortia/open source/domain-specific open source distribute risk • Three-layer technical team structure (agile/execute/V&V)

  5. Life Cycle • Merging of development and sustainment lifecycles • Elimination of traditional SE reviews (PDR/CDR) • Construction phase is ICM anchor points writ small • Long-lead items • Need guidelines for fly-offs • Funding of failed anchor point milestones • Awarding construction to team other than concept creator; need continuity • Concept and practice of acquisition baseline management may need to be redefined • No skipping of phases for developmental acquisitions

  6. Earned value • Determining value of systems • Software value vs. software cost (VBSE) • ICE looks at cost, not value • Allocating progress • Defining WBS in ICM; sufficient visibility of software • “Rolling wave” WBS: Long-term WBS for planning; Short-term WBS (per phase/increment) for execution • Separate entry bookkeeping for software to highlight software work (alternate view of WBS)

  7. Budgeting • POM Cycle is serious concern • Congressional constraints/oversight/control issues • Funding Profiles • Requires better intra-service prioritization of pre-program funding • Gov’t prototyping and competition plan and funds (PEO/PM/SAE) • Fewer programs can be initiated in a given POM cycle

  8. Necessary Competency Upgrades • Government/Acquirer • Service Acquisition Executive/Program Executive Office/Program Manager • Program staff members/contractor support • Contracting Officer/Independent cost estimate developers • GAO, Inspectors General • Development T&E, Independent Operational T&E • Developer • Executives/PM • COs/Subcontract managers • Oversight offices

  9. Research Opportunities -1 (I,D) • Strategies for RW WBS development for ICM (H,L) • Identification of changes required in government and developer workforce (H,L) • Study workload and competency changes and their effect across full acquisition organization • Acquisition strategy development guidance (H,M) • Enhanced communication mechanisms for timely synchronization of acquirers, developers and supplier chain (H,H) • Impact of ICM on Lead System Integrator/Prime Contractor role • Models for analysis of organizational strategies

  10. Research Opportunities -2 (I,D) • Value estimation techniques (e.g. value vs. cost of software) (H,H) • Model impact of software-related risks to overall system cost and schedule (H,H) • Mechanisms for managing large numbers of fielded and development system versions (H,H) • Satisficing mechanisms beyond win-win for large number of stakeholders (H,H) • New approaches to baseline establishment and management to support ICM (M,L)

  11. Research Opportunities -3 (I,D) • Continue VBSE work with special focus on implementation of concepts within ICM (M,L) • Review of profit model for system developers in view of ICM principles (M,M) • Guidelines/pilots for three-tiered technical team implementation (roles, responsibilities, etc.) (M,M) • Review of Federal Acquisition Regulations and other legal references for impediments (M,H) • Expedited re-certification/validation approaches (M, H)

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