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November 17, 2020 By cs

DoD’s Space Development Agency shows how fast the FAR can be

When it came time for the brand new DoD modernization organization charged with rapidly innovating in the space domain to award one of its first big contracts, you might expect they’d turn to a new, en-vogue acquisition mechanism like other transaction agreements (OTA) or middle-tier acquisition.

If so, you’d be wrong.

DoD’s new Space Development Agency is showing that the boring old processes embedded in the Federal Acquisition Regulation don’t have to be synonymous with slowness.  Late last month, SDA awarded a somewhat complex systems integration contract to help build the first elements of a brand new architecture of low-Earth orbit satellites. The total time from final request for proposals to contract award: three-and-half months.

“There was nothing magic about our contracting approach. We found that the FAR is actually quite flexible and useful to get things done,” Ryan Frigm, SDA’s deputy director said in an interview for Federal News Network’s On DoD. “The reason we were able to be successful is because we have a very talented, dedicated and motivated team that shares a singular focus, which is being the department’s constructive disrupter for space. And the team knows that we need to get space capabilities out to the warfighter at the speed of need.”

Keep reading this article at: https://federalnewsnetwork.com/on-dod/2020/11/dods-space-development-agency-shows-how-fast-the-far-can-be/

Filed Under: Government Contracting News Tagged With: acquisition reform, DoD, FAR, middle tier acquisition, modernization, OTA, other transaction authority, procurement reform, Space Development Agency

September 30, 2020 By cs

DoD takes next step in acquisition reform, renews calls for contractor stimulus

The Defense Department just took another step toward its goal of modernizing its acquisition system.

Deputy Secretary for Defense David Norquist signed DoD Directive 5000.01 on Sept. 8, which governs the roles and responsibilities for DoD’s adaptive acquisition framework.

“That, along with 5000.02, which was already signed out, really gives us the framework for how to move forward. We have a much more flexible way of doing business now codified in policy,” Ellen Lord, undersecretary of Defense for acquisition and sustainment, said during the Sept. 9 Defense News Conference. “We’ve put in place middle tier acquisition where we got statute a couple years ago, we now have a way to put working prototypes very, very quickly downrange so that we can practice how to use these new technologies so that we can learn quickly so we can iterate quickly. That along with everything we’re doing in terms of digital engineering and software modernization is really changing how we do business.”

Lord said the coronavirus pandemic shone a spotlight on some of the vulnerabilities of the defense acquisition system, which created an impetus for DoD to work with the administration to fix fragility in the supply chain, like unmanned aerial systems, rare earth metals and aircraft propulsion. While other more typical areas of recent defense spending, like nuclear modernization or hypersonics, haven’t gotten as much attention, Lord said DoD has put out almost $1 billion using Title III of the Defense Production.

Keep reading this article at: https://federalnewsnetwork.com/defense-industry/2020/09/dod-takes-next-step-in-acquisition-reform-renews-calls-for-contractor-stimulus/

Filed Under: Government Contracting News Tagged With: acquisition reform, Adaptive Acquisition Framework, DoD, DoDI 5000.01, middle tier acquisition, procurement reform, supply chain, supply chain management

April 1, 2020 By cs

Today’s complexities demand more chefs, fewer cooks

If you’re a cook, you had better become a chef!
Do you know the difference?

A cook can follow a recipe and prepare a nice meal, but a chef can take a variety of wide-ranging ingredients, understand how they complement each other, and create a gourmet feast.

Have you ever watched “Chopped” on the Food Network? Each chef contestant is given a basket of eclectic ingredients and a challenging schedule to fix an epicurean dish that their customers, the judges, will fawn over.

Sound familiar? We live in an increasingly complex acquisition world where just following a Department of Defense Instruction (DoDI) 5000.02 recipe will not suffice to provide your customer, the Warfighter, with the “dish” needed for success. For example, if you were to have taken the Defense Acquisition University’s Intermediate Systems Acquisition course 10 years ago, you would have been shown a single, phased-approach model, the Defense Acquisition Management System (shown below in Figure 1).

Five years later, with a recognition that software is developed and procured differently than hardware, DoDI 5000.02’s refresh would have exposed you to six different models, a combination of hardware and software-dominant paths. An appreciation that the break between phases is not a smooth process led to the revamping of the hardware model, as well (Figure 2).

Today, our acquisition world’s complexity has expanded even more, recognizing that different situations require different urgencies, tools, and solutions. This has resulted in the Adaptive Acquisition Framework, whose latest draft includes the 2019 DoDI 5000.02 process as only one of the six potential paths to acquiring the best Warfighter solution (Figure 3).

You need to become a chef! Gone are the days of being able to simply follow the prescribed Milestone A, B, C recipe. But how to make the change? First, you need to understand the circumstances presented to you. What is the “speed of relevance” for your program? How flexible and/or stable are the requirements? Have you established an enduring conversation with your customer to discuss requirements options? Then you will need to apply a thorough understanding of the major ingredients that will spell success or failure for any program. What are they? Let me suggest the following as a start.

Acquisition Pathway

Where does your effort fit into the new Adaptive Acquisition Framework? Are you trying to exploit some new innovative technology and provide the Warfighter with residual operational capabilities? Explore the Middle-Tier Acquisition (MTA) Rapid Prototyping path. Is there some proven technology, perhaps exploiting a commercial use, that you can produce quickly and field within 5 years? If so, then, MTA’s Rapid Fielding path might be right for you. Is software the major acquisition product, perhaps an upgrade to a command and control product? Why not follow the Software Acquisition path? Of course, there is nothing evil about the traditional Major Capability Acquisition path, which can and should be tailored to meet your specific needs. But it is crucial that you understand the requirements and benefits, along with the risks, of taking these different acquisition pathways, and then choose the pathway most appropriate for your program.

Contracting Strategy

Congress recently expanded some tools for finding and getting the right defense industry contractor on-board for our programs. Beyond traditional contracting vehicles based on the Federal Acquisition Regulation, Other Transactions (OTs), and Commercial Solutions Openings (CSOs) have provided some great additional options. Are they right for your program? Does your program meet the Three Ps of OTs — purpose, prototype, and participation? Many of your colleagues have embraced these contract vehicles, as evidenced by a rapid increase in OT use over the past several years. However, beware of statements that imply one contract vehicle is superior to all others. Some dishes need salt, and some need sugar. Just because both flavorings are white granular substances doesn’t mean it is appropriate to use them interchangeably. A good understanding of contract strategy differences can mean the difference between success and failure. If risk is too high and you’ve demanded a fixed price contract, industry proposals will reflect that. In such a case, you can likely gain flexibility and save money using a cost-reimbursable vehicle. You can often save time using an OT, but not always. The experts say that if you’re using OTs for the sole purpose of saving time, don’t! Always remember the reason you choose a particular contracting vehicle is to properly incentivize the contractor to provide your end users with the product they need, when they need it.

Funding Strategy

How will you get the money to run your program? Beyond the traditional Planning, Programming, Budgeting and Execution (PPBE) system that requires 2 years of foresight for acquiring funds, are there other sources of more immediate funding? Are you aware that the DoD has a Rapid Prototyping Fund administered by the Under Secretary of Defense for Research and Engineering? Could that bridge the 2-year gap between a great technological opportunity now and establishing your long-term funding line through PPBE? If you can go faster via additional funds, have you explored getting on your service’s Unfunded Requirements List or pursued Reprogramming Requests? You need a thorough grasp of all of your options to get the required money, in the right appropriations, at the right time. Depending on your total budget, you will have a variety of reporting and accountability requirements. Have you accounted for those in your timelines? Can they be waived, when appropriate? Understanding your program deeply enough to predict the funds needed, in the appropriations category needed, will allow your team to ensure the money is available in time.

System Engineering, Metrics, and Risk/Opportunity Management

What is your path to getting the technical solution to work? Are you prototyping the hard stuff first — i.e., “the quickest path to failure,” as Dr. Bruce Jette, the Army’s Acquisition Executive would say. One of the most important system engineering tasks is to develop and maintain a rigorous risk and opportunity management plan. With today’s need for products to be delivered at the speed of relevance, it is essential that your team thoroughly recognizes the risks facing the proposed solution. How can those risks be mitigated? Will they be assumed, transferred, controlled, or avoided? And don’t forget about opportunities. Are any available that would increase speed or performance? What resources are needed to enable pursuit of those opportunities?

This risk/opportunity management plan is not to be built and put on a shelf, but to serve as a steady guide as the product matures. If your product is software, do you understand the Risk Management Framework and how to best exploit its virtues to improve your software product? Is agile software development the right methodology for getting your software matured and in the users’ hands? If not, why not? A good strategy for developing the technical solution for the warfighter’s requirement is essential to your program’s success.

Integrated Testing

Employing a collaborative effort with the warfighter and tester, have you established a test and evaluation plan to ensure that your product meets that customer’s needs? What type of testing does your product and chosen acquisition path demand? A program manager’s worst nightmare is to contract for a product and successfully execute that product, only for the warfighter or tester to find it inadequate. If you follow a rapid prototyping pathway, you should engage in a test-learn-fix-test approach with multiple user test points in a series of small, targeted events, while maximizing modeling and simulation to increase your speed. A Test and Evaluation Master Plan will be required for the traditional Major Capability Acquisition approach; however, you should tailor it to increase testing’s influence on your development efforts. Like many of the functional offices, these vital activities can appear to program managers as impediments. However, they serve a vital role. Engaging with them early and developing a common understanding of schedule and technical requirements can foster an environment of mutual support toward the common goal of getting war-winning technology faster into the hands of the warfighters. Still, you also need to ensure that it stays in their hands. So, it is crucial that you track sustainment and producibility, starting early in the design process.

Sustainment and Producibility

One of the potential pitfalls of the rapid prototyping path could be the neglect of production and sustainment costs in the effort to ensure that the product reaches residual operational capability within the 5-year window dictated by Congress. Studies have shown that, by the time the Preliminary Design Review is conducted, approximately 80 percent of the program’s life-cycle cost (LCC) is determined, even though only a small percentage of the program’s cumulative costs has been spent. This early design work is the place where the team has the best opportunity to impact LCC. By the time of the Critical Design Review, the LCC commitment is approximately 90 percent (Figure 4).

Production, logistics, and other considerations must be exhaustively understood and prioritized early or your program could easily become unaffordable. Prototyping emphasizes an experimental philosophy in order to get innovative technology to work. Without a strong program manager emphasis, there is little incentive to focus on future LCC drivers — i.e., production, operations, and support. Also, award fee contracts, which allow for profit margins to be influenced subjectively, and to include consideration of items such as affordability and sustainability, are highly discouraged. This may dissuade the government/contractor team from paying much heed to these longer-term factors. Like a chef who has visualized the flavor and presentation of the final dish early in the cooking process, your team must emphasize sustainment and producibility early in the design process to ensure that the final product is technologically superior, producible, and affordably sustainable.

As a former senior manager of manufacturing at one of our industry partners, which produced the interiors of the canceled VH-71 Presidential Helicopter, I can testify how early design decisions can subvert manufacturing’s ability to produce an affordable product.

Yes, a number of other factors must be decided on, managed, and tracked in order to produce a successful product for our warriors. Your team cannot forget to ensure the myriad other elements—such as environment, safety, and occupational health, spectrum certification, airworthiness, unique identifiers, energy policy, etc.—that must all be addressed for the program to succeed. However, the thorough understanding and vetting the above six major ingredients will allow you to master the complexities of today’s acquisition world. With that mastery, you will no longer feel the need to open up the DoDI 5000.02 cookbook to find the recipe for creating a good product. Instead, when you open up the basket of ingredients that the requirements and acquisition community has handed you, you’ll be able to create a gourmet, masterful acquisition strategy.  Bon Appétit!


David Riel is the author of this article, first published in the March-April 2020 issue of Defense Acquisition magazine.  Riel is professor of Acquisition Management at the Defense Acquisition University in Kettering, Ohio. He formerly had a 20-year career with the U.S. Air Force, including work with industry.  The author can be contacted at David.RIel@dau.edu.

Filed Under: Government Contracting News Tagged With: acquisition workforce, adaptive acquisition, Adaptive Acquisition Framework, Defense Acquisition System, DFARS, DoDI 5000.02, FAR, life-cycle costs, middle tier acquisition, other transaction authority, other transactions, rapid prototyping, testing

February 17, 2020 By cs

The paths become clearer: DoD acquisition policy and the Adaptive Acquisition Framework

The Honorable Ellen Lord, Under Secretary of Defense (Acquisition and Sustainment), has repeatedly stressed that one of her office’s primary goals is to reform Defense acquisition so that it delivers capabilities at the speed of relevance to our Warfighters.

Since Dec. 31, Lord has approved the release of all six acquisition pathways that make up the Adaptive Acquisition Framework (AAF), DoD’s long-awaited rewrite of the Defense Acquisition directives commonly referred to as the “5000 series.”

Reforming this cumbersome set of documents has been a priority for Lord, who has been introducing the concepts to Congress, the defense industry, and the Defense Acquisition Workforce for several months.

“[The] way forward removes a longstanding system of bureaucracy and red tape by turning the procurement process into one that empowers users to be creative decision makers and problem solvers,” she wrote in a recent Defense Acquisition magazine article recently reprinted here by the Contracting Education Academy at Georgia Tech.

The revised 5000 series includes the introduction of the AAF, which gives acquisition professionals six different acquisition pathways: Urgent Capability Acquisition, Middle Tier of Acquisition, Major Capability Acquisition, Acquisition of Services, Defense Business Systems, and Interim Software Acquisition.

The final step of the release process involves an intricate transition that will occur when the Department of Defense Instruction (DoDI) 5000.02, “Operation of the Adaptive Acquisition Framework,” is released. This new version of the 5000.02 will cancel the current 5000.02, “Operation of the Defense Acquisition System.”

Because of differences in the two documents, functional policies applicable to engineering, test, cost, etc. will be nullified.  To mitigate the gap, DoDI 5000.02T (T stands for transition), “Operation of the Defense Acquisition System,” will be published to facilitate a smooth transition to AAF operations and will remain in effect until the completion of the AAF realignment.

Below are the policies that comprise the redesigned DoD 5000 series:

  • DoD Instruction 5000.2, Operation of the Adaptive Acquisition Framework, Jan. 23, 2020
  • DoD Instruction 5000.02T, Operation of the Defense Acquisition System, Jan. 23, 2020
  • DoD Instruction 5000.74, Defense Acquisition of Services, Jan. 10, 2020
  • Software Acquisition Pathway Interim Policy and Procedures, Jan. 3, 2020
  • DoD Instruction 5000.75, Business Systems Requirements and Acquisition, Jan. 24, 2020
  • DoD Instruction 5000.81, Urgent Capability Acquisition, Dec. 31, 2019
  • DOD Instruction 5000.80 Operation of the Middle Tier of Acquisition (MTA), Dec. 30, 2019

Defense acquisition professionals are advised to check DoD’s AAF website often for the latest policy updates.

Filed Under: Government Contracting News Tagged With: A&S, AAF, acquisition and sustainment, acquisition reform, acquisition workforce, Adaptive Acquisition Framework, DAU, DoD, DoD 5000.02, middle tier acquisition, procurement reform

January 13, 2020 By cs

3 must-read acquisition provisions in the 2020 NDAA

After a long Congressional conference period the 2020 Defense Authorization Act (NDAA) was finally signed into law, and with it come some changes to the defense acquisition process.

Federal News Network compiled three provisions that are particularly interesting regarding the procurement of military weapons.

These provisions involve intellectual property, middle-tier acquisition, and the establishment of a Defense Civilian Training Corps, and are summarized here:

  • The 2020 NDAA gives DoD more leeway in experimenting with that policy by creating a pilot program on intellectual property evaluation.
  • The middle-tier acquisition method allows for rapid prototyping and fielding within five years, as long as certain criteria are met.
  • The Defense Civilian Training Corps will train civilians for public service in the Department of Defense.

Read the complete Federal News Network article at: https://federalnewsnetwork.com/defense-main/2019/12/three-must-read-acquisition-provisions-in-the-2020-ndaa/

 

Filed Under: Government Contracting News Tagged With: acquisition methods, acquisition policy, acquisition strategy, acquisition workforce, Congress, Defense Civilian Training Corps, DoD, GAO, intellectual property, IP, middle tier acquisition, NDAA

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