Acquisition Transformation

1
Acquisition Transformation

• Mr. Blaise Durante
• Deputy Assistant Secretary
• (Management Policy and Program Integration)
• Assistant Secretary of the Air Force
  (Acquisition)
• 6 September 2002

2
AF Budget Apportionment10 Avg, FY02/03PBs FY04
POM (BY02)
10 Year Avg 74.16B
FY03 PB 85.19B
FY02 PB 79.61B
FY04 POM
Blue TOA
3
Modernization Account StatusModernization /
Procurement / RDTE / ST PBs (BY02)
Year B Blue TOA
FY85 66B 49
FY03
49B 36
FY75 23B 30
30.3B 36
FY97 20B 30
17.9B 21
14B 18
10B 15
FY87 18B 15
FY74 9B 12
12.3B 14.5
FY03 PB in BY02
Blue TOA
4
Top 6 Acquisition Problem Areas

• If this is planning, were all in trouble.
• Risk aversion is eating our lunch
• The Blame it on Congress syndrome
• All or nothing, too often means lots of nothing
• Our testing regimes havent kept pace with
  reality
• We dont play well with others

5
DoD Budget Planning Process

• Faced with a 20-year threat,
• the Govt responds with a 15-year plan
• Programmed in a 6-year POM
• Managed by 3-year personnel
• who develop a 2-year budget
• funded by a 1-year appropriation
• formulated over a 3-day weekend
• and approved in a 1-hour decision brief.

6
Top 6 Acquisition Problem Areas

• If this is planning, were all in trouble.
• Risk aversion is eating our lunch
• The Blame it on Congress syndrome
• All or nothing, too often means lots of nothing
• Our testing regimes havent kept pace with
  reality
• We dont play well with others

7
Risk Aversion The High Cost of Doing Nothing

• There are risks and costs to a program of
  action, but they are far less than the long-range
  risks and costs of comfortable inaction.
• -- President John F. Kennedy

8
Top 6 Acquisition Problem Areas

• If this is planning, were all in trouble.
• Risk aversion is eating our lunch
• The Blame it on Congress syndrome
• All or nothing, too often means lots of nothing
• Our testing regimes havent kept pace with
  reality
• We dont play well with others

9
Collaborative, Credible, Agile Acquisition

• Vision An Agile Process for Capabilities-Based
  Acquisition
• Goals
• Cycle Time Reduction
• Credibility
• Objectives
• Streamline Acquisition Processes Decision Times
• Establish Accountability
• Revitalize Retrain Workforce
• Improve Communication with Senior Leadership
• Focus Investment on Top Priorities
• Improve Service Contract Management
• Collaborative Spiral Capabilities Based Process

10
Streamline Processes Establish Accountability

• AF Acquisition Executive Policy Memo Released 4
  Jun 02
• For ACAT IC Below, Keep Whats Necessary
  Discard The Rest!
• If Its Not in the Law, Its up for Review
• If It Is in the Law, Challenge the
  Implementation
• Let Managers Manage. Force More Authority and
  Responsibility Lower in the Chain
• Tailor the Process to the Product. Flexibility
  Is the Key to Agile Acquisition
• Rewrite of All Air Force Acquisition Policy Based
  on These Principles
• AF FAR Supplement Rewritten Now 21 Pages Vs.
  196
• No Longer Prescriptive Customer Focused
• Empowers People to Innovate, Be Creative, Take
  Reasonable Risks

11
Revitalize Retrain Workforce

• Goal Develop Innovators Replenish the
  Workforce (Civ - 43 eligible to retire in 5 yrs,
  Mil - PM and Engineering lowest retention rates
  in AF)
• Developing Innovation Training Process
• Emphasis on Both Business and Leadership Training
  From World Class Schools and Trainers
• FY 03 Workforce Initiatives for Military
• Bonuses Funded in FY03 for Engineers and Program
  Managers
• Re-recruiting Critical Skills (Engineers, Program
  Managers)
• Increased Scholarships Tuition Assistance
  Beginning in FY03
• FY 03 Workforce Initiatives for Civilians
• Intern Recruiting Incentives
• Co-op Students
• Enhanced Personnel Modeling and Analysis

12
Improve Communication with Senior Leadership

• Improving Our Ability to Track Program Execution
• Measuring Current Performance Against Original
  Performance Baseline
• Performing in Depth Analysis Evaluating Earned
  Value Management Data From Monthly Acquisition
  Reports
• System Metric and Reporting Tool (SMART)
• Standard Automated Resource - Serves As PMs
  Command and Control Tool
• Establishes Consistent Information Paths and
  Business Rules Across AF Acquisition Programs
• Provides Senior Executives Access to Programmatic
  Information Non-intrusive Oversight

13
Focus Investment on Top Priorities

• Capability Review and Risk Assessments (CRRAs)
• Review and Assess Current and Planned
  Capabilities to Achieve a Stated Effect by USAF
  Task Forces
• Elevate Disconnects between desired task force
  capabilities and current programs to equip the
  force
• Add Programmatic Assessment to Determine the
  Effectiveness of Accomplishing Program Goals

14
Improve Service Contract Management

• AFPEO for Services Created To
• Bring Other Half Of Acquisition Dollars Under
  Oversight
• Provide Centralized Policy Making And Guidance
• Enforce Rational, Consistent Standards Without
  Adding A New/Big Layer Of Requirements.
• Respond to Congressional and OSD Oversight
  Concerns

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Desired End StateCollaborative--Seamless
WARFIGHTERS
AFMC
XO
IL
REQUIREMENTS
SUSTAINABILITY
COLLABORATIVE SPIRAL CAPABILTY-BASED PROCESS
TE AFMC
XP FM
FUNDING
TESTING
ST DEVELOPMENT
AFMC AQ
Agility, Urgency, Discipline and Collaboration
are Paramount
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Bottom Line

• Challenges for Collaborative, Credible, Agile
  Acquisition
• Keep Pace With the Accelerating Technology Cycle
• Embrace Innovation Be Entrepreneur
• Adapt to and Enable Changing Doctrine
• Solutions
• People Trained and Encouraged to Innovate, Take
  Risks Be Business Leaders
• Systems That Produce -- or Force -- Decisions
• Professionals Freed to Execute Their Programs

SPEED and CREDIBILITY COUNTS!