Acquisition at the Air Armament Center

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Acquisition at the Air Armament Center

• War Winning Capabilities
• On Time, On Cost

Judy A. Stokley Deputy PEO And Executive
Director Air Armament Center Eglin AFB FL
DISTRIBUTION STATEMENT A Approved for public
release distribution is unlimited.
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Acquisition at the Air Armament Center

• Pulling It All Together Government Industry
• 19 Feb, 28 Feb Government Days
• 18 Mar Industry Day
• 19 Mar One-on-Ones with Companies Upon
  Request

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Purposes

• Provide information on what we are doing at the
  Air Armament Center to improve our program
  results
• Foster alignment of expectations between our
  Government teams and our Industry counterparts
• Get creative juices flowing on both sides of the
  table to develop better ways to establish and
  execute our programs
• Integrate and rationalize improvement efforts

On-Time, On Cost CRADLE-TO-GRAVE! For Our
Warfighters
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Overview

• Organization
• Execution
• Our Journey to Excellence
• Zero Based Documentation

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Air Armament Center
Program Executive Officer for Weapons
and Commander Maj Gen Eidsaune
Deputy PEO and Executive Director Ms Stokley
Vice Commander Deputy For Support Brig Gen Wilson
308th ARSW Dr Simpson
96th Air Base Wing Col Pohland
46th Test Wing Col Plumb
CS (Chief of Staff) Col Buell
XR (Capabilities Integ) Dr Corley
XP (Planning) Mr Arnold
EN (Engineering AE) Mr Israel
IG (Inspector Gen) Col Denison
PK (Contracting) Ms Jay
SE (Safety) Mr Phillips
JA (Judge Advocate) Col Caggiano
FM (Financial) Col Shaw
DP (Manpower) Ms McGehee
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308th Armament Systems Wing
Gary A. Williams Chief of Contracting 850-883-0688
(DSN 875)
Della R. McPhail Chief Financial
Officer 850-883-0304 (DSN 875)
Christopher L. Clay Technical Director 850-883-308
3 (DSN 875)
Col John R. Griggs Commander 308th
ARSG 850-883-5340 (DSN 875)
Terrence May Director 408th ARSG 850-883-3801
(DSN 875)
Col Cyril Socha Commander 728th
ARSG 850-883-1088 (DSN 875)
Col Scott Rumph Commander 328th
ARSG 850-883-0343 (DSN 875)
Brian Rutledge Director 808th ARSG 850-883-3531
(DSN 875)
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308th Armament Systems Wing
308th ARSW Dr. Bruce Simpson, CL
Technical DirectorMr. Clay Chief Of Contracting
Mr. Williams Chief Financial Officer Ms.
McPhail Chief Of Logistics Ms. Villagran
Mr. Batog, DV (Navy) Col Miller Peck, DV
408th ARSG Armament Support
308th ARSG Long Range Systems
328th ARSG Air Dominance
728th ARSGTest and Training
808th ARSG Advanced Programs
918th ARSG Miniature Munitions
708th ARSG Direct Attack
IM BLU-122
AFSAT
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Capabilities Integration DirectorateAAC/XR
Director Dr. John Corley
Business Operations Ms. DeAnna Morales
Deputy Director Lt Col Will Evans
Tech Director Mr. Gene Estep
Capability Development (A5) Mr. Roger Barrett
Acquisition Intel (A2) Mr. Paul Schroeder
Hard Deeply Buried Targets (HDBT) Ms. Marya Bard
Advanced Concepts Mr. Ron Johnson
Cross Enterprise Mr. James Schoeneman
Directed Energy Mr. Steve Whitten
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Budget
Portfolio Funding 5,851M
FMS is for All Active Cases RDTE is for FY07
FY08 Procurement is for FY06, FY07,
FY08 Sustainment is for FY08
FMS 2,709M
RDTE 621M
Procurement 2493M
Sustainment 28M
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Overview

• Organization
• Execution
• Our Journey to Excellence
• Zero Based Documentation

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AAC Portfolio Performance
FY 08 Add 6 Projects
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Overall Portfolio Health
Program Jan 07 MAR Jan 08 MAR Jan 08 PoPS Program Jan 07 MAR Jan 08 MAR Jan 08 PoPS
AFSAT 81 MALD 64
AMRAAM 80 MDS HTS 90
ARTS 69 P5CTS 87.5
JASSM 76 QF4 92
JASSM ER 72 SDB I 95
JDAM 97 SDB II 84
JPF 85.5 SFW 81
JTE 71 WCMD 84
Program Transition Planned
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Focus and Transition Weapons Technology

• 2010 Program Objective Memorandum (POM)
  Initiatives
• Hard Target Void Sensing Fuze
• Eglin Steel Producibility Enhancement
• Active Denial System
• Counter Electronics HPM
• Airborne Tactical Laser Weapon
• Mk-82 Reactive Liner
• Chemical Biological Agent Defeat
• Reliable Replacement Warhead-2

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Just Some of Our Successes

• Delivered 181,611 Joint Direct Attack Munitions
  Zero late
• Delivered 11 Quick Reaction Variants of
  JDAMs/Aircraft Integrations to War record
  timelines, Zero late
• Delivered 5,855 Joint Programmable Fuzes over
  last 12 months
• 3,269 combat drops--6X more than previous 12
  months
• Delivered 22,634 DSU-33 height of burst sensors
  over last 12 months
• 1,362 combat drops--50 increase over previous
  12 months
• Maintained 887 hours MTBF on AMRAAMs (Reqt is
  450 hours)
• Over 1,500,000 total AMRAAM flight hours flown
• SDB logged 40,000 captive carry hrs 49 combat
  drops in FY07
• Matured FLM technology transitioned from lab to
  field in less than 19 months--delivered to
  warfighter 2 months early!

107 Promotions, 124 Awards for Acquisition
Workforce
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Overview

• Organization
• Execution
• Our Journey to Excellence
• Zero Based Documentation

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Our Journey to Excellence

• LtGen Hoffman,
• On restoring credibility in Air Force
  acquisition
• I mentioned the widespread view that our weapon
  systems cost too much and take longer than
  predicted. We need to ensure "false optimism"
  does not cloud our judgment. I am a natural
  optimist, but we need to be firmly grounded in
  reality as we assess program risk. Wanting
  something badly does not make it happen. This is
  especially important as we start a program.do we
  have a solid lock on the requirements, have we
  included all the elements of the program, do we
  have our best estimate of cost and schedule? Once
  we define the start of the program, we will be
  forever measured by that definition so take the
  time to do it right.

We are on a quest to launch more realistic
programs and bolster existing programs.
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Our Environment
Congress
Warfighters Major Commands Combatant
Commanders Joint Staff
ST Laboratories Defense Threat Reduction
Agency (DTRA) Defense Advanced Research Projects
Agency (DARPA)
Program Acquisition Team
Financial Management Planning, Programming and
Budgeting System (PPBE) Service
Staffs OSD Congress
Oversight Program Executive Offices Materiel
Commanders Service Acquisition Executives Office
of Secretary of Defense (OSD)
Industry Primes Suppliers
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What are the Expectations?

• Safe, effective, reliable, affordable products on
  time and within budget
• Ownership of product health without legal
  wrangling
• Realistic marketing and budget entries
• Technical competencies to leverage leading edge
  technologies
• Agility to surge or decrease production and
  respond to changing rule-sets

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Integrating Rationalizing Improvement Efforts
Sub-Functional Pillars
Systems Engineering Risk Assessment Management
Cost Estimating Programming
Reliability Financial Execution
Technology Integration Readiness Earned Value Management System
Manufacturing Readiness Award Incentive Fees
Logistics Health Assessment Contract Performance Asst Reports
Integrate and Rationalize for Workable Program
Constructs
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Overarching Topics

• Reliability
• Joint Capabilities Integration Development
  System (JCIDS)
• Training / Certification Program
• Networked Weapons
• Open Architectures
• M-Code Next GPS Challenges

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Red Flags for Weapons Programs

• Relying on COTS/NDI to meet Robust Military
  Requirements
• Systems Engineering staffing and tasks
• Going into SDD without RR or SDD-readiness
  phase
• Lack of early wind tunnel and instrumented
  captive carry
• Program Plans, Budget, IBR missing key elements
• Explicit requirements/verification of captive
  carry and in-flight reliabilities and service
  life
• Transition to Production
• Reliability Growth program
• Safety-of-flight analyses at design reviews
• Contractors decline to make an offer
• Back-loaded development budget

From Study of Troubled Weapon Programs 1997-2007
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High-Confidence ProgramsKey Characteristics

• Good Should-Cost Estimate
• Budget/Cost Estimate alignment
• Approved time-phased CDD requirements
• Program office resourcing
• Requirements stability
• Budget stability mechanism
• Incremental program plan
• Short-duration capability release/production
  schedules
• SDD phase no greater than 6 years
• Tech maturity assessment thresholds met
• Integrated sustainment and depot strategy
• Realistic test planning, Approved IOTE plan
• Life-cycle acquisition strategy time certain
  success incentive
• Executing according to plan
• Probability of Program Success (PoPS) measures

As Defined by Develop Sustain Weapon Systems
(DSWS) design teams
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Its the Engineering!

• Engineering -- design, verification,
  manufacturing, and quality, throughout voluminous
  supplier base -- determines fate of programs

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Team Dynamics
Mixed messages from the Bosses the System
How do we use the Information?
Is the Information Compelling?
Warfighters Capability Needs Budget Choices
Program Execution Team Whats In, Whats Out How
Much Risk?
Industry
Engineers
I CAN DO IT!
DO YOU HEAR ME?
NATURAL AMERICAN OPTIMISM COMPETITION FOR
BUDGET FRAGMENTED AUTHORITIES (REQUIREMENTS,
PROGRAMMING, ACQUISITION)
START AGGRESSIVE SDD ASAP
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Proven Acquisition Approach

• Structure ROBUST SDD-Readiness Phase to size a
  realistic SDD phase
• Block requirements into increments - deliver in
  3-6 year SDD phases
• Execute SDD-Readiness contract(s) for each
  increment
• Demonstrate technologies in robust environment
• Mature design to PDR or later
• Build SDD plan including Integrated Baseline
  Review (Design, VV, OT, Transition to production
  and support) during readiness phase
• Program funds to realistic cost estimate based on
  detailed SDD Plan and rigorous benchmarking
• Conduct Rigorous Milestone A B Reviews whether
  required or not

SDD is where we spend most of the development
dollars, and determine most of the production
and sustainment costs for Weapons.
Launch incremental and realistic SDD phases that
position programs for long term success
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Win-Win Business Arrangement
Affordable, Combat Ready Products to Warfighters
Stockholders, Corporate Construct, Profits,
Marketing, Suppliers

• Congress
• OSD
• Service(s)

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Accountable
Accountable
Profits New Business Reputation
Requirements Resources Reports
Government and Industry Team
Develop and Execute Win-Win Strategies In An
Atmosphere of Teamwork and Trust
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Overview

• Organization
• Execution
• Our Journey to Excellence
• Zero Based Documentation

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A Golden Opportunity AAC Zero Based
Documentation Pilot Program
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Zero Based Documentation Pilots at AAC

• Pilot Programs Approved by Senior Acquisition
  Executive Memo 6 Nov 2007
• Retain the documents that the Program Manager
  needs
• Consolidate other documents into Life Cycle
  Management Plan (LCMP)
• Develop one each Systems Engineering Plan (SEP)
  and Risk Management Plan (RMP) for AAC
• Declare compliance, variances and program
  specifics in LCMP
• For the Pilot Programs, use QF-4 for QF-16 and
  Miniature Air Launched Decoy (MALD) for MALD-J
• Allow Program Manager discretion on format,
  including the use of briefing charts

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What a Program Manager Needs to Run Programs

• Requirements
• Initial Capabilities Document (ICD)
• Capability Development Document (CDD)
• Capability Production Document (CPD)
• Test Evaluation Master Plan (TEMP)
• Life Cycle Management Plan (LCMP)
• Program Status
• Earned Value Management System (EVMS)
• Integrated Master Plan (IMP)
• Integrated Master Schedule (IMS)
• Technical Performance Measures

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What AFPEO for WeaponsUses to Drive Portfolio
Performance

• Personal Interfaces
• Acquisition Strategies Baselines
• Integrated Assessment Tools
• Status Reporting
• Activity Reports
• Monthly Acquisition Reviews
• PEO Chats
• Customer Relationships
• Expectation Management Agreements

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Approach to Coordination for Pilot Programs

• Approvals delegated as low as allowable
• When required, approval chain is Group to PEO to
  SAE
• AAC/ACE will codify distribution list that
  includes all current coordination/approval
  offices
• Copies will be provided electronically FYI only
• Offices will be given 2 working days to respond
  with CAT I and CAT II Deficiencies if they
  choose to respond
• AAC/ACE will maintain log through this process
  for learning
• CAT I changes program content CAT II needed
  for record or compliance with law/reg CAT III
  comments and suggestions

GOAL Final approval of meaningful, quality
documents within 2 weeks of PM release
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Expected Benefits

• Put focus on Integrated Life Cycle Management
• Allow workforce to focus on establishing and
  executing successful programs
• Garner enthusiasm and pave way for standard work
• Elevate our workforce from drudgery to innovation
• Promote critical thinking and collaboration

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Its a Journey

• Move our culture to one that warfighters and
  stakeholders can depend on for realistic
  expectations and high quality, high performing,
  affordable products.

Vision War Winning CapabilitiesOn Time, On
Cost!
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Its a Journey

• Wouldnt it be wonderful if the DoD had to
  develop a process to allocate the margin we did
  not spend each year instead of determining which
  programs to terminate or stretch out due to
  overruns?
• Wouldn't it be wonderful if Combatant Commanders
  spoke of us, Industry and Government, as those
  Acquisition people the ones we can always count
  on

War Winning Capabilities On Time, On Cost
Cradle-to-Grave
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• Thank You for All You Do for our Country

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Agenda

• Welcome/Announcements/Opening Remarks Mr Israel
• Overview of Acquisition at the AAC Ms Stokley
• Update on Integrated Tools/Assessments Mr Israel
• Logistics Health Assessment (LHA) Ms Brinston
• System Engineering Update Mr Mistretta
• Announcement on Symposiums SE Panel Mr
  Mistretta
• Acquisition Cost Estimating Update Ms Golden,
  Mr Kennedy
• Nunn McCurdy Legislation and Impacts Ms
  McPhail
• Morning Recap Answers to Questions Ms Stokley
• Independent Review Team (IRT) Results Mr Clay
• AAC response to IRT Results Mr Clay
• Acquisition Contracting Update Ms Jay
• Future Concepts Capabilities LtCol Evans, Mr
  Furlong
• Portfolio Results Col Miller Peck
• Question/Answer Session All