Andrew C. Obermeyer, Director of Contracting

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Contracting Challenges in the Missile Defense
Agency
Andrew C. Obermeyer, Director of
Contracting Tests, Targets Countermeasures Missi
le Defense Agency Date August 5,
2008 Time 1045 1145
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The Challenge

• So you think you want to be
• the Director of Contracts for a large
  organization.?

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Missile Defense Agency (MDA)
Who and What is MDA?
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A Little Background

• What exactly is MDA? (Timeframe November
  2004)
• - A new Other Defense Agency under DoD ATL
• - 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
  RD Contracts
• MDA dares to be different for better or
  worse!!

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Integrated Ballistic Missile Defense System
Sensors
Forward-Based Radar With Adjunct Sensor
Midcourse X-Band Radar
Early Warning Radar
Space Tracking And Surveillance System
Defense Support Program
Sea-Based Radars
Terminal Defense Segment
Boost 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
USSTRATCOM
USPACOM
USNORTHCOM
NMCC
EUCOM
CENTCOM
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An Integrated Approach To Ballistic Missile
Defense
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Intercept
Fylingdales UEWR
Kill Vehicle
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Space Sensors
Interceptor Acquisition
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Refinement and Interceptor Updates
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Location and Interceptor Commit
Fire Control Node (FDC)
Missile Field
Fire Control Node (MDE)
Interceptor Launch
Surveillance and Track
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Cobra Dane Radar
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Aegis Radar
Beale UEWR
Sea-Based Radar
Launch Detection
Standard Missile
AN/TPY-2 Radar
Intercept
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Capability-Based Acquisition
MDA
Capability Delivery
Funding Profile
Early Delivery
Early Delivery
Early Delivery
Operations
Procurement
Warfighter Feedback
Warfighter Feedback
Testing
TRADES
Development
RD
Requirement and Threat Definition
2 Year Cycle
IOC
DoD
Capability
Funding
Rqmt Def.
RD
Development
Testing
Procurement
JCIDS
Service Prog. Mgt.
Test Auth.
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)
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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
  presidents mandate
• Desire to transition from loose confederation of
  RD organizations into an integrated,
  interdependent systems acquisition organization
• Capability Based Acquisition and management
• MDA Director is SAE, HCA and BMDS Program Manager

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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
• Directors Mandate establish an MDA system
  contracting organization with robust capability
  across the entire BMDS!

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The Scene Contd

• 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

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Fast Forward Spring 2005

• New, evolving agency herding cats
• BRAC move to Huntsville by 2010
• Transition from RD 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!!

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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
• Youre already severely undermanned
• You must take back programs from services
• MDA is BRACd 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

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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

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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!

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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

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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!!

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Desired Attributes - Huntsville

• 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!

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Standing up the New Organization Management
Concerns

• 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

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Standup Concerns Contd

• 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 cant 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

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The Current Environment (1 of 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!

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The Current Environment (2 of 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

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BLENDED WORKFORCE PROFILE
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MDA Contracting Personnel Growth
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Huntsville Projections

• Fall 2005 0
• Fall 2006 10
• Fall 2007 100
• Fall 2008 130
• Fall 2009 150
• Fall 2010 200

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Organic Contracting Capability

• 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

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Current Status - Huntsville

• 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!

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Current Environment for MDA

• Congressional mandate restore quantity and
  quality of acquisition workforce MAJOR DPAP
  Objective
• Congress/OSD concern over inherently governmental
  functions are we operating as were 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??

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What Else Lies Ahead?

• 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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Getting Off the Stage

• QUESTIONS?