Building the Naval Acquisition Enterprise

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Building the Naval Acquisition Enterprise

• Dr. Delores Etter
• Assistant Secretary of the Navy
• Research Development and Acquisition
• 6 April 2006

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Outline

• Strategic Environment
• ASN (RDA) Vision and Goals
• Acquisition Volatility Issues
• Acquisition Enterprise Team
• NAVAIR VADM Massenburg
• NAVSEA VADM Sullivan
• SPAWAR RADM Bachmann
• MARCORSYSCOM MajGen Catto
• Questions Answers

3
Strategic Environment

• Engaged in the Global War on Terror
• Quadrennial Defense Review
• Fiscal Challenges (FY07 Budget Submitted to
  Congress)

4
ASN (RDA) Vision

• To provide weapons, systems and
• platforms for the men and women of the
• Navy/Marine Corps that support their
• missions and give them a technological
• edge over our adversaries.

5
ASM (RDA) Goals

• Expedite GWOT acquisition programs as much as
  possible without compromising safety.
• Reduce volatility in ongoing and current
  acquisition programs.
• Develop and investment/transition strategy for
  Science and Technology (ST) to ensure future
  technological edge.
• Lead the Acquisition Enterprise component of the
  Naval Enterprise, in collaboration with
  OPNAV/HQMC and the fleet.

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Acquisition Volatility

• Definition tending to vary often or widely
• Program characteristics that affect acquisition
  program volatility
• Program complexity
• Requirements fluctuation
• Budget instability
• Schedule demands
• Contractor/PM optimism

7
Enterprise Approach

• Benefits
• More Open
• More Collaborative
• More Integrated

8
Payoff for Acquisition

• Threshold Performance
• Reduced Cost
• Increased Productivity

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Acquisition Enterprise Team

• NAVAIR Aircraft and carriers ready for tasking
  at reduced cost
• NAVSEA Ships ready to deploy
• SPAWAR Metrics being developed
• MARCORSYSCOM Ability to deliver equipment

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Building the Naval Acquisition Enterprise

• VADM Massenburg
• Commander
• Naval Air Systems Command
• 6 April 2006

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NAE BOD LOGOS
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Naval Aviation Enterprise (NAE) Single Fleet
Driven Metric

• Aircraft and Carriers Ready for Tasking at
  Reduced Cost
• Inventory (People Stuff)
• Reliability
• Cycle Time
• Total Cost (vs. Individual Cost)

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Naval Aviation Vision

• RIGHT FORCE . . .
• RIGHT READINESS . . .
• RIGHT COST . . .
• RIGHT TIME . . .
• . . . TODAY, AND IN THE FUTURE

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Potential Operating Concept(Current Future
Readiness)
PROVIDERS / ENABLERS (Supporting Warfighter
Enterprises)
WARFIGHTER ENTERPRISES (Delivering Combat
Capability to COCOMs )

• Dollars
• People
• Stuff
• Capability

Resources at Each Enterprise Intersection
WARFIGHTER DOMAIN
WARFIGHTER DOMAIN
WARFIGHTER DOMAIN
WARFIGHTER DOMAIN
WARFIGHTER DOMAIN
PROVIDERS ENABLERS
NAE
SWE
USE
NNFE
NECC
PEOPLE, DOLLARS, STUFF
OUTPUT READINESS COST
MPTE
ATL
Installations
NEXT
Health Care
NEXT
CURRENT- - - - - - - - FUTURE READINESS
ST
FYDP
Note ATL includes PEOs, SYSCOMs
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Potential Navy Enterprise
INDIVIDUAL WARFIGHTER ENTERPRISES
Demand Signals
CNO
REQUIREMENTS
PROVIDERS ENABLERS
NAE
SWE
USE
NNFE
NECC
MPTE
ATL
Installs
OUTPUT READINESS COST
Health Care
ST
CFFC / VCNO / ASN (RDA)
N8 / ASN (FMB)
PROVIDERS
RESOURCES

• PRODUCTIVITY DRIVERS
• Priorities
• Behavioral Changes
• Single Processes / Owners

• Common Metrics
• Integrated Capabilities
• Transparency of Information

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Critical Navy Enterprise Processes And Behaviors

• Identify Domains and assign Single Process Owners
• Assemble the right Enterprise teams and gain
  commitment
• Operate in support of a Single Fleet Driven
  Metric (what the Enterprise values)
• Agreement on scope, outputs, and linked metrics
• Transparency of data to promote trust and monitor
  performance
• Shared knowledge on issues and key problems
  affecting the Domain
• Recognize, nurture, and respect technical
  authority
• Identified entitlements (whats needed, when, how
  much, and no more)
• Agree on desired output (e.g., Readiness over
  Cost), with focus / trade-space involving current
  and future readiness
• Operate with discipline, governance, and a
  regular (timely) drumbeat
• Baseline every dollar, all the people, all the
  stuff, and all the capability within the
  domain, with assigned accountability for outcomes
  
• Establish entitlements and continually measure
  gaps-to-entitlement
• Remove barriers to productivity

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Acquisition and Life Cycle Support (ALCS)
NAVRIIP CFT Team Lead RADM Starling,
CNAL Coordinator Mr. Russ Scott
Acquisition and Life Cycle Support Lead RADM
Venlet (PEO (T)) Action Officer CAPT Wallace

• Provide NAE with Comprehensive Visibility into
  Acquisition Expenditures during the Year of
  Execution
• Future Readiness Metrics Development and
  Management
• Acquisition Cost and Cycle Time Reduction
  Initiatives
• Effect Major Reduction in Historical RDTE Cost
  Growth Trends

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ALCS Cross Functional Team (CFT) Acquisition
Volatility

• Four Broad Efforts
• RDTE Cost Reduction
• Strategic Cost Management (SCM) Aviation
  Affordability (Gap Closure)
• Execution Year Financial Transparency
• Drive Requirements Stability

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ALCS CFT Barrier Removal Team (BRT)
ALCS CFT Lead RADM Venlet (PEO(T))
Barrier Removal Team Lead CAPT Steve Eastburg
(PEO(A))

• Goal is to identify internal and external
  opportunities to improve program performance that
  result in AIRSpeed Type 1 savings
• Strategic approach to attack requirements
  instability and contractor performance
• JCIDS, Post MS B impact, Contract Performance
  Report, and Earned Value Management (EVM)
  analysis

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Building the Naval Acquisition Enterprise

• VADM Sullivan
• Commander
• Naval Sea Systems Command
• 6 April 2006

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SYSCOM Role in the Enterprise Concept

• Dollars
• People
• Stuff
• Capability

Resources at Each Enterprise Intersection
OUTPUT READINESS COST
PROVIDERS ENABLERS
NAE
SWE
USE
NNFE
NECC
MPTE
ATL
Installations
Health Care
S T
RELATIONSHIPS ARE CRITICAL TO OUTPUT
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Who are the enterprises?

• Warfighter Enterprises
• Naval Aviation Enterprise (NAE)
• Single Process Owner CNAF
• Naval Surface Warfare Enterprise (SWE)
• Single Process Owner CNSF
• Naval Undersea Enterprise (USE)
• Single Process Owner CSF
• Naval Expeditionary Combat Enterprise (NECC)
• Single Process Owner NECC
• Naval NETWAR/ FORCEnet Enterprise (NNFE)
• Single Process Owner NETWARCOM

PRIMARY MISSION Deliver warfighting
capabilities to the Navy Components and Combatant
Commanders, increase productivity across their
Domain, at reduced costs.
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ChallengeIntegrate NAVSEA and associated PEOs
into the Enterprise Construct

• Enterprise Role
• Naval Aviation Participant Aircraft Carrier
  equity, PEOCV
• Surface Warfare COO driving BOD drumbeat, PEO
  Ships,
• PEO IWS
• SEA00B supporting Cost Management Team
• Undersea Warfare Maintenance/Modernization Team,
  PEO SUB has major equity
• Naval Exp. Combat Focus on Craft Acquisition
  Riverine
• Command Coastal System (PEO
  LMW, PEO Ships, NSWC)
• Naval NETWAR/ SPAWAR / PEO IWS engagement
• ForceNet . Their stuff
  goes on our ships

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NAVSEA Interface to the NAE

• Who
• PEO Carriers and SEA 05 interface with the NAE
• How
• 2 standing teams
• Carrier Readiness Team (PMS 312)
• Works with the Fleet to determine a single
  current readiness metric
• NAE Cost Management Team
• Determines strategic cost initiative for POM and
  budget cycles
• Examples
• Cost of Aircraft Carrier Readiness
• Thickness of flight deck for future aircraft
  carrier designs
• Limit future aircraft size relative to current
  CVN 21 flight deck

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NAE Structure
NAE Board of Directors (BOD)
CNAF (CEO) CNAL N82 NSAWC AVN HC
USMC AVN NAVSUP N78 RES DASNAIR
NAVAIR (COO) CNATRA CFFC N4/7 N43 DASN LOG

NAE BOD EXCOM
Governance Process
Governance Process
VADM Massenburg
(COO)
VADM Massenburg
(COO)
Training
-
HC CFT
Cost Mgmt CFT
NAVRIIP
Training
-
HC CFT
Cost Mgmt CFT
NAVRIIP
CFT
CFT
VADM Mayer/RADM Moran
RADM
Kilcline
/RDML Lemmons
VADM Mayer/RADM Moran
RADM
Kilcline
/RADM Robb
RADM Starling
RADM Starling
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NAVSEA Interface to the SWE

• Who
• SEA 00
• SEA 05
• PEO Ships
• PEO IWS
• How
• BOD plus three standing teams
• Sustainment Modernization
• Personnel Readiness
• Strategic Financial Management (advisory)
• Examples
• SHIPMAIN
• LCS Oversight Board
• Personnel (FIT)

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SWE Structure
SWE Board of Directors (BOD)
CNSF
CFFC N43 OPNAV N41 NAVSUP CNI PERS4 SPAWAR
NAVSEA DCNSF/CNSL OPNAV N76 N75 PEO
SHIPS OPNAV N43
PEO IWS OPNAV N76F V-NAVSEA OPNAV N76B NNWC

SWE BOD EXCOM
Personnel Readiness Team FLAG Leads RDML
Holloway / RDML Masso AO CNSF N1 CAPT
Rabun Co-AO PERS41 CAPT Kurta
NAVRIIP
Training
-
HC CFT
Strategic Financial Management Team FLAG Leads
RDML Carr/RDML Caesar AO CNSF N41 CAPT Davis
Co-AO CNSF N8 CAPT Kaufmann
Sustainment Modernization Team FLAG Lead RDML
Frick AO CNSF N43 CAPT Lewis Co-AO NAVICP 05
CAPT Port
CFT
VADM Moran
\
RADM Mayer
RADM Starling
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NAVSEA Interface to the USE

• Who
• SEA 00
• SEA 07
• PEO Subs
• SEA 04
• How
• Four Teams
• Maintenance Sustainment
• Total Force Readiness
• Resource Management
• Operations
• Examples
• Warshot Reliability Action Panel
• Shipbuilding Strategy
• ERO/SRA/DMP Management

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USE Structure
USE Board of Directors (BOD)
COMNAVSUBFOR (CSF)
PEO SUBS NAVSUP NAVSEA 08 rep CPF N43
NAVSEA DEP CSF OPNAV N77 SSP OPNAV N13
OPNAV N4 NAVSEA 07 OPNAV N43 NAVSEA 073 FFC N43

USE BOD EXCOM
Maintenance
Total Force Readiness
-
Training
-
HC CFT
Total Force Readiness
Operations
NAVRIIP
Cost Mgmt CFT
Cost Mgmt CFT
CFT
VADM Mayer/RADM Moran
RADM
Kilcline
/RADM Robb
RADM
Kilcline
/RADM Robb
VADM Sullivan/RADM Hugel RDML Hilarides/RDML
Klein RDML Timme
RADM Starling
RADM Walsh
RADM Talbot/RDML DeLoach
RADM Cassias/RADM Kenny RADM Drennan/RADM Walsh
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Critical Navy Enterprise Processes and Behaviors

• Identify Domains and assign Single Process
  Owners.
• Assemble the right Enterprise teams and gain
  commitment .
• Operate in support of a Single Fleet-Driven
  Metric (what the Enterprise values).
• Agreement on scope, outputs, and linked metrics
• Transparency of data to promote trust and monitor
  performance
• Shared knowledge on issues and key problems
  affecting the Domain
• Recognize, nurture and respect technical
  authority
• Identified entitlements (whats needed, when, how
  much, and no more)
• Agree on desired output (e.g., Readiness over
  Cost), with focus/ trade-space involving current
  and future readiness.
• Operate with discipline, governance, and a
  regular (timely) drumbeat.
• Baseline every dollar, all the people, all the
  stuff, and all the capability within the domain,
  with assigned accountability for outcomes.
• Establish entitlements. Continually measure
  gaps-to-entitlement.
• Remove barriers to productivity.

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Building the Naval Acquisition Enterprise

• RADM Bachmann
• Commander
• Space Naval Warfare SYSCOM
• 6 April 2006

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CNO QDR Validation
As a primary catalyst for naval transformation,
FORCEnet has the potential to fundamentally
transform operations themselves, generating
greater effectiveness, efficiency, and
adaptability. Further, through the
transformation of systems., FORCEnet is expected
to influence the entire naval enterprise. -- ADM
Mike Mullen Chief of Naval Operations 1 March 2006
Achieving the full potential of net-centricity
requires viewing information as an enterprise
asset to be shared and as a weapon system to be
protected. As an enterprise asset, the
collection and dissemination of information
should be managed by portfolios of capabilities
that cut across legacy stove-piped systems.
These capability portfolios would include
network-based command and control, communications
on the move and information fusion.--
Quadrennial Defense Review 2006
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Naval NETWAR/FORCEnet Enterprise (NNFE)
VISION NETWAR/FORCEnet Enterprise is
responsible for the implementation of FORCEnet.
FORCEnet is the operational construct and
architectural framework for naval warfare in the
Information Age, integrating warriors, sensors,
databases, command and control, networks,
platforms, combat systems and weapons into a
networked, distributed combat force. FORCEnet
delivers effects-based operations that are joint
and coalition interoperable.
FIRST YEAR SCOPE NETWAR/FORCEnet Enterprise
will focus on Command, Control, Communication,
Computer, Combat Systems and Intelligence (C5I)
systems and appropriate Business IT solutions
integrating systems supporting the warfighting
naval forces (deployed and ashore), while
providing interoperability to the joint and
coalition forces. Our near-term efforts will
tackle current readiness, while looking to
balance and fulfill long-term solutions.
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ENTERPRISE LEADERSHIP TEAM
NNFE Board of Directors (BOD)
VADM McArthur (CEO), NNWC
RDML Bachmann (COO), SPAWAR
RDML Deutsch (CFO), OPNAV N6
RDML Deets, NNWC
Mr. Honecker, NNWC
Mr. Smith, SPAWAR
Mr. Bauman, PEO C4I Space
-
Mr. Cox, DPEO C4I Space
RADM Godwin, PEO
EIS
RDML Flynn, SPAWAR
RDML Rodriguez, SPAWAR
Mr. Weddel, OPNAV N6
RDML Brown, IO Director
RDML Beaman, NNSOC / NNWC N3
Ms Linda Newton, PACFLT N6
RDML Frick, PEO-IWS
RDML Masters, NAVRES
BGEN Allen, HQ USMC C4
Mr. Murray Rowe, MPTE CIO
CAPT Ed Rosequist, NNFE Coord
RDML See, PEO Space Systems
Dr. Federici, DASN (C4I)
Ms. Anne Sandel, DASN (IWS)
ADVISORS
PEO
-
EIS PEO
-
SPACE SYS ASN
-
RDA NAVSUP ONI ONR CNI
SWE / NAVSEA
NAE NAVAIR MCCDC
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The FORCEnet Network
Assistant Secretary of the NavyResearch,
Development, Acquisition
Chief of Naval Operations
Operations Requirements
Acquisition
Additional Duty

Additional Duty
Additional Duty
Additional Duty
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Command Relationships
Direct Support
ADDU
NETWARCOM
ADDU
JTF GNO
SPAWAR
OPNAV 39IOD Director
NIOCs
NCDOC(NAVCIRT)
NNSOC
FLTSURSUPPCOM
Enterprise-wide Approach
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The Enterprise Challenge
From Capabilities to FORCEnet C4I Portfolios
Fn Concept
Internet Protocol (IP)
Robust, reliable communication to all nodes

• Bandwidth Enabled

Reliable, accurate and timely information on all
battle- space units

• Secure Available Comms

Storage and retrieval of authoritative data
sources
Quality of Service
Information assurance
Application Diversity

• Services Oriented Architecture

Modular architecture

• Smart Pull
• (vice smart push)

Distributed and collaborative command and control
Seamless cross-domain access and data exchange
Data Centric
Robust knowledge management
User Customized Systems
Post in Parallel
Automated decision aids

• Assured Sharing

Autonomous and disconnected operations
Only Handle Information Once (OHIO)
User-defined and shareable SA
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How NNFE Can Get There

• PEO C4I Roadmap established a process linking
  FORCEnet capabilities to portfolios and
  capability levels with specific systems on
  platforms enterprise future planning
• The next steps involve maturing the PEO Roadmap
  into a NNFE product and include other PEOs (PEO
  EIS and PEO IWS, etc..)
• The end goal is a collection of decisional
  quality information to assist in all phases of
  the NNFE business cycle, concept to fielding

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Where are We?
Platforms and Systems Aligned to FORCEnet
Portfolios and C4I Capability Levels
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Trident Warrior Impact
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120 Day Forecast of POAM Objectives

• Next 120 days
• Establish cross functional rules
• Complete mapping to-be execution- year and
  long-term process in CFT2 swim lane
• Identify cultural and business barriers
• Support CFT 1 with surfboard definition
• Capture and rank order ongoing improvement tasks
• Create formal method for managing improvements
• Collect existing CFT2 related metrics
• Understand whats required by NNFEs metrics and
  CFFCs enterprise readiness team
• Describe measurable effects to be achieved and
  install predictive metrics with targets
• Share lessons learned

• Completed items last 30 days
• CFT2 manned and ready
• Established weekly drumbeat meeting
• Established long-term CFT2 meeting dates
  scheduled
• Face to face planned in SD for 24 April
• Conducted CFT2 training
• Drafted and submitted CFT2 Charter
• Initiated process mapping
• Established NNFE access on ECIC portal for CFT2
  members

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Additional Challenges

• Identify equivalent C4I domain oversight
  manager/advisor
• Equivalent to NAE Wing Commodore / Program
  Manager
• Establish entitlements
• Conduct Readiness and Cost Analysis
• C4I Domain Briefs to NNFE BoD on regular basis

Basis of the NNFE Roadmap
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Summary

• NNFE is underway
• NNFE is evolving FORCEnet roadmaps to accommodate
  Joint / Coalition operations
• Recognize the road ahead will be challenging
• NNFE demands the co-evolution of technology,
  organizations and processes

Delivering Combat Power
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Building the Naval Acquisition Enterprise

• MajGen Catto
• Commanding Officer
• Marine Corps SYSCOM
• 6 April 2006

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Marine Corps Systems Command

• We are at war
• Significant Accomplishments
• Advanced Planning Briefing to Industry
• NDIA Conference
• Baltimore, 13-14 April

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Questions?
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Back Up
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The Navy Enterprise Construct