DoDD 5000'1

1
Center for Program ManagementDefense Acquisition
University 27 November 2002
New DEPSECDEF Guidance Replaces

• DoDD 5000.1
• DoDI 5000.2
• DoD 5000.2-R

Supercedes 7 Nov 2002 version
2
Structure of this Presentation

• This presentation provides information on what
  has changed and why (through chart 16)
• A short tutorial is provided to step through the
  acquisition process using the interim guidance
  (charts 17 through 46)
• A more comprehensive tutorial will be posted to
  this site after the new DoDD 5000.1 and DoDI
  5000.2 are issued in early 2003

3
New Acquisition Policy
From This (April 2002)

• DoD Directive 5000.1
• DoD Instruction 5000.2
• DoD Regulation 5000.2-R

To This (30 Oct 2002)

• Interim Guidance Documents
• The Defense Acquisition System
• Operation of the Defense Acquisition System
• Interim Defense Acquisition Guidebook

• DoDD 5000.1 DoDI 5000.2 will be reissued in
  January 2003.
• DoD 5000.2-R will not be reissued.
• The former DoD 5000.2-R serves as the Interim
  Guidebook pending issuance of a streamlined
  guidebook. The former DoD 5000.2-R is NOT
  mandatory.

4
Need for New Policy Environment
I have determined that the current DoD Directive
5000.1, The Defense Acquisition System, DoD
Instruction 5000.2, The Operation of the Defense
Acquisition System, and DoD 5000.2-R, Mandatory
Procedures for Major Defense Acquisition Programs
(MDAPs) and Major Automated Information System
(MAIS) Acquisition Programs, require revision to
create an acquisition policy environment that
fosters efficiency, flexibility, creativity, and
innovation. Therefore, by separate memorandum, I
have cancelled those documents effective
immediately.
Paul Wolfowitz Deputy Secretary of Defense
5
DEPSECEDEF Memo, Defense Acquisition, 30 Oct 2002
Highlights

• Streamlined The Defense Acquisition System
  (replaces DoDD 5000.1) from 12 to 6 pages
  Operation of the Defense Acquisition System
  (replaces DoDI 5000.2) from 46 to 34 pages
• Retains basic acquisition model (no new phases)
• Emphasizes evolutionary acquisition and cost
  realism
• Has initiative to develop Joint Integrated
  Architectures
• Creates Information Technology Acquisition Board
  (ITAB)
• Renames Component Advanced Development work
  effort as Technology Development
• Replaces Interim Progress Review with Critical
  Design Review
• Provides special interest for ACAT I
  designation
• Incorporates DOTMLPF terminology (Joint Vision
  2020)
• Replaces MNS and ORD with ICD, CDD and CPD
• Cancels DoD 5000.2-R. Replaced by Guidebook

6
DEPSECDEF Memo, Defense Acquisition, 30 Oct 2002,
attachment 1, The Defense Acquisition System
DoDD 5000.1, chg1, 4 Jan 01
The Defense Acq System, 30 Oct 02

• Thirty short, clear and concise policy
  statements, with following additions
• Decentralized Responsibility
• Reduced Cycle Time
• Collaboration
• Information Superiority
• Information Assurance
• Intelligence Support
• Knowledge-Based Acquisition
• Systems Engineering
• Products, Services Technologies
• Performance-Based Logistics
• Program Goals
• Legal Compliance
• International Agreements
• Cost Realism
• Cost Sharing
• Program Information
• 5.5 pages, No enclosures

• Five major categories containing 14 definitive
  policy statements
• Achieving Interoperability
• Rapid Effective Transition from ST to Products
• Rapid Effective Transition from Acquisition to
  Production
• Integrated Effective Operational Support
• Effective Management
• 8 pages and 3 enclosures

Most policy statements from DoDD 5000.1 have
been summarized and included in the new interim
guidance. Many policy areas were added from
cancelled DoDI 5000.2 and DoD 5000.2-R
7
DEPSECDEF Memo, Defense Acquisition, 30 Oct 2002,
attachment 2, Operation of the Defense
Acquisition System

• Replaces DoDI 5000.2
• Deleted material
• Program Initiation in advance of Milestone B
  (except for Ships)
• Transition Fund in FYDP
• Approval of Acquisition Strategy prior to release
  of RFP
• IPR between the CTD work efforts

Discretionary areas covered in Guidebook (former
DoD 5000.2-R)
8
DEPSECDEF Memo, Defense Acquisition, 30 Oct 2002,
attachment 2, Operation of the Defense
Acquisition System

• Replaces DoDI 5000.2
• New/Revised material
• Revision of evolutionary acquisition (EA) and
  spiral development (SD) definitions (blocks to
  increments)
• New requirements process Joint Staff will
  provide details in the CJCSI 3170.01 revision
  when it is released in early CY2003.
• Sys Development and Demonstration IPR now
  Critical Design Review (CDR)
• Establishes Information Technology Acquisition
  Board (ITAB) DAB counterpart for MAIS programs

9
DEPSECDEF Memo, Defense Acquisition, 30 Oct 2002,
attachment 2, Operation of the Defense
Acquisition System

• New/Revised material, continued
• Defines special interest reasons for ACAT I
  designation
• Requires Operational Test Readiness Review (OTRR)
  to be chaired by SAE (ACAT I) or PEO (ACAT
  II/III)
• Requires Dpty Dir, DTE independent assessment of
  system readiness for IOTE (ACATID/IAM)
• Added procedures for Acquisition of Services
• New report Software Resources Data Report

10
DEPSECDEF Memo, Defense Acquisition, 30 Oct 2002,
attachment 2, Operation of the Defense
Acquisition System

• New/Revised material, continued
• Places emphasis on Requirements and Acquisition
  integration requires that
• Joint Staff lead development of joint integrated
  architectures (three views operational, systems
  and technical)
• USD(ATL) lead development of integrated
  capability assessments, capability roadmaps, and
  investment strategies

11
The 5000 MODEL
User Needs Technology Opportunities

• Process entry at Milestones A, B, or C
• Entrance criteria met before entering phase
• Evolutionary Acquisition or Single Step to Full
  Capability

(Program
B
A
C
FOC
IOC
Initiation)
Concept Technology Development
System Development Demonstration
Production Deployment
Operations Support
Critical Design Review
FRP Decision Review
Concept Exploration
Technology Development
LRIP/OTE
Pre-Systems Acquisition
Systems Acquisition
Sustainment
New
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DEPSECDEF Memo, Defense Acquisition, 30 Oct 2002,
attachment 2, Operation of the Defense
Acquisition System
Evolutionary Acquisition

• Two development processes to implement
  Evolutionary Acquisition Strategy
• Incremental Development End-state requirement
  is known, and requirement will be met over time
  in several increments
• Spiral Development Desired capability is
  identified, but end-state requirements are not
  known at Program Initiation. Requirements for
  future increments dependent upon technology
  maturation and user feedback from initial
  increments
• Evolutionary acquisition strategies shall be
  preferred approach to satisfying operational
  needs.
• Spiral development shall be the preferred
  process.

13
DEPSECDEF Memo, Defense Acquisition, 30 Oct 2002,
attachment 2, Operation of the Defense
Acquisition System
New Requirements Documents

• Initial Capability Document (ICD) replaces MNS at
  Milestone A
• Captures capability shortfall in terms of
  integrated architectures identifies critical
  capabilities to satisfy the requirement, and best
  joint solution(s).
• Capability Development Document (CDD) replaces
  ORD at Milestone B
• Each CDD will have a set of validated KPPs that
  will apply only to that increment of the
  evolutionary acquisition strategy.
• Capability Production Document (CPD) replaces ORD
  at Milestone C
• Common element is CAPABILITIES that may be
  required to
• Resolve a shortfall in warfighting capability,
  accommodate technology breakthrough or
  intelligence discoveries.

Details will be implemented by revisions to CJCSI
3170.01B.
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DEPSECDEF Memo, Defense Acquisition, 30 Oct 2002,
attachment 2, Operation of the Defense
Acquisition System
Requirements/Acquisition Process
MS B
New
Enterprise Architecture
MS C
Approved
MS A
D O T M L P F
MDA
RA
CPD
Refinement of Solution Sets
Analysis Of Capability Solution Sets
Concept and Technology Development
ICD
MDA
RA
Ongoing Mission Area Analysis
Demo
LRIP
SDD
MDA
FRP
RA
Demo
Increment 1
MS C
MS B
Demo
LRIP
Doctrine, organizations, training, materiel,
leadership, personnel facilities
FRP
Increment 2
Demo
MS C
MS B
Demo
LRIP
FRP
Increment 3
Demo
Oversight
Acquisition
Integrated Decision Meetings
Requirements
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Acquisition Category I Program Major Defense
Acquisition Program (MDAP)

• Estimated by the USD(ATL) to require eventual
  total expenditure (FY 2000 constant dollars) of
• - RDTE of more than 365M, or
• - Procurement of more than 2.19B, or
• May be special Interest
• (technology complexity Congressional
  interest resource implications critical to
  achievement of a capability or set of
  capabilities or is a joint program)
• Designated by USD(ATL)

NEW
definition
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Overarching IPTs
Defense Acquisition Executive
Chief Information Officer
NEW
Defense Acquisition Board
IT Acquisition Board
C3ISR Systems
Weapon Systems
Major AIS
C3I Overarching Integrated Product Team (OIPT)
Overarching Integrated Product Teams (OIPT)
Director, Defense Systems OUSD(AT)
Deputy ASD C3ISR, Space IT Programs OASD(C3I)
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Defense Acquisition Management Framework A
Short Tutorial
The following charts provide a summary of the
acquisition framework based on the interim
guidance issued to replace DoDD 5000.1 and DoDI
5000.2, in attachment 2, Operation of the
Defense Acquisition System DEPSECDEF Memo, 30
Oct 2002, subject, Defense Acquisition
18
Defense Acquisition Management Framework A
Short Tutorial

• Key points
• Evolutionary acquisition is the preferred
  strategy for rapid acquisition of mature
  technology spiral development is the preferred
  process
• MDA may authorize entry at any point consistent
  with phase-specific entrance criteria
• Non-mandatory guidance on best practices, lessons
  learned and expectations are available in the
  Interim Guidebook (former DoD 5000.2-R)
• Validated and approved MNS and ORD are still
  required until revised CJCSI 3170.01 is published
  with the new DoDD 5000.1 and DoDI 5000.2 in early
  CY2003

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The 5000 Model
Technology Opportunities User Needs

• Process entry at Milestones A, B, or C
• Entrance criteria met before entering phases
• Evolutionary Acquisition or Single Step to Full
  Capability

B
A
C
IOC
FOC
Concept Exploration
Technology Development
System Integration
System Demonstration
LRIP
Full-Rate Prod Deployment
Sustainment
Disposal
Critical Design Review
FRP Decision Review


Concept Tech Development
System Development Demonstration
Operations Support
Production Deployment
Sustainment
Pre-Systems Acquisition
Systems Acquisition (Demonstration, Engineering
Development, LRIP Production)
IOC Initial Operational Capability FOC Full
Operational Capability
Validated approved by operational validation
authority
Initial Capability Document (ICD)
Capability Development Document (CDD)
Capability Production Document (CPD)
Relationship to Requirements Process
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Pre-Systems Acquisition
Technology Opportunities User NeedsWork Content
Technology Opportunities Activities
User Need Documents

• Science Technology (ST) activities
• ATDs
• ACTDs
• Joint Warfighting Experiments

• Initial Capability Document (ICD)

MNS is required until CJCSI 3170.01 is revised
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Hierarchy of Materiel Alternatives
The DoD Components shall work with users to
define requirements that facilitate, in preferred
order
1. Procurement/modification of commercially
available products, services, and technologies,
from domestic or international sources, or the
development of dual-use technologies 2. The
additional production/modification of
previously-developed U.S. and/or Allied military
systems or equipment 3. A cooperative
development program with one or more Allied
nations 4. A new joint Component or Government
Agency development program or 5. A new DoD
component-unique development program.
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Entering the Acquisition Process
The MDA may authorize entry into the acquisition
process at any point consistent with
phase-specific entrance criteria.

• Entrance Criteria
• Validated approved ICD resulting from analysis
  of potential concepts across DoD, international
  systems from Allies and cooperative
  opportunities?
• Assessment of critical technologies associated
  with the concepts, including technology maturity,
  technology risk, and if necessary, technology
  maturation and demonstration needs?

Concept Technology Development Phase
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Milestone A

• Approval to enter the Concept and Technology
  Development Phase
• MDA approves
• Initiation of concept studies
• Lead Component for Joint efforts
• Work on key sub-systems or components
• Exit criteria
• Acquisition Decision Memorandum(ADM)
• Information Requirements
• Consideration of technology issues cooperative
  opportunities with allies
• Results of market research
• Initial Capability Document (ICD)
• Analysis of Multiple Concepts

MNS is required until CJCSI 3170.01 is revised
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Concept Technology DevelopmentPhase
A
Technology Development
Concept Exploration
Concept Exploration
Technology Development

• Enter Validated approved ICD
• Activity Paper studies of alternative solutions
  to the initial concept
• Exit MDA selects preferred solution to be
  pursued

• Enter Project leader understands solution as
  part of the integrated architecture and its
  DOTMLPF implications.
• Activity Technology development demonstrations
• Exit Affordable increment of military-useful
  capability identified and demonstrated in
  relevant environment normally can be developed
  for production within 5 years

25
Concept Exploration

• Purpose evaluate alternative solutions to the
  initial concept select preferred solution
• Characterized by
• Competitive, parallel, short-term studies
• Innovation and competition
• Funding for concept studies contracts only
• Analysis of Alternatives (AoA)
• Work guided by the ICD

MNS until CJCSI 3170.01 is revised
26
Technology Development

• Purpose To reduce technology risk and determine
  appropriate set of technologies to be inserted
  into a full system.
• Key Activities
• Development of a system architecture
• Demonstration(s) of technology(ies) in a relevant
  environment
• Risk reduction on components and subsystems
• Capabilities Development Document (CDD) prepared
  by user led IPT
• Shipbuilding programs may be initiated at
  beginning of Technology Development

ORD is required until CJCSI 3170.01 is revised
27
Concept and Technology Development Phase Key
Activities

• Form IPTs to facilitate decision-making
• Conduct Market Research and Analysis
• Assess AoA and select preferred solution
• Conduct cost performance trade-offs
• Develop overall acquisition TE strategy
• Formulate initial Acquisition Program Baseline
• Prepare Test Evaluation Master Plan
• Prepare C4I Support Plan (if applicable)
• Prepare life-cycle / independent cost estimates
  (including economic analysis for AIS programs)

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Concept and Technology Development Phase Key
Activities, continued

• Develop draft performance specification
• Identify potential environmental consequences
• Prepare waiver from full-up Live Fire TE (if
  applicable)
• Ensure full funding in FYDP prior to MS B
• Prepare contract package for next phase
• Meet exit criteria for CTD Phase
• Propose exit criteria for next phase

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Summary, Concept Technology Development Phase

• May consist of both CE TD
• Maximum competition and innovation to satisfy
  requirements
• Thorough planning critical to success
• BOTTOM LINE Is New Development
  Program Justified ???

30
Entering the Acquisition Process
The MDA may authorize entry into the acquisition
process at any point consistent with
phase-specific entrance criteria.

• Entrance Criteria
• Have an integrated architecture for the relevant
  mission area?
• Answers to following questions are yes?
• Does the acquisition support core/priority
  mission functions of the Federal Government?
• Does the acquisition need to be undertaken by DoD
  because no alternative private sector or
  government source can better support the
  function?
• Does the acquisition support work processes that
  have been simplified or otherwise redesigned to
  reduce costs, improve effectiveness, and make
  maximum use of commercial off-the-shelf
  technology?
• Technology mature?
• Have APB minimum set of KPPs?
• Affordability determination?
• Full funding in FYDP?

Systems Development Demonstration Phase
31
Milestone B

• Requires an approved Capability Development
  Document (CDD)
• A PM has been assigned
• MDA approves
• Acquisition Decision Memorandum
• Entry to System Development and Demonstration
  Phase
• Program Initiation
• Acquisition Strategy
• Acquisition Program Baseline
• LRIP Quantities
• Exit criteria for next phase

ORD is required until CJCSI 3170.01 is revised
32
System Development DemonstrationPhase
B
System Demonstration
System Integration
Critical Design Review

System Demonstration
System Integration

• Enter PM has technical solution but has not
  integrated subsystems into complete system
• Activities System Integration of demonstrated
  subsystems and components. Reduction of
  integration risk.
• Exit Demonstration of prototypes in relevant
  environment

• Enter Prototypes demonstrated in relevant
  environment
• Activities Complete system demonstration.
  DT/OT/LFTE
• Exit System demonstration in intended
  environment using engineering development models
  meets validated requirements

33
System Development Demonstration Phase
Purpose

• To develop a system
• Reduce program risk
• Ensure operational supportability
• Ensure design for producibility
• Assure affordability
• Demonstrate system integration, interoperability,
  and utility

34
System Integration

• Purpose Integrate subsystems reduce
  systems-level risk
• Key Activities
• Demonstrate prototype articles
• Conduct an Early Operational Assessment (EOA)
• Prepare for Critical Design Review (CDR)
• Prepare RFP for next effort/phase

35
System Demonstration

• Purpose Demonstrate the ability of the system to
  operate in a useful way consistent with the
  validated KPPs.
• Key Activities
• Conduct extensive testing developmental,
  operational, and survivability/lethality testing,
  as appropriate
• Conduct technical reviews, as appropriate
• Demonstrate system in its intended environment
• Prepare RFP for Low Rate Initial Production
• Prepare for Milestone C
• Update Information requirements

36
Summary System Development Demonstration
Phase

• May consist of System Integration and System
  Demonstration depending on
• technology maturity
• affordability
• System demonstrated in the intended environment
  meets validated requirements industrial
  capability available meets exit criteria
• Manufacturing risk low
• Bottom Line System ready to begin LRIP?

37
Entering the Acquisition Process
The MDA may authorize entry into the acquisition
process at any point consistent with
phase-specific entrance criteria.

• Entrance Criteria
• Acceptable performance in DTE and Operational
  Assessment (OA)?
• Mature software capability?
• No significant manufacturing risks?
• Manufacturing process in control (if MS C is for
  full-rate production)?
• Approved Capability Production Document (CPD)?
• Acceptable interoperability?
• Acceptable operational supportability?
• Compliance with DoD Strategic Plan?
• Affordable throughout life cycle?
• Optimally funded and properly phased for rapid
  acquisition?

Production Deployment Phase
38
Milestone C

• Commits the Department to Production
• MDA approves
• Acquisition Decision Memorandum
• Updated Acquisition Strategy and Acquisition
  Program Baseline
• Entry into LRIP for systems that require a LRIP,
  into production or procurement for systems that
  do not require LRIP, or into limited deployment
  for MAIS programs or software intensive systems
  with no production components
• Exit criteria for LRIP if appropriate

39
Production DeploymentPhase
C
Full-Rate Production Deployment
LRIP/IOTE
FRP Decision Review

Full-Rate Production Deployment
LRIP

• Enter System matured for production
• Activities Low-rate initial production. IOTE,
  LFTE of production-representative articles.
  Establish full manufacturing capability.
• Exit System operationally effective, suitable
  and ready for full rate production

• Enter Beyond LRIP (OSD TE Over-sight programs)
  and LFTE reports (covered systems) submitted to
  Congress
• Activities Full rate production.
• Deploy system. Start support.
• Exit Full operational capability deployment
  compete

40
Low Rate Initial Production (LRIP)

• Purpose Complete manufacturing development
  produce minimum quantities for IOTE, to
  establish initial production base, and to permit
  orderly ramp-up to full-rate production.
• Key Activities
• Intensive testing DT, full-up system level
  LFTE and IOTE
• Update support and deployment plans
• Prepare RFP for full-rate production
• Prepare for Full-Rate Production Decision Review
  (FRPDR)
• Update all information requirements.

41
Full Rate Production Decision Review (FRPDR)

• Approves entry into Full Rate Production
• MDA Approves
• Acquisition Decision Memorandum (ADM)
• Full-rate production
• Updated Acquisition Strategy
• Updated Acquisition Program Baseline
• Exit criteria, if appropriate
• Provisions for evaluation for post-deployment
  performance

42
Full Rate Production and Deployment

• Purpose
• Establish stable, efficient production and
  support base
• Achieve initial operational capability (IOC)
• Ensure fielded system continues to provide
  warfighter with required capabilities

43
Full Rate Production and Deployment
Key Activities

• Monitor and update the threat
• Produce and deploy the system
• Monitor system performance and readiness of
  initial system deployments
• Identify and correct shortcomings/deficiencies to
  improve performance and/or supportability
• Conduct Follow-On Operational Test and Evaluation
  (FOTE), as appropriate

44
Summary Production Deployment Phase

• Consists of both LRIP and Full-Rate Production
• Not all programs have LRIP
• Formal IOTE and LFTE conducted
• Monitor systems - correct shortcomings
• Continue testing
• Bottom Line System is produced and deployed
  IOC attained

45
Operations SupportPhase
Sustainment
Disposal
Sustainment
Disposal

• Sustainment starts immediately upon fielding or
  deployment.
• Activities Maintain readiness and operational
  capability of deployed system(s). Execute
  operational support plans. Conduct modifications
  and upgrades to hardware and software. Measure
  customer confidence.

• Demilitarization Disposal
• Activities Demilitarize and dispose of systems
  IAW legal and regulatory requirements,
  particularly environmental considerations. Use
  Defense Reutilization and Marketing Office
  support, as appropriate.

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Operations and Support Phase

• Emphasis shifts from design/development
  engineering to supporting the fielded system
• Operational units established readiness
  monitored
• Test and evaluation continues
• Operational/support problems identified
• Product Improvement/Service Life Extension
  Programs energized, if required
• System disposed of at the end of its useful life

Overlaps Production and Deployment Phase since
items are deployed prior to the end of
production, and must be sustained in the field