Speaker

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Speakers Forum

• Co-sponsored by
• Air Force Association (AFA)
• POC - Candace Robey, 883-1900
• Association of Old Crows (AOC)
• POC - Steve Czonstka, 897-4775
• International Test and Evaluation Association
  (ITEA)
• POC - Donna Self, 883-5364
• National Defense Industrial Association (NDIA)
• POC - Len Iannuzzo, 883-1088

Judy A. Stokley Deputy PEO/WP Executive
Director 25 January 2006
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Leadership Changes
PEO and AAC Commander Maj. Gen. Jeff Riemer
Vice Commander and Deputy for Support Brig. Gen.
(S) Joseph Lanni
Deputy PEO and Executive
Director Ms. Judy Stokley, SES
3
Overview

• Defense Acquisition Performance Assessment
  Project
• Air Force Acquisition Transformation Council
• Acquisition Focus Areas at AAC
• Words from the War
• Summary

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DAPA - The Task
Issued By Acting Deputy Secretary Of Defense
England, 7 June 2005
I am authorizing an integrated acquisition
assessment to consider every aspect of
acquisition, including requirements,
organization, legal foundationsdecision
methodology, oversight, checks and balances
every aspect
The output will be a recommended acquisition
structure and processes with clear alignment of
responsibility, authority and accountability.
Simplicity is desirable Restructuring
acquisition is critical and essential.
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DAPA Membership And Support Teams
The Panel
Advisors
Dr. Francis W. Ahearn Professor Industrial
College of the Armed Forces, NDU Dr. Linda S.
Brandt Professor Industrial College of the
Armed Forces, NDU Ms. Judy A. Stokley Deputy for
Acquisition Air Armament Center Mr. Alfred G.
Hutchins, Jr. President Hutchins Associates,
Inc.
Lieutenant General Ron Kadish USAF (Ret) Partner,
and VP Aerospace Market Group Booz, Allen
Hamilton Panel Chairman Dr. Gerald Abbott
Professor Industrial College of the Armed
Forces, NDU Mr. Frank Cappuccio Executive Vice
President Lockheed Martin Corporation General
Richard Hawley, USAF (Ret) Aerospace
Consultant General Paul Kern, USA (Ret) The Cohen
Group Mr. Don Kozlowski Former Vice President,
McDonnel Douglas Corporation Mr. J. David
Patterson, Project Director Ms. K. Eileen Giglio,
Deputy Project Director Col. Alan Boykin, USAF,
Staff Director
Support Staff
Lt. Col. Rene Bergeron, USAF Lt. Col. Annette
Foster, USAF Mr. Stephen Hayes, USA Ms. Maggie
Souleyret Ms. Annette Atoigue
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Performance Assessment Process

• Reviewed Over 1,500 Documents To Establish
  Baseline Of Previous Recommendations
• Held Open Meetings And Maintained A Public
  Web-site To Obtain Public Input
• Heard From 107 Experts, Received Over 170 Hours
  of Briefings

• Surveyed Over 130 Government And Industry
  Acquisition Professionals
• Developed 1.069 Observations
• Identified 42 Areas Of Interest
• Created Integrated Acquisition Performance
  Assessment.
• Defined Eight Performance Improvements

LITERATURE SEARCH
Issue Identification
Performance Improvements
Situational Assessment
PUBLIC INPUT
Performance Improvement
Assessment
Performance Assessment
SURVEY OF PRACTITIONERS
Major Findings
Implementation Criteria
SUBJECT MATTER EXPERT BRIEFINGS
1,069 OBSERVATIONS
42 ISSUE AREAS
INTEGRATED ASSESSMENT
8 PERFORMANCE IMPROVEMENTS
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Integrated Look At Key Issues
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Our Integrated Assessment
An effective acquisition system requires
stability and continuity that can only be
achieved through integration of the major
elements upon which it depends. For example
Organization, Workforce, Budget, Requirements,
Acquisition, and Industry, as well as Leadership
and Congressional Oversight.
In Theory - Cohesive and Stable
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Our Integrated Assessment
There are fundamental disconnects in DoD
management systems and Congressional oversight,
driven by competing values and objectives that
create government-induced instability in our
acquisition programs

• HOW MUCH AND WHEN TO BUY
• CONTROL, OVERSIGHT AND BALANCE INSTABILITY THAT
  ADVOCACY CREATES

• STABILITY
• TRAINING
• JOB SATISFACTION
• EXPERIENCE

• COMPLIANCE
• CONSISTENCY
• CONTROL
• OVERSIGHT

• HOW TO BUY
• BALANCE OF COST, SCHEDULE AND PERFORMANCE
• TECHNOLOGY AVAILABLE vs. PERFORMANCE, COST AND
  TIME TO NEED

• WHY AND WHAT TO BUY
• MISSION SUCCESS AT LOWEST COST IN LIFE
• SERVICE ADVOCACY

• SURVIVAL
• PREDICTABILITY
• STOCKHOLDER VALUE
• VENDOR BASE VITALITY

In Practice Disconnected and Unstable
(government induced)
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Performance Improvement
Reducing government-induced instability through
transformation of these key elements of the
Acquisition system can reduce cost, enhance
acquisition performance and accelerate key
capabilities by years.
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Performance Improvements Organization

• Organization
• OSD Acquisition, Technology and Logistics (ATL)
• Focus on what, not how, to buy
• Member of JROC
• Own Acquisition Stabilization Account (ASA)
• Compete capability needs and chair Materiel
  Selection Board
• Disestablish OIPT process
• Service Acquisition Executives (SAEs)
• Elevate to Level 3
• Make 5-year Fixed Presidential Appointments
  renewable for second term
• Create pool of pre-qualified candidates
• Post Milestone B execution
• Service Chiefs/CNO
• Pre-milestone B execution
• Service 4-Star Acquisition Commander
• Dual report to SAE and Service Chief/CNO
• Integrate budget, requirements, acquisition
• Advocate for technological future
• Advocate and manage Acquisition workforce

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Performance Improvements Budget and
Requirements

• Budget
• Create separate ASA programmed and executed by
  ATL
• Create management reserve at Service level
• Adjust all accounts to 80/20 confidence level in
  08 POM submission
• Requirements
• Replace JCIDS with COCOM-led requirements process
  in which the Services and DoD agencies compete to
  provide solutions
• Create 15-year Joint Capability Acquisitions and
  Divestment Plan (JCADP), 2-yr cycle
• Time-phased, fiscally-informed and prioritized
  capability needs
• ATL compete among Services and select Materiel
  Solutions
• Require TEMP and IOTE Plan for Milestone B
  decision
• Add operationally acceptable category to
  Operational Test evaluation
• Require JROC approval to test outside
  Requirements
• PMs can reschedule requirements

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Performance Improvements Acquisition

• Acquisition
• Pre-milestone B, PM is operator trained in
  acquisition, DPM is acquisition professional
• Post-milestone B, PM is acquisition professional,
  DPM is operator trained in acquisition
• 4-Star Acq Cmdr is certification authority for
  Acquisition workforce
• Incl budget, reqts, test officers from Service
  Staffs/other Commands
• Make time a KPP
• Require Time Certain Development - NGT 6 years
  from MS A to 1st del
• Require Risk Based Source Selections - replace
  development cost bid with negotiated
  most-probable cost
• Baseline at Milestone B NET Preliminary Design
  Review
• Require TEMP and IOTE Plan at Milestone B-
  PEO/PM signator on both
• Give PM explicit authority to defer requirements
  post Milestone B
• Appoint PM accountable for each baseline with
  tenure from Milestone B through Beyond Low Rate
  Initial Production report

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Performance Improvements Workforce and Industry

• Workforce
• 4-Star Acq Cmdr is certification authority for
  Acq workforce
• Workforce includes personnel from budget,
  requirements, test, etc.
• Establish mentor program for PMs
• Stabilize PM tour NLT MS B - Beyond Low Rate
  Initial Prod Report
• Industry
• Establish Roundtable hosted by SECDEF to share
  Joint Capability Acquisition and Divestment Plan
• Align industry and defense strategic planning
• Convert to Risk-based Source Selections
• Award to minimum risk proposals at negotiated
  most probable cost
• Favor formal competitions by primes vice
  traditional make/buy

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DAPA Closure

• Results presented in public forum 14 Dec 05
• Release of full report expected 27 Jan 06
• Results provided to QDR panel

http//www.acq.mil/dapaproject - 1 Feb
06 http//www.dau.mil/library/ - Date TBD
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Air Force Acquisition Transformation Council

• The Umbrella SMART OPS 21 LEAN
• Process Efficiency
• Balanced Scorecard
• Acquisition Improvement Efforts
• Transparency in Governance - Program Stability
• Risk Assessment Methodology - Program Planning
  Baselines
• Oversight - Test OT Evaluations
• Risk Assessment Methodology Ms. Betsy Thorn
• Center of Gravity for Acquisition Improvements
• SPIRAL 1, Beta Tests, Operating Guide by 30 Sept
  06
• Acquisition Strategies, Source Selections,
  Milestone/Program Decisions

WAR-WINNING CAPABILITIES ON TIME, ON COST
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AF Goal
GOING GREEN
Reset Program Success Factors to Risk Based
Overall 8 33 59
Cost 6 14 80
Schedule 9 35 57
Technical 3 16 81
Funding 8 35 57
95 By 2010 (New Culture!) Majority Objective
Now- Much is Subjective (Old Culture!)
Source AF PEO Portfolio, Oct 05 MAR
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Acquisition Focus Areas at AAC

• Credibility
• Risk Assessment Methodology
• Risk-focused Source Selections
• Sufficiency Reviews
• College of Acquisition Curriculum
• Expectation Management Agreements Annual
  Commitments
• PEO reviews Balanced Scorecard
• Financial Execution
• Capability Needs
• Counter MANPADS
• Net-ready weapon data links
• Chemical Biological Radiological Nuclear
  Explosive (CBRNE)
• Universal Armament Interface
• Urban CAS
• Reliability
• Air Armament Symposium 3-4 October 06

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Words From The War

• My concern is that this war has reached a point
  where a tactical error can have strategic
  implications so everything in our arsenal needs
  to work first time, every time. We have also
  become the victim of our own success in that the
  ground troops know we can shack the target
  every time and pretty much control collateral
  damage. As such, we only drop one at a time so
  when one doesnt work as advertised it becomes
  obvious.
• Lt Gen Walter Buchanan
• Commander of 9th Air Force

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Summary

• War-Winning Capabilities On Time, On Cost
• Thank You for All You Do