LSI Implementation Phased Approach Recommendation

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LSI Implementation Phased Approach Recommendation
24 Nov 2004
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Objective Work Flow Model
SA
Functional Domain
Platform Domain
SHAPM
SA Kr
Specs Stds
Shipyard Install
Tiger Team Install
PMW (F)
PMW (P)
Shipyard
LSI (P)
ACA
LSI (F)
Platform Integration
Functional Integration
Developer
Product
C4I Mission Package
Producer
Product Suite
Product
Government
Platform Installation
Platform Installation
Install Matls
Process
Deliverable
Delivery
Acceptance Test
Lifetime Support
Domain Boundary
Control
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LSI Implementation Phased Approach

• Implementing the LSI concept will be challenging
• Over 100 programs in various states of
  development
• New organizational construct needs to solidify
• Operating relationships and execution
• No existing PEO single architecture upon which to
  base total transition to LSIs
• Additional PM training required
• EVMS
• Contract change control
• Risk Management
• Phased approach allows lessons learned in
  implementation to be tested, then refined
• Phase 1 System Architect
• Phase 2 Two Pilot LSIs
• Phase 3 Transition to all LSI program execution

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LSI Implementation Phased Approach

• Phase 1
• Establish the System Architect
• In place at start of FY 06
• Excluded from future LSI procurements
• Initiate enhanced management training for PEO
  managers
• EVMS
• Contract change control
• Risk Management
• Roles and responsibilities of PEO program
  managers
• Immediate tasks for the SA
• Analyze AS IS program matrix to
• Determine what is being done, by whom
• Budgets and costs for each aspect of each program
• Develop the Integrated schedule of all programs
  in PEO
• Identify Program transition points (milestone
  events)
• Develop A-Spec (for system-of-systems)

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LSI Implementation Phased Approach

• Phase 2
• Contract for LSI Pilots (1 Functional, 1
  Platform)
• In place during FY 07 (based on Phase 1 product
  availability)
• Schedule driven by System Architect products for
  RFPs
• Tasks for the Functional LSI
• Analyze system to meet SA allocated requirements
• Develop implementing Architecture in Functional
  Domain
• Identify needed capabilities (i.e. gaps)
• Develop B-Spec for Functional Domain
• Establish functional program integration facility
• Integrate all subsystems into the functional
  system
• Transition legacy programs per the SA timeline
• Modify SOWs of existing developmental contracts
  to transition responsibility to the LSI (and
  incentivize performance)

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LSI Implementation Phased Approach

• Phase 2 (continued)
• Tasks for the Platform LSI
• Develop implementing platform architecture
• Develop configuration(s) for platform(s)
• Establish platform system integration facility
• Integrate all subsystems into the platform system
• Modify production contracts as feasible to
  transition to platform LSI and support
  integration (and incentivize performance)

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LSI Implementation Phased Approach

• Recommended Phase 2 LSI Pilots
• Functional Program Networks (PMW-160)
• Fewer prime contractors
• Key backbone element
• Need single, integrated network to achieve Fn
• Require consistent approach to security (IA)
• Must interface with the outcome of OA and TCE
• Highest likelihood of success but with
  significant interfaces
• Platform Program Submarine Programs (PMW-770)
• Good foundation already in place
• Opportunity to test the new PEO management
  structure
• Good sponsorship

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LSI Implementation Phased Approach

• Phase 3
• Contract for Remaining LSIs
• In place for FY 08 execution
• Allows opportunity to refine approach based on
  Pilots
• Permits detailed program transition plans to be
  developed
• In advance, existing contractors should be tasked
  to develop transition plans for their components
  to specified operating and architecture framework
  (i.e. during Phase 2)

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LSI Pilot Contracting Strategy

• LSI contracts should be
• Performance based ID/IQ contract which allows
  both Fixed Price and Cost Plus tasks
• Award term for the maximum term. No increased
  risk to the Government, but some incentive for
  industry
• Potentially profitable. Factor large scale
  integration industry Return on Sales (ROS) needs
  (as opposed to engineering service industry
  needs) into the award fee structure. A good
  LSI should achieve 15 ROS.
• Full Open Competition with down select to a
  Limited Competition
• Evaluation factors should make it clear that the
  LSI must be capable of delivering complex systems
  at a 100M/yr clip
• Heavy emphasis on management capability.
• EVMS use is routine
• Engineering organization with depth
• Proven subcontracts organization
• Proven transparent make/buy process
• CMMI Level

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LSI Pilot Contracting Strategy

• Plan for complexity and dont let the schedule
  drive a bad procurement Use a multi-step
  acquisition process
• Issue draft RFP for comment by industry
• Establish cost (best value) criteria
• Issue final RFP. Scope, Statement of Objectives,
  Ts Cs, evaluation criteria
• 100 page technical management approach
  appropriate to PMW. Ensure technical and
  management are in one inseparable volume since
  they are inseparable.
• Acceptance of Ts Cs
• Candidates present a four hour oral presentation
  fleshing out the approach and answering questions
  
• Down select to two viable candidates based on
  appeal of the approach
• Update and re-issue SOO and RFP for limited
  competition.
• Final proposal is the complete planning package
  (SOW, Integrated Master Schedule to PEO defined
  capability as required over the initial PoP,
  Basis of Estimates), as evaluated through an
  Integrated Baseline Review, and a cost proposal
  based on the planning package.
• Award to single LSI based on best value

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LSI Pilot Contracting Strategy

• Performance award fee metrics examples
• Detailed planning
• Integrated Baseline Review success
• Availability of Technical Performance Measures
  for interim technical evaluation
• Cost and schedule via monthly EVMS
• Schedule baseline delivery dates met (if no
  contract perturbations)
• Performance Design walkthroughs
• Performance Design test progress relative to
  Technical Performance Measures
• Performance at standard test points SQT, FAT,
  system level testing, installation testing, end
  to end TECHEVAL
• Meeting small business goals
• Cost reduction incentives for systems being
  procured and supported
• ID/IQ contract and other vehicles (e.g. SEAPORT)
  provide ample off ramps

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Small Business Impacts

• LSI concept is NOT detrimental to growth of small
  business. The opposite can be true.
• Establish small business goals for LSIs
• Total dollar value goal (may be different for
  different LSIs e.g. a Satellite LSI and a
  software application LSI are clearly two
  extremes)
• Number of small businesses goal
• Conventional socio-economic goals
• Incentivize goals through award fee formula
• Key Element Although concept is not detrimental
  to small business growth, the shift of small
  business revenue to a subcontracted position
  would require an adjustment of SPAWARs direct
  contracting goals.

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Estimated FTE by Phase
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Implementation Costs
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Implementation Costs