Intermediate Systems Acquisition Course. Lesson 3.15 Full Rate Production ADE-3. Supporting ADE-3
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1 Supporting ADE-3 At the end of the Obtain Phase, the program office prepares for Acquisition Decision Event 3 (ADE-3). ADE-3 is the production decision to advance to the Produce/Deploy/Support/Dispose Phase of the DHS Acquisition Lifecycle Framework (ALF). As discussed in earlier lessons, ADEs are oversight reviews conducted at the end of each phase of the ALF. These senior management reviews determine whether a program has adequately completed the objectives of the current phase and is mature enough to advance into the next phase. They are designed to ensure that the risk of proceeding to the next phase of the acquisition is acceptable. In this lesson, we will describe the information and documents needed to support a production decision to begin the Produce/Deploy/Support/Dispose Phase of an acquisition. You may print the Full Rate Production ADE-3 lesson or save it for future reference. D Page 1 of 12
2 Graphic representation of the ALF highlighting Acquisition Decision Event 3. The Need Phase begins with ADE-0 and ends with ADE-1. The Analyze Select Phase ends with ADE-2A. The Obtain Phase includes ADE-2B and 2C, and ends with ADE-3 just before the Produce/Deploy/Support/Dispose Phase.
3 Objectives Upon completion of this lesson, you should be able to: List the key documents generated/updated during the Obtain Phase of the Acquisition Lifecycle Framework (ALF) Identify the information required for a decision to proceed to the Produce/Deploy/Support/Dispose Phase of the ALF Page 2 of 12
4 Key Activities of the Obtain Phase During the Obtain Phase, the program office takes the selected alternative, and then designs, develops, tests, and evaluates a system to provide capability to the user. They prepare for the upcoming Produce/Deploy/Support/Dispose Phase, start preliminary production efforts, and plan for deployment and sustainment of the system. For capital investments, the program office may conduct limited or low rate initial production (LRIP) to prove out the production process, ramp up to continuous production, and provide test articles for operational testing. They also revise the Life Cycle Cost Estimate (LCCE) and Acquisition Program Baseline (APB) to include refined logistics and funding parameters from the evolving Integrated Logistics Support Plan (ILSP). Based on successful demonstration of the capability through testing and evaluation, an independent assessment of system supportability and sustainment capability, and the preparation of all required documentation, the program may proceed to ADE-3. Page 3 of 12
5 Documents of the Obtain Phase These products of the Obtain Phase are documents that continue to evolve to reflect trade space decisions and fact-of-life changes in requirements and available resources. Note that some of these documents were first prepared in earlier phases. Select each product below to review. DHS Headquarters Approved: Acquisition Program Baseline (APB) Acquisition Plan (AP) Life Cycle Cost Estimate (LCCE) Integrated Logistics Support Plan (ILSP) Component Approved: Cost Estimating Baseline Document (CEBD) Integrated Master Schedule (IMS) Program Management Plan (PMP) Risk Management Plan (RMP) Test and Evaluation Master Plan (TEMP) Test and Evaluation Reports Systems Engineering Life Cycle (SELC) Review Results Page 4 of 12 Acquisition Program Baseline (APB) The APB documents the fundamental agreement on critical program cost, schedule, and performance parameters between the program manager (PM), the Component Head/Component Acquisition Executive (CAE) and the DHS Acquisition Decision Authority (ADA). The APB provides what will be delivered, how it will perform, when it will be delivered, and what it will cost and contains the intermediate markers to measure progress. The APB establishes the baseline cost, schedule, and performance parameters for the program and related projects. Acquisition Plan (AP) The AP is a living document that spans the life of the acquisition. As such, it is progressively elaborated over time, and requires the involvement of the Component Head of Contracting Activities (HCA) as it is developed. It provides a top-level plan for the overall acquisition approach and types of acquisition (e.g., asset acquisitions, services acquisitions, etc.) and a plan for acquiring future sustainment and support. The plan should describe why the solution is in the Government's best interest and why it is most likely to succeed in delivering capabilities to users. Life Cycle Cost Estimate (LCCE) A LCCE provides an exhaustive and structured accounting of all past (or sunk), present, and future resources and associated cost elements required to develop, produce, deploy, sustain and dispose of a particular system (program) regardless of
6 funding sources. The LCCE should represent the objective design, performance, and schedule of the system/program being estimated. Integrated Logistics Support Plan (ILSP) The ILSP defines the strategy for ensuring the supportability, sustainment, and eventual retirement/disposal of a future capability. Properly planned, it provides critical insight into the acquisition approach, schedule, and funding requirements for integrating supportability and sustainability requirements into the systems engineering process. Cost Estimating Baseline Document (CEBD) A CEBD is a single, comprehensive document that defines the technical, programmatic, and schedule description of an acquisition program. It provides information on development, testing, procurement, integration, program security and protection, installation and replacement, operations and maintenance, planned upgrades, and disposal. Integrated Master Schedule (IMS) Defines the program oversight and management systems and tools used to monitor, oversee, and integrate cost, schedule, and technical performance goals, metrics, and resources. Establishes the relationship among the work breakdown structure (WBS), the proposed product(s), requirements, and schedule; and, identifies the functional leads, stakeholders, and personnel who develop and maintain the WBS and all of its elements. Defines the relationship between the program's IMS and the contractor's schedule, and how the schedules are linked or interfaced. Program Management Plan (PMP) The objective of a PMP is to describe the establishment and coordination of tasks, resources, milestones, and finances necessary to successfully complete the program. It describes the program scope, objectives, and management methodology, and addresses the tasks, personnel, and stakeholder management, as well as cost and project controls. Risk Management Plan (RMP) An RMP details the process used to identify, analyze, mitigate, and report project risk. It clearly defines the criteria used to define consequence and likelihood. An RMP does not list specific project risks, but rather defines the method and process for managing risks. Test and Evaluation Master Plan (TEMP) The approved Operational Requirements Document (ORD) provides the key performance parameters (KPPs), source data for Critical Operational Issues (COIs), and derived technical parameters for developing a TEMP. A TEMP is finalized to describe the program's Test and Evaluation (T&E) strategy in terms of the Developmental Test and Evaluation (DT&E) and Operational Test and Evaluation (OT&E) needed to determine system technical performance; and, the strategy for evaluating the system's operational effectiveness and suitability through an integrated assessment of that developmental and operational testing. A preliminary version may be prepared prior to ADE-2A. Test and Evaluation Reports Developmental testing and operational assessments/tests are conducted in accordance with the TEMP and test plans. The results are used to ensure that the system meets all technical performance specifications and will be operationally effective and suitable. Systems Engineering Life Cycle (SELC) Review Results A series of technical reviews are conducted to control technical risk as the system evolves. The SELC provides for the following reviews during the Obtain Phase: Project Planning Review (PPR) System Definition Review (SDR) Preliminary Design Review (PDR) Critical Design Review (CDR)
7 Integration & Test Readiness Review (IRR) Production Readiness Review (PRR) Operational Test Readiness Review (OTRR) Operational Readiness Review (ORR)
8 Knowledge Review Which of the following is a key document that is updated during the Obtain Phase in preparation for ADE-3? A. Mission Need Statement (MNS) B. Capabilities Development Plan (CDP) C. Integrated Logistics Support Plan (ILSP) D. Concept of Operations (CONOPS) Correct! Integrated Logistics Support Plan (ILSP). The ILSP is listed in DHS Acquisition Management Instruction as one of the primary documents updated during the Obtain Phase, and is required to support the ADE-3 decision to proceed into the Produce/Deploy/Support/Dispose Phase. Page 5 of 12
9 Preparing for ADE-3: Coordination The coordination process is the same for every ADE, with the Office of Program Accountability and Risk Management (PARM) serving as the DHS Headquarters focal point for coordination between the Acquisition Review Team (ART) and the Component. Select the D-link to read a detailed explanation of the graphic D Page 6 of 12 The DHS ART is the staffing body that supports the ARB by reviewing the status of acquisitions scheduled for ARBs, and by assisting with the preparation of the decisions and issues placed before the ARB. The ART is comprised of action officers representing the DHS lines of business and key stakeholders who are ARB members. These include: CIO: Chief Information Officer CFO: Chief Financial Officer CPO: Chief Procurement Officer CRSO: Chief Readiness Support Officer A/S Policy: Assistant Secretary for Policy DOT&E: Director, Operational Test and Evaluation Representative from Joint Requirements Council (JRC) Other members as necessary A flow chart illustrates the notional coordination process leading up to ADE-1. It begins with a PM interacting with the Component acquisition team. The Component acquisition team provides input to PARM, who then provides input to the acquisition review team. The acquisition review team is composed of the CIO, CFO, CPO, CRSO, A/S Policy, DOTE, JRC representative, and others members as necessary. For IT programs, the Component acquisition team also provides input to the enterprise architecture board (EAB). The EAB provides input to the acquisition review team.
10 Conducting ADE-3: The Acquisition Review Board (ARB) Meeting The Acquisition Decision Authority (ADA) serves as the chair of the Acquisition Review Board (ARB). Based on successful testing, production readiness, sustainment reviews, and verification of sufficient production and operational resources (staffing and funding), the ARB may recommend that the ADA authorize entry into the Produce/Deploy/Support/Dispose Phase at ADE-3. The ADA's decision is documented in an Acquisition Decision Memorandum (ADM). For hardware intensive systems, this is a Full Rate Production decision For information technology, this decision grants the authority to deploy the system to the enterprise If the system is not ready for deployment, the ADA determines what actions are required to make it ready and documents those actions in an ADM. Page 7 of 12 Acquisition Decision Memorandum (ADM) - A documented record of decisions, exit criteria, and assigned actions for a specific type of acquisition as determined by the ADA.
11 Conducting ADE-3: ARB Considerations Questions to be answered at the ADE-3 decision point include: Has the system been tested in a relevant environment? Have the requirements been met? Have the shortfalls been addressed? Is the system operationally effective and suitable? Are the intended users trained and ready to accept the capability? Are the production processes mature? Are transition plans (if required) adequate? Is the capability/system supportable? Is sustainment and support planning adequate (as certified by the Component Acquisition Executive or equivalent)? Are sufficient resources available to support plans for production and deployment? Page 8 of 12
12 Conducting ADE-3: After the ARB The post-arb actions for all ADEs are the same: PARM drafts an ADM with program manager input, and submits it to the ADA for signature The ADM is signed by the ADA (with ARBassigned action items and due dates) The decision process is complete when the ADM is signed ADM actions/due dates are entered into the departmental periodic reporting system and are tracked by PARM on behalf of the Chief Acquisition Officer (CAO) Page 9 of 12
13 Knowledge Review Which of these is a question that should be answered at ADE-3? A. Does the Mission Need Statement identify any relationship to other DHS programs/systems? B. Are operational requirements (as described in the Operational Requirements Document) valid, complete, testable, and measurable? C. What resources are required for operational testing? D. Has the system been tested in a relevant environment? Correct! ADE-3 is the time to determine that the system has been tested in a relevant environment. Page 10 of 12
14 Review of the Obtain Phase Here is an illustration of what takes place during the Obtain Phase. You have learned about each of these elements and can now see how they fit in the "big" picture as they support ADE-3. Rollover each acronym in the graphic to see it expanded. Select the D-link to read a detailed explanation of the graphic D Page 11 of 12 Graphic reviewing all the documents and oversight groups between ADE-2B and ADE-3. Headquarters approved documents include the Acquisition Program Baseline (APB), Acquisition Plan (AP), Life Cycle Cost Estimate (LCCE), and Integrated Logistics Support Plan (ILSP). Component approved documents include the Cost Estimating Baseline Document (CEBD), Integrated Master Schedule (IMS), Program Management Plan (PMP), Risk Management Plan (RMP), and Test and Evaluation Master Plan (TEMP). Technical reviews include the PPR (Project Planning Review), System Definition Review (SDR), Preliminary Design Review (PDR), Critical Design Review (CDR), Integration & Test Readiness Review (IRR), Production Readiness Review (PRR), Operational Test Readiness Review (OTRR), and Operational Readiness Review (ORR). Oversight and review of the entire process is done by the Office of Program Accountability and Risk Management (PARM), then by the Acquisition Review Team (ART), and finally by the Acquisition Review Board (ARB). Meanwhile, the Enterprise Architecture Board (EAB) guides program decision makers toward alignment with the Homeland Security Enterprise Architecture (HLS EA). The ARB issues an Acquisition Decision Memo (ADM) prior to ADE-3. ADE-2B Acquisition Decision Event 2B APB Acquisition Program Baseline
15 AP Acquisition Plan LCCE Life Cycle Cost Estimate ILSP Integrated Logistics Support Plan CEBD Cost Estimating Baseline Document IMS Integrated Master Schedule PMP Program Management Plan RMP Risk Management Plan PPR Project Planning Review (Includes the SELC Tailoring Plan) PDR Preliminary Design Review IRR Integration Readiness Review OTRR Operational Test Readiness Review SDR System Definition Review CDR Critical Design Review PRR Production Readiness Review ORR Operational Readiness Review PARM Office of Program Accountability and Risk Management EAB
16 Enterprise Architecture Board ART Acquisition Review Team ARB Acquisition Review Board ADM Acquisition Decision Memo ADE-3 Acquisition Decision Event 3 TEMP Test and Evaluation Master Plan
17 Summary ADE-3 is the gateway to the Produce/Deploy/Support/Dispose Phase of the Acquisition Lifecycle Framework (ALF). The major activities of the Obtain Phase are design, development, and testing of the system. A series of technical reviews and tests are conducted to monitor system development. Plans, such as the Test and Evaluation Master Plan (TEMP) and Integrated Logistics Support Plan (ILSP), and other program documents, such as the Acquisition Program Baseline (APB) and Life Cycle Cost Estimate (LCCE), are developed and updated to reflect knowledge gained during the phase. As with other acquisition decision events, DHS follows an established process for conducting ADE-3, the production decision, with reviews and feedback from the Office of Program Accountability and Risk Management (PARM) and the Acquisition Review Team (ART) before the Acquisition Review Board (ARB) meeting. The Acquisition Decision Authority (ADA) summarizes the decision in an acquisition decision memorandum (ADM) that spells out any required follow-on activities. You may print the Full Rate Production ADE-3 lesson or save it for future reference. D Page 12 of 12 Repeat of the graphic representation of the ALF highlighting Acquisition Decision Event 3. The Need Phase begins with ADE-0 and ends with ADE-1. The Analyze Select Phase ends with ADE-2A. The Obtain Phase includes ADE-2B and 2C, and ends with ADE-3 just before the Produce/Deploy/Support/Dispose Phase.
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