Intermediate Systems Acquisition Course. Need Validation ADE-1

Transcription

1 Need Validation ADE-1 Everyone involved in an acquisition program needs to participate in preparing for a successful Acquisition Decision Event (ADE). Failure to make a convincing case for the program at these major program reviews can result in program delays, redirection, or even cancellation. For the first three phases of the Acquisition Life Cycle, the activities in each phase lead up to an ADE. These oversight reviews determine whether a program has adequately completed the objectives of the current phase and is appropriately mature to advance into the next one. The first major review comes at the end of the Need Phase: ADE-1. This lesson provides you with guidance for navigating the first phase of the Acquisition Lifecycle Framework (ALF), when user needs are defined and validated. You may print the Need Validation ADE-1 lesson or save it for the future. Select the image to view an enlargement Select the D-link to read a detailed explanation of the graphic D Page 1 of 28

2 Graphic showing the acquisition lifecycle framework. ADE-1 is highlighted. The first phase is Need, "we define the problem." Acquisition decision event or ADE-0 is in the Need Phase, and this is the collection point for gaps and needs. ADE-1 comes at the end of the Need Phase. The next phase is Analyze/Select, "we identify the alternatives and resource requirements." ADE-2A (approve program) comes at the end of the Analyze/Select Phase. is the Obtain Phase, "we develop and evaluate capabilities." ADE-2B (approve supporting projects/contracts) and ADE-2C (approve low rate production if required) occur during the Obtain Phase. ADE-3, field and support program products, comes at the end of the Obtain Phase. The final phase is Produce/Deploy/Support/Dispose, "we produce and maintain those capabilities." The Joint Requirements Council (JRC) is active during the Need Phase and Analyze/Select Phase. The Acquisition Review Board (ARB) is active during all the phases of the acquisition lifecycle framework (ALF).

3 Objectives Upon completion of this lesson, you should be able to: Recognize the purpose of a phased acquisition approach, the acquisition activities, phases, efforts, decision reviews, and the required principal products Relate how the Mission Need Statement and Capability Development Plan support ADE-1 Identify the entrance criteria that must be met and the information required for an acquisition decision review Page 2 of 28

4 What is an ADE? DHS Acquisition Management Instruction establishes an Acquisition Lifecycle Framework consisting of four phases to guide the acquisition process. At the beginning of each phase, an Acquisition Decision Event (ADE) is held to ensure that: The program manager (PM) has the tools, resources, and flexibility to execute the acquisition The program is ready to proceed to the next phase and deliver on requirements All the requirements of the preceding phase have been met Program risks are adequately addressed Select the image to view an enlargement D Page 3 of 28 Reprise of the Acquisition Lifecycle Framework graphic.

5 What is an ADE? (continued) Each ADE has a specific purpose, as described below: ADE-0: ADE-1: ADE-2A: ADE-2B: ADE-2C: ADE-3: Identify a need or capability gap via the Joint Requirements Council Validate the need Approve the acquisition Approve projects/supporting acquisitions to accomplish the program Approve Low Rate Initial Production (LRIP) or incremental delivery of capability Approve full rate production and deployment of the system Page 4 of 28

6 The Acquisition Lifecycle Framework (ALF) The DHS Acquisition Lifecycle Framework is made up of four phases: Need Phase: Identify a capability gap that can be met with a materiel solution Analyze/Select Phase: Determine the most effective and affordable way to provide that capability Obtain Phase: Design, develop, test and evaluate the capability Produce/Deploy/Support/Dispose Phase: Provide the capability to the end-user, along with all necessary logistics support to sustain it through its useful life D Page 5 of 28 Image of the DHS Acquisition Lifecycle Framework showing the four main processes: Need, Analyze/Select, Obtain, and Produce/Deploy/Support/Dispose. The Need block has the statement "We define the problem." The Analyze/Select block has the statement "We identify the alternatives and resource requirements." The Obtain block has the statement "We develop and evaluate capabilities." The Produce/Deploy/Support/Dispose block has the statement "We produce and maintain those capabilities."

7 Phased Acquisition Approach Phased life cycle management is a proven acquisition approach--used by both government and industry--for reducing acquisition risk and achieving effective and efficient results from invested resources. This systematic approach is especially important when a program relies on new technology, which makes it difficult to predict how long it will take or how much it will cost. The ADEs held between phases support better managed programs and more informed acquisition decisions. These, in turn, lead to more predictable and effective delivery of capabilities to the end user. Preparing for an ADE entails a great deal of documentation. These documents are not prepared simply to "check the box" of a bureaucratic requirement; rather, they reflect the end result of careful planning and analyses needed to manage program risk and support effective decision making. Page 6 of 28

8 Knowledge Review Which of the following is not a recognized benefit of the phased approach to acquisition management as represented in the DHS Acquisition Lifecycle Framework? A. The phased approach leads to a more predictable and effective delivery of capabilities to the end user. B. The phased approach guarantees the program will meet all cost, schedule, and performance goals. C. The phased approach allows risks to be reduced as a program moves through the phases of the life cycle. Correct! The phased approach does not guarantee the program will meet all cost, schedule, and performance goals. The acquisition process is risky and sometimes unpredictable. Even with sound planning, strong analysis, aggressive follow-up on issues, rigorous risk management, and a fair share of good fortune, there are no guarantees of program success. Page 7 of 28

9 Need Phase The Need Phase is the first segment of the phased life cycle management approach. Once a need or capability gap is identified, preparation for ADE-0 may begin. ADE-0 is not a formal milestone, but a key decision point at which a sponsoring organization, the Department, or a Component decides to explore a capability need or gap and notifies DHS HQ via the Joint Requirements Council (JRC) by submitting a Capabilities Analysis Study Plan (CASP) and Capability Analysis Report (CAR), Mission Need Statement (MNS), or other method defined by the JRC. This process applies to needs regardless of the original source of the need (DHS HQ, Component, or Executive or Legislative Branch). D Page 8 of 28 The graphic shows the need phase, "we define the problem." ADE-0 is in the need phase, and is the collection point for gaps and needs. ADE-1 comes at the end of the need phase.

10 Need Phase (continued) During the Need Phase, the sponsor and the PM develop the answers to these questions: What strategic mission needs to be filled? What is the gap in the capabilities that need to be filled? What is the "as-is" state of the problem? What is the desired "end-state"? During the Need Phase, the following activities will take place: Collect information and analyze the threats, risks, capabilities, studies, exercises, lessons-learned, and operator inputs on gaps Ensure that the identified need aligns with DHS strategic direction D Page 9 of 28 The graphic shows the need phase, "we define the problem." ADE-0 is in the need phase, and is the collection point for gaps and needs. ADE-1 comes at the end of the need phase.

11 Need Phase: Mission Need Statement (MNS) As we learned in an earlier lesson, the MNS is validated by the JRC and approved by the Acquisition Decision Authority (ADA). It is the formal description of the strategic need for a capability. The MNS links the gap in mission capability to the potential acquisitions that will fill that gap, and it is a crucial part of the acquisition process. Approval of the MNS provides formal acknowledgment at the DHS executive level of a justified need for applying resources to resolve a mission deficiency. MNS approval represents the start of formal acquisition program management and the beginning of the investment process. Page 10 of 28

12 Capability Development Plan (CDP) In addition to the MNS, a Capability Development Plan (CDP) must be generated during the Need Phase. The CDP is an agreement between the PM and the ADA about the activities, cost, schedule and performance boundaries for the work to be done in the Analyze/Select Phase. The CDP serves to guide the program up to ADE-2A, much as the Acquisition Program Baseline (APB) guides the program after ADE-2A. The CDP also provides the ADA with the assurance that knowledge will be available to make a sound decision at ADE-2A. Select the D-link to read a detailed explanation of the graphic D Page 11 of 28 A graphic illustrating that the CDP is an agreement between the ADA and the PM, with arrows flowing from the contract to three boxes in a column labeled Performance Boundaries, Schedule, and Cost. Arrows from those three boxes then converge on a triangle to the right of the boxes labeled ADE-2A.

13 Need Phase: MNS and CDP Approval The MNS is approved at the Component level. The Joint Requirements Council (JRC) validates the MNS. As they did with the CASP and the CAR, the JRC will review the MNS to ensure that it's consistent with DHS strategic direction and priorities. They'll also make sure the need is not already being filled by an existing system or another planned program. The Component or HQ organization initiates the ADE-1 approval process by submitting the MNS and the CDP to the DHS Office of Program Accountability and Risk Management (PARM). PARM helps the program office prepare the CDP for the ADE-1 review. Finally, the CDP is approved by the Acquisition Decision Authority (ADA) at ADE-1. Select the D-link to read a detailed explanation of the graphic D Page 12 of 28 A flow diagram illustrating the approval process for the MNS and CDP. The MNS is reviewed by both the JRC and PARM, and is then approved by the ADA. The CDP is reviewed by PARM and then approved by the ADA. Once approved, the program moves on to ADE-1.

14 Knowledge Review In which document would you find a schedule for the activities to be performed between ADE-1 and ADE-2A? A. Mission Need Statement (MNS) B. Acquisition Program Baseline (APB) C. Capabilities Development Plan (CDP) D. Test and Evaluation Master Plan (TEMP) Correct! The Capabilities Development Plan (CDP) includes a plan of action and milestones with a schedule of the key activities that will be carried out during the Analyze/Select Phase. Page 13 of 28

15 ADE-1: Validate the Need Once the required documents for ADE-1 (MNS and CDP) are complete or nearly complete, you can begin planning for ADE-1. The purpose of ADE-1 is to ensure that needs are aligned with DHS strategic direction, along with adequate planning and resourcing for upcoming phases. This is accomplished through a review of the required documentation. The ADE-1 review will ensure that resources, activities, and schedules are addressed for the next acquisition phase. The administrative process leading up to ADE-1 is similar for every subsequent ADE. Page 14 of 28

16 Acquisition Review Process The mechanism for approving Level 1 or Level 2 programs is a DHS Acquisition Review Board (ARB), which is chaired by the ADA. The ARB members make recommendations to the ADA, who then approves (or disapproves) the program proceeding to the next phase. ADEs for Level 3 programs are conducted at the Component level. Of course, we may not be certain which level a program falls into at ADE-1, but the Component or sponsor will provide a notional designation at ADE-1 based on preliminary cost estimates. The program can be confirmed as Level 1, 2, or 3 after a formal life cycle cost estimate is performed in the Analyze/Select Phase. The Acquisition Review Process (ARP) is a series of steps that are followed to prepare for an ARB. PARM is responsible for coordinating the ARP for Level 1 and 2 programs. PARM initiates the ARP by contacting the PM when a scheduled ARB is approaching (approximately 45 days in advance of the ARB date). On an exception basis, Components may request acquisition or program reviews by contacting PARM. D Page 15 of 28 Level 1 programs have life cycle costs at or above $1 billion. Level 2 programs have life cycle costs between $300 million and $1 billion. The ARB is the DHS executive board that reviews Level 1 and 2 investments for proper management, oversight, accountability, and alignment to strategic functions of DHS. The ARB reviews investments before approving them to proceed to the next phase of acquisition. The U/S MGMT (DHS CAO) is the Chair of the ARB, unless otherwise delegated. Level 3 programs have life cycle costs of less than $300 million. Graphic depicting the idea that PARM provides about 45 days notification to the PM in advance of an acquisition review board, which is prior to ADE-1.

17 Getting to ADE-1 The first step in the acquisition review process is an entrance conference conducted with the PARM Component Lead, the Component Acquisition Team, and the PM to: Discuss required decision and supporting documents Identify key issues Determine detailed timelines and event schedules Page 16 of 28

18 Getting to ADE-1: Program Readiness Coordination Upon receipt of the supporting documents reviewed and approved by the Component Acquisition Executive (CAE), the PARM Component Lead performs an initial review for adequacy and completeness, and then provides the package to the Acquisition Review Team (ART), along with the program Status Briefing. PARM is responsible for coordination between the Component acquisition team and the ART. Information technology (IT) programs must successfully complete an Enterprise Architecture Board (EAB) review before they are considered by the ARB. The EAB provides recommendations to the ART/ARB regarding the alignment of IT acquisitions with the DHS enterprise architecture and standards. Level 1, 2, and 3 IT programs complete an EAB prior to an ARB. The EAB is chaired and operated by the DHS Chief Information Officer (CIO). Select the D-link to read a detailed explanation of the graphic D Page 17 of 28 Supporting documents for ADE-1 include the JRC-validated MNS, the CDP, and the initial rough order of magnitude (ROM) cost of the program. Additionally, an EAB review is required for IT systems and a staffing plan for critical acquisition positions. PARM may recommend additional documents, such as a Risk Management Plan, depending on the nature of the program. 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 DOTE: Director, Operational Test and Evaluation JRC: Joint Requirements Council

19 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.

20 Getting to ADE-1: Program Readiness Coordination (continued) Here is what happens during coordination at DHS headquarters to streamline the decision process at the ARB: Before the ARB meets, PARM coordinates an ART review. The PM provides the Component and JRC approved documentation and presents the program status briefing to the ART; shortfalls in submitted documents are resolved with the CAE and PARM before the ARB Each ART member prepares a briefing memo on findings for their ARB member prior to the ARB to determine what action items need to be addressed to streamline the ARB decision process PARM compiles ART comments and conducts HQ adjudication sessions, as necessary, to resolve any conflicting internal DHS findings Consolidated DHS comments are provided to the PM and CAE for resolution The PM is responsible for adjudicating comments with PARM and, if necessary, members of the DHS ART If comments cannot be resolved in the allotted time, as agreed to by the PM and PARM, then the issues are forwarded to the affected ART principal to determine if they should be included in the briefing package to the Chief Acquisition Officer (CAO) for a decision at the ARB Required and CAE-approved acquisition documentation, Component CFO Certification of Funding, and adequate staffing plans are key to readiness for ADE-1. Page 18 of 28

21 Getting to ADE-1: The ARB Meeting The ARB meeting is the culmination of all the preparation and coordination leading up to the acquisition decision event. Ideally, the major issues were already resolved during the coordination process. If major issues arise during the ARB meeting, they will be discussed and documented with actions and decisions in an Acquisition Decision Memorandum (ADM). Other insights into the ARB process: PARM coordinates ARB scheduling PARM provides a pre-brief to the CAO along with the briefing package, which includes: the summary of the program's status; any issues and proposed recommendations; and a draft ADM based upon input from ART members, noting the resources, funding, affordability, and staffing plans PARM provides the PM's program status briefing to the ARB members before the ARB; the ARB meeting is chaired by the ADA, who makes a decision based on the recommendations of the ARB members Page 19 of 28

22 ADE-1 Decision At ADE-1, the ADA approves the MNS, CDP, and program staffing plan to include the certification for the proposed program manager. The decision on whether to conduct an Analysis of Alternatives (AoA) or an Alternative Analysis (AA) is made as a result of pre-ade-1 input from the ART. As such, the ground rules for the AoA (or AA as appropriate) are documented in the CDP, validated, and approved during the review. In order to make the ADE-1 decisions, the ADA will require answers to the following questions: Does the MNS clearly address capability needs and align to DHS goals, direction, and enterprise architecture (EA)? Does the MNS demonstrate a relationship to other DHS programs/systems? Does the MNS provide a compelling value proposition for filling a valid gap? Does the CDP describe how critical knowledge will be obtained to support the next acquisition decision? Is the program justified in proceeding to the Analyze/Select Phase? Page 20 of 28

23 After the ARB The post-arb actions for all ADEs are the same: PARM drafts an Acquisition Decision Memorandum (ADM) with input from the ART, the PM, and CAE, and submits it to the ADA for signature The ADM is signed by the ADA (with ARB-assigned action items and due dates) The decision process is complete when the ADM is signed ADM actions and due dates are tracked by PARM on behalf of the CAO (DHS Undersecretary for Management (U/S MGMT)) Page 21 of 28

24 Knowledge Review Which of the following is responsible for coordination leading up to ADE-1? A. Program manager B. Component C. Office of Program Accountability and Risk Management (PARM) D. Acquisition Review Team Correct! The Office of Program Accountability and Risk Management is the focal point for ADE-1 coordination. Page 22 of 28

25 Exit Criteria In addition to the documents required for each ADE, the ADM may contain specific exit criteria for the following phase. Exit criteria are acquisition-specific accomplishments that must be demonstrated before an acquisition program may either progress further in the current life cycle phase or transition to the next phase. They are normally selected to track progress in important technical, schedule, cost, or management risk areas. Page 23 of 28

26 Exit Criteria (continued) Exit criteria for the Need Phase can include: The accomplishment of some process at some level of efficiency (e.g., establishing a risk management process) The successful accomplishment of some event (e.g., establishment of a Program Management Office), or some other criterion that indicates that a particular aspect of the investment is progressing satisfactorily Special emphasis placed in an area of high interest to the ADA (e.g., the ADA might require the program to include in the AoA study plan a review of MIT research in the area of biochemical identification and detection) In order to proceed to the next phase, or continue in the current phase, the exit criteria from the previous ADM must be satisfied, and there must be approval of the required documents for the current ADE. Page 24 of 28

27 Knowledge Review Which of the following would be a suitable exit criterion for the Analyze/Select Phase? A. Carry out the activities in the Capabilities Development Plan (CDP) B. Approved Mission Need Statement C. Identify acquisitions required to support the Analyze/Select Phase D. Successfully pass an initial Enterprise Architecture Board (EAB) review Correct! One of the major activities between ADE-1 and ADE-2A is fulfilling the requirements of the CDP. The outcome of this activity would be a legitimate exit criterion to be specified in the Acquisition Decision Memorandum (ADM) for ADE-1, that is, something to be accomplished during the Analyze/Select Phase between ADE-1 and 2A. Page 25 of 28

28 Review of the Need Phase Here is an illustration of what takes place during the Need Phase. You have learned about each of these elements and can now see how they fit in the "big" picture as they support ADE-1. Select the D-link to read a detailed explanation of the graphic D Page 26 of 28 Elements Supporting the Need Phase ADA: Acquisition Decision Authority ADE: Acquisition Decision Event ARB: Acquisition Review Board ART: Acquisition Review Team CAR: Capability Analysis Report CASP: Capability Analysis Study Plan CDP: Capabilities Development Plan EAB: Enterprise Architecture Board JRC: Joint Requirements Council MNS: Mission Need Statement PARM: Office of Program Accountability and Risk Management Graphic representing the process that takes place during the Need Phase oversight and review. The CASP, CAR, and MNS are overseen by the JRC. The CDP and the ART are overseen by PARM. The CASP is first, and triggers ADE-0, Validate Need. is the CAR, followed by the MNS and the CDP. The MNS and the CDP then go to the ART (and also to the EAB for IT programs) then to the ARB. The ART and the EAB provide input to one another and back to the MNS and the CDP. The ARB provides input to the ART. Following the ARB, at ADE-1, the program is approved by the ADA.

29 Summary The phased life cycle management approach to acquisition is a proven government and industry method for reducing acquisition risk and achieving more effective results. Each phase is preceded by an Acquisition Decision Event (ADE) at which the approving authority authorizes entry into the next phase. The starting point for the Need Phase is ADE-0. During the Need Phase, two essential documents are developed. The Mission Need Statement (MNS) defines the capability gap to be filled by the acquisition process. The Capabilities Development Plan (CDP) details the activities, cost, schedule, and performance boundaries of the Analyze/Select Phase. Select the image to view an enlargement Select the D-link to read a detailed explanation of the graphic D Page 27 of 28 Graphic showing the acquisition lifecycle framework. The first phase is Need, "we define the problem." Acquisition decision event or ADE-0 is in the Need Phase, and this is the collection point for gaps and needs. ADE-1 comes at the end of the Need Phase. The next phase is Analyze/Select, "we identify the alternatives and resource requirements." ADE-2A (approve program) comes at the end of the Analyze/Select Phase. is the Obtain Phase, "we develop and evaluate capabilities." ADE-2B (approve supporting projects/contracts) and ADE-2C (approve low rate production if required) occur during the Obtain Phase. ADE-3, field and support program products, comes at the end of the Obtain Phase. The final phase is Produce/Deploy/Support/Dispose, "we produce and maintain those capabilities." The Joint Requirements Council (JRC) is active during the Need Phase and Analyze/Select Phase. The Acquisition Review Board (ARB) is active during all the phases of the acquisition lifecycle framework (ALF).

30 Summary (continued) For Level 1 and 2 programs, DHS Acquisition Management Instruction outlines a process, coordinated by the Office of Program Accountability and Risk Management (PARM), by which the Acquisition Decision Authority (ADA) approves a program's entry into the Analyze/Select Phase. For Level 1 and 2 programs, PARM coordinates with the Acquisition ReviewTeam (ART) before the program is presented to the Acquisition Review Board (ARB) and the Acquisition Decision Authority (ADA) for approval. Level 3 programs are reviewed and approved at the Component level. Since a program's level is not formalized until after a life cycle cost estimate (LCCE), the sponsoring organization will propose to PARM which approval process to follow for ADE-1 based on initial cost estimates. Select the image to view an enlargement You may print the Need Validation ADE-1 lesson or save it for the future. D Page 28 of 28 Reprise of the Acquisition Lifecycle Framework graphic.