Intermediate Systems Acquisition Course. Lesson 2.11 Program Approval ADE-2. Program Approval ADE-2

Transcription

1 Program Approval ADE-2 At the end of the Analyze/Select Phase, the program office prepares for the next major acquisition decision event, Acquisition Decision Event 2A (ADE-2A). ADE-2A approves the program and supporting projects and contracts. In this lesson, you will review how to prepare for ADE-2A and ADE-2B. Note that the processes described in this lesson apply to Level 1 and Level 2 programs (based on the Life Cycle Cost Estimate (LCCE) developed during the Analyze/Select Phase). You may print the Program Approval ADE-2 lesson or save it for future reference. D Page 1 of 29 Reprise of the basic Acquisition Lifecycle Framework (ALF) graphic from previous lessons, with ADE-2A and ADE-2B circled. A graphic presents four blocks in a row. The blocks represent the four main phases of the DHS Acquisition Life Cycle: Need, Analyze and Select, Obtain, and Produce/Deploy/Support/Dispose. The Need Phase (first block on the left) has the statement, "We define the problem." The Analyze/Select Phase (second block) has the statement, "We identify the alternatives and resource requirements." The Obtain Phase (third block) has the statement, "We develop and evaluate capabilities." The Produce/Deploy/Support/Dispose Phase (fourth block) has the statement, "We produce and maintain those capabilities." At the beginning of each phase is a diamond representing each of the ADEs: 0, 1, 2A, and 3. ADE-2B happens after ADE-2A, in the very early stages of the Obtain Phase and is located to the immediate right of 2A on the image.

2 Objectives Upon completion of this lesson, you should be able to: Identify the key documents generated or updated during the Analyze/Select Phase of the Acquisition Lifecycle Framework (ALF) Identify the criteria that must be met and the information required for acquisition decision events during the Obtain Phase Recognize the significance of the Acquisition Program Baseline (APB) and key performance parameters (KPPs) Page 2 of 29

3 ADE-2A: Approve the Acquisition Program ADE-2A marks the end of the Analyze/Select Phase and the beginning of the Obtain Phase. ADE- 2A is the point at which an acquisition is approved to support the proposed solution identified in the Analyze/Select phase. At ADE-2A the Acquisition Decision Authority (ADA) approves the overall "best" alternative (mix of solutions) that provides the required performance at acceptable cost, schedule, and risk. This alternative is then developed through the acquisition process, while non-materiel factors (e.g., changes in doctrine or training) are handled by the appropriate organization within the Component. D Page 3 of 29 Reprise of the basic ALF graphic, with ADE-2A circled.

4 ADE-2A: Required Documents The following documents are required for ADE-2A. Some documents are approved at the Component level and some at the Headquarters level, as shown below. Component Approved: Concept of Operations (CONOPS) Preliminary Integrated Logistics Support Plan (P-ILSP) Analysis of Alternatives (AoA) or Alternatives Analysis (AA) Cost Estimating Baseline Document (CEBD) Integrated Master Schedule (IMS) Program Management Plan (PMP) Risk Management Plan (RMP) Component Senior Federal Official (SFO) Funds Certification Memo DHS HQ Approved: Acquisition Program Baseline (APB) Acquisition Plan (AP) Life Cycle Cost Estimate (LCCE) Operational Requirements Document (ORD) AoA/AA Study Plan Science and Technology (S&T) Technical Assessment Chief Information Officer (CIO) IT Assessment Page 4 of 29

5 Knowledge Review Which of the following is not required prior to ADE-2A? A. Operational Requirements Document (ORD) B. Concept of Operations (CONOPS) C. Acquisition Program Baseline (APB) D. Test and Evaluation Master Plan (TEMP) Correct! All of the listed documents are required prior to ADE-2A except the TEMP. The TEMP is not required until ADE-2B (although a preliminary version may be prepared prior to ADE-2A). Page 5 of 29

6 Preparing for ADE-2A: The CONOPS One of the key documents required for ADE-2A is the Concept of Operations (CONOPS). A CONOPS is a logical extension of the Mission Needs Statement (MNS) that describes how the solution to a stated need will be employed and supported once it is developed and deployed. It is a user-oriented description that helps identify possible solutions that can then be evaluated and traded off in the Analysis of Alternatives (AoA)/Alternatives Analysis (AA). The CONOPS focuses on the performance of a system in its operational setting. It contains realistic operational and support scenarios that illustrate not only how a system will be used in the field, but how it will be maintained, supplied, and staffed, and how training will be accomplished. The scenarios are developed or validated by the user community. Developing the CONOPS helps develop a consensus among the users, supporters, developers and the acquisition community on the uses, benefits, and capabilities of a proposed system or solution. To achieve consensus, the stakeholders must work together to balance mission needs against technical feasibility, budget, schedule, and risk. The development team must consider the possible technology solutions, as well as the full range of non-materiel factors required for mission accomplishment. These factors include the DOTMLPF + R/G/S factors. For example, the need to detect toxic chemicals in a port environment may require advanced technology, but it also requires staffing, training, facilities and, possibly, new policies. The final version of the CONOPS is validated by the JRC. Guidance for the CONOPS can be found on the PARM web page. Page 6 of 29 Doctrine and plans: The way we carry out the mission (i.e., how we do the work, processes) Organizations and Partnerships: How we organize to carry out the mission (projects, study groups, committees). This includes locations, networks, and nodes Training: How we typically prepare to carry out the mission. Training may include a range from basic training to advanced individual training; may include various types of component training. Materiel: Includes logistics, human factors considerations, and considerations of how we provide what is necessary to equip our teams to carry out the mission (i.e., equipment, spares) Leadership: How we prepare our leaders to carry out the mission Personnel: How we ensure availability of qualified people for the mission Facilities: How we ensure that installations and facilities are available to support our teams as they carry out the mission Regulations: Composed of rules that govern how our organization operates Grants: Includes funding source for a specific capability enhancement Standards: System requirements, or a set of requirements that a system or service should comply with, such as safety standards

7 Preparing for ADE-2A: The ORD The Operational Requirements Document (ORD) is also an extension of the MNS developed during the Need Phase. In concert with the CONOPS, the ORD extends the top-level requirements spelled out in the MNS into system-level performance requirements that will eventually evolve into detailed design specifications. In bridging the gap between the MNS and the system specifications, the ORD is considered the most important document in the requirements process. It is important to note here that the ORD is not a design document or specification those come later. Operational requirements describe what the end product or system must do, not how it will do it. The main components of the ORD include: Effectiveness requirements Suitability requirements Key performance parameters (KPPs) The ORD and the CONOPS are formal documents that provide a bridge between the top level capability needs spelled out in the MNS and the detailed technical requirements found in the performance specifications that ultimately govern development of the system. The ORD translates the capabilities defined in the MNS into operational requirements that complement the approved CONOPS. The ORD's performance requirements are also a source for Critical Operational Issues (COIs). Prior to obtaining a favorable ADE-2A decision from the ADA, all major acquisition programs must obtain JRC validation and ADA approval of the ORD. A template for developing an ORD may be found on the PARM website. Page 7 of 29

8 Preparing for ADE-2A: Key Performance Parameters Key performance parameters (KPPs) are attributes of a system that are considered essential for the system to fulfill its intended mission. KPPs are determined by the user. They are specified in the ORD and tracked in the Acquisition Program Baseline (APB). For example, a KPP for a DHS travel management system might be, "Accurately process up to 24,000 travel requests per day." Most programs will have between four and eight KPPs. More than eight indicates that the KPPs were not defined properly. D Page 8 of 29 A diagram illustrating four KPPs that flow from the ORD (operational requirements) to the APB.

9 Preparing for ADE-2A: Thresholds and Objectives KPPs and other performance parameters are expressed in terms of thresholds and objectives. A threshold is the minimum acceptable level of performance that a parameter must achieve in order to be operationally effective. An objective is a goal that significantly improves system performance, safety, or supportability over the threshold value. For example, in a travel management system, the threshold might be 24,000 transactions per day, while the objective might be 30,000 transactions per day. Program managers have flexibility to make choices within the 'trade space' between threshold and objective values in order to find the optimum balance among performance, cost, and schedule requirements. Note that an objective is not always a larger numerical value than its corresponding threshold. For example, if a threshold is 1.0 errors per 10,000 transactions, the objective might be 0.5 errors per 10,000 transactions. Failure to meet any KPP threshold results in a program "breach." APB breaches will be discussed in a later lesson. Next, let's look at how the APB is developed. Page 9 of 29

10 Preparing for ADE-2A: The APB The Acquisition Program Baseline (APB) documents the cost, schedule, and performance objectives of the program in quantitative terms. It is an agreement between the program manager (PM) and the ADA about: What will be delivered How it will perform When will it be delivered What will it cost The APB contains the intermediate markers that measure progress as well as end goals for the program. The APB's scope encompasses the entire planned execution of the program. Its parameters trace back to the mission gaps expressed in the MNS, and the requirements established in the ORD. The program's Office of Management and Budget (OMB) Business Case, if required, needs to align and be consistent with the APB. DHS Instruction , Rev 01 Acquisition Management Instruction, contains guidance on developing the APB. D Page 10 of 29 A flow chart illustrates the relationship between documents supporting the development of the Acquisition Program Baseline (APB). The flow begins with an Analysis of Alternatives (AoA) and an Operational Requirements Document (ORD), which support and influence each other. The ORD provides performance goals for the APB. Content from the AoA is used in the Life Cycle Cost Estimate (LCCE) and the program schedule. The LCCE provides cost goals for the APB, and the program schedule provides schedule goals.

11 Knowledge Review What is the purpose of the Acquisition Program Baseline (APB)? A. It documents the cost, schedule, and performance goals of the program B. It defines how the system will be used in the field C. It provides inputs to the Life Cycle Cost Estimate D. It defines the program schedule Correct! The APB is an agreement between the PM and ADA about these three goals. Page 11 of 29

12 Preparing for ADE-2A: Program Structure Chart One of the key documents in the ADE approval process is the program structure chart. It is used to brief the Acquisition Review Board (ARB) and the ADA at each ADE. The program structure chart is derived from various documents, including the Acquisition Plan (AP), CONOPS, AoA, ORD, and APB. A program structure chart identifies the projects, or discrete usable segments, within a program. It summarizes the program and shows the status of each project or segment in the acquisition lifecycle. It also provides the ADA and Acquisition Review Team (ART) a top-level summary of the overall program. Essentially every other program document feeds into the program structure chart. The chart is a key artifact in initial ARB planning and a key slide in every ARB briefing from ADE-2A on. D Page 12 of 29 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 the Department. The ARB reviews investments before approving them to proceed to the next phase of acquisition. The Deputy Secretary, USM, or DUSM is the Chair of the ARB, unless otherwise delegated. The 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 the action officers that represent the members of the ARB. Reprise of the flow chart illustrating the relationship between documents supporting the development of the Acquisition Program Baseline (APB), with two more steps added. Information from the APB is used in the Acquisition Plan, and information from the Acquisition Plan is used in the program structure chart.

13 Sample Program Structure Chart Below is a sample program structure chart for a hypothetical Federal Emergency Management Agency (FEMA) program. The chart shows the program sub-projects with associated costs and acquisition types, as well as the period of performance and status of each program element with respect to its place in the ALF. Program: Digital flood maps Component: FEMA ARB Need Date: April 2009 Select the image to view an enlargement Page 13 of 29

14 Knowledge Review The program structure chart is important because: A. It describes the structure of the program in detail B. It is the agreement between the PM and the ADA on what the program will accomplish C. It summarizes the program and provides the status of each project for the ARB and ADA D. It describes how the system will be operated Correct! The chart is a key artifact in initial ARB planning and a key slide in every ARB briefing from ADE-2A on. Page 14 of 29

15 Acquisition Review Process As you learned in a previous lesson, the mechanism for approving Level 1 or Level 2 programs at ADE-2 is a DHS ARB, which is chaired by the ADA. The ARB members make recommendations to the ADA, who then approves (or disapproves) the program, determining whether or not it proceeds to the next phase. ADEs for Level 3 programs are conducted at the Component level. The Office of Program Accountability and Risk Management (PARM) is responsible for coordinating the acquisition review process for Level 1 and 2 programs. PARM initiates the acquisition review process by contacting the PM when a scheduled ARB is approaching (notionally, 45 days in advance of the ARB date). On an exception basis, Components may request acquisition reviews by contacting PARM. D Page 15 of 29 Level 1 programs are "major" programs with a Life Cycle Cost Estimate (LCCE) of $1 billion or more. The ADA for a level 1 program is the Chief Acquisition Officer (CAO), who chairs the ARB. Level 1 programs are on the Major Acquisition Oversight List (MAOL). Level 2 programs are "major" programs with an LCCE between $300 million and $1 billion. The ADA for a level 2 program is the CAO, or as delegated, and this individual chairs the ARB. Level 2 programs are on the MAOL. Level 3 programs are "non-major" programs with an LCCE of less than $300 million. Level 3 programs are not on the MAOL, unless they are IT programs with an LCCE of more than $50 million. The ADA for level 3 programs is the Component Acquisition Executive (CAE), or as delegated, and this individual chairs a Component board. 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-2.

16 Preparing for ADE-2A: Coordination The coordination process for Level 1 or Level 2 programs is the same for every ADE. PARM serves as the Headquarters focal point for coordination between the Acquisition Review Team (ART) and the Component. D Page 16 of 29 A flow chart illustrates the notional coordination process leading up to ADE-2. 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 Chief Information Officer (CIO), Chief Financial Officer (CFO), Chief Procurement Officer (CPO), Chief Readiness Support Officer (CRSO), the Assistant Secretary (A/S) Policy, Director, Operational Test and Evaluation (DOTE), Joint Requirements Council (JRC) representative, and other 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.

17 Conducting ADE-2A: The ARB Meeting The actual ADE meeting includes the ARB representatives and is chaired by the ADA. Questions that should be answered at ADE-2A include: Are operational requirements (as described in the ORD) valid, complete, testable, and measurable? Is the APB adequate? Is the scope of the acquisition clearly bounded? Are the KPPs in the ORD represented in the APB? Are the costs in the APB consistent with the life cycle cost estimates (LCCE)? Is the AoA/AA adequate? Does it recommend and justify the best option? Do the other required analyses (including the AP, the LCCE, the ILSP, and the Systems Engineering Life Cycle (SELC) review documents) adequately cover the full scope of effort to deliver capabilities? Is the effort resourced properly to accomplish the acquisition at a reasonable risk level? Are the major risks identified and appropriate mitigation strategies documented? Page 17 of 29

18 Conducting ADE-2A: After the ARB Meeting Post-ARB actions for all ADEs are the same: PARM drafts an Acquisition Decision Memorandum (ADM) with PM input, and submits it to the ADA for signature The signed ADM includes ARB-assigned 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 Page 18 of 29 Acquisition Decision Memorandum - A documented record of decisions, exit criteria, and assigned actions for a specific type of acquisition as determined by the ADA.

19 ADE-2B: Approve the Acquisition Projects At ADE-2B, the ARB and ADA approve the expansion of the AP and APB to include subsections laying out the cost, schedule, and performance parameters for each project or discrete useable segment. This program review ensures that there are sufficient resources (staffing and funding) and an appropriate schedule to execute the program through the Obtain Phase with acceptable risk. The ARB and ADA also approve the TEMP and the SELC tailoring plan at ADE-2B. In addition, the ARB and ADA approve any services acquisitions associated with the program, such as program management support contracts. There is only one ADE-2A for each program, but there may be multiple ADE-2B reviews for each project or increment of the acquisition. D Page 19 of 29 Reprise of ALF graphic with ADE-2B highlighted.

20 ADE-2B: Approve the Acquisition Projects (continued) The following documents are required for ADE-2B: For Capital Asset Acquisitions ADA Approves Updated APB Updated ILSP TEMP (after approval by S&T) APB For Services Acquisitions* Component Approves AP (updated to include specific projects or discrete useable segments) SLAs AP *Level 1 enterprise services acquisitions will normally follow one of two paths: (1) If the enterprise services are acquired as part of a larger program, they are reviewed at an ADE-2B. The ADA for this type of ADE-2B is the USM. (2) For stand-alone enterprise service acquisitions (i.e., services that are not part of a larger acquisition program), an ADE-1 or ADE-2A is not required. Level 2 enterprise services are approved at the Component level. Page 20 of 29 ADA Acquisition Decision Authority APB - Acquisition Program Baseline ILSP - Integrated Logistics Support Plan TEMP - Test and Evaluation Master Plan The Undersecretary for S&T has designated the S&T Director, Test & Evaluation (T&E) and Standards Division, with responsibilities for DHS T&E policy and procedures. Approval by the S&T Director, T&E and Standards Division, is required for all DHS Level 1 & 2 TEMPs (per S&T draft T&E policy). AP - Acquisition Plan

21 SLA Service Level Agreement USM - Undersecretary for Management

22 Preparing for ADE-2B: Process At ADE-2B, the ARB and ADA approve the expansion of the APB to include subsections laying out the cost, schedule, and performance parameters for each project/discrete useable segment, along with any changes to the AP adopted at ADE-2A. The ARB seeks to ensure that there are sufficient resources (staffing and funding) and an appropriate schedule to execute the program through the Obtain phase within acceptable risk. ADE-2B approval acknowledges that the PM is adequately resourced to execute the program plans and the program is affordable at the time of the decision. Approval at ADE-2B ensures the program has a performance management baseline to enable monitoring and control through the Obtain Phase. This decision provides the authorization to proceed with supporting contract actions. Page 21 of 29

23 Preparing for ADE-2B: Process (continued) Concurrently, the PM develops a SELC tailoring plan that identifies the SELC reviews and SELC documentation required for the Obtain Phase. Based on the technical and operational performance outlined in the ORD, the PM develops the TEMP. The most significant activities between ADE-2A and ADE-2B are completing the TEMP, developing the SELC tailoring plan, completing the AP, and developing the ILSP. D Page 22 of 29 A chart depicts action taken on several documents from ADE-2A to ADE-2B. Between the ADEs, the TEMP, SELC Tailoring Plan, and ILSP are developed, the AP and APB are expanded, and the LCCE is updated. All the documents are approved at ADE- 2B.

24 ADE-2B Decisions Program Initial Operating Capability (IOC)/Full Operating Capability (FOC) dates are established at ADE-2B (in the APB schedule). These may involve multiple ADE-2B or ADE-3 (Produce/Deploy/Support/Dispose Phase) reviews depending on the projects and types of acquisition efforts under the overall program. In some cases, ADE-2A and ADE-2B may be conducted as one decision event if proposed by the PM and appropriate for the given program. The decision on how the proposed solution or solution sets will be structured and acquired may drive whether a program can combine the decision events. If the acquisition strategy is fairly straightforward, and the solutions will be acquired with a limited number of separate actions, there may be an opportunity to combine ADE-2A and ADE-2B. For example, a Component's decision to acquire an off-the-shelf travel management system using a single contractor, while potentially a large program, may be straightforward enough to warrant a combined ADE. If the Obtain Phase contains limited or low rate initial production (LRIP) in order to support operational testing and continuous production, an additional ADE-2B is held. D Page 23 of 29 Initial Operating Capability - The first attainment of the minimum capability to effectively deploy a system that is operated by adequately trained, equipped, and supported personnel. Full Operating Capability - The point at which a program or system achieves all of the operational requirements assigned to it, including numbers of systems deployed. Graphic showing the Obtain Phase of the ALF, with the addition of a box labeled "LRIP" after ADE-2B, and the addition of a second ADE-2B after LRIP. The graphic illustrates that if the Obtain Phase contains limited or low rate initial production (LRIP) in order to support operational testing and continuous production, an additional ADE-2B is held.

25 Conducting ADE-2B: Services Acquisitions Stand-alone services acquisitions (i.e., services that are not part of a larger hybrid acquisition program) follow the normal acquisition lifecycle for ADE-1 and ADE-2A. The ADA may determine in writing, however, that the ADE-1, ADE-2A, or certain artifacts of those decisions are not required. Typically the APB, AP and LCCE are developed for services acquisitions, in addition to the Service Level Agreement (SLA) and Quality Assurance Surveillance Plan (QASP). The proposed services acquisition will be checked against the following criteria during procurement/solicitation planning, and reviewed against those criteria at ADE-2B prior to issuing the solicitation: Alignment with DHS strategic objectives, including the Enterprise Architecture (EA) for IT services A common understanding between DHS and the Component of the service objectives, as articulated in the SLA and QASP A determination that the proposed acquisition does not duplicate other services acquisitions in DHS Page 24 of 29 A Service Level Agreement (SLA) specifies what services the service provider will furnish. Information technology departments write service level agreements so that services for their customers can be measured and justified.

26 Knowledge Review What new documents are typically introduced between ADE-2A and ADE-2B? A. Life Cycle Cost Estimate (LCCE) and Test and Evaluation Master Plan (TEMP) B. Test and Evaluation Master Plan (TEMP) and Systems Engineering Life Cycle (SELC) tailoring plan C. Life Cycle Cost Estimate (LCCE) and Acquisition Plan (AP) D. Acquisition Program Baseline (APB) and Systems Engineering Life Cycle (SELC) Tailoring Plan Correct! The TEMP and SELC tailoring plan are usually completed for ADE-2B, although a preliminary TEMP may be produced for ADE-2A. Page 25 of 29

27 Review of the Analyze/Select Phase Here is an illustration of what takes place during the Analyze/Select Phase. You have learned about each of these elements and can now see how they fit in the "big" picture as they support ADE-2A. (review acronyms) D Page 26 of 29 MNS: Mission Needs Statement CDP: Capability Development Plan ADE-1: Acquisition Decision Event 1 ADE-2A: Acquisition Decision Event 2A ADA: Acquisition Decision Authority AoA/AA: Analysis of Alternatives/Alternatives Analysis APB: Acquisition Program Baseline PARM: Office of Program Accountability and Risk Management ARB: Acquisition Review Board ART: Acquisition Review Team CONOPS: Concept of Operations JRC: Joint Requirements Council EAB: Enterprise Architecture Board ILSP: Integrated Logistics Support Plan LCCE: Life Cycle Cost Estimate MNS: Mission Need Statement ORD: Operational Requirements Document

28 This is a flow chart summarizing the documents and reviews from ADE-1 to ADE-2A. The chart begins prior to ADE-1. The MNS informs the development of the CDP prior to ADE-1. Following ADE-1, the MNS informs the development of three program documents, which are developed in parallel: the CONOPS, the AoA/AA, and the ORD. The CONOPS provides inputs to the AP, the AoA/AA provides inputs to the LCCE, and the ORD provides inputs to the ILSP. The AP, LCCE, and ORD provides inputs to the APB. Oversight and review of program documentation is by several DHS entities: PARM, the ART, the ARB, the EAB, and the JRC. They coordinate with each other up to ADE-2A, when the program receives an ADA approval. The EAB reviews IT programs only.

29 Review of the Analyze/Select Phase (continued) Here is an illustration of what takes place following the Analyze/Select Phase, between ADE- 2A and ADE-2B. You have learned about each of these elements and can now see how they fit in the "big" picture as they support ADE-2B. (review acronyms) D Page 27 of 29 ADE-2A: Acquisition Decision Event 2A APB: Acquisition Program Baseline LCCE: Life cycle cost estimate AP: Acquisition Plan SELC: Systems Engineering Life Cycle TEMP: Test and Evaluation Master Plan ILSP: Integrated Logistics Support Plan EAB: Enterprise Architecture Board PARM: Office of Program Accountability and Risk Management ART: Acquisition Review Team ARB: Acquisition Review Board ADE-2B: Acquisition Decision Event 2B ADA: Acquisition Decision Authority This is a flow chart summarizing the events between ADE-2A and ADE-2B. After ADE-2A, action occurs on six program documents. The APB, LCCE, and AP are updated. The SELC Tailoring Plan, TEMP, and ILSP are developed. PARM, the ART, the ARB, and the EAB coordinate on oversight and review of the program documentation leading up to ADE- 2B, when the program receives an ADA approval. The EAB reviews IT programs only.

30 Summary ADE-2A takes place at the beginning of the Obtain Phase, during which DHS decides which approach will best satisfy the capability gap, and the program designs and develops the selected approach into an operational solution. For level 1 and 2 programs, Acquisition Management Instruction outlines a process, coordinated by PARM, by which the Acquisition Decision Authority (ADA) approves a program's entry into the Obtain Phase. Level 3 programs are reviewed and approved at the Component level. Level 1 and 2 programs are reviewed by an Acquisition Review Board (ARB) chaired by the ADA. At ADE-2A, the ADA approves the acquisition documents developed in the Analyze/Select Phase, including the Acquisition Program Baseline (APB), Acquisition Plan (AP), Operational Requirements Document (ORD), Analysis of Alternatives or Alternatives Analysis (AoA/AA), and Life Cycle Cost Estimate (LCCE). The PM will need to develop the Test and Evaluation Master Plan (TEMP), Integrated Logistics Support Plan (ILSP), and Systems Engineering Life Cycle (SELC) Tailoring Plan in preparation for ADE-2B. For ADE-2B, the Acquisition Plan will be expanded to include acquisitions for all of the projects within a program, as well as any services contracts required to support the program. At ADE- 2B, the ADA will approve the TEMP, ILSP, and the SELC Tailoring Plan, along with updated versions of the APB, LCCE, and AP. Page 28 of 29

31 Summary (continued) One of the key artifacts for every ARB briefing will be the program structure chart, which is a summary of the cost, schedule, and status of every project within the program. The program structure chart is extracted from the APB, which, in addition to cost and schedule parameters, contains key performance parameters (KPPs) for the program. KPPs are expressed in terms of threshold and objective values. Finally, at each ADE, the ADM will contain criteria which must be met in order to obtain approval for moving to the next phase of the ALF. You may print the Program Approval ADE-2 lesson or save it for future reference. Page 29 of 29