JSCC. Joint Space Cost Council. Executive Briefing. Joint Space Cost Council. September 2016

Transcription

1 Executive Briefing September 2016

2 Background Cost estimating issues raised at AIA Executive Space Industry Roundtable Nov 05 No clear interface points/opportunities for dialogue between industry and government leadership Not exploiting opportunity to engage and potential for substantive mutual areas for improvement Undersecretary of Defense for AT&L and Undersecretary of the Air Force endorsed establishment of working group to study issue Improved collaboration with both oversight and service/agency levels needed AIA Executive Space Board of Governors approved formation of Joint Space Cost Council to work issues Nov 07 actively working several areas to improve cost credibility and realism in our estimates, budgets, schedules, data, proposals and program execution Is Enhancing Space Cost Estimating 2

3 Co-led between Government & Industry - represents a large segment of the space cost analysis community Jay Jordan NRO CAAG George Barbic Lockheed Martin Co-Leadership 3

4 s strength comes from joint Government- Industry Leadership and Membership Jointly explore issues and develop solutions. Because of Government and Industry participation, has the ability to impact emerging policies and quickly implement change Mil Standard 881c Appendix J The worked several years to develop a SWBS that balanced a desire for detailed cost collection with concern to avoid an undue burden Joint Government/Industry advocacy resulted in recommendation being adopted by DoD During first implementation, government and Industry continued to work together to address misinterpretations Better EVM Implementation Active government and industry participation led to 46 industry and 32 government surveys, detailed analysis, and insightful recommendations, incorporated into Better Buying Power Initiative Collaboration between government and industry led to success in applying recommendations Government/Industry Consensus is Powerful 4

5 Sub-Committee Structure extends s reach Executive Steering Committee Sub- Committee Communications Outreach Cost Methods Acquisition EVM CADE Sub- Committee Key objectives Enhance collaboration and presence of the to both government and industry executive leadership Collaborate to develop and enhance cost methods including SEITPM, should cost, and explore estimating of emerging disciplines such as Cybersecurity Continue to implement the Proposal Process Improvement initiative and address other important acquisition topics such as certified cost positions, should cost, agile acquisitions Implement the Better EVM Initiative and expand best EVM practice in government and industry Communicate and collaborate with CAPE on key CADE topics of interest such as FlexFiles, DD1921 reporting, CSDR architecture, Launch Vehicle WBS 5

6 Accomplishments influence policy and practice Topic Accomplishment Impact Standard WBS Data Driven Basis of Estimate Identify and Quantify Cost and Schedule Risk Realistic Technical and Schedule Baseline Cost Estimating Methods White Papers Better EVM Implementation Define standard work breakdown structure, codify it as a standard and systematically apply it Document that establishes guidelines for using historical data rather than engineering build-up in proposals, including recommendations and sample RFP language Top-level risk briefing demonstrating risk application process & limitations of risk analysis Developed handbook & rules of thumb for novice SMC cost estimators to assess realism of technical parameters Comparison of estimating techniques across government costing organizations for Cost Improvement, Inflation, Phasing, SEITPM, Obsolescence Recommendations for decreasing cost and improving value of EVM incorporated in Better Buying Power Consistent cost collection improves basis for government estimating and industry cost proposals Reduced contractor effort associated with proposal development and review; improved quality and credibility of BOEs Improved understanding of contractor / customer / ICE risk scope and process; better understanding of uncertainties prior to contract award, and continued insight through the life of the program Ability to Initiate proposal with realistic, agreed to, program baseline Improved basis for program evaluation Industry better understands customer methods and practices Identifying and piloting ways to improve acquisition 6

7 Guest Speakers help stay current on topics of interest Date Speaker Topic 7/2016 Dr. Gorguinpour, Director of Transformational Innovation for the United States Air Force 7/2016 Keith Freeman, Director of Proposal Pricing from the DCMA Cost and Pricing Center Bending the Cost Curve Update, with focus on Space Business Current structure and priorities, discussion of proposal improvement opportunities 7/2016 Neil Albert Update to Mil Standard 881(c) Periodic Updates Bess Dopkeen, CAPE/Adv Systems Cost Analysis Division John Fitch, Naval Center for Cost Analysis Greg Hogan, AFCAA 3/2016 John McGregor, Deputy Director for Earned Value Management, DoD PARCA 6/2015 7/2013 Richard K. Hartley, AF/A5/8 Cost Assessment Data Enterprise (CADE) Project CSDR-EVM Co-Plan Process AF Budget Realities: Difficult Decisions What a Programmer Needs in Cost Analysis 7/2014 Christopher Riegle, ODNI Project Conclusion: Acquisition & Contract Type Study Periodic Updates Frank Slazer, Vice President, Space at Aerospace Industries Association 10/2013 Keith Robertson, NRO; Jenny Tang, SMC; Dr. Eric Unger, SMC Aerospace Industries Update 5/2014 Russ Higgins, NRO Office of Finance Vehicle E-Invoicing Status of Will Cost/Should Cost Implementation 3/2015 Dr. David Nicholls, DoD PARCA OUSD (AT&L) Study: Assessment of DoD Application of EVM 7

8 Upcoming Initiatives Consolidated Government and Industry input into new Mil Standard 881(d) appendix F Publication of Better EVMS Implementation: Improving the Value of EVM for Government Program Managers How to increase Cost Realism in proposals Consolidated Government and Industry Input to OSD CADE Flex Files Initiative Outreach program to educate new leaders in key Government positions to the capabilities of the 8

9 Summary The has been highly effective in addressing key cost estimating, EVM and acquisition issues over the last several years and continues to focus on improvements The has established a strong forum for collaboration, communication and interaction between government and industry Extended outreach out to several other CIPTs, including non-space Expanded participation (e.g., GAO, PARCA, DCMA) The has been successful in implementing Cost Estimating Initiatives important to both government and industry, and continues to investigate new initiatives consistent with government and industry focus (e.g., affordability) Cost Estimating Accuracy & Credibility Continue to be Critical to Both Government and Contractors 9

10 Get involved with The is always interested in topics to investigate We are looking to you to help identify challenges in: - Space cost estimating, - EVM, - Acquisition, - Or any other topic with a cost impact for to explore and address Participate in meetings and sub-councils New members are welcome General Session, October 12, 2016, Chantilly, VA 10

11 Back-up 11

12 Consolidated Government and Industry input into Mil Standard 881(d) appendix F Leads: Bruce Thompson (SMC) and Aaron Gregory (NRO) Objective: Consolidate SWBS incremental improvements since establishment of the Space Standard Work breakdown structure so they can be incorporated in the update to the Mil Standard 881 c update Approach: Refine SEITPM definitions to distinguish scope of SEITPM at various levels of the WBS. Update the SWBS to accommodate the new elements of ground architecture. Discuss a Government-recommended version before a General Session and obtain industry comment. Impact: A jointly developed SWBS provides common language for program planning & execution Provides basis for common cost elements and technical parameters to support Industry Government estimating activities Results in cost databases normalized to a widely accepted standard Standard WBS is the thread that ties all initiatives together 12

13 Better EVMS Implementation: Improving the Value of EVM for Government Program Managers Leads: Ivan Bembers (NRO) Objective: Identify industry cost drivers and government value of EVM to Approach: Phase I: The administered an Industry-designed survey to broad array of programs (46), and explored the delta EVMS costs between commercial and Government programs to identify inefficiencies, their impact, and their associated stakeholders, and make recommendations for improvements. Phase II: The interviewed 32 government program managers on the value of EVM products and management activities. An EVM expert working group analyzed survey data to develop recommendations and draw conclusions. Impact: Government and Industry consensus on improvement opportunities Fact-based support for updates to PARCA and Industry Guides, DFARS, etc. Highlight numerous easy fix areas for immediate improvement Documented conclusions that the delta implementation impacts (between applying EVM on an internal program versus on a Government program) provide medium to high value at a low cost impact 13

14 Understanding Government approaches to proposal evaluation Leads: George Barbic (Lockheed Martin), Chuck Gaal (Northrop Grumman), Jay Jordan (NRO) Objective: understand Government s objectives in evaluating cost realism in proposals Approach: Communication with NRO, GAO, and information sharing across industry to understand current direction and discuss best practices that could be used as a QC check for addressing cost realism in a proposal (similar to what was done for data driven BOEs) Impact: Industry understanding of government objectives, more consistency in industry response to cost realism in proposals 14

15 Consolidated Government and Industry Input to CADE Flex Leads: Bruce Thompson (SMC) Files Initiative Objective: Understand and influence CADE s approach to data collection and ensure space cost estimating equities are met Approach: Contact with DoD CAPE staff on status of initiatives. Discussion to promote practices: use of SWBS, normalization of program data, government and industry review of the data, collection of technical data to support cost Impact input has already led the CAPE to consider adding normalized data provided by the services into the data base 15

16 Presidential transition, and potential leadership changes in key Government positions Leads: Jay Jordan and Chuck Gaal, through Communications Sub-Council Objective: Make contact with new leadership Approach: Reach out to new leadership in the Government Space Community. Engage in discussion about priorities and areas where the can contribute to new initiatives. Impact membership understanding of and influence on Space Acquisition Policies 16

17 Where Are We Today The Acquisition environment continues to evolve with an increasing focus on Price & Cost Effectiveness DoD guidance on Acquisition Efficiency is focusing on the government obtaining more products and services without additional cost Dr. Ashton Carter s memo on Better Buying Power is driving toward improved program affordability and what programs should cost Mr. Shay Assad, Defense Pricing Director, will focus on getting the best deal for the government Mr. Frank Kendall s memo on Better Buying Power re-emphasized the tenets of increasing efficiencies to do more without more Cost Estimating Accuracy & Credibility Continue to be Critical to Both Government and Contractors 17

18 CIPT vs. : despite overlapping membership, focus and objectives are different CIPT One-on-one sessions between NRO and Industry Partners result in Common understanding of data and action Items to share information General session with overarching topics of interest Held at the classified level, with exchange of proprietary information Results NRO and Contractor use common set of normalized data to analyze historical performance to estimate future programs Mutual understanding of cost estimating techniques used by government and industry Insightful briefings on technical capabilities Focus is on overarching topics as they apply to Industry as a whole and Government as a whole Working through policy and implementation issues for mutual benefit Held at the unclassified level with the exchange of non-proprietary information Results Mil Std 881c contained recommended SWBS Better EVM Implementation Recommendations incorporated into Better Buying Power Data Driven BOE s piloted at NRO for several; being considered to address D/NRO s request to evaluate proposals 18