Developing the Acquisition Strategy Summary

The following learning objectives are covered in this unit:
  • Identify the information required for a decision review and recognize the significance of the Acquisition Program Baseline, Key Performance Parameters, and Acquisition Strategy.
  • Identify the advantages and disadvantages of international armaments cooperative development in an acquisition strategy.

1. Key Performance Parameters (KPPs) are capabilities and characteristics considered by the user to be the most essential in successfully accomplishing a capability need. KPPs:
  • Should be a minimum number of Performance Parameters necessary to adequately describe the required capability of the system (generally eight or fewer).
  • Are defined using threshold and objective values as a way to describe performance capabilities.
While trade-offs among cost, schedule, and performance might have to be made during the program's life cycle, KPP thresholds are typically non-negotiable.
  • Threshold values can be lower or higher than objective values, depending on the parameter involved. For example, for a lighter and faster vehicle, the threshold speed would be lower, and the weight higher, than the objective values.
  • Threshold values establish the minimum acceptable operational value of a given parameter, below which the utility of the system becomes questionable.
  • Unless otherwise specified, the objective value for performance is the same as the threshold value. For schedule, the threshold is the objective value plus six months, while the threshold cost is the objective value plus 10 percent.
  • Objective values are the ideal performance parameters desired for the acquisition program, and are usually defined in operationally meaningful, time-critical, and cost-effective increments above the threshold values. Ideally, the difference between the threshold and objective values should diminish as the acquisition program advances.

2. The Acquisition Program Baseline (APB) establishes the cost, schedule and performance targets for an acquisition program. Specifically, the APB
  • Serves as a formal agreement between the Program Manager (PM) and the Milestone Decision Authority (MDA)
  • Defines the space between the KPP objectives and thresholds in which trade-offs can be made between cost, schedule and performance without requiring MDA approval
  • Can only be changed at milestone reviews, program reviews, or in the event of an unrecoverable APB breach
3. The APB: Performance Criteria
  • Key system design specs should be added at the start of the production, fielding and support phases
  • Only those performance criteria that influence operational effectiveness, suitability, cost and schedule should be included
4. The APB: Schedule Parameters
  • Should include program initiation, major milestone decision points, initial operating capability (IOC) and other critical program dates
5. The APB: Cost Constraints
  • This section of the APB shows program-related costs in base year dollars, based on careful risk assessment and cost estimating
6. Development of an Acquisition Strategy is usually done by an Acquisition Strategy IPT, which includes representation from all functional areas, end users, and key stakeholders. A well-defined acquisition strategy will include information on:
Contracting:number and types of contracts, timing, competition, potential sources, source selection approach, and Unique Identification (UID) implementation
Funding :Type and year of appropriations, funding source agreements, and affordability analysis
Cost :CAIV objectives, cost estimates, and identifying
Systems Engineering : Technology and product solutions, including commercial and non-developmental items; open systems architectures; modeling and simulation; and environmental, safety and occupational health considerations; baseline system performance thresholds and objectives; corrosion prevention and control; and interoperability
Test & Evaluation :Types of testing, timing of testing, test articles including quantities and sources, modeling and simulation, and resources such as test ranges
Software development :System integration, sources, re-use, open systems architecture, data rights, and computer resource life cycle management
Support Strategy :life cycle sustainment addressing design for supportability, all applicable support requirements, and Performance Based Logistics (PBL) approach.
Production :Design for producibility; low-rate initial production (LRIP) schedule; and production quantities, including long lead procurement items
Management :Risk management, including planning, assessment, handling, and monitoring of cost, schedule and performance risk; earned value management reports, if required, to track contractor progress; and any international considerations related to the program.
Much of this functional information can be found in the Program Structure Chart, used to show specific dates for critical events, including acquisition program phases, decision milestones, program and technical reviews, major deliveries, T&E periods, RFP/contract information, and other important scheduling information. The sequence and interrelationship of activities as the team progresses through the acquisition program is of significant importance in the program structure chart. The program structure chart should be consistent with the schedule parameters in the APB. The demonstration of program interrelationships is at the heart of the IPT approach, where the actions and expertise of each team member can either help or hinder the team's overall ability to deliver a successful end product.
Remember, as in any IPT-based program, the team can be made up of different members depending on the nature of the acquisition program itself, and the expertise needed to make it successful. Because the Firebird is an ACAT II program, the management chain will include the Program Executive Office, while the Army Service Acquisition Executive (SAE) will be acting as the MDA.
7. International Cooperation involves the collaboration of foreign governments and related organizations during any stage of the acquisition cycle. Congress requires DoD to determine if there are allied or other friendly nations with whom we can cooperate on major systems development. Also, the acquisition strategy should address the potential for international cooperative research, development, production, logistics support, or sale. Some of the possible attractions of international involvement include:
  • A foreign government sharing in the cost of development
  • An opportunity to incorporate emerging technology from abroad
  • Possible lower production costs through increased foreign competition, by encouraging international producers to compete with domestic sources
  • Promoting interoperability of our systems with those of our allies, providing a warfighting advantage in multi-national warfighting coalitions
Some of the possible problems with international involvement include:
  • Political differences or economic problems with partners that can delay programs
  • Possible dependency on foreign sources
  • Security issues associated with technology transfer between countries can take a long time to resolve, which can lead to program delays
  • Economic considerations for the US industrial base when foreign competition is introduced
  • Legal and administrative requirements for international participation including coordination with the State Department 

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