Which one of the following is a method of designing for producibility?

Answer:
  • Minimize assembly requirements
Wrong Answers:
  • Maximize the number of parts used
  • Limit the functions performed by each part
  • Use a wide variety of component parts 

Modeling and simulation, when properly planned for and implemented, has been shown to: (Select all that apply)

Answers:
  • Shorten program schedules 
  • Improve system quality 
  • Help make better decisions 
Wrong Answer:
  • Increase technical risk 

The capability needs for a new software-intensive telecommunications system are well understood, but funding is not available to meet all the capabilities at once. The user is willing to field a basic system initially and add the rest of the capabilities over a period of three years. Which development model is best suited for this project?

Answer:
  • Incremental model 
Wrong Answer:
  • Life cycle model 
  • Spiral model 
  • Waterfall model 

Productivity, rework, and technology impact are examples of which kind of software metric?

Answer:
  • Process 
Wrong Answers:
  • Quality
  • Management
  • Resource allocation 



If a computer monitor was initially designed for use in a home or office environment, and the Navy decided to modify it for use on board ship, an early operational assessment (EOA) of that monitor would likely be conducted.

Answer:
  • True

The Army receives proposals from eight different companies in response to an RFP. Before the most highly rated proposals can be identified, the Contracting Officer needs to resolve some ambiguities in the proposals. What type of information exchange would the Contracting Officer use to get the information needed to establish the competitive range of proposals?

Answer:
  • Communications 
Wrong Answers:
  • Clarifications 
  • Solicitations 
  • Negotiations 

Every commercial item must undergo the same governmental testing as a newly developed item before it is acquired for use by the Department of Defense

Answer:
  • False 


Technical Performance Measures should be selected for those parameters that:

Answer:
  • Are expected to have the highest degree of risk
Wrong Answers:
  • Will not be addressed at technical design reviews
  • Are expected to exceed the objectives contained in the Capability Development Document (CDD)
  • Will not be subjected to formal test and evaluation. 


The Navy awards a cost plus award fee (CPAF) contract for $265 million to design and develop electronic components for a communications system within 18 months. What reports, if any, would the contractor normally need to provide to the Program Management Office regarding their cost, schedule, and technical performance?

Answer:
  • The contractor would submit a Contract Performance Report (CPR) formats 1 through 5 and an Integrated Master Schedule (IMS).
(Updated Answer by unknown comment):
  • The Navy PM would require submission of an Integrated Program Management Report (IPMR) with formats 1 through 7.

Wrong Answers:
  • The contractor would submit either a Contract Performance Report (CPR) formats 1 through 5 or an Integrated Master Schedule (IMS) but not both. 
  • The contractor would submit a Contract Performance Report (CPR) format 1 only. 
  • The contractor would submit a Contract Performance Report (CPR) formats 1 through 5 only. 
  • The contractor would not be required to submit any earned value related reports to the Program Management Office.
Link

What developmental test would you conduct to see how an item would perform under tropical conditions of heat and moisture?

Answer:
  • Environmental Testing 
Wrong Answers:
  • Component Testing 
  • Live Fire T&E 
  • Modification T&E 
Link:

Critical Technical Parameters (CTPs) are developed and coordinated by:


Answer:
  • The Program Management Office that is developing the system. 
Wrong Answers:
  • The independent Operational Test Agency that is testing the system. 
  • The contractor that is developing and producing the system. 
  • The Director, Operational Test and Evaluation (DOT&E) who is providing oversight for testing of the system. 
Link:

The Integrated Baseline Review (IBR) assesses the validity of the performance measurement baseline (PMB) and the Integrated Master Schedule (IMS). Which of the following is NOT an IBR outcome goal?

Answer:
  • Confirming that the contractor is compliant with ISO 9000 
Wrong Answers:
  • Determining that the PMB and IMS are realistic and achievable
  • Determining that all contract work scope requirements are baselined
  • Ensuring that work scope schedules are consistent with contract delivery requirements 
Link:

Which of the following is a valid reason for re-baselining the performance measurement baseline (PMB)?

Answer:
  • Actual Reasons for PMB changes and impact:
    • Contract Change: The Government procuring contracting officer (PCO), not the contractor, directs these changes or contract modifications.
    • Internal Replanning: Existing plan needs adjustment due to problems or when opportunities to capitalize on efficiencies are discovered, Contractor's PM must make adjustments to the existing plan that do not affect the overall budget or schedule. (Within the scope, schedule and cost objectives or the overall program)
    • Rebaselining: Formal reprogramming that occurs when the remaining budget becomes so unrealistic that more money and time are needed.
Wrong Answers:

  • The cost and schedule earned value variance metrics exceed the OSD thresholds.
  • The Government agrees to a minor administrative modification to the contract.
Possible Answers:
  • The plan for completing the remaining contract effort is no longer achievable. 
  • The contractor projects that the Budget at Completion will exceed the Estimate at Completion. 
  • The Government agrees to a minor administrative modification to the contract. 
Link:

Within _____ days after a program deviation occurs, the Program Manager must inform the Milestone Decision Authority of the action(s) necessary to get the program back on track.

Answer:
  • 30
Link:

Budget Execution Summary

The following learning objectives are covered in this lesson:
  • Given a scenario, track budget execution through the commitment, obligation, and expenditure process.
  • Identify the use and importance of obligation and expenditure plans.
  • Assess the impact of the failure to execute funds in accordance with program plans.
  •  
1. In the budget execution process, the following steps are taken:
  • Commitment - an administrative reservation of funds, made upon receipt of a request for spending. Commitment occurs upon certification that funds are available in the correct appropriation, in the correct fiscal year, and in the correct amount to cover the anticipated obligation.
  • Obligation : a "legal reservation" of funds, tying the government to a liability, such as a contract for goods or services. Obligation occurs when a contract is signed or when orders are placed.
  • Expenditure - a payment of some part or all of an obligation. Expenditure occurs when a check is issued, or when funds are electronically transferred, to a contractor in response to an invoice or bill for costs incurred, services rendered, or products delivered.
  • Outlay - a payment by the U.S. Treasury to the contractor. Outlay occurs when a check is cashed or when funds are electronically transferred from the Government to the contractor. (In electronic funds transfer, expenditure and outlay happen simultaneously.)

2. A number of players are involved in the execution of funds. After the Comptroller commits the funds by certifying their availability, the Contracting Officer obligates the funds by awarding the contract or signing purchase orders. Then the contractor performs the work and submits a Material Inspection and Receiving Report to the Quality Assurance Representative from the Contract Management Office, if deliverables are received at the contractor's plant, or to the Contracting Officer's Representative (COR), if deliverables are received at the program management office. The Quality Assurance Rep or COR verify that the deliverables were received and accepted and inform the Administrative Contracting Officer (ACO). The contractor submits an invoice to the ACO.
The ACO certifies that the invoice is correct, then forwards the invoice to the finance office to make payment. The ACO also assures that the contractor gets paid in a timely manner. The Finance and Accounting Office in turn expends the funds by check or electronic funds transfer. Finally, the U.S. Treasury outlays the funds when the cash is provided to the contractor.

3. Failure to make timely payment to a contractor can cause serious cash flow problems for the contractor. In addition, poor expenditure or outlay rates are a bad reflection on a program and may jeopardize a program's current and future funding. To minimize this risk, the Program Management Office prepares a spending plan that projects and tracks obligations and expenditures on a month-by-month basis.
A spending plan is required for each Procurement line item, RDT&E program element, and Operations and Maintenance sub-activity group in the program. The PMO creates an obligation plan for each fiscal year of funding that is available for new obligations and an expenditure plan for each fiscal year of funding that has not been completely expended, even if the period of obligation availability has expired.
Spending plans serve as a tool to analyze program execution, an indicator of potential problems, and a predictor of future program performance. Generally, a history of poor obligation, expenditure, or outlay will cause a program to come under increased scrutiny, or worse, lose funding. When a program deviates from its spending plan, it risks becoming a source of funding for other programs through reprogramming and runs the risk of having its funding cut in future years. 

Contractor Performance Measurement Summary

The following learning objectives are covered in this lesson:
  • Given performance data, select and compute appropriate performance status indicators.
  • Given performance data, detect and analyze the impact of significant problem areas, based on the status indicators.
  • Given performance data, calculate an estimate of cost at completion.
  • Recognize the importance of Earned Value data in external reporting.
1. There are various performance status indicators used in earned value management to tell whether a program is on track or not.
Budgeted Cost of Work Scheduled (BCWS)
indicates the value of work planned to be accomplished or planned value.
Budgeted Cost of Work Performed (BCWP)
indicates the value of work accomplished or the earned value.
Actual Cost of Work Performed (ACWP)
indicates the cost of work accomplished or actual cost.
Schedule Variance (SV)
equals the difference between the work accomplished the value of work accomplished to the value of work planned to be accomplished. It is calculated by subtracting the budgeted cost of work scheduled from the budgeted cost of work performed or earned value:
SV = BCWP : BCWS
A negative schedule variance in dollars is unfavorable and indicates that less work was accomplished than planned, while a positive schedule variance shows that more work was accomplished than planned. The program's critical path schedule must be reviewed to determine the impact of these schedule variances to the program.
Cost Variance (CV)
indicates whether the work accomplished cost more or less than planned. It is calculated by subtracting the actual cost of work performed from the budgeted cost of work performed:
CV = BCWP : ACWP
A negative cost variance in dollars is unfavorable and indicates that more money was spent for the work accomplished than was planned. This has the potential to put the program over budget if the trend continues, and may require the government to provide additional money to complete the program. A positive cost variance is favorable and indicates that the work accomplished cost less than planned.
2. We can also identify performance trends to see whether performance is improving or worsening over time and at what rate. This can be done for the overall program or for a specific activity within the program.
Schedule Performance Index (SPI)
indicates the efficiency with which the work has been accomplished in comparison to a specific value of work planned. For example, we may be functioning at only 0.8 or 80% efficiency of what we had planned to accomplish. It is calculated by dividing the budgeted cost of work performed by the budgeted cost of work scheduled:
SPI = BCWP/BCWS
Cost Performance Index (CPI)
tells the cost efficiency. It compares the value of work that has been accomplished to the actual cost of the accomplished work. For example, if our CPI is 0.75, we are accomplishing only 75 cents worth of work for every dollar we spend. It is calculated by dividing the budgeted cost of work performed by the actual cost of work performed:
CPI = BCWP/ACWP
Ideal CPI for a project is 1.0. Any activity with a CPI of less than 1.0 will rarely be improved over time. In fact, a program's CPI performance of less than 1.0 is often non-recoverable.
Cumulative CPIs and SPIs are usually less than 1.0 for most programs. Current period SPIs and CPIs for individual tasks can exceed 1.0, and exhibit positive and negative elements. When cumulative performance (CPI and SPI) fall below 1.0, the government needs to discuss the performance status with the contractor as part of risk management. Earned Value industry guidelines specifically state that management reserve will NOT be used to offset negative variances.
3. Budget at Completion (BAC) is the sum of all authorized budgets for the contract scope of work. The project's scope of work forms the performance measurement baseline (PMB), which projects the cost to do the entire program. The BAC equals the sum of all the allocated budgets plus any undistributed budget (management reserve and profit/fee not included).We use the BAC to determine the percent of the program spent and completed.
Percent Spent
: indicates how much of the program funds have been spent to date relative to the total amount of the project's budgeted funds. It is calculated by dividing the actual cost of work performed by the total amount expected to be spent on the program, the budget at completion:
% Spent = ACWP/BAC
Percent Complete --
indicates how much of the total program has been completed to date relative to the total amount of work to be performed. It is calculated by dividing the dollar amount of work performed to date, the budgeted cost of work performed, by the total amount expected to be spent on the program, the budget at completion:
% Complete = BCWP/BAC
Percent Scheduled :
indicates where the program should be based on a point in time. It is calculated by dividing the dollar amount of work scheduled to date, the budgeted cost of work scheduled, by the total about expected to be spent on the program, the budget at completion:
% Scheduled = BCWS/BAC
If the Percent Spent is greater than the Percent Complete, the program is going to run out of funds before the end of the project if it continues on the current trend. Conversely, if the Percent Complete is greater than or equal to the Percent Spent, the project has sufficient funds if it continues on the current trend. For example, if the percent complete is 50% and percent spent is 66%, we know we have a problem because we are spending at a faster rate than the project's work is being completed.
Note: don't confuse Percent Spent and Percent Complete with the SPI and CPI. Percent Complete and Percent Spent indicate program status, looking at the entire program from beginning to end. SPI and CPI indicate efficiency trends and look at a program up to a certain point in time.
4. Estimate at Completion (EAC) is the 'current' estimate of what the program will cost when completed. The EAC is based on the actual cost of work performed to date plus an estimate of the work remaining. It is calculated by adding the actual cost of work performed to the estimated cost to complete the remaining work of the program.
EAC = ACWP + Estimated Cost to Complete
The EAC can be calculated as follows: EAC is equal to the ACWP plus the BAC minus the BCWP divided by a performance factor such as the product of the CPI and SPI.
EAC = ACWP + [(BAC : BCWP)/(CPI x SPI)]
Both the Government and the contractor calculate EACs. The contractor's EAC is often referred to as the Latest Revised Estimate (LRE).

5. To Complete Performance Index for the Budget at Completion {TCPI(BAC)} shows what efficiency is required to accomplish the remaining work within the contract budget. This index attempts to quantify the efficiency required to deliver the project within the authorized funds for the remainder of the project.
The TCPI is correlated with the cumulative CPI; it takes the cost efficiency experienced to date, as reflected by the cumulative CPI, and determines what level of performance efficiency will be required to complete the project within available budget. If the cumulative CPI is 0.8 or 80%, in order to stay within our budget, we must achieve a performance factor of 1.2, or work at an efficiency of 120% for all the remaining work in order to complete the project at the BAC. This means the contractor must work 40% more efficiently than its current cumulative CPI of 80%.
To calculate TCPI (BAC) we divide the value of the work remaining by the value of the budget remaining. In other words, we subtract the BCWP from the BAC then divide that difference by the difference between the BAC and the ACWP.
TCPI (BAC) = BAC - BCWP
                         BAC - ACWP
The TCPI can also be based on an EAC which is most often used to validate the contractor or government EAC. DoD analysts have determined that after 20% into a program, the cumulative CPI rarely improves. Therefore, achieving a TCPI that is greater than 5% of the CPI is unlikely; this means we may have to restructure the program in order to obtain an executable program.

Commerical and NDI Summary

The following learning objectives are covered in this lesson:
  • Identify key issues regarding test and evaluation of commercial and non-developmental (NDI) items.
  • Identify the role of Early Operational Assessment (EOA) in reducing program risk.
  • Recognize key logistics related acquisition policies and their impact (e.g., life-cycle cost, contractor logistics support, commercial and non-developmental items).
1. Non-developmental items (NDI) are previously developed items used exclusively for governmental purposes by federal, state, local, or allied governments. Commercial  items are generally used for non-governmental purposes and are offered for sale, lease or license to the general public
2. The use of non-developmental items and commercial products is encouraged to reduce life cycle costs associated with having to develop new products or systems.  Use of these types of products doesn't completely eliminate testing and supportability issues, but it can drastically cut development costs. The benefits of using NDI and commercial products include:
  • Reduced cycle time
  • Reduced/eliminated R&D cost
  • Reduced technical, cost and schedule risk
  • Availability of product samples for source selection process
  • Availability of state-of-the-art technology
On the other hand, there can be drawbacks to using NDI and commercial products:
  • Difficulty in integrating components
  • Long-term logistics support problems
  • Lack of engineering and test data
3. The amount and type of testing required for an NDI or commercial item depends on how the item will be used, whether any modifications are needed, and the availability of previous test results.
  • If the item will be used in the same environment for which it was originally designed, developmental testing is usually not necessary.  However, operational testing will be required if the item will be maintained by the Government.
  • If the item will be used in a different environment than that for which it was originally designed, some developmental testing may be required to ensure the item meets specifications or make sure the manufacturing process is effective. Operational testing, including early operational assessment (EOA) and operational assessment (OA), will be required to verify effectiveness and suitability.
  • If the item will be integrated into a system, developmental testing will be required on a test sample before the item is integrated into the system.  Pre-production testing of the complete system, including both hardware and software, may be conducted.  Operational testing of the complete system will also be required.
  • If the item will be modified, both developmental testing and operational testing will be conducted to insure the modification meets all the requirements.
Making government unique modifications to commercial or non-developmental items may invalidate testing and usage data.  The more we modify these items, or change the way in which they will be used, the more additional testing we will need to conduct.

4. Operational testing and evaluation (OT&E) is the primary means of assessing weapon system performance. One type of OT&E, Early Operational Assessment (EOA), is conducted to forecast and assess potential operational effectiveness and suitability of the weapon system during development.  It is used to detect deficiencies that may impact the performance, availability, and supportability of a system.  Thus, EOA increases our confidence in the NDI or commercial item, thereby reducing our probability of failure, which in turn reduces risk.
5. The use of NDI and commercial items raises long-term supportability issues.  For example, we could face a situation where the vendor changes the product line or discontinues making replacement parts.  In addition, there may be problems with design interface and the interoperability of parts with the overall system.  Furthermore, service unique logistics capability needs may be difficult to meet with commercial and NDI products.

6. When deciding to use commercial or NDI items, we must determine how best to support the system once it is fielded; i.e., whether to use organic support : using military personnel : or to contract out logistics support.  Both options have their merits and drawbacks, and determining these can be done by taking into account the following circumstances:
  • How much modification is required to make the item fully operational?  If significant changes are required before the item is used by the military, then government (organic) logistics support might be the best approach.
  • How or where will the item be used?  If the environment will be hostile or austere, it could affect the contractor's ability to support the item due to safety concerns, and government (organic) logistics support might be the best approach.
  • What is the projected service life?  For short-term items, contractor logistics support is often more appropriate.
  • How stable is the design or configuration?  If constantly changing configurations are inevitable, especially due to advances in technology, then contractor logistics support is likely to be the better option.

Budgeting Process Summary

The following learning objectives are covered in this lesson:
  • Relate the following building blocks to the PPBE process: Future Year Defense Program (FYDP), Major Program (MP), Program Element (PE).
  • Identify the key events in the budgeting phase, including the preparation, review and decision process associated with the three major documents of the phase:  Budget Estimate Submission (BES), Program Budget Decision (PBD), Reclamas.

1. The budgeting phase of the PPBE process focuses on program execution to determine near-term funding requirements. Budgeting is a calendar-driven process, resulting in the DoD portion of the President's Budget, which is submitted to Congress in February each year.

2. The services, in the even years, prepare their combined Program Objectives Memorandum (POM) and Budget Estimate Submission (BES).  The POM and BES update the Future Years Defense Program (FYDP).  The BES covers two years (such as FY 02 and FY 03). During the odd years, services only submit changes to the previous year's combined POM and BES. Changes to the POM are known as Program Change Proposals (PCPs), while changes to the BES are known as Budget Change Proposals (BCPs).

3. The BES is submitted to the OSD Comptroller.  Occasionally the OSD Comptroller will send a list of "Advance Questions" about specific areas of the budget.  In the Fall, after receiving responses to the advance questions, analysts from the OSD Comptroller and the Office of Management and Budget (OMB) hold hearings to review appropriations or specific programs. The analysts typically examine program pricing and phasing, compliance with funding policies, and budget execution. After reviewing these areas, the OSD Comptroller analyst may prepare a draft Program Budget Decision (PBD). The draft PBD is used to make adjustments to the BES, generally reducing the amount of funding.
The draft PBD is provided to the services and defense agencies for comment, at which point they are allowed to provide an alternate position, known as a reclama.
A reclama provides an opportunity to explain problematic areas in the budget and refute proposed budget cuts. Reclamas should always be based on fact and provide an objective evaluation of the implications of the proposed cuts.
After considering the reclama, the OSD analyst makes the decision whether to withdraw, amend, or submit the original version of the PBD. If not withdrawn, this final draft version of the PBD will include all information regarding the original PBD and the associated reclama. It is then sent to the DEPSECDEF, who ultimately makes the decision to sign off on : thus finalizing : the PBD.
While programming and budgeting are ongoing, the Execution Review phase is also ongoing. The results of execution review will be used to make decisions about how to best allocate resources.
The PBD and changes that occur during programming will be incorporated as part of the DoD portion of the President's Budget. The FYDP is then updated to reflect the President's Budget, thus ending the budgeting phase of the PPBE process.