Introduction to Defense Acquisition Summary

Lesson Outcome: Identify statutory and regulatory requirements for oversight and review of defense acquisition programs and their relationship to the JCIDS process.

Topic 1: Statutory and Regulatory Documents Identify and define the key statutory and regulatory documents for systems acquisition.

Five documents discussed in this topic: Title 10, United States Code, Armed Forces, provides permanent legislation for matters relating systems acquisition. DoD Directive 5000.01, Defense Acquisition, provides top-level policies and principals for all acquisition programs DoD Instruction 5000.02, Operation of the Defense Acquisition System, implements the provisions of DoDD 5000.1, other DoD directives and instructions, executive direction, and public law. Federal Acquisition Regulation, and the Defense and Military Department/ Agency supplements provide regulatory guidance for the contracting process. Defense Acquisition Guidebook, provides details on staff expectations and discretionary best practices for implementing the guidance in DoDI 5000.2.

Required references to Title 10 are provided in DoDI 5000.02.  Access to DoDI 5000.02 and the other listed documents is provided by DAU at https://akss.dau.mil

Topic 2: Acquisition Categories
Identify and define the Acquisition Categories (ACAT).

The ACAT of the program determines its level of management oversight and review, and the programmatic chain the PM reports through to the MDA.  Under no circumstances should there be more than two levels of review between the program manager (PM) and the milestone decision authority.

The four major ACATs are: ACAT I, ACAT IA, ACAT II and ACAT III.  The potential ACAT is first determined by the requirements manager and entered on the cover page of the ICD.

ACAT I programs are major defense acquisition programs (the most expensive in terms of RDT&E and Procurement dollars).  ACAT I programs and are further divided into ACAT ID – those reviewed by the Defense Acquisition Board (DAB) with the Under Secretary of Defense (Acquisition, Technology and Logistics) (USD(AT&L)) as the Chair and milestone decision authority (MDA), and ACAT IC – those delegated by the USD(AT&L) for review and decisions by the Component Acquisition Executive (CAE).

ACAT IA programs are Major Automated Information Systems (MAIS) (the most expensive AIS) and are further divided into ACAT IAM and IAC.  ACAT IAM are reviewed by the Information Technology Acquisition Board (ITAB), chaired by the USD(AT&L) or the Assistant Secretary of Defense (Networks and Information Integration) (ASD(NII). The MDA is the USD(AT&L), or if delegated, the ASD(NII).  ACAT IAC are delegated by the USD(AT&L) or ASD(NII) to the CAE for review and decision authority.

ACAT ID and ACAT IAM programs are subject to the most comprehensive level of oversight and review. These programs are reviewed at the Component level, then proceed to OSD for review by an Overarching Integrated Product Team (OIPT).  After the OIPT review, the program proceeds to the DAB (ACAT ID), DSAB (Space Programs) or the ITAB (ACAT IAM) for final review, and then an MDA decision.

ACAT IC, IAC and II programs are reviewed at the Component Headquarters and decisions are made by the CAE. The PM reports through a PEO or directly to the CAE.

ACAT II programs are major systems with a lower dollar threshold than ACAT I. ACAT II programs are reviewed and decided by the CAE. There are no ACAT II Automated Information System (AIS) programs.

ACAT III programs do not meet ACAT I or II criteria, and are reviewed and decided at the lowest appropriate level in accordance with Component policy. ACAT III programs have the shortest reporting chain for the PM – who often reports direct to the MDA. Programs are reviewed at the PEO or command level depending on Component policy.

Missile Defense and Space Programs. The Director of the Missile Defense Agency is the MDA for assigned programs until Milestone C, then the USD(AT&L) becomes the MDA. The USD(AT&L) is the MDA for Space ACAT I programs.

The final ACAT determination is made by the appropriate MDA.

Topic 3: Acquisition Strategy Identify the key elements of a system acquisition strategy and distinguish the characteristics of an evolutionary acquisition strategy. 

An acquisition strategy is the PM’s business, technical and management approach for implementing the cost, schedule, performance and other requirements (depending on the ACAT) from Milestone B to disposal. An evolutionary acquisition (EA) strategy is characterized by the rapid fielding of an initial capability as increment 1, while recognizing up front, the need for future capability improvements.  The content of an acquisition strategy can be extensive depending on the ACAT of the program.  Details on the content are in the Defense Acquisition Guidebook, Chapter 2.

Topic 4: Acquisition Program Baseline Examine the content of the Acquisition Program Baseline (APB) and the relationship of that content to the Capabilities Development Document (CDD) and Capability Production Document (CPD)

Key Performance Parameters (KPPs) with their threshold and objective values are copied verbatim from the CDD and CPD into the APB.  The MDA may add APB parameters for performance attributes in addition to the validated KPPs. 

Performance thresholds represent what the user desires and expects and may be expressed as either a minimum or maximum acceptable value. If no objective is specified, the threshold value also serves as the objective value.  Threshold and objective values may change between the CDD and CPD based on experience gained during EMD and trade-off decisions made to optimize performance.  The PM manages the program to the objective values.

Schedule dates are driven by the CDD/CPD target dates to achieve Initial Operational Capability (IOC). If the CDD/CPD are developed in coordination with the PM, requirements for IOC will be agreed upon well in advance of acquisition strategy and APB development.  The objective date is the scheduled date. The threshold is the objective date plus 6 months for ACAT I programs. 

Cost parameters (thresholds and objectives) must be consistent with the affordability section of the CDD. Cost thresholds are the objective cost value plus 10%. The APB  contains cost parameters for major elements of life-cycle costs, or total ownership costs if available

The capability documents drive nearly all cost, schedule and performance matters throughout development, production, fielding, and life-cycle sustainment.

Topic 5: Information Technology, National Security Systems, and Space Systems. Recognize the unique characteristics of information technology (IT), National Security Systems (NSS), and Space Systems Development.

National security systems, automated information systems, and business systems are all information technology (IT) systems.  All IT systems must comply with the requirements of Title 40, U.S. Code, or the Clinger-Cohen Act (Title 40/CCA).  Compliance is not required to be spelled out in special or different documents.  Enclosure 4 of DoDI 5000.02 provides a table of compliance actions and what traditional program documents are used to document the actions.

Interoperability and supportability certification is required for most IT and NSS systems. This certification is conducted by the Joint Staff, J-6 for both the JCIDS documents and as a result of actual system level interoperability testing. The ability to meet the requirements of the Net-Ready KPP found in the CDD is a key element of this certification process.

Major automated information systems (MAIS) have special reporting requirements to Congress for notices prior to cancellation or reduction in scope, changes in cost, schedule and performance, and an assessment and certification of critical program changes.

Business Systems.  The Director, Business Transformation Agency is the acquisition executive for Defense Business Systems. The MDA for business systems that are major automated information systems is the DoD Asst. Deputy Chief Management Officer (ADCMO)."

Automated information systems (AIS) business systems cannot obtain MS A approval unless the MDA has determined the system can achieve IOC within 5 years. Business systems valued at $1 million or more must be certified by the Defense Business Systems Management Committee.

Space Systems.  National Security Space Systems are high technology, small quantity programs, developed using a streamlined decision making framework.  Policy for the acquisition of space systems is found in Interim Space Acquisition Policy. There are similarities between DoDI 5000.02 and NSS 03-10; however, the milestones and phases are slightly different to provide for earlier fielding of one-of-a-kind satellites and launch vehicles. The Under Secretary of the Air Force is the DoD Executive Agent for Space. As such, the Under Secretary is responsible for the development and fielding of all ACAT I space assets across DoD, and may be the MDA if delegated by the USD(AT&L).

Prior to each DAB, the DoD Space MDA will convene an Independent Program Assessment Team (IPAT) to advise him on a program’s readiness to advance into the  next acquisition phase. A cost analysis conducted by an Independent Cost Analysis Team (ICAT) is presented as part of the DAB process. There are two acquisition models for space programs: A small quantity model, usually for 10 or less systems such as satellites, satellite ground-based command and control and data processing stations, and launch vehicle system. A large quantity model for 50 or more systems is used for user equipment such as hand-held terminals.  This model is more similar to the DoD 5000 model"