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.

Challenges to the application of System Engineering within the DoD include which of the following:

Answers:
  • Excessive technical management investment
  • Increasing system complexity
  • Workforce turbulence
  • Poor initial program formulation
Wrong Answers:
  • Inconsistent requirements management

Challenges to the application of System Engineering within the DoD include all of the following EXCEPT:

Thanks for the update answer Chierl

Wrong Answers:
  • Excessive technical management investment
Wrong Answers:
  • Inconsistent requirements management
  • Increasing system complexity
  • Workforce turbulence
  • Poor initial program formulation

Systems Engineering processes and tools are used by the defense industry as a normal part of their approach to develop products for the acquirer; but, because of their technical nature, System Engineering processes and tools are rarely appropriate for use by the DoD acquirer.

Answer:
  • False

Total Life Cycle Systems Management (TLCSM) is NOT normally within the scope of Systems Engineering activities

Answer:
  • False

The DoD’s Defense Acquisition Guidebook’s definition of Systems Engineering includes all of the following elements EXCEPT:

Answer
  • A process performed solely by defense contractors 
Wrong Answers:
  • An interdisciplinary approach
  • Total lifecycle balanced set of solutions
  • Encompasses the entire technical effort
  • Involves system, people and process solutions

The Systems Engineering ‘V’ Model includes all of the following EXCEPT:

Answer:
  • Is a set of tasks to be performed in strict sequential order
Wrong Answers:
  • Is a structure based on a hierarchy of layered systems models
  • Provides a basis for bottom-up product realization 
  • Provides a basis for top-down design

What is the likely order of these ‘top-down’ design Technical Processes when initially used?

Answer:
  • Stakeholder Requirements Definition, Requirements Analysis and Architecture Design
Wrong Answers:
  • Stakeholder Requirements Definition, Architecture Design, Requirements Analysis
  • Architecture Design, Requirements Analysis and Stakeholder Requirements Definition 
  • Architecture Design, Stakeholder Requirements Definition and Requirements Analysis 
  • Requirements Analysis, Architecture Design and Stakeholder Requirements Definition

A program-unique specification is defined as a specification that “describes a system, item, software program, process or material developed and produced for which there is judged to be little potential for use by other systems”

Answer:
  • True

In this phase of the Defense Acquisition Lifecycle, Systems Engineering activities are focused on continued trade studies working toward a final System Specification and the maturation of key critical technologies.

Answer:
  • Technology Development
Wrong Answer:
  • Materiel Solution Analysis
Possible Answers:
  • Operations and Support
  • Engineering and Manufacturing Development 
  • Technology Development 
  • Production and Deployment

In this phase of the Defense Acquisition Lifecycle, Systems Engineering activities are focused on production of program-unique specifications and ultimately the initial production baseline.

Answer:
  • Engineering and Manufacturing Development
Wrong Answer
  • Materiel Solution Analysis
  • Production and Deployment
  • Technology Development
  • Operations and Support

Which one of these is typically the initial Technical Process to be applied in ‘top-down’ design?

Answer:
  • Stakeholder Requirements Definition
Wrong Answer:
  • Requirements Management
Possible Answers:
  • Stakeholder Requirements Definition
  • Integration
  • Verification
  • Architecture Design

Stakeholder Requirements Definition

“Recursion,” in the context of Systems Engineering process application, is defined as “the reapplication of Technical Processes already applied to a system model, based on feedback indicating that a problem that needs resolution.”

Answer:
  • False

A specification that “specifies design requirements, such as materials to be used, how a requirement is to be achieved, or how an item is to be fabricated or constructed” is an example of a(n):

Answer:
  • Detail Specification
Wrong Answer:
  • System Specification
  • Performance Specification
  • System Segment Specification

The Transition Process is typically the final ‘bottom up’ product realization Technical Process to be applied

Answer:
  • True

Which phase of the Defense Acquisition Lifecycle has outputs that include validation of the manufacturing processes and confirmation that End Products are being produced in accordance with the specified manufacturing processes?


Answer:
  • Production and Deployment
Wrong Answer:
  • Materiel Solution Analysis 
  • Technology Development
  • Operations and Support
  • Engineering and Manufacturing Development

The Requirements Analysis Process is typically the final ‘top-down’ design Technical Process to be applied.

Answer:
  • False

“Iteration”, in the context of Systems Engineering process application, is defined as “the repeated application of the same Technical Processes to either successively lower system models within the system structure or to end products at successively higher levels.”

Answer:
  • False

A System Specification is an example of a:

Answer:
  • Program-unique specification (Thanks to William Bush for the help)
Wrong Answer:
  • Detail specification
Possible Answers:
  • Program-unique specification 
  • Item Specification 
  • Military specification