Middle Tier Acquisition andOther Rapid Acquisition PathwaysPete ModiglianiSu ChangDan Ward26 Jun 18Contact us [email protected] 2018 The MITRE Corporation. All rights reserved. Approved for public release. Distribution unlimited 17-3828-3.
2 Purpose / OutlineTo provide an overview of rapid acquisition pathways madeavailable by recent National Defense Authorization Acts (NDAAs) Section 804 Middle Tier – Rapid Prototyping and Rapid Fielding Section 806 – Development, Prototyping, Deployment of Weapon System ComponentsDODI 5000.02 Tailoring and Accelerated Acquisition Model 4DODI 5000.02 Enclosure 13 Urgent Capability AcquisitionFAR DirectionService Implementation Direction 2018 The MITRE Corporation. All rights reserved.
3 Rapid Acquisition PathwaysSummaryRequirementSection 804Middle TierAcquisitionSection 806Weapon SystemComponentPrototypesDODI 5000.02Model 4AcceleratedAcquisitionDODI 5000.02Enclosure 13UrgentCapabilityAcquisitionRapid Prototypingand RapidFieldingSAE selectedmost promisingprototypeAggressively tailorwhen schedule iskingFulfill urgentoperational needsJCIDSUON, JUON, orJEON by CCDRor VCJCS“Approved requirement”Exempt from JCIDSField 5 years;Production start 6 monthsComplete within2 yearsNoneField within2 yearsFunding LimitNone 10M or 50M ifSecretary approveNoneBelow ACATI and IAOther FactorsExempt from 5000PM reports toSAEBudgetedseparate fromPoRMDAPs havestatutoryrequirements thatlimit speedNo JCIDS onceinitial doc signedTimelines 2018 The MITRE Corporation. All rights reserved.
4 Section 804 Middle Tier of AcquisitionRapid Prototyping Use innovative technology to rapidly develop fieldable prototypesto demonstrate new capabilities, meet emerging military needs Field a prototype demonstrated in an operational environment Residual operational capability within 5 years of requirementRapid Fielding Use proven technologies to field production quantities of new orupgraded systems with minimal development Begin production within 6 months Complete fielding within 5 years of requirement 2018 The MITRE Corporation. All rights reserved.FY16 NDAA Section 804
5 Section 804 Overarching Guidance Guidance required shall provide for a streamlined andcoordinated requirements, budget, and acquisition process– Develop an approved requirement for each program in a period ofnot more than 6 months from the process initiation Shall not be subject to JCIDS and DODD 5000.01 DoD Rapid Prototyping Fund––––For acquisition programs under the rapid prototyping pathwayConsist of appropriated funds and those credited by section 828Managed by a senior DoD official designed by AT&LShall notify the congressional defense committees of all transfers 2018 The MITRE Corporation. All rights reserved.FY16 NDAA Section 804
6 804 Roles for “Defense Streamlined Program” SAE– SAE is MDA (in coordination with AT&L)– Shall appoint PM and evaluate PM job performance annually Program Manager– Shall report directly to the SAE– Authorized to staff positions to manage the program without anotherorganization to the maximum extent practicable– Authorized to make cost, schedule, requirements trade-offs incoordination with the users and testers– Expeditiously seek Congressional waiver from any statutory orregulatory requirement they determine add little/no value to program 2018 The MITRE Corporation. All rights reserved.FY16 NDAA Section 804
7 Potential 804 Rapid PathwaysO&S of OperationalCapabilityIOC orMVPApprovedRequirement(No JCIDS)Rapid Prototyping 5 YearsRapid Fielding(Production) 6 Month Start 5 YearsNew or ExistingProgramAnother Prototype 2018 The MITRE Corporation. All rights reserved.
8 Traditional Program vs 804 Rapid ProgramTraditional ProgramAMDDMSA PhaseICDBTMRR PhaseDraft CDDAoACCDD RFPEMD PhaseCDDPrototypesP&D PhaseCPDDesignSection 804 Rapid ProgramFRPDRDevelopProduceO&S of Ops CapabilityFOCApprovedRequirement(No JCIDS)IOCRapidPrototyping 5 Years 2018 The MITRE Corporation. All rights reserved.Rapid Fielding(Production) 6 Month Start 5 YearsNew/Existing ProgramAnother PrototypeIOC FOC
9 USD(A&S) Memo on Middle Tier Acquisition Ms. Lord provided DoD Componentsinterim authority to implement 804 Develop rapid prototyping and fieldingprocesses and procedures NLT Jan 2019, A&S and Componentswill collaborate on 804 policy Requires collection of key data onprograms: name, capability gap,source, funding, dates, result, vendors Identify policy changes to enablegreater success in implementing 804 2018 The MITRE Corporation. All rights reserved.USD(A&S) memo 16 Apr 18
10 806: Development, Prototyping, Deploymentof Weapon System Components or Tech (1)Projects selected by the SAE as being one of the most promising,innovative, and cost-effective prototypes that is expected to besuccessfully demonstrated in a relevant environment Must be completed within 2 years Limited to 10M– Could be funded up to 50M if Secretary approved, Congress notified Prototypes shall be funded through contracts, cooperativeagreements, or OTAs– Prototypes can be budgeted separately from a PoR and excludedfrom MDAP costs Exempt from JCIDS 2018 The MITRE Corporation. All rights reserved.FY17 NDAA Section 806
11 806: Development, Prototyping, Deploymentof Weapon System Components or Tech (2) SAE may select the project for follow-on production contract orOT without competition if– Addresses a high priority warfighter need or reduces the costs of aweapon system– Competitive procedures were used for the selection of parties forparticipation in the original prototype project– Participants in the original prototype project successfullycompleted the requirements of the project; and– Prototype of the system to be procured was demonstrated in arelevant environment. Each Service Secretary will establish an oversight board orgroup of senior advisors to manage prototype projects 2018 The MITRE Corporation. All rights reserved.FY17 NDAA Section 806
12 Potential Section 806 PathwaysO&S of OperationalCapabilityIOC orMVPApprovedRequirement(No JCIDS)Follow-OnProduction(No Competition if )Rapid Prototyping 2 YearsAnother PrototypeNew or Existing Program of Record 2018 The MITRE Corporation. All rights reserved.
13 Acquisition Tailoring in DODI 5000.02“The structure of a DoD acquisition program and the procedures usedshould be tailored as much as possible to the characteristics of theproduct being acquired, and to the totality of circumstances associatedwith the program including operational urgency and risk factors.”“MDAs will tailor program strategies and oversight including program information acquisition phase content timing and scope of decision reviews and decision levelsbased on the specifics of the product being acquired, includingcomplexity, risk factors, and required timelines to satisfy validatedcapability requirements ” 2018 The MITRE Corporation. All rights reserved.
14 DODI 5000.02 Model 4: Accelerated Acquisition When schedule considerations dominate over cost and technical risk. Compresses or eliminates phases of the process and accepts thepotential for inefficiencies in order to deploy capability on a compressedschedule. The model shows one example of tailoring for accelerated acquisitionand many others are possible. This type of structure is used when technological surprise by a potentialadversary necessitates a higher-risk acquisition program. 2018 The MITRE Corporation. All rights reserved.
15 DODI 5000.02 Enclosure 13Urgent Capability Acquisition Provide capabilities to fulfill urgent operational needs and other quickreaction capabilities that can be fielded in less than 2 years and arebelow the cost thresholds of ACAT I and IA programs. UON, JUON, JEON Exempt from JCIDS 2018 The MITRE Corporation. All rights elding-of-capabilities/
16 FAR Direction – Simple Agencies shall use simplified acquisition procedures tothe maximum extent practicable for all purchases ofsupplies or services not exceeding the simplifiedacquisition threshold. –FAR 13.003 2018 The MITRE Corporation. All rights reserved.
17 FAR Direction – Innovative The System should also, however,encourage innovation, and localadaptation where uniformity is notessential. –FAR 1.102-2(b)(2) The contracting process shall be used to encourage thebest sources from the scientific and industrial communityto become involved and must provide an environmentin which the work can be pursued with reasonableflexibility and minimum administrative burden.– FAR 35.002 2018 The MITRE Corporation. All rights reserved.
18 FAR Direction – Modular Modular contracting is intended to reduce program riskand to incentivize contractor performance while meetingthe government’s need for timely access to rapidlychanging technology Agencies should, to the maximum extent practicable,use modular contracting to acquire major systems(see 2.101) of IT. Agencies may also use modular contracting to acquirenon-major systems of IT. –FAR 39.103 2018 The MITRE Corporation. All rights reserved.
19 Rapid Acquisition PathwaysRapid PrototypingMiddle-Tier804*Rapid Fielding(Production) 6 Month Start 5 Years 5 YearsProgram of sition 2 YearsMS A/BIOCFOCTechProductionMaturation, RiskDeploymentReduction,DevelopmentHeavily Tailored to Meet Accelerated Schedule5000.02Encl el 4AcceleratedAcquisition**MS CUONsJUONsJEONs 2 Years* No JCIDS** JCIDS 2018 The MITRE Corporation. All rights reserved.*** UON signed by CCDR/VCJCSSUSTAINMENT 10M or 50M
20 Middle-Tier Acquisition on AiDAOSD and Service Implementation policies, legislative languagehttps://aida.mitre.org/middle-tier/ 2018 The MITRE Corporation. All rights reserved.
Air Force Rapid Acquisition 2018 The MITRE Corporation. All rights reserved.
22 SAF/AQ Guidance Memorandum “Contracting officers are encouraged tobe aggressive using vehicle types,incentives, and penalties to encouragetimeliness.” “Speed through streamlining should befervently pursued ” Four Tailorable Phases– Alpha: Prototyping– Beta: Fielding and Initial Production– Gamma: Modernization and Follow-onProduction– Delta: Operations and SustainmentAir Force Guidance Memo for Rapid Acquisition Activities 2018 The MITRE Corporation. All rights reserved.
23 Dr. Roper 22 May 18 Email1. Section 804 is now our new standard.Use it wherever allowed unless it doesn’t make sense; it usually will.2. We must go over and above to show due diligence.3. Keep your “requirers” with you throughout prototyping4. Throw away pens and carry pencils from now on5. Century Challenge: Keep track of the time you project to saveusing 804 over traditional acquisition. Goal: Save 100 years 2018 The MITRE Corporation. All rights reserved.
24 SAF/AQ: 7 Steps for Incorporating RapidPrototyping into Acquisition1. Have an aggressive goal2. Bound your risks3. Be aggressive but not greedy4. Constrain time and budget, not the final performance5. It takes a team to go fast6. Get a signature from me7. GO FASTSeven Steps for Incorporating Rapid Prototyping into Acquisition 2018 The MITRE Corporation. All rights reserved.
Naval Rapid Acquisition 2018 The MITRE Corporation. All rights reserved.
26 Navy Implementation of Section 804 Hondo memo: Middle Tier Acquisition and Acquisition Agility Guidance The Navy will follow an incremental approach to implementation– Enable speed and agility, while maintaining appropriateaccountability, oversight, and transparency– Collaborate with OSD to better align and evolve policies– Series of pilots to exercise these authorities and inform policy Directed SYSCOMs and PEOs to assess their contracting, technical,legal, and financial processes to facilitate program acceleration Rapid Prototyping and Rapid Fielding Documentation– Key docs, the elements to address, and approval nt-dept-navy-rapid-acquisition-guidance 2018 The MITRE Corporation. All rights reserved.
27 Navy Implementation of Section 804 (2)Multiple pathways to initiate a rapid prototypeEmergent StrategicNeedsNot documented through the normal Capability BasedAssessment process nor sufficient funds programmedthrough the normal DoD PPBE processEmergentTechnologiesNew warfighting capabilities that have been identifiedas an offsetting or disruptive warfighting needDocumented NeedsProjects that currently have a validated requirementdocumented via the JROC, JRAC, CNO or CMCOperational Needs process requiring acceleration tomeet a warfighting -navy-rapid-acquisition-guidance 2018 The MITRE Corporation. All rights reserved.
28 SECNAVINST 5000.42 – Accelerated AcquisitionDr. Burrow - Dec 2016Rapid PrototypingExperimentationand Demonstration(RPED)MaritimeAcceleratedCapabilities Office(MACO) 2018 The MITRE Corporation. All rights reserved. To find a solution for a fleet or force priority needs for whicha suitable materiel solution cannot be readily identified. Rapidly trials solutions and assesses performance andoperational utility. Conducts a demonstration and user evaluation ASAP To accelerate the introduction of advanced warfightingcapabilities or fulfill UONs for which there are knownrequirements and an appropriate materiel solution. Programs will result in the fielding of interim or enduringcapabilities to mitigate the identified operational gap.https://aida.mitre.org/secnavinst-5000-42/
29 SECNAVINST 5000.42 – Accelerated Acquisition In considering the appropriate accelerated path the AcceleratedAcquisition Board of Directors (AA BOD) shall be informed by:– Consideration of the operational risk– Availability of mature technologies to mitigate the gap– Cost and affordability of potential solutions– Technical risks of program execution AA BoD: CNO, CMC, ASN (RD&A) and, as applicable, the DAE In developing COAs, the DON will seek to leverage mature technologywherever possible– The selection will consider innovative solutions from all government,FFRDCs, academia, and industry sources. 2018 The MITRE Corporation. All rights /
30 Messages from Hondo 4Ds– Decentralize – Let folks make decisions atthe lowest level and hold them accountable– Differentiate – Think differently from carrierto combat system to AI from developmentto people implementing solutions– Digitize – Rethink way we build HW (digitalfrom start), training, production, commoncombat systems across ships– Develop – World class talent acrossenterprise (mil, civ, academia) Strength of America is our pivot speed –organizational agility 2018 The MITRE Corporation. All rights reserved.
31 Navy's Geurts on Accelerating Key Programs Streamlining requirementsand acquisition Empowering team – accessto senior decision makes Middle Tier Acquisition –great capability out to theFleet MQ-25 – 2 criticalrequirements– Launch off carrier– Refuel aircrafthttps://youtu.be/2E9ae-Cey4g 2018 The MITRE Corporation. All rights reserved.See also: GAO Report on MQ-25
BACKUP SLIDES 2018 The MITRE Corporation. All rights reserved.
33 FY16 NDAA, Section 803Expansion of Rapid Acquisition Authority When SECDEF determines in writing that any supplies and associated support services are urgently needed to eliminate adeficiency that have or could result in– Combat casualties– Critical mission failure– Cyber attackSECDEF authorizes senior official to waive any law, policy,directive, or regulation that would impede the rapid acquisitionand deployment of supplies and support servicesLimited to 200M/year in aggregateSECDEF shall notify Congress in 10-15 daysAny acquisition initiated shall transition to normal acquisitionsystem within 2 yearsUnclear what action if any OSD has taken to implement this 2018 The MITRE Corporation. All rights reserved.
34 FY16 NDAA Section 805Use of alternative acquisition paths to acquire critical national security capabilities Not later than 180 days after enactment SECDEF shall establishprocedures for alternative acquisition pathways to acquire capitalassets and services that meet critical national security needs. The procedures shall—– be separate from existing acquisition procedures– be supported by streamlined contracting, budgeting, andrequirements processes– establish alternative acquisition paths based on the capabilitiesbeing bought and the time needed to deploy these capabilities– maximize the use of flexible authorities in existing law, regulationUnclear what action if any OSD has taken to implement this 2018 The MITRE Corporation. All rights reserved.
35 Non-Traditional and Small ContractorInnovation Prototyping Program (1) SECDEF shall conduct a pilot program for non-traditionaldefense contractors and small business concerns Design, develop, and demonstrate innovative prototype militaryplatforms of significant scope for the purpose of demonstratingnew capabilities that could provide alternatives to existingacquisition programs and assets. Authorized to be available 250M from Rapid Prototyping Fund Maximize use of– BAAs or other merit-based selection procedures– DoD Acquisition Challenge Program authorized by 10 USC 2359b– The foreign comparative test program– DoD Rapid Innovation Program projects or Phase III agreementof the Small Business Act– Streamlined acquisition procedures FY16 NDAA sections 804, 805Unclear what action if any OSD has taken to implement this 2018 The MITRE Corporation. All rights reserved.FY17 NDAA Section 884
36 Non-Traditional and Small ContractorInnovation Prototyping Program (2) As part of the pilot program, SECDEF shall allocate up to 50,000,000on a fixed price contractual basis for FY17 for demonstrations of thefollowing capabilities:– Swarming of multiple unmanned air vehicles.– Unmanned, modular fixed-wing aircraft that can be rapidly adapted tomultiple missions and serve as a fifth generation weaponsaugmentation platform.– Vertical takeoff and landing tiltrotor aircraft.– Integration of a directed energy weapon on an air, sea, or groundplatform.– Swarming of multiple unmanned underwater vehicles.– Commercial small synthetic aperture radar (SAR) satellites withon-board machine learning for automated, realtime featureextraction and predictive analytics.– Active protection system to defend against rocket-propelled grenadesand anti-tank missiles.– Defense against hypersonic weapons, including sensors.– Other systems as designated by the Secretary. 2018 The MITRE Corporation. All rights reserved.FY17 NDAA Section 884
To provide an overview of rapid acquisition pathways made available by recent National Defense Authorization Acts (NDAAs) Section 804 Middle Tier -Rapid Prototyping and Rapid Fielding Section 806 -Development, Prototyping, Deployment of Weapon System Components DODI 5000.02 Tailoring and Accelerated Acquisition Model 4