Acquisition Process

System Functional Review (SFR)

The System Functional Review (SFR) is a technical review to ensure that the system’s functional baseline is established and can satisfy the requirements of the Initial Capabilities Document (ICD) or draft Capability Development Document (CDD) within the currently allocated budget and schedule. It also determines whether the system’s lower-level performance requirements are fully defined and consistent with the system concept and whether lower-level systems requirements trace to top-level system performance requirements.  The SFR is conducted during the Technology Maturation & Risk Reduction (TMMR) Phase of a program.

A critical component of an SFR review is the development of representative operational use cases for the system. System performance and the anticipated functional requirements for operations maintenance, and sustainment are assigned to sub-systems, hardware, software, or support after a detailed analysis of the architecture and the environment in which it will be employed. The SFR determines whether the system’s functional definition is fully decomposed to its lower level, and that Integrated Product Teams (IPT) are prepared to start preliminary design.

The system’s lower-level performance requirements are evaluated to determine whether they are fully defined and consistent with the system concept, and whether traceability of lower-level systems requirements to top-level system performance and the CDD is maintained. This activity results in two major systems engineering products: the final version of the system performance specification and draft version of the performance specifications, which describe the items below system level (item performance specifications).

Completion of the SFR should provide the following:

  1. An established system functional baseline with traceability to lower-level performance requirements,
  2. An updated risk assessment for the Engineering, Manufacturing and Development (EMD) Phase,
  3. An updated Cost Analysis Requirements Description (CARD) or a CARD-like document based on the system functional baseline,
  4. An updated program development schedule including system and software critical path drivers, and
  5. A preliminary system-level maintenance plan with updates applicable to this phase.


  • The SFR is the first review that begins to allocate requirements to separated sub-systems and organizational IPTs
  • An SFR review is where the need for Interface Control Documents becomes necessary to define areas of responsibility and constraints requiring coordination across IPTs.

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Updated: 5/29/2018

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