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Acquisition Process

Preliminary Design Review (PDR)

The Preliminary Design Review (PDR) is a technical assessment that establishes the Allocated Baseline of a system to ensure a system is operationally effective.  A PDR is conducted before the start of detailed design work and is the first opportunity for the Government to closely observe the Contractor’s hardware and software design.  This review assesses the allocated design documented in subsystem product specifications for each configuration item in the system and ensures that each function, in the Functional Baseline, has been allocated to one or more system configuration items. The PDR establishes the allocated baseline (hardware, software, human/support systems) and underlying architectures to ensure that the system under review has a reasonable expectation of satisfying the requirements within the currently allocated budget and schedule.

Acquisition System

For complex systems, a PDR may be conducted incrementally for each configuration item. These incremental reviews lead to an overall system-level PDR. System-level performance is supported by compliance with Interface Control Documents, but not assured. Interface requirements make up each configuration item Allocated Specification.





The Weapons System Acquisition Reform Act of 2009 directed the PDR to: 

  • PDRs before Milestone (MS) B are mandatory for all Major Defense Acquisition Programs (MDAP) and will be reflected in the Technology Development Strategy (TDS) to be approved by the MDA at MS A. Post-PDR assessments will be conducted in association with MS B preparations and will be formally considered by the Milestone Decision Authority (MDA) at the MS B certification review.
  • The timing of PDRs for other than MDAPs will be approved by the DoD Component MDA when consistent with TDS or Acquisition Strategy objectives. When the PDR is conducted before MS B, a post-PDR assessment will be conducted in association with the MS B review and formally considered by the MDA at the MS B review. If the PDR is conducted after MS B, the MDA will conduct a post-PDR assessment at a time reflected in the approved acquisition strategy.
  • PDR before MS B is now a statutory requirement for MDAPs. The post-PDR assessment will be conducted during the MS B review, and prior to the section 2366b certification by the MDA per title 10, Unites States Code.

Completion of the PDR should provide the following:

AcqTips:

  • The Program Manager (PM) should conduct the PDR when all major design issues have been resolved and work can begin on detailed design. The PDR should address and resolve critical, system-wide issues.
  • IEEE 5288.2 “Standard for Technical Reviews and Audits on Defense Programs” is the standard for technical reviews and audits to be performed throughout the acquisition life cycle for the US Department of Defense (DoD) and other defense agencies. This standard guides the DoD and contractor on what is required during an SRR
  • The PDR should be conducted when the allocated baseline has been achieved, allowing detailed design of hardware and software configuration items to proceed. A rule of thumb is that 10 percent to 25 percent of product drawings and associated instructions should be complete, and that 100 percent of all safety-critical component (Critical Safety Items and Critical Application Items) drawings are complete.

AcqLinks and References:

Updated: 5/23/2018

Acquisition Process

Operational Test Readiness Review

 

The Operational Test Readiness Review (OTRR) assess if a system should proceed into Initial Operational Test and Evaluation (IOT&E). The review addresses and verifies system reliability, maintainability, and supportability performance and determines if the hazards and Environmental, Safety, Occupational and Health (ESOH) residual risks are manageable within the planned testing operations.  This assessment determines if changes are required in planning, resources, or testing necessary to proceed with IOT&E. Of critical importance to this review is the understanding of available system performance to meet the Capability Production Document (CPD) performance threshold values. The OTRR may be conducted in multiple steps to ensure that the “production configuration” system (usually the Low-Rate Initial Production (LRIP) system) can proceed into Operational Test & Evaluation (OT&E) with a high probability of success.

Checklist: Operational Test Readiness Review (OTRR) Checklist

Programs on the Office of Secretary of Defense (OSD) Test and Evaluation (T&E) oversight list are required by DoD policy to establish a Service process for determining and certifying a program’s readiness for IOT&E by the Service Component Acquisition Executive (CAE).  The OTRR is only complete when the CAE evaluates and determines materiel system readiness for IOT&E. The OTRR may be conducted by the Program Manager (PM) or the Operational Test Agency, depending on Service policy.

DoD specifies that the OTRR review shall include:

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Acquisition Process

Production Readiness Review (PRR)

The Production Readiness Review (PRR) assesses a program to determine if the design is ready for production. It assesses if the prime contractor and major subcontractors have accomplished adequate production planning without incurring unacceptable risks that will breach thresholds of schedule, performance, cost, or other established criteria. PRRs are normally performed as a series of reviews toward the end of Engineering, Manufacturing and Development (EMD) Phase and should be conducted during System Capability and Manufacturing Process Demonstration to identify and mitigate risks as the design progresses.

Acquisition System

Checklist: Production Readiness Review (PRR)

The PRR evaluates the full, production-configured system to determine if it correctly and completely implements all system requirements. The review determines whether the traceability of final system requirements to the final production system is maintained. A successful review is predicated on the determination that the system requirements are fully met in the final production configuration and that production capability forms a satisfactory basis for proceeding into Low-Rate Initial Production (LRIP) and Full-Rate Production (FRP).





The PRR should review:

  • The manufacturing readiness process
  • Quality management system
  • Production planning
  • System requirements compliance
  • Inventory management
  • Supplier management

Note: IEEE 5288.2 “Standard for Technical Reviews and Audits on Defense Programs” is the standard for technical reviews and audits to be performed throughout the acquisition life cycle for the US Department of Defense (DoD) and other defense agencies. This standard guides the DoD and contractor on what is required during an PRR

AcqLinks and References:

Updated: 4/11/2018

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 satisfying 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 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.

AcqTips:

  • 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.

AcqLinks and References:

Updated: 5/29/2018

Acquisition Process

NSS 03-01

Note: RECENDED on 23 March 2009 

The National Security Space Policy (NSS) 03-01 provides the guidance for the development of spaces acquisition systems for the DoD.  It provides the policies and principles that form the foundation for all space DoD programs and establishes a management framework for translating user needs and technology opportunities into stable, affordable and well-managed space acquisition programs.  The policy also identifies the specific statutory and regulatory reports and other information requirements for each Key Decision Point (KDP). The policy is published by the Secretary of the Air Force/USA.

The NSS procurement model is based on the development of space systems requiring a longer research and development phase, higher technology needs and smaller quantities.  These systems require a different procurement approach that the typical DoD 5000 model that is focused on large scale procurement. The funding profile for a typical NSS program is usually front-loaded for the longer research and development times. This requires the key decisions to be conducted earlier than the typical DoDI 5000.02 program.

Table of Content

  1. Purpose
  2. Authority
  3. Applicability
  4. DoD Space MDA Guiding Principles
  5. National Security Space (NSS) Acquisition Approach
  6. Appendix
    • NSS Acquisition Model, Key Decision Points (KDP), and Acquisition Phases
    • Defense Space Acquisitions Boards (DSAB) and Independent Program Assessment (IPA) Process
    • DoD Space Independent Cost Analysis Process
    • Key DoD Space Acquisition Documentation
  7. Enclosures
    • IPA Readiness Review Checklist and KDP Entry Criteria
    • DoD Space Acquisitions Documentation Approval / Coordination Requirements Matrix
    • DoD Space Statutory Reference Information
    • Integrated Program Summary

AcqLinks and References:

Updated: 1/30/2018

Acquisition Process

Materiel Development Decision (MDD)

A Materiel Development Decision (MDD) is a point in time where the Joint Capabilities Integration and Development System (JCIDS) analysis has identified a capability gap/need and a MDD Review has determined a materiel solution is needed. The MDD is the formal point that initiates the Materiel Solutions Analysis (MSA) Phase.

Acquisition System

After a program has an approved MDD, the Analysis of Alternatives (AoA) process is expected to contribute to the selection of a preferred materiel solution that satisfies the capability gap/need documented in the approved Initial Capabilities Document (ICD). In an Evolutionary Acquisition program, the initial increment will be preceded by a MDD but follow-on increments will start at a predetermined Milestone.

There is no information required by Statute for a MDD for an Acquisition Program.





AcqLinks and References:

Updated: 6/18/2018

Acquisition Process

Major Program Reviews

Alternative Systems Review (ASR)
The ASR is a technical review completed prior to Milestone-A  which assesses the preliminary materiel solutions that have been developed during the Materiel Solution Analysis (MSA) phase. The reviews examines each proposed materiel solution(s) to see which one has the best potential to be cost effective, affordable, operationally effective and suitable, and can be developed in a timely manner with an acceptable level of risk. The information obtained from the ASR is used in the Milestone-A review to determine if the solutions(s) under review can proceed into the Technology Maturation & Risk Reduction (TD) Phase.

System Requirements Review (SRR)
The SRR is a technical review conducted during the Technology Maturation & Risk Reduction (TD) Phase to determine the progress a program has made in defining system level requirements. This review determines the progress of the systems engineering effort and if the effort is on track with meeting the capability needs defined in the Initial Capabilities Document (ICD). The SRR is used during the Milestone-B review to determine if a program can process into the Engineering, Manufacturing and Development (EMD) Phase.

Preliminary Design Review (PDR)
The PDR is a technical review conducted during the Technology Maturation & Risk Reduction (TD) Phase to determine if a system is ready to proceed into detailed design.  It determines if the current preliminary system design meets the stated performance requirements within cost, schedule and risk. It also ensures that each function in the functional baseline has been allocated to one or more system configuration items.

Critical Design Review (CDR)
The CDR is a technical review conducted during the Engineering, Manufacturing and Development (EMD) Phase to determine if a system can proceed into fabrication, demonstration, and test and can meet the stated performance requirements within cost, schedule, and risk.  This review assesses the system final design for each configuration item in the system’s product baseline to ensure it has been captured in the detailed design documentation.

Production Readiness Review (PRR)
The PRR review examines a program to determine if the design is ready for production. It determined if the prime contractor and subcontractors have accomplished production planning without incurring unacceptable levels of risks that will breach thresholds of schedule, performance and cost. The review evaluates the production-configured system to determine if it meets all system requirements and that those requirements are traceability to the final production system.

AcqLinks and References:

Updated: 7/11/2017     

Acquisition Process

Major Defense Acquisition Program (MDAP)

A Major Defense Acquisition Program (MDAP) (10 USC § 2430) is a program that meet or exceeds the ACAT I requirements in DoD Instruction 5000.02 “Operation of the Defense Acquisition System” and is classified as a MDAP by the Milestone Decision Authority (MDA) or Under Secretary of Defense (USD) Acquisition, Technology & Logistics (AT&L).

Acquisition
Category
Reason for ACAT Designation Decision Authority
ACAT I Major Defense Acquisition Program (MDAP) (10 U.S.C. 2430 (Reference (n)))

  • Dollar value for all increments of the program: estimated by the DAE to require an eventual total expenditure for research, development, and test and evaluation (RDT&E) of more than $480 million in Fiscal Year (FY) 2014 constant dollars or, for procurement, of more than $2.79 billion in FY 2014 constant dollars
  • MDA designation ď‚·

MDA designation as special interest1

ACAT ID: DAE or as delegated

ACAT IC: Head of the DoD Component or, if delegated, the CAE (not further delegable)

ACAT IA1,2 MAIS (10 U.S.C. 2445a (Reference(n))): A DoD acquisition program for an Automated Information System4 (AIS) (either as a product or a service5) that is either:

  • Designated by the MDA as a MAIS program; or
  • Estimated to exceed: 
    • $40 million in FY 2014 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, and deployment, and incurred in any single fiscal year; or 
    • $165 million in FY 2014 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, and deployment, and incurred from the beginning of the Materiel Solution Analysis Phase through deployment at all sites; or 
    • $520 million in FY 2014 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, deployment, operations and maintenance, and incurred from the beginning of the Materiel Solution Analysis Phase through sustainment for the estimated useful life of the system. ď‚·

MDA designation as special interest1

ACAT IAM: DAE or as delegated

ACAT IAC: Head of the DoD Component or, if delegated, the CAE (not further delegable)

 

  1. The Special Interest designation is typically based on one or more of the following factors: technological complexity; congressional interest; a large commitment of resources; or the program is critical to the achievement of a capability or set of capabilities, part of a system of systems, or a joint program. Programs that already meet the MDAP and MAIS thresholds cannot be designated as Special Interest.
  2. When a MAIS program also meets the definition of an MDAP, the DAE will be the MDA unless delegated to a DoD Component or other official. The DAE will designate the program as either a MAIS or an MDAP, and the Program Manager will manage the program consistent with the designation.
  3. The MDA (either the DAE or, if delegated, the DoD Chief Information Officer (CIO) or another designee) will designate MAIS programs as ACAT IAM or ACAT IAC. MAIS programs will not be designated as ACAT II.
  4. AIS: A system of computer hardware, computer software, data or telecommunications that performs functions such as collecting, processing, storing, transmitting, and displaying information. Excluded are computer resources, both hardware and software, that are an integral part of a weapon or weapon system; used for highly sensitive classified programs (as determined by the Secretary of Defense); used for other highly sensitive information technology (IT) programs (as determined by the DoD CIO); or determined by the DAE or designee to be better overseen as a non-AIS program (e.g., a program with a low ratio of RDT&E funding to total program acquisition costs or that requires significant hardware development).
  5. Acquisitions of services that satisfy or are expected to satisfy the definition of a MAIS in 10 U.S.C. 2445c, Reference (n), will comply with this instruction. All other acquisitions of services will comply with Enclosure 9 of DoD Instruction 5000.02 (Reference (b)).
  6. As delegated by the Secretary of Defense or Secretary of the Military Department.

The Secretary of Defense may adjust the amounts listed above on the basis of Department of Defense (DoD) escalation rates. An adjustment under this subsection shall be effective after the Secretary transmits a written notification of the adjustment to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives.

AcqLinks and References:

Updated: 8/01/2017

Acquisition Process

Major Automated Information System (MAIS)

A Major Automated Information System (MAIS) is a defense acquisition program for an Automated Information System (AIS) that meets Acquisition Category (ACAT) IA requirements listed below.  An AIS is a system of computer hardware, computer software, data and/or telecommunications that performs functions such as collecting, processing, storing, transmitting and displaying information.

A MAIS is determined for an acquisition program for an Automated Information System (either as a product or a service) that is either:

Acquisition Category Reason for ACAT Designation Decision Authority
ACAT IA1,2 MAIS (10 U.S.C. 2445a (Reference(n))): A DoD acquisition program for an Automated Information System4 (AIS) (either as a product or a service5) that is either:

  • Designated by the MDA as a MAIS program; or
  • Estimated to exceed: 
    • $40 million in FY 2014 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, and deployment, and incurred in any single fiscal year; or 
    • $165 million in FY 2014 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, and deployment, and incurred from the beginning of the Materiel Solution Analysis Phase through deployment at all sites; or 
    • $520 million in FY 2014 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, deployment, operations and maintenance, and incurred from the beginning of the Materiel Solution Analysis Phase through sustainment for the estimated useful life of the system. ď‚·

MDA designation as special interest1

ACAT IAM: DAE or as delegated

ACAT IAC: Head of the DoD Component or, if delegated, the CAE (not further delegable)

  1. The Special Interest designation is typically based on one or more of the following factors: technological complexity; congressional interest; a large commitment of resources; or the program is critical to the achievement of a capability or set of capabilities, part of a system of systems, or a joint program. Programs that already meet the MDAP and MAIS thresholds cannot be designated as Special Interest.
  2. When a MAIS program also meets the definition of an MDAP, the DAE will be the MDA unless delegated to a DoD Component or other official. The DAE will designate the program as either a MAIS or an MDAP, and the Program Manager will manage the program consistent with the designation.

 

Economic Analysis (EA)

An EA is normally associated with MAIS acquisition programs. DoD Instruction 5000.02, Enclosure 4, Table 2-1, requires that an Economic Analysis be performed in support of the Milestone A, Milestone B, and Full-Rate Production Decision (FRPD) (or equivalent) reviews for MAIS. The purpose of the EA is to determine the best AIS program acquisition alternative, by assessing the net costs and benefits of the proposed AIS program relative to the status quo. In general, the best alternative will be the one that meets validated capability needs at the lowest Life-Cycle Cost (LCC) (measured in net present value terms), and/or provides the most favorable return on investment. [1]

Program Authority

For a MAIS program, consultation with the office of the Assistant Secretary of Defense for Networks and Information Integration (OASD(NII)), Office of Deputy to the ASD(NII) for Command, Control, Communications, Intelligence, Surveillance and Reconnaissance and Information Technology Acquisition is recommended, unless the Under Secretary of Defense (Acquisition, Technology & Logistics [AT&L] ) has retained authority for the program. [1]

Defense Business System (DBS)

The DoD Components are required to establish or employ decision bodies with similar responsibilities for Defnse Business System (DBS) that do not meet the MAIS threshold.

AcqLinks and References:

Updated: 5/24/2018

Acquisition Process

Low-Rate Initial Production (LRIP)

The Low-Rate Initial Production (LRIP) is conducted during the Production and Deployment (PD) Phase.  LRIP is the point in time where manufacturing development is completed and the ability to produce a small-quantity set of articles to provide for representation at Initial Operational Test and Evaluation (IOT&E).  It also establishes an initial production base and sets the stage for a gradual increase in production rate to allow for Full-Rate Production (FRP) upon completion of Operational Test and Evaluation (OT&E). [1]

The Milestone Decision Authority (MDA) determines the LRIP quantity at Milestone B. The LRIP quantity shall be documented in the Acquisition Strategy and the Selected Acquisition Report (SAR) with rationale for quantities exceeding 10 percent of the total production quantity.  An updated Acquisition Strategy must be approved prior to LRIP and FRP Request for Proposal (RFP) release, but no later than the Milestone C or Full-Rate Production (FRP) decision by the MDA. The DOT&E or the Operational Test Agency (OTA) determine the number of production or production-representative test articles required for Live-Fire Test and Evaluation (LFT&E) and Initial Operational Test and Evaluation (IOT&E). [1]





AcqLinks and References:

Updated: 7/11/2017