Acquisition and the ICM CSSE ARR, March 2008

Acquisition and the ICM
CSSE ARR, March 2008
Bruce Amato, Barry Boehm, Les DeLong, Gary Hafen, Adrian
Pitman, Don Reifer, Peter Suk, Denton Tarbet, Rich Turner
Team Activities
• Seeded discussion with initial candidate issues
• Established a context as a guide for thoughts
• Brainstormed (and discussed) issues and
possible solution strategies
• Rich tried to make sense of it all and created a
set of research areas based on issues
• Team scored the issues as to value and
• Progress payments
• Award protests
• Flexibility
– Changing requirements
– Changing schedules
• Too many contract actions due to iterations, fly-offs, etc.
– IDIQ as possibility
• Non-recurring cost risks with developers (tooling/technology)
– Government can share risk
• Time-certain delivery scheduling
– SAIV vs. CAIV vs. PAIV
• Rethink profit incentives for software/systems
– Value-based award fees (part for core, remainder for special
– Penalty fees
Program Management
• Risk-averse culture
• Vocabulary (iteration vs. increment vs. spiral vs. delivery cycle)
• Deployment/Sustainment/Logistics
Short release cycle causes serious issues
CM of multiple releases in use
Recertification/rapid release minimum schedules
Delay recertification until last moment
• Satisficing mechanisms
– JCIDS process needs better adjudication of joint requirements
– Stakeholders involved earlier and more consistently
• Need tight communication within deep acq/dev/supplier chain
– Evolution of documentation more dynamic
• Feasibility rationale development and validation
• Consortia/open source/domain-specific open source distribute risk
• Three-layer technical team structure (agile/execute/V&V)
Life Cycle
• Merging of development and sustainment lifecycles
• Elimination of traditional SE reviews (PDR/CDR)
– Construction phase is ICM anchor points writ small
Long-lead items
Need guidelines for fly-offs
Funding of failed anchor point milestones
Awarding construction to team other than concept
creator; need continuity
• Concept and practice of acquisition baseline
management may need to be redefined
• No skipping of phases for developmental acquisitions
Earned value
• Determining value of systems
– Software value vs. software cost (VBSE)
– ICE looks at cost, not value
• Allocating progress
• Defining WBS in ICM; sufficient visibility of
– “Rolling wave” WBS: Long-term WBS for planning;
Short-term WBS (per phase/increment) for execution
– Separate entry bookkeeping for software to highlight
software work (alternate view of WBS)
• POM Cycle is serious concern
• Congressional constraints/oversight/control
• Funding Profiles
• Requires better intra-service prioritization of
pre-program funding
– Gov’t prototyping and competition plan and funds
– Fewer programs can be initiated in a given POM
Necessary Competency Upgrades
• Government/Acquirer
– Service Acquisition Executive/Program Executive
Office/Program Manager
– Program staff members/contractor support
– Contracting Officer/Independent cost estimate
– GAO, Inspectors General
– Development T&E, Independent Operational T&E
• Developer
– Executives/PM
– COs/Subcontract managers
– Oversight offices
Research Opportunities -1 (I,D)
• Strategies for RW WBS development for ICM (H,L)
• Identification of changes required in government
and developer workforce (H,L)
– Study workload and competency changes and their
effect across full acquisition organization
• Acquisition strategy development guidance (H,M)
• Enhanced communication mechanisms for timely
synchronization of acquirers, developers and
supplier chain (H,H)
– Impact of ICM on Lead System Integrator/Prime
Contractor role
– Models for analysis of organizational strategies
Research Opportunities -2 (I,D)
• Value estimation techniques (e.g. value vs. cost of
software) (H,H)
• Model impact of software-related risks to overall
system cost and schedule (H,H)
• Mechanisms for managing large numbers of
fielded and development system versions (H,H)
• Satisficing mechanisms beyond win-win for large
number of stakeholders (H,H)
• New approaches to baseline establishment and
management to support ICM (M,L)
Research Opportunities -3 (I,D)
• Continue VBSE work with special focus on
implementation of concepts within ICM (M,L)
• Review of profit model for system developers in
view of ICM principles (M,M)
• Guidelines/pilots for three-tiered technical team
implementation (roles, responsibilities, etc.)
• Review of Federal Acquisition Regulations and
other legal references for impediments (M,H)
• Expedited re-certification/validation approaches
(M, H)