Navy/DOD Technology Acquisition
Process: A (Very Brief) Introduction
for Small Businesses
Navy TAP 2008-2009
Alexander D. Stoyen, Ph.D.
©2008 DAWNBREAKER
Agenda
• Introduction to the DOD Acquisition process and its various
concepts of practical utility to an SBE
• Discussion of progression of funding and alignment with a POR
• Online PE review examples (only time permitting)
Warning: this is a super-brief introductory Webinar and not a
substitute for suitable DAU certification curriculum!
©2008 DAWNBREAKER
The DOD Acquisition Process
• Provides Joint, Service and Milestone Authority
oversight over acquisition
©2008 DAWNBREAKER
©2008 DAWNBREAKER
The DOD Acquisition Process
• Aligns with Four Year Presidential Election schedule
©2008 DAWNBREAKER
©2008 DAWNBREAKER
The DOD Acquisition Process
• Program Management and Budget Estimation
typically adjusted bi-annually
©2008 DAWNBREAKER
©2008 DAWNBREAKER
Future Years Defense Program
• Future Years Defense Program (FYDP): (Formerly the Five
Year Defense Program). The official DoD document which
summarizes forces and resources associated with programs
approved by the Secretary of Defense (SECDEF)
• Its three parts are the organizations affected, appropriations
accounts (research, development, test, and evaluation
(RDT&E), operations and maintenance (O&M), etc.), and the 11
major force programs (strategic forces, airlift/sealift, R & D, etc.).
R&D is Program 06
©2008 DAWNBREAKER
Future Years Defense Program
• Under the current planning, programming, and budgeting
system (PPBS) cycle, the FYDP is updated when the services
submit their program objective memorandum's (POM's) to the
Office of the Secretary of Defense (OSD) (May/June), when the
services submit their budgets to OSD (Sept), and when the
President submits the national budget to the Congress (Feb)
• The primary data element in the FYDP is the Program Element
(PE)
©2008 DAWNBREAKER
Progression of Money Types (“Colors of Money”)
Stems from Acquisition Program Baseline (APB) definitions of cost
parameters (see first four):
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Research, development, test, and evaluation costs;
Procurement costs;
Military construction costs;
Acquisition-related operations and maintenance costs …
Total system quantity …
Average unit procurement cost …
Program acquisition unit cost …
Any other cost objectives established by the milestone
decision authority…
©2008 DAWNBREAKER
Basic Breakdown of Money Types
RDT&E broken down by category “6” of money
- 6.1 is basic research
- 6.2 is applied research
- 6.3 is advanced technology development (ATD)
- 6.4 is advanced component development & prototypes (ACD&P)
- 6.5 is system development and demonstration (SDD)
- 6.6 is RDT&E Management & Support
- 6.7 is operational system development
RDT&E further broken down by Service/Joint
Procurement costs
- broken down by Service
- additionally unique Navy code: Ship Construction Navy (SCN)
Maintenance costs
- broken down by Service
©2008 DAWNBREAKER
Program Elements (PEs)
-
Major Accounts that group categories of specific color of money spending for
a particular program or family of programs
-
Broken down further by project ids, to account for specific program
component spending
-
All past dollars are counted as spent against specific PEs
-
All current dollars in the process of being spent against PEs
-
All planned dollars in the FYDP accounted against PEs
-
Accompanied by descriptive exhibits when requested as part of the
President’s budget or DOD reporting to Congress for oversight
©2008 DAWNBREAKER
Progression of Funding
• Except for some preferential treatment under the SBAPD,
a Small Business is fundamentally subject to the same
progression of funding as every other entity in the
Economy
©2008 DAWNBREAKER
Early Exploration
•
Seed of an idea (an SBIR Phase I, a small grant, a small R&D BAA contract, a
small study…)
•
Typically initiated by an S&T activity at HQ level or in a SYSCOM, in theory with
some knowledge of a POR sponsor but in reality with at best minimal knowledge
•
Dollars: typically 6.1, 6.2, no more than a few $100K, spent predominantly on
the performer; some admin funds (overhead or direct) spent on TPOC, CO,
COTR, support contractors…
•
TRL resulting 1-2, on occasion 3 (informal: a TRA cannot be afforded, typically;
an SBE is not building ships, typically)
•
POR interest/involvement: minimal if any typically; exception: (“pre-”)Milestone A
funding within an MPM code
©2008 DAWNBREAKER
Exploration/Early Demonstration
•
Additional seeding till a one of a kind prototype emerges (an SBIR Phase II, a
modest grant or contract…)
•
Typically continued by the originator of the early seed though at times taken over
by someone higher in the food chain; POR is typically reported to and
sometimes asked for interest, advocacy and additional funding
•
Dollars: typically 6.2-6.3, no more than $1-$2M, still spent predominantly on the
performer; some admin funds (overhead or direct) spent on TPOC, CO, COTR,
support contractors…
•
TRL resulting 3-4, on occasion 5 (again informal; still well before POR
admittance, Milestone B…)
•
POR interest/involvement: possibly more than before but still minimal
©2008 DAWNBREAKER
Demonstration
•
Technology now has to demonstrate satisfaction of an official requirement
•
High-risk-high-reward requirements are demonstrated through ATDs, ACTDs, some FNCs,
“ad-hoc” UNS and UUNS funding (could be procured to urgent needs) and the like…
•
Effort ownership migrates to a service S&T HQ activity, the DDR&E or a PEO S&T activity
•
POR is nearly always aware of the effort through TTA reporting or otherwise; in many cases
a POR tentatively agrees to consider insertion of the effort and sometimes pays for some of
the work (a TTA is typically much broader than a single effort)
•
Dollars: some are as per agency mandate (e.g., an FNC cannot go beyond 6.3 due to
ONR’s restrictions); others are anything (an UUNS can be procured with OMN, OPN or
SCN); typically spending is in multiple $Ms/Year for 1-3 years
©2008 DAWNBREAKER
Demonstration (continued)
•
The technology originator typically gets less than 50% of the dollars as SYSCOM, HQ and
other S&T activities are heavily involved, as are support contractors, FFRDCs, UARCs…
•
TRL level accomplished: typically 6-7 depending on independent T&E qualifications (a TRA
may actually occur here, formally)
•
Since SBIR dollars cannot be contracted back to the government, this is typically where IP,
ownership shifts; technology originator may or may not continue into the POR due to risk
concerns
•
Increasingly CRADAs and NCRADAs are used to mitigate for the above and also bring in
GOTS and secure SYSCOMs (who now own field activities) support
©2008 DAWNBREAKER
Mature Demonstration, Early Insertion
• POR is beginning to spend its own dollars (planned or otherwise) and
agrees to consider insertion; Milestone B occurs somewhere post TRL 6
• Configuration management steps in and everything becomes much
slower; the challenge shifts from capability and need satisfaction per se
to not disturbing work already underway in the POR
• SHIPALTs, TEMPALTs and other CM changes are pursued along with
their certifications and schedules
• Permissions and waivers for the above are pursued to align Milestones,
Flights, other schedule dependencies…
©2008 DAWNBREAKER
Mature Demonstration, Early Insertion (continued)
•
In addition to the Program Office (and the S&T originators if they are still
involved), others step in: CM boards, TYCOMs, Fleet Commanders; to
undertake an ALT, all have to concur: PM owns the effort and pays, CM owns the
configuration and protects that, TYCOM owns the platform class, and Fleet owns
the particular ship
•
Dollars: predominantly POR mixing all colors, though there are interesting
variations, especially with supplemental budgets, GWOT and so on; amounts
depend on technology
•
Post-compete SBIR rights are weighed against total ownership cost and POR
needs
•
RDT&E spiral step is finished and TRL 8, “9 in waiting” and 9 should be
achieved
©2008 DAWNBREAKER
Maintenance & Procurement
• POR has adapted and now owns the effort
• Everything from prior slide still applies with every
budgetary tweak, refresh, year after year…
• Procurement, maintenance and SCN dollars
dominate
• The technology is used by the Fleet
©2008 DAWNBREAKER
Balance of Presentation
• Quick Interactive Review of PEs
©2008 DAWNBREAKER