Acquisition of Information Technology Trends

Within The Department of DefenseSeptember 10, 2009

Don Johnson

Advisor to the Defense Science Board Task ForceInvestigating DoD Policies and Procedures in the

Acquisition of Information Technology

OASD (Networks and Information Integration)

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ASD NII/DoD CIO Organization

Deputy Assistant Secretaries of Defense (DASD) for:

Information Management,

Integration and Technology

Command, Control,

Communications, Space and Spectrum

C3ISR & IT Acquisition

Assistant Secretary of Defense (NII) /DoD Chief Information Officer

Defense Information

Systems Agency

Secretary of Defense Deputy Secretary of Defense

Deputy forNational Leadership

Command Capabilities

Informationand Identity Assurance

Resources

Five DASD’s, One Agency - Driving Net Centric Information Sharing

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ASD(NI)/ DoD CIO Running the Enterprise

Title 10Assistant Secretary of Defense

Principal Staff Assistant

Titles 10, 40 & 44Chief Information Officer

Expertise

ExecutiveCommand and ControlComm & Information NetworksInformation AssuranceRF Spectrum ManagementPosition, Navigation, TimingNon-Intelligence SpaceNet-Centric Operations

Enterprise-level strategist from the information & IT perspectiveEnterprise-wide information policyInformation Technology architectfor the DoD EnterpriseDoD-wide information sharing executive

Advise the Secretary

Ensure the capabilityis delivered

Authorities• NII Charter (DoDD 5144.1 May 2, 2005)• Section 113, Title 40, U.S.C., (formerly Clinger-Cohen Act of 1996 as amended)• Responsibilities and Control Matrix

Enable Net-Centric Operations

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National Academies sponsored “Is America Falling Off the Flat Earth,” Norm Augustine, 2007– Nearly 60% of the patents filed with the US Patent and Trademark

Office in the field of IT now originate in Asia– In Business Week’s ranking of the world’s IT companies, only 1 of the

top 10 is based in the US– China has supplanted the US as the world’s number 1 high-

technology exporter (in 10 year period US went from $40B in exports to $50B of imports of high tech manufacturing)

IT is the essential fuel that will propel the knowledge-based society of the 21st century– In the 18th and 19th century we faced a threat where ships crossed

the ocean in days…..In World War II, aircraft could cross the ocean in hours…In the Cold War, missiles could do it in minutes….And now today, cyberattacks can strike in milliseconds.

Challenges in the New Strategic Era

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– If attacked in milliseconds, we can’t take days to organize and coordinate our defenses

– If our networks to be – were to be disrupted or damaged, we’d need to respond rapidly, at network speed, before the networks could become compromised and ongoing operations or the lives of our military are threatened

– In addition to speed, IT resides in a domain where change occurs in small timeframes, both for technology and for the ability of adversaries to procure, adapt, and employ the technologies

Challenges in the New Strategic Era

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Lack of information and services that are visible, accessible and understandable Information “silos”-- capability needed to move information from one stove-pipe to another Hard-wire interfaces aimed at predetermined needs unresponsive to dynamic environmentContinue to not leverage the latest information technology solutions available commercially

Today's leaders & soldiers are digital natives and use IT technologies to their advantage for situational awareness and

collaborative, agile decision making

Current Generation of C4I War Fighters

“digital natives” trapped in industrial-era institution

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2009 FOREIGN AFFAIRS

Today’s acquisition process is resulting in platforms growing even more “baroque”

The efficacy of the current acquisition process is in question, given the apparent need to bypass existing institutions and procedures

To protect U.S. troops on the battlefield to counter improvised explosive devices, build Mine Resistant Ambush Protected (MRAP) vehicles, and quickly expand U.S. ISR capabilities

View of DoD’s Acquisition Process

9

Call For Change

DoD Leadership Responsible for IT– Hon John Grimes (Former ASD(NII)/DoD(CIO)

“Hardware development processes ill-suited to IT acquisition”– LTG Charles Croom (Former DISA Commander)

“I would change the acquisition process in how the DoD buys IT in a New York minute….”

– LTG Jeff Sorenson (Army CIO/G-6)“How we can make it better…. Policy – Acquiring IT not like tanks”

Defense Acquisition Performance Assessment (3/2006) – The current system is focused on programs, not on improving and

standardizing the processes of acquisition; it inhibits rather than promotes steady improvement in achieving program success

GAO Assessment on “Information Technology: DOD’s Acquisition Policies and Guidance Need To Incorporate Additional Best Practices And Controls” (July/2004)

– “As you know, the way in which DOD has historically acquired information technology (IT) systems has been cited as a root cause of these systems failing todeliver promised capabilities and benefits on time and within budget…”

Outline

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Congressional Direction

2008 National Defense Authorization Act mandating a Defense Science Board (DSB) to Study:• DOD policies and procedures for acquiring information technology, to

include national security systems, major automated information systems and business information systems, and other information technology

• Roles and responsibilities in implementing policies and procedures

• Application of such policies and procedures to information technologies that are an integral part of critical weapons or weapon systems

• Suitability of DOD acquisition regulations, including DODD 5000.1, DODI 500.2, and accompanying milestones, to the acquisition of IT systems

• Adequacy and transparency of metrics used by DOD for acquiring IT systems

• Adequacy of operational and development test resources (including infrastructure and personnel)

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* DSB Members

March 2009 DSB on IT Policies & Procedures in Acquisition of IT

Vince Vitto,* Private ConsultantRon Kerber,* Private Consultant

Pricilla Guthrie, IDAPaul Hoeper, Private ConsultantPaul Kaminski,* TechnovationTony Lengerich, OracleNoel Longuemare, Private ConsultantMark Maybury, MITRERichard Roca, JHU APLJohn Stenbit, Private ConsultantAlan Wade, Private Consultant

Panel Co-Chairs

Panel Members

Executive Secretary

Skip Hawthorne, OUSD(AT&L)

Government Advisor

Military Assistants

Don Johnson, OASD(NII)

Karen Walters, OUSD(AT&L)

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Bottom Line

Information Technology (IT) is a critical enabler and force multiplier; offers unprecedented interoperability across spectrum of operations

– Equally critical to embedded and stand alone systems (infrastructure, business, C2, weapon systems)

– Can offer a significant comparative advantage with its inherent flexibility and agility to respond to changing environments

Growing concerns with IT has become a national issue via cyber threats and pipeline of available/skilled workforce

Deliberate and cumbersome process through which IT is acquired by DoD today cannot keep pace with:

– Speed at which new capabilities are being introduced in today’s information age – Speed with which potential adversaries can produce, adapt, and employ those

same capabilities against our national interests

DoD is not effectively organized at highest levels to address concerns

Need to Fix/Improve IT Acquisition System

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Acquisition Complexity

Information technology systems are pervasive throughDOD, ranging from administrative systems to weapons—their importance is growing

Software is a consistent and persistent thread throughall DoD system acquisition programs …

– Whereas in 1970, IT accounted for approx 20% of weapon system functionality, by 2000 it accounted for as much as 80%

– Today it is reported IT can deliver 90% or more of functionality

Rapidly growing software code base, e.g.,

– Navy DDG 1000 1.8M LOC, 36% > Aegis 7.1R baseline

– FA18 is 10M LOC going to 20M in JSF

– COTS OS growing to 100M LOC

Embedded weapon systems (such as, handheld grenade launcher with smart projectiles guided by 2,000 lines of code)

Increased interconnectivity (e.g., GIG, coalitions)

0102030405060

Line

s of

Cod

e (M

)

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Available Skilled Workforce

Declining U.S. software pipe line

Increased gap in supply/demand

Globalization and off shoring* worsen situation

Low skill/experience results in expensive rework

(GAO Report - 40% rework)

http://www.cra.org/wp/index.php?p=139

http://www.cra.org/govaffairs/blog/projected_job_openings.pdf

Commercial Infrastructure and Standards

Middleware glued to mission applications

CBM Tool

Service-oriented architecture (SOA)Shared applications and services

Stove piped systems

Acquisition Paradigms & Existing Business Models Ill-Suited

Toda

y

1970

/ 19

80

1990

/ 20

00

Stove Pipes Ope Middleware Open Services

Middleware

Operating SystemNetwork/Servers

SOA Infrastructure

Infrastructure

Futu

re

U.S. National Security Apparatus Requires Significant Reforms to Meet the Challenges of

a New Strategic Era (Cont)

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Today’s Acquisition Cycle Time

Initial OperationalCapabilityPlanning Phase

9114

Analysis of Alternatives

EconomicAnalysis

Milestone B

MS C

40

48

5Test

29

43

Build Phase

Development

*Metrics calculated by OASD(NII) on 32 Major Automated Information Systems (MAIS)

Long Cycle-Time Driven by Processes Developed to Counter a Cold War Adversary In Industrial Age Society

1818

As Is: Acquisition Process

IOCBA

Technology Development

Engineering and Manufacturing Development

Production & Deployment

Systems Acquisition

Operations & Support

C

Sustainment

The Materiel Development Decision precedes entry into any phase of the acquisition management system

Entrance criteria met before entering phase

Evolutionary Acquisition or Single Step to Full Capability

FRP DecisionReview

FOC

LRIP/IOT&EPost-CDR A

Pre-Systems Acquisition

(ProgramInitiation)

MaterielSolutionAnalysis

Materiel Development Decision

User Needs

Technology Opportunities & Resources

= Decision Point = Milestone Review = Decision Point if PDR is not conducted before Milestone B

Post-PDR A

“Big Bang” Approach Equally Applied to IT and Major Hardware Acquisitions

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New IT Acquisition Process

Continuous Technology/Requirements Development & Maturation

Integrated DT / OT

Milestone Build Decision

Prototypes Iteration1 Iteration 2 Iteration “N”

Materiel Design Decision

Architectural Development and Risk ReductionBusiness Case Analysis

and DevelopmentDevelopment & Demonstration

Fielding

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RELEASE 1

PrototypesIteration 1 Iteration 2 Iteration 3

Development & DemonstrationFieldingRELEASE 2

Decision Point

6 to 18 monthsUp to 2 yearsCoordinated DOD stakeholder involvement

ICD

CDD

CDD Capabilities Development DocumentICD Initial Capability Document

Requirement Documents established by streamlined Joint Staff validation processAcquisition baseline for “N” releases established at milestone build decisionAll releases fully funded at milestone build decisionRelease “N+1” restarts entire process

PrototypesIteration 1 Iteration 2 Iteration 3

Development & DemonstrationFieldingRELEASE “N”

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Imperatives of a New IT Acquisition Model

Effective & Value-add GovernanceCommunity of Interest (COI) Concept

Upfront System Architecture and System EngineeringTechnical Peer Relationship With Contractor

Iterative RequirementsPrioritizationSmall, Time-Definite Increments

Modern IT PracticesAgile, Scrum, Test Driven Development, Model Driven Development,

2010 NDAA Policy Section 804 Demonstration Authority For Alternative

Acquisition Process For Defense Information Technology

Authority – May designate up to 10 IT programs annually to be included in a

demonstration of an alternate acquisition process for rapidly acquiring IT capabilities

Procedures– SECDEF should establish procedures for the exercise of authority

including processes for measuring effectiveness of an alternative acquisition processes

– SECDEF should notify Congressional Defense Committees of those procedures before any exercise of that authority

Annual Reports– By March 1st of each year beginning in March 1, 2010 and ending

on March 1, 2016, the SECDEF shall submit to the Congressional defense committees a report on

Implementation Strategy

Overview

– Policy, Procedure, Guidance Development

– Governance Structure

Selecting & Executing Pilot Projects

– Characteristics of Pilots

– Changes to Acquisition Strategy and Source Selection Process

Select & Define IT Platforms

Define Initial Test & Integration Capability

Change Management, Communications, and Awareness

Reporting and Metrics

Detailed Guidance

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IT Services

Custom Development

Legacy IT SOA Applications

COTS Integration

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What is the Congress & Warfighter demanding of IT

– SPEED -- Dramatically reduced cycle times

– AGILITY -- Ability to accommodate changing requirements, evolving operational environment and new opportunities

– TRANSPARENCY -- Visibility & data needed to evolve the solution and build confidence

– EFFICIENCY -- Maximize the value per dollar invested by eliminating unproductive acquisition activities and management

Way Ahead Objectives