May 4, 2011

Establish an Acquisition process that produces:

• Required, Affordable, Timely Products

Big “A” Acquisition

Resources

Acquisition

Requirements

Establish a Resource Allocation Process that produces:

• Realistic program cost and schedule estimates

• Balances requirements across Department

Establish a Requirements process that produces:

• Clearly defined, stable, validated and affordable requirements

Processes are inter- and intra-departmentally coordinated and supported

Synchronize Requirements, Resources and Acquisition to deliver capabilities2

Small “a” acquisition

Big “A” Acquisition

Resources

Acquisition

Requirements

•Funding instability•Insufficient resource trade space •Budget not properly phased/magnitude to

support planned development•Lack of life-cycle focus•Lack of corporate risk management

•Immature technologies•Inadequate systems engineering•Inadequate requirements flow-down/

traceability/ decomposition•Insufficient schedule trade space•Inadequate project management

including risk management•Inadequate implementation of Earned

Value Management System•Lack of time and assets for testing

•Lack of validated requirements for basic program•Inadequate requirements for basic program and any increments•Critical dependence on external programs with developmental issues•Lack of relative priorities across department

•Lack of inter- and intra-departmental stakeholder coordination and support

Synchronize Requirements, Resources and Acquisition to deliver capabilities3

4

Cost to

corre

ct

problem

Planning Phase Acquisition Phase

5

Identify “Mission Critical” projects Identify and manage risk:

• Cost• Schedule• Performance

Risk Management

Severity Rating Matrix

Likelih

oo

d

5

4

3

2

1

1 2 3 4 5

Consequence

Legend

HighPriority management attention required.

ModerateAdditional management attention may be needed.

LowMinimum oversight needed to ensure risk remains low.

Likelih

oo

d

Level What is the likelihood the risk will occur?

5Extremely Likely. Current controls will not prevent this risk.

4Likely.Current controls have significant uncertainties.

3Moderately likely.Current controls have some uncertainties.

2Not likely.Current controls have minor uncertainties.

1Extremely unlikely.Strong controls in place.

Co

nseq

uen

ce

Level 1 2 3 4 5

Performance(including cost and schedule)

No impact on DOC goals1.

Significant impact to any single DOC objective.

Significant impact to multiple DOC

objectives.

Failure to meet multiple DOC objectives.

Failure to meet DOC Goal.

ReputationNo damage to DOC

or Administration reputation.

Reputation questioned but easily recovered.

Reputation diminished but recoverable at moderate price.

Reputation diminished but recoverable at

heavy price.

Reputation damaged and never fully recoverable.

BudgetMinimal impact

(<$100K).Moderate impact ($100K up to $1M).

Significant impact ($1M up to $10M).

Major impact($10M up to $50M).

Major impact. (> $50M).

ComplianceNon-compliance with DOC policy or

procedure.

Regulatory non-compliance (ex. OMB ). Mild corrective action

required.

Moderate regulatory non-compliance.

Corrective actions required.

Major regulatory non-compliance. Corrections

are required.

Statutory non-compliance. Corrective actions are unknown.

Safety and Security

No harm.Minor first aid

treatment or minor loss of DOC asset2.

Medical treatment required or moderate loss of DOC asset.

Serious injury or major loss of DOC asset.

Death or permanent injury or complete loss

of DOC asset.

Timeframe

Near Impact felt this fiscal year,

Mid Impact felt next fiscal year.

Far Impact felt in 3-5 years.

1. DOC goals and objectives are those found on the DOC Balanced Scorecard.2. DOC assets include facilities, vehicles, equipment, inventories and information assets, such as data. 6

7

Organize

Identify & Score

AssessRemediate

Monitor

Report

Information &Communication

• Identify and train RMOs and RMs• Tailor ERM to fit the organization• Set the “tone at the top”• Consider the mission &

constraints

• Determine the response to a risk

• Develop a corrective action plan

• Execute that plan

8

• Review corrective action plans

• Changes to the risk baseline

• Communicatepertinent information

• Identify and score risks

• Review the risks• Establish the risk

baseline for DOC

• Determine risk severity• Check risk related controls• Assign responsibility

• Report risk status

A systematic planning process for all acquisitions◦ Formal application to “Mission Critical” projects

General framework that incorporates leading practices from other organizations◦ DOC Bureaus create unique procedures

consistent with overall framework

9

10

Strategic Investment Decisions

We can only take so many

trips!

Where do we need to go?

What is the best way to

get there from here?

Prepare for the trip!

Follow the road!

Trip planning approval

OK to here! Now define it.

OK to here!Now get ready.

OK to here! Now do it.

11

NASA NPR 7120.5D - Space Flight Program NASA NPR 7120.7 - IT & Institutional Infrastructure (IT Life-Cycle) (Institutional Infrastructure slightly different)

Formulation Implementation Pre-System Acquisition System Acquisition Operations Decom-

missioning

Pre-Phase A Phase A Phase B Phase C Phase D Phase E Phase F

Concept Studies

Concept & Technology Development

Preliminary Design & Technology Completion

Final Design & Fabrication Build

System Assembly, Integration & Test, Launch

Deployment, Operations & Sustainment

Decom-missioning Closeout

DoDI 5000.02 (12/8/2008) Operation of the Defense Acquisition system

Pre-System Acquisition System Acquisition Sustainment

Milestones

Material Solution Analysis Technology Development Engineering and Manufacturing Development Production & Deployment Operations & Support

Integrated System Design

System Capability &

Manufacturing Process

Demonstration

LRIP/IOT&E Full-Rate Production & Deployment

Life Cycle Sustainment

Disposal

LRIP = Low-Rate Initial Production IOT&E = Initial Operational Test and Evaluation

Typical IT System Development Life-Cycle (SDLC) project phases

Initiation System Concept

Development Planning Requirements

Analysis Design Development Integration and Test Implementation Operations and

Maintenance Disposition

Project Management Institute - Project Management Body of Knowledge (PMBOK) Initiating Process Group

Planning Process Group Executing Processes & Monitoring & Controlling Process Groups

Closing Process Group

NOAA NAO 216-108 - REQUIREMENTS MANAGEMENT Needs

Identification & Definition

Solution Alternatives Identification Solution Selection Acquisition & Implementation Full Operational

Capability

OMB Exhibit 300 Planning Phase

OMB Exhibit 300 Acquisition Phase

OMB Exhibit 300 Operations & Maintenance

B A C

Approval for Implementation

Project InitiationApproval

Project Definition

Phase

Project Approval

InvestmentApproval

MS 1

• Needs Analysis • Resource/Affordability

Analysis • Independent Cost

Review/Estimate• Initial Risk

Assessment

• Alternatives ID • Analysis of Alternatives • Capabilities Requirements

Development • Requirements Traceability • Resource Requirements • Project Cost Estimate • Independent Cost Estimate• Project Planning • Risk Update • Tech Readiness Assessment

• Requirements Traceability

• Budget • Acquisition Strategy

Update • Independent Cost Estimate • Procurement Requirements• Project Planning Update • External Independent

Review • Risk Assessment Update • Product Demo/ Prototype

• Requirements Traceability

• Execution Management, Oversight, and Adjustment

• Mission Need Statement

• Sponsor Commitment

• Initial Risk Assessment

• AOA Report • CONOPS • Preliminary Reqmnts Doc • Selected Alternative • Project Mgt Plan • Project Baseline• Sponsor Commitment

Reaffirmed • Acquisition Strategy• Risk Assessment Update

• Requirements Document

• Project Mgt Plan Update• Sponsor Commitment

Reaffirmed • Acquisition Strategy

Update• Risk Assessment

Update

Project Execution

Phase

Project Development

Phase

Conceptual Phase

MS 3MS 2

Tasks to be conducted during phases:

Deliverables required for milestone reviews:

MS 0 MS 4

ProjectDelivery

ConceptInitiation