· web viewassess financial implications of technical uncertainties, such as test failure,...

PM’s Compendium of Business Management Roles, Actions and Activities

PM Roles PM Actions PM’s Necessary Product or Outcome

Activities Amplifying Steps and Guidance

BM 1. Contract Management: Ability to guide the development of appropriate documents and focusing contracting actions in pre-award, source selection, and post-award contracting activities relating to acquisition management.

1.1 Market Research

1.1.1 Apply market research to define the industry/ procurement environment and gather and apply relevant market research information to initiate and execute the program.

Market Research Summary or White Paper

1.1.1.1 Develop or contribute to the conduct of Market Research Study to be used by program office members when developing contract strategies, cost estimates and other key products and decisions. Ensure consistency with FAR Parts 10 (Market Research), Part 11 (Describing agency needs), and 12 (Acquisition of Commercial items); and DFARS 210 while using various types of market research tools (e.g., CCR, SB Dynamic Search, BetBiz, FPDS, GSA advantage, etc.)

Steps:1. Understand the industry environment and

determine availability of sources of supply and/or services to best satisfy system/program requirements.

2. Provide or execute guidance and information needed to develop and use a Market Research study to initiate and execute the program.

3. Ensure small business aspects of market research are conducted to comply with small business statues.

Request for Information

1.1.1.2 Develop a program's Request for Information (RFI), and evaluate the interim and end product with regard to effectiveness in gathering needed information. Develop or assess any work aids, tools, direction or guidelines necessary for potential offers in accordance with FAR Section 15.201

Steps:1. Evaluate a sources sought synopsis2. Conduct Industry Days and one-on-one

meetings with industry as necessary3. Determine commerciality of product or

service.4. Release the RFI

1.1.2 Analyze key attributes of the defense industry to meet acquisition needs. Includes awareness of issues of international sourcing vs. domestic preferences, Buy American Act, Berry Amendment, Canadian inclusion, etc., that restrict sources

Memorandum for the Record that evaluates the Market Research Summary as it applies to acquisition of foreign goods and services

1.1.2.1 Evaluate and provide feedback on the Market Research Summary before approving as input into the Acquisition Plan and Strategy

Steps:1. Ensure the summary lists potential sources

and levels of availability of needed products and services.

2. Analyze key attributes of the defense industry to meet acquisition needs. Includes awareness of issues of international sourcing vs. domestic preferences, Buy American Act, Berry Amendment, Canadian inclusion, etc., that restrict sources.

1As of: Aug 2016



1.1.3 Develop and assess the validity of an appropriate sourcing approach (including competitive and non-competitive)

Source Selection Plan (SSP)

1.1.3.1 For competitive approach, collaborate with contracting officer and SSA to define a strategy (IAW FAR Section 15.303) and plan for releasing competitive solicitation, applying criteria to assess offers, and engaging with source selection authority and advisors to select source(s) to deliver customer required product or service per the terms of the RFP and IAW FAR Part 6

Steps:1. Identify source selection goals, objectives

and resources2. Form an integrated source selection team

to develop the SSP including evaluation criteria

3. Ensure the RFP supports the SSP and evaluation criteria

J&A -- Justification and Approval for Sole Source (or for Other Than Full and Open Competition)

1.1.3.2 For non-competitive approach, collaborate with contracting officer to properly document and obtain approval of approach and rationale

Steps:1. Review RFI feedback to validate limitations

on competition. 2. Notify stakeholders of intent to pursue sole

source3. Ensure compliance with DPAP J&A format

1.1.4 Assess and exercise pre-solicitation communications with industry and the government team.

Synopsis, RFI, and Industry Day Announcement

1.1.4.1 Develop and or evaluate a pre-solicitation with options to include the use of draft solicitation, industry days and one-on-one sessions. Ensure use of FAR 15.201 Exchange with industry before receipt of proposals.

Steps:1. Assess the viability and attractiveness of

using a Small Business approach to a proposed acquisition

2. Promote early exchanges of information about future acquisitions among industry and the program manager, contracting officer, and other participants in the acquisition process.

3. Identify and resolve concerns regarding the acquisition strategy, including proposed contract type, terms and conditions, and acquisition planning schedules.

4. Evaluate the feasibility of the requirement, including performance requirements, statements of work, and data requirements.

5. Determine the suitability of the proposal 2

As of: Aug 2016



instructions and evaluation criteria, including the approach for assessing past performance information;

6. Assess the availability of reference documents and any other industry concerns or questions.

7. Develop discussion criteria regarding RFIs and pertinent information needed for industry day announcement

1.2 Pre-Solicitation Planning and Execution

1.2.1 Demonstrate an understanding of and participate in pre-award actions required by the FAR

Acquisition Strategy (AS) content

1.2.1.1 Organize pre-award actions required by FAR Subpart 7.1 Acquisition Planning and FAR Parts 1-12, considering key and complex contract terms and conditions for the solicitation content IAW FAR Sections 34.004 and 34.002.

Steps:1. Review the operational requirements2. Perform a Red Team review of the draft

Acquisition Strategy

Source Selection Plan / Strategy

1.2.1.2 Evaluate alternative business strategies and flesh out recommended approach for the contract, to meet customer requirement, consistent with the program AS, and IAW FAR 7.105, FAR Part 15, and DFARS PGI 207.105

Steps:1. Identify program goals and objectives2. Identify the program risks and

opportunities3. Review source selection approaches (LPTA

vs Full Trade-Off)4. Review contract types as alternatives5. Decide on contract type and incentives

See FAR Part 7 (Plan), 15 (Procedures), and 16 (Incentives)

1.2.2 Based on the risks and opportunities described in the acquisition strategy, jointly develop a contracting strategy with the PCO.

Contract strategy option analysis with recommendation

1.2.2.1 Refine the assessment of the risk and opportunities associated with the acquisition of the desired capability.

1.2.2.2 Given current requirements and constraints, research and evaluate contract strategy options, contract type, timing and

Steps:1. Identify applicable contract attributes

sought for the program2. Identify all applicable contract type

possibilities.3. Develop and execute a method to

compare and contrast contract types in

3As of: Aug 2016



other pertinent characteristics IAW FAR 7.105(b).

order to determine the most appropriate contract type.

4. Coordinate with PCO on contracting processes, strategy, agreements, negotiations etc.

References: Defense Acquisition Guidebook section 2.4

1.2.3 Understand the use and ramifications of Interagency Acquisitions.

Acquisition Strategy (AS) content

1.2.3.1 For an inter-agency project or program, include in acquisition strategy provisions that optimize relationships with other government agencies as customers or partners, consistent with the intent of FAR Subpart 17.5, and the Economy Act.

Steps:1. Review with PCO and legal counsel how

Economy Act provisions impose constraints on program strategy and funding decisions

2. When reviewing market research to assess if joint/inter-agency solution could meet customer’s needs, assess limitations imposed by Economy Act

3. Assess if program strategy can be improved by leveraging GOTS or ongoing development led by another agency—evaluate any Economy Act implications for these approaches.

1.2.4 Evaluate the intent of the capability or service acquisition and assure the strategy(s) are aligned

Determination and Findings (D&F)

1.2.4.1 Provide (or assess with recommendations) program guidance and intent in the various types of acquisitions strategies prior to contract award in accordance with the FAR.

Steps:1. Evaluate relevant criteria to determine if a

sealed bid contract is appropriate2. Evaluate relevant criteria for using a

simplified acquisition approach3. Review pre-award activities, FAR (if

applicable) Parts 5 (Publicizing Contract Actions), FAR Part 12 (Acquisition of commercial items), 13 (Simplified Acquisition Procedures), 14, (Sealed Bidding), etc.

1.2.5 Demonstrate how incentives at the portfolio,

Contract Incentive Structure

1.2.5.1 Develop and or evaluate the program approach to develop the acquisition strategy

Steps:1 Derive or assess the cost schedule,

4As of: Aug 2016



program and/or project level (to include contract incentives) drive desired and/or undesired contractor behavior

contractor incentive structure IAW FAR Subpart 16.4 incentive contracts.

performance risk and opportunities associated with the acquisition of the desired capability

2 Derive associated incentives to mitigate risks and take advantage of opportunities

Refer to section 1.4.5 1.2.6 Account for the

impact of the government and contractor rights under the appropriate data rights categories.

Data Management Strategy (part of ASR)

1.2.6.1 Develop or assess (with recommendations) the RFP for adequate discussion of the importance, use, and limitations of data rights in accordance with FAR 27

1.2.6.2 Select the appropriate data rights strategy for a proposed contract action in accordance with DFARS 227.

Steps:1. Identify lifecycle data needs and rights2. Explain how the procurement of data

rights can impact a weapons systems affordability and supportability

Notes: The DFARS reference is important, as DOD

has, by statute, unique requirements that are different than those of civilian agencies.

1.2.7 Explain the potential program impact and appropriate response procedures regarding a contractor's right to protest.

Contingency Plan in Event of Protest

1.2.7.1 Prior to RFP release, evaluate the rights of each party to protest, timelines involved in protests, alternate methods for resolving protests, and potential program mitigations for protests in accordance with FAR Part 33.1 (Protests)

Steps:1. Review source selection criteria to avoid

potential protest.2. Train the source selection team3. Address the potential impacts of the

protest on the program and the means available to minimize these impacts

1.2.8 Communicate and justify the validity and effectiveness of the chosen approach to acquire a capability

Briefing to MDA for RFP Release Decision (any phase)

1.2.8.1 Develop and present briefing to MDA with rationale, including technology maturity and risk mitigation levels, supporting readiness to release RFP, IAW DODI 5000.02

Steps:1. Comply with existing Acquisition Decision

Memoranda2. For milestone review following Materiel

Solution Analysis Phase: be prepared to recap requirement, trade space surrounding KPPs, industrial base considerations, Risk and Opportunity assessment, and how those impacted proposed acquisition strategy.

3. For EMD RFP release decisions: If 5

As of: Aug 2016



available, use results of PDR (or excerpts from PDR Assessment Report) to support readiness to enter the EMD phase of acquisition

4. Incorporate relevant market research. 1.2.9 Develop and/or assess necessary contract requirements and associated contract artifacts for both a product/supplies and services contract.

Request for Proposals (including RFP Cover Letter)

1.2.9.1 In concert with contracting officer, finalize Request for Proposals based on comments/inputs received from industry, customer, and acquisition staffs during pre-solicitation activities, and IAW FAR Part 15

Steps:1. Ensure evaluation criteria addresses

program risks2. Useful to conduct a peer review (or Red

Team) of RFP using peers from across your PEO or seeking assistance from peers on similar or interfacing programs in other services/agencies

Section C (SOW/SOO/PWS), Section L, M, and H, CDRLs and RFP Cross-Reference Matrix ( traces requirements & risks/opps to Sec L and M of RFP].

1.2.9.2 Prepare (or assess with recommendations) a comprehensive program specification and performance- based Statement Of Objectives (SOO) or Statement of Work (SOW) and CDRL that fully and correctly define the program, addressing roles and missions of the government and contractor IAW FAR Section 15.204. (See 8.2.1)

Steps:1. If an acquisition of services, gain familiarity

with the Services Acquisition Mall and the ART tool for automated generation of SOW/SOO

2. Exercise the appropriate tools or models for determining the requirements for CDRL items (e.g.: Gain familiarity with the Responsibility, Accountability, Consulted and Informed model).

3. Review proposed CDRLs with stakeholders to ensure value-added for each CDRL

4. Develop cross-reference matrix to ensure key strategy drivers are addressed in RFP across requirements (spec, SOW, CDRL) and Secs L and M.

5. Exercise the appropriate tools or models for determining the requirements for data products (e.g.: Gain familiarity with the Responsibility, Accountability, Consulted and Informed model).

6. Apply, and tailor as appropriate, any 6

As of: Aug 2016



applicable data item descriptions (DID).7. Review proposed CDRLs with stakeholders

to ensure value-added for each CDRL. Tailor CDRLs as required in the absence of DIDs. Consistent with FAR Part 11 Describing Agency Needs

Performance Requirements Document (PRD) and Systems Requirements Document (SRD)

1.2.9.3 Prepare (or assess with recommendations) a description of the system / performance requirements to ensure documentation within the Statement Of Objectives (SOO) or Statement of Work (SOW) that fully and correctly defines the program, addressing roles and missions of the government

Steps:1. Exercise tools and techniques to allocate

requirements to the various tasks2. Tailor the technical requirements

documents to ensure compliance with the government’s desired outcomes

1.2.10 Demonstrate the ability to adjust an RFP to a changing environment

Request for Proposal (RFP) Amendment

1.2.10.1 With contracting officer, analyze impacts vs. benefits and if warranted, implement RFP change (after SSA approval) to resolve issues (error; ambiguity; inconsistency; user-driven change; funding change) IAW FAR Section 15.206, (amending the solicitation).

Steps:1. Evaluate alternatives to best resolve

underlying RFP issues (error; ambiguity; inconsistency; user-driven change; funding change)

2. Determine appropriate additional time each offeror will need to response to amended RFP

3. Seek peer review RFP changes to ensure clarity and ease of implementation.

4. Assess the additional risks of protest and impact to the program schedule.

1.3 Source Selection and Negotiations

1.3.1 Plan and execute a source selection and contract award process.

Source Selection Evaluation Board Charter; Source Selection Advisory Council Charter; Final Source Selection Schedule

1.3.1.1 As part of a source selection team establish the source selection structure, roles and responsibilities of the Government team, and appropriate selection criteria, and processes and procedures

Steps:1. Organize the Source Selection Team per

DoD Source Selection Guide2. Select or approve SSEB members and arrange team training to prepare for Source Selection.

2. Schedule SSA briefing times per published Source Selection Schedule

3. Serve on or chair Source Selection Evaluation Board.

7As of: Aug 2016



4. Serve as part of a Source Selection Advisory Council/Committee

5. Serve as a Source Selection Authority [as appropriate to size of procurement action]

Source Selection Evaluation Results

1.3.1.2 As part of a source selection team evaluate contractor proposals consistent with the requirements and criteria defined in the RFP to identify an offeror likely to most successfully meet contract requirements while managing key risks and opportunities,

Steps:1. Organize the SSEB, roles, responsibilities,

and tasks.2. Evaluate proposals against requirements

and criteria3. Collect findings and come to consensus

among the SSEB members4. Prepare evaluation briefings5. Receive SSA decision and direction (for

award or discussions with offerors)6. Consistent with FAR Part 15/15.3

(Contracting By Negotiation/Source Selection)

Source Selection Decision Memo

1.3.1.3 With the Source Selection Authority and support from the contracting officer, prepare the Source Selection Decision Memorandum to reflect SSA’s independent decision per FAR Part 15.

Steps:1. Ensure SSDM clearly references how the

criteria in Section M were used to evaluate each offeror

2. Articulate the SSA’s basis for decisionDebrief Presentation and Redacted SSDM.

1.3.1.4 In support of the contracting officer, provide results of source selection as de-brief to successful and unsuccessful offerors, per their request, IAW FAR Part 15.

Steps:1. Develop/review de-brief for clarity and

consistency with actual source selection findings

2. Clearly document in de-brief how the process used criteria in Section M for the evaluation.

Protest Decision Support Documents and Actions

1.3.1.5 Analyze protest claims and accomplish discovery in providing response to contractor protests, leverage documentation from source selection process along with the contracting officer

Steps:1. Ensure thoroughness and consistency in

program offices responses to contracting officer and/or GAO’s request for information to adjudicate the assertions in

8As of: Aug 2016



and legal team in supporting GAO inquires IAW FAR Part 15.303

a contractor’s protest. 2. Keep SSA appraised of status of protests

and coordinate with SSA when providing info to contracting officer and/or GAO.

3. If PM served in leadership position during Source Selection (SSEB Chair or SSA), offer to information accumulated by contracting officer to ensure completeness and accuracy.

1.3.2 Plan and execute a contract negotiation and award in a sole source arrangement

RFP 1.3.2.1 IAW DODI 5000.02, define terms of RFP and planned contract to meet customer’s priority needs and incentivize relevant Should Cost targets, in light of perceived contractor motivations and market dynamics.

Steps:1. Refer to the approved J&A 2 Leverage contractor’s pre-award activities

(business development, lobbying, proposal prep, negotiation), to ensure clear understanding of requirements and associated risks by both government and contractor.

3. Review contractor’s basis for cost and review the basis of cost with technical subject matter experts

4. Use DCMA and DCAA to validate the cost factors

5. Consider trade-offs to accommodate budget limitations

Technical Evaluation Memo

1.3.2.2 Conduct/approve technical evaluation as input to contracting officer for setting negotiation targets to be discussed in business clearance memo.

Contract (Award) 1.3.2.3 Execute sole source contract award. Steps:1. With contracting officer, plan and conduct

negotiations with goal of a mutually agreeable business arrangement with appropriate performance incentives

2. Communicate negotiated contract, schedule and expected outcomes to the Program Office team members and stakeholders.

1.4 Contract Administration

Contract Administration

1.4.1.1. Develop a business partnership and associated plan to integrate and manage the

Steps:1. Ensure PCO, DCMA, Program Office Team,

9As of: Aug 2016



1.4.1 Prepare and evaluate a plan for executing the program’s contract administration process

Plan efforts of all personnel responsible for overseeing the contractor in executing the terms of the contract to successfully fulfill the agency/department’s need in a timely manner and at a reasonable cost.

and Contractor are aligned with Contract Administration Plan roles, responsibilities, tasks and outcomes are consistent with FAR Part 42

1.4.2 Oversee the establishment of a negotiated baseline of performance between the program office and the selected contractors.

DD Form 1484, Post-Award Conference Record

1.4.2.1 Complete the DD Form 1484 and execute the Contract Administration Plan

Steps:1. Monitor and control contractor

performance in accordance with the Contract, Contract Administration Plan, and the QASP.

2. Make modifications to the Contract Administration Plan as necessary

1.4.3 Comprehend the contract modification process, receipt of contractor change proposals, ECP and Value Engineering requirements, risk analysis, and contractor financing requirements.

Contract Modifications

1.4.3.1 Evaluate contractor proposals for contract modifications IAW far Part 43 (Contract Modifications)

Steps:1. Review the requirement (or unsolicited

proposal)2. Assess the impact to the program budget3. Perform technical evaluation and obtain

Configuration Control Board approval4. Perform negotiations, award, and

administration consistent with tasks 1.3 and 1.4

Modified Contract Incentive Structure

1.4.3.2 Modify the contract incentive clauses in accordance with the negotiated agreement

Steps:1. Describe the relative influence of profit,

growth, cash flow, market share and stability in shaping contractor behavior

2. Identify the desired outcomes or behaviors of the modification/incentives

3. Draft incentive structure designed to accomplish the objectives.

4. Obtain stakeholder agreement.1.4.4 Comprehend how to direct exercising options; issuing task or delivery orders; and claims

Procurement Request

1.4.4.1 Verify budget/funds available. Steps:1. Ensure the Budget Officer makes the

funds available

10As of: Aug 2016



1.4.4.2 Revalidate the Need for the Option (fulfills an existing Government need) and Price

Steps:1. Check with the Requirements Manager to

determine that the requirement is still valid

2. Verify that the contractor’s capacity is available

3. Verify that the contractor’s rate changes do not exceed the budget

1.4.4.3 Execute the option Steps:1. Direct the Contracting Officer to exercise

the option2. Monitor contractor performance3. Control contractor performance4. Notify the Requirements Manager (and

other stakeholders) 1.4.5 Monitor, assess, and

manage contractor performance in their execution of the contract

Contractor Performance Assessment Report (CPAR)

1.4.5.1 Assess and provide timely feedback to the contractor on their execution of the terms of the contract in accordance with the DoD Contractor Performance Assessment Reporting System (CPARS) Policy Guide

Steps:1. Evaluate contractor performance in

meeting contractual requirements2. Prepare and submit CPAR every 12 months

during contract period of performance 3. Explain issues or areas of improvement

with the contractor’s performance including subcontract management

Management and Status reports associated with particular management systems.

1.4.5.2 Manage the contractor using various automated data systems IAW DFARS Subpart 242.70 (Contractor Business Systems)

Steps:1. Working with DCMA and DCAA ensure

Contractor Business Systems provide adequate outputs.

2. Systems may include: Cost Estimating System Requirements, Earned Value Management System, Material Management and Accounting System, Accounting System Administration, Contractor Purchasing System Administration, and Contractor Property Management System Administration.

11As of: Aug 2016



Modified contract incentive structure

1.4.5.3 Based on program goals and objectives optimize the contract incentive structure.

Steps:1. Identify desired contractor outcomes2. Assess monetary and non-monetary

options to influence contractor performance

3. Prepare the incentive modifications4. Execute contract modification processesRefer to section 1.2.5

1.4.6 Resolve contract issues related to contractor's responsibilities for performance of the contract or a change in the users requirements

Issues Resolution 1.4.6.1 Explain methods available to resolve customer concerns and the contractor's responsibilities for performance of the contract and to enforce/ensure contractor compliance with contract requirements IAW FAR Subpart 33.2(Disputes and Appeals), FAR Part 49 (Termination of contracts).

Steps:1. Verify COR training is completed and

responsibilities are understood by the assigned COR

2. Verify customer concerns and the documented requirements relative to the contract

3. Confirm concerns with the contractor4. Identify the gaps 5. Close gaps by reconciling the

requirements or directing corrective actions to the contractor

Memo for Record 1.4.6.2 Evaluate, with recommendations, a contract termination that was initiated due performance issues or the elimination of the requirement

Steps:1. Determine if it is appropriate to terminate

the contract, is it in the best interest of the government

2. Be sure to understand the impacts of the termination relative to other capabilities, organizations, markets, etc.

3. Understand wider expectations or conditions for a contract termination

4. Assure all contracts close out actions are completed. (see section 1.5)

1.4.7 Understand the unique requirements and management actions required of Agency PM's

MOU with field agencies

1.4.7.1 Explain unique management actions required for the acquisition of services in accordance with FAR Part 37 and DOD Guidebook for the Acquisition of Services.

Steps:1. Document the service requirements with

the field agency2. Define roles and responsibilities between

12As of: Aug 2016



when engaged in the acquisition of services

1.4.7.2 Explain how a Quality Assurance Surveillance Plan (QASP) is used to ensure performance meets the terms of the contract.

field agency, PMO, and contractor personnel

3. Train field agency personnel with regard to directing contractor support

4. Finalize MOU (stakeholder support)

1.5 Contract Closeout

1.5.1 Understanding of procedures for contract close-out and/or termination in a manner consistent with FAR Part 49 (as applicable)

DD Form 1597, Contract Closeout Check List (or agency equivalent)

1.5.1.1 Evaluate, with recommendations, a contract close-out in accordance with FAR 4.804 (Closeout of contract files).

Steps:1. Form Contract Close-Out Team (refer to

DCMA Contract Close-Out Checklist)2. Identify key activities such as reconciliation

of all deliverables, capabilities. Etc.3. Ensure all required Contractor

Performance Assessment Reports are completed.

4. Direct Contracting Officer to initiate contract close-out tasks.

BM 2. Financial Management: Ability to implement an effective financial management system to govern the program and ensure program affordability; develop and justify program’s cost position within the PPBE; manage the development of program cost estimates; assess Congressional enactments evaluate the impacts of program funding changes; and effectively/efficiently execute the program funding.

2.1 Financial Planning

2.1.1 Understand the application of a Department or Agency’s financial management policy/instructions for a project/program’s financial planning, programming, budget development, and budget execution.

Sections of the Acquisition Strategy (AS) that reference Financial Planning

2.1.1.1 Create or modify appropriate sections of the program acquisition strategy to properly address business strategy, forecast of cost/funding requirements and associated financial content considerations consistent with DoD approved Acquisition Strategy (AS) template, financial management regulations and local policy.

Steps:1. Reference the program Integrated Master

Schedule2. Derive funding requirements in support of

Service/Agency POM process.3. Ensure the program’s cost estimates

account for advance procurement as well as long term sustainment.

4. Ensure the program’s cost estimates are consistent with the acquisition strategy and Cost Analysis Requirements Description

5. There are 13 Sections to the AS and several of them relate to the ‘Financial Planning’ aspects. Section 7 is Business Strategy, Section 8 is Cost and Funding, and Section 9 is Resource Management

13As of: Aug 2016



Affordability Analysis

2.1.1.2, Create, modify, or provide inputs to an Affordability Analysis consistent with DoD approved Affordability Analysis expectations (e.g.: Defense Acquisition Guide, Affordability Assessment ADDM Template) and local policy.

Steps:1. Obtain, analyze, or provide technical,

programmatic and financial data that is relevant to a particular program across its planning horizon (nominally 30-40 years) that may be required for the portfolio analysis to be conducted.

2. Ensure the affordability analysis is consistent with data contained in the program Cost Analysis Requirements Description (CARD) document and other amplifying program documents.

3. Ensure that the analysis reflects current / projected program cost baseline parameters and target values. Assess financial implications of technical uncertainties, such as test failure, maturity of technology, revised program requirements, and possible changes in fielding schedules

2.2 Programming

2.2.1 Analyze requests, provide inputs and priority recommendations (from the perspective of capability and projected IOC date) to support sound budget decisions including inputs to a Service's budget for the DoD POM process

Program Objectives Memorandum (POM)

2.2.1.1 Create, modify, or provide inputs to the program’s POM/BES consistent with DoD approved Program Objectives Memorandum (POM) template and local/Component/OSD policy,

Steps:1. Ensure current program estimates are

based on the latest CARD2. Analyze program mission(s), objective(s),

etc. and how they satisfy the latest QDR, DPG, and other guiding national military strategy policy documents, and identify alternative methods to accomplish objectives, and allocation of resources to support the required program POM submission.

3. Ensure the POM submission documentation is consistent with program definition and description data contained in the AS, APB, previous POM/BES

14As of: Aug 2016



submissions, ADMs, DAES, SAR, CARD, IMS, IPMR/CPR and other amplifying program documents.

4. Prepare and submit the program POM submission and supporting data to meet the proscribed Component, PEO, OSD, etc. timeline, format, and reporting process.

5. Prepare to explain the impacts of funding changes (adds and cuts)

Issue Paper (IP) 2.2.1.2 IAW with DoD approved Issue Paper (IP) template and local/Component/OSD policy, draft a comprehensive and compelling response to questions or concerns raised by CAPE or other organizations that are associated with reviewing and approving Program Objectives Memorandum (POM) submission(s).

Steps:1. Receive and review notification that CAPE

has made program change recommendations through a POM Issue Paper (IP) that identifies specific issues to be evaluated through comparison of the original POM to each proposed alternative and the associated cost and personnel impacts.

2. Obtain, analyze, or provide additional technical, programmatic and financial data that is relevant to a response to an IP associated with program POM submission(s).

3. Prepare and submit a concise response to an IP that provides specific justification of POM recommendations in compliance with Component, PEO, OSD, etc. timeline, format, and reporting process.

Program Decision Memorandum (PDM) and Program Budget Decisions (PBDs)

2.2.1.3 Adjust program to conform to new funding

Steps:1. Assess the impact of funding change2. Consider trade-offs with stakeholder

involvement3. Readjust the program baseline if

necessary4. Consider contract modifications if

15As of: Aug 2016



necessary 2.3 Budget Formulation

2.3.1 Oversee the program office organization’s financial processes and procedures

Program Funding Chart

2.3.1.1 Analyze a program budget to ensure adequacy of funds, proper allocation of funds by year and funding type, and ability to effectively execute.

Steps:1. Plan and execute the budget estimate

process and make program adjustments as necessary

2. Plan and execute the program Funds Management Review (FMR) to determine funding allocation within a program office / program.

3. Capture the analyses in the Program Funding Chart

2.3.2 Formulate Budget Documents

P, R, M, C and/or O Documents

2.3.2.1 Prepare, review and update all appropriate budget justification documents (R-Doc, P-Doc, M-Doc, C-Doc and/or O-Doc) for your program element

Steps:1.Provide an accurate description of the

program’s work scope by fiscal year2.Ensure accurate phasing of funding for a

program scope and alignment of funding with contract actions

3.Analyze program funding requests and highlight any inconsistencies or target points for the OSD / Congressional staff.

4.Ensure traceability between the budget exhibits and other program documentation.

Program Budget Reclama

2.3.2.2 Respond to proposed program/budget changes

Steps:1.Perform a what if drill on program funding

for various levels of funding cuts (5%, 10%, 20%, etc) or funding adds

2.Prepare a budget reclama defining the baseline budget against a proposed funding reduction

3.Coordinate the reclama with stakeholders4.Prepare a response to an PDM/PBD for

your program highlighting the impacts to the program and warfighter from this change

16As of: Aug 2016



2.3.3 Evaluate financial budget implications of international partnering (international agreements, dependable undertaking, handling foreign funds, etc.).

Financial Management Procures Document

2.3.3.1 Understand the FMS policy for your service regarding cooperative agreements and joint programs

Steps:1.Determine the ability to incorporate joint

requirements into your programs development cycle

2.Understand the guidance on anti-tamper, technology transfer, and export of intellectual property

FMS Case / Letter of Agreement

2.3.3.2 Understand the FMS policy for your services regarding sales of military end items

Steps:1.Understand the purpose and use of FMS

surcharge2.Determine the applicability of Defense

Exportability Funding (DEF) during program development

2.4 Budget Execution

2.4.1 Execute program budget and implement key program financial indicators to determine program status

Program Spend Plan; Obligations & Expenditures Forecast

2.4.1.1 Ensure baseline forecast for obligations and expenditures tied to annual spend plan for program’s annual budget, by appropriation and by fiscal year for all current appropriations.

Steps:1. Receive and track OSD/Service/Agency

obligation and expenditure goals with the Business and Finance Manager

2. Assess status of program activities as they relate to actions needed to commit funds (MoA’s, Acquisition documents, funding documents)

3. Prepare the execution plan4. Assess progress against the plan5. Make adjustments as necessary

PMR charts to PEO/SAE, and DAES/annual SAR/MAR as applicable

2.4.1.2 Analyze key program financial indicators and trends (obligations, expenditures vs. plan; negotiated prices vs. estimate; earned value data; schedule performance) to determine program status versus plan.

Steps:1. Review assessment of Integrated Program

Management Report (IPMR), Integrated Master Schedule (IMS), and Contract Funds Status Report (CSFR) compared to spend plan to assess if funding will be sufficient for the year, and phased appropriately across the FYDP. Assess impacts to program office estimate.

2. Ensure PMR data is consistent over time.3. Ensure BFM is using the latest

17As of: Aug 2016



OSD/Service /Agency guidance 2.4.2 Plan and implement

execution year adjustments or make contingency plans in response to program progress (vs plan), anticipated requirements changes, or external resource adjustments (Congressional/ OMB/Service or Agency)

Reclama and BTR or ATR requests (forms)

2.4.2.1 Adjust program funding profile to accommodate all program changes

Steps:1. Assess APB to see if actual budget

execution forecast indicates “significant change” or “breaches” vs APB thresholds.

2. Report actuals vs. APB in DAES or SAR/MAR (as applicable and in writing to PEO, as appropriate for program ACAT level.

3. Prepare reclama statement—i.e., for externally directed requirements changes, identify impacts to program, and to operational user in terms of consequence of cuts/shifts and opportunity costs (e.g. cybersecurity risk due to obsolescence, or growth in O&S cost of legacy systems)

4. Have 10/20/30% cut impact statements/reclamas prepared in advance to be able to respond well for short notice current year execution drills or cuts.

5. Depending on resolution of actuals vs. plan (including requirements changes), may need to implement contract changes to rephrase work to live within current budget limits). See Contract Administration competencies (1.4).

Reprogram Current Year Funds

2.4.2.2 IAW USD(AT&L) and USD(C) 2012 memo, if current year funds become excess to actual need, identify to PEO (with associated out year replacement funds) to enable enterprise level adjustments (reprogramming) by Service/Agency

Steps:1. Be prepared to initiate reprogramming

(BTR or ATR) based on PEO or Service decision to correct execution year phasing issues across programs.

2. Ensure BES and POM adjustments are agreeable to user to retain overall program executability.

2.4.3 Prepare, justify, and Annual Spend 2.4.3.1 Prepare spend plan for all program Steps:18

As of: Aug 2016



administer the program budget.

Plan funding to include contracts and other government costs for all current appropriations

1.Develop a monthly plan for obligation and execution of program funding. Compare the spend plan to OSD and Service goals.

2.Prepare or review internal PMO funding documents

3.Review the adequacy of funding requests for minor contracts, travel, and OGC

2.4.4 Execute budget reviews

Mid-Year Review Presentation

2.4.4.1 Prepare for and or participate in a mid-year budget review

Steps: 1.Compare program execution against

Service / OSD standards for funds execution

2.Prepare Get Well Plans for any deltas from the OSD standards

Year End reviews 2.4.4.2 Prepare for and or participate in an end of year budget drill

Steps:1.Analyze end of year funding for a program

to determine if excess funds are available2.Perform an end of year exercise to

determine if additional funding is available, how could it be used on a program

3.Work as a team with budget and contracting offices to execute end of year funds for a program effort

2.5 Cost Estimates

2.5.1 Understand how an interdisciplinary Cost Estimate is executed

LCCE and/or BCA 2.5.1.1 Establish an interdisciplinary program office cost estimating team, its objectives and oversee team’s execution of a BCA and/or LCCE.

Steps:1. Ensure the BFM/Cost IPT is following the

latest OMB. DOD, Service, Agency cost estimating guidance.

2. In order to develop and assess a cost estimate, it is critical to ensure that all costs, risks and assumptions are clearly traceable – to the greatest extent practicable -- to the program acquisition program baseline (APB), work breakdown structure (WBS) and corresponding risk

2.5.2 Understand Congressional legislated and DoD expectations and applications as applied to the general categories of Business Case Analyses

BCA 2.5.2.1 Evaluate a Business Case Analyses (BCA - such as an Analysis of Alternatives or Economic Analysis) based on analogy, parametric and/or bottoms-up (engineering) approach

19As of: Aug 2016



(BCA) and Lifecycle Cost Estimates (LCCE) based on analogy, parametric and/or bottoms-up (engineering) approach.

register, such that ongoing program analysis and forecasting remain in alignment with the cost estimate.

3. Ensure task is executed in a manner consistent with guidance/information contained in OMB A-94, DoD 5000.4-M (1992) , DoDI 5000.04-M-1 (2007) and GAO Cost Estimating and Assessment Guide (2009)

LCCE 2.5.2.2 Evaluate a Lifecycle Cost Estimate (LCCE - such as an Independent cost estimate, program office estimate, total ownership cost estimate) based on analogy, parametric and/or bottoms-up (engineering) approach

Cost Evaluation 2.5.2.3 Compare a program office estimate (POE) with an independently developed government cost estimate (e.g.: Independent Cost Estimate (ICE))

20As of: Aug 2016