DODI 5000.02 Acquisition Processes, Decision Points, and Phases

d. Acquisition Process Decision Points and Phase Content

d. Acquisition Process Decision Points and Phase Content. The procedures in subparagraphs 5d(1) through 5d(14) are general and are applicable to the acquisition program models previously described and to variations in them. Tailoring is always appropriate when it will produce a more efficient and effective acquisition approach for the specific product. Non-MDAP An acquisition program that is designated by the USD(AT&L) as an MDAP; or is estimated to require an eventual total expenditure for RDT&E including all planned increments, of more than $480 million in FY 2014 constant dollars or, for procurement, including all planned increments, of more than $2.79 billion in FY 2014 constant dollars. and non-MAIS programs will use analogous DoD Components The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. processes. Additional or modified procedures applicable to Information Technology and to Defense Business System An information system, other than a national security system, operated by, for, or on behalf of DoD, including financial systems, management information systems, financial data feeder systems, and the information technology and cybersecurity infrastructure used to support business activities, such as contracting, pay and personnel management systems, some logistics systems, financial planning and budgeting, installations management, and human resource management. programs are described in Enclosures 11 and 12 of this instruction, respectively, and procedures applicable to urgent needs are described in Enclosure 13.

(1) Materiel Development Decision (MDD)

(a)  Materiel Development Decision A review that is the formal entry point into the acquisition process and is mandatory for all programs. A successful MDD may approve entry into the acquisition management system at any point consistent with phase-specific and statutory requirements but will normally be followed by a MSA phase. The principal documents at this decision point are the ICD and Analysis of Alternatives Study Guidance and Plan. A successful MDD normally does not mean that a new acquisition program has been initiated. is based on a validated initial requirements document (an  ICD  The Initial Capabilities Document documents the DoD need for a materiel approach to satisfy specific capability gaps. The ICD essentially summarizes any capability analysis and defines those gaps in terms of the functional area; the relevant range of military operations; desired effects; timeframe; and recommendations. or equivalent requirements document) and the completion of  AoA Study Guidance  Provides direction to the AoA sponsor on what the AoA must include. The study guidance requires, at minimum, full consideration of possible trade-offs among cost, schedule, and performance objectives for each alternative considered. The study guidance also requires an assessment of whether or not the joint military requirement can be met in a manner consistent with the cost and schedule objectives recommended by the JROC. For potential and designated ACAT I and IA programs, the DCAPE approves study guidance and the study plan for the AoA prior to the MDD. After the MDD review, the MDA directs that an AoA be conducted by the responsible DoD Component or PSA. For ACAT II and III programs, Component AoA procedures apply. and the  AoA Study Plan  Based on the AoA Study Guidance, the AoA Study Plan establishes a roadmap of how the analysis must proceed, who is responsible for the different elements, and why they are doing them. The Study Plan is a living document and must be updated throughout the AoA effort to reflect new information and changing study perceptions and direction. By design, the AoA Study Plan is structured so it can evolve into the AoA Final Report. For Acquisition Category (ACAT) I and IA programs, the AoA Study Guidance and AoA Study Plan are approved by the Director, Cost Assessment and Program Evaluation (DCAPE) prior to the Materiel Development Decision (MDD). Following the MDD, the organization responsible conducts the AoA and submits a report to the DCAPE, the Milestone Decision Authority (MDA), and the Joint Staff prior to the Milestone A review. For ACAT II and ACAT III programs, Component AoA procedures apply.. This decision directs execution of  Analysis of Alternatives (AoA)  Assessment of potential materiel solutions to satisfy the capability need documented in the approved ICD. It focuses on identification and analysis of alternatives, Measures of Effectiveness, cost, schedule, concepts of operations, and overall risk, including the sensitivity of each alternative to possible changes in key assumptions or variables. The AoA also assesses critical technologies associated with each proposed materiel solution, including technology maturity, integration risk, manufacturing feasibility, and where necessary, technology maturation and demonstration needs. The AoA will also address the fully burdened cost of fuel for each alternative, when appropriate. The AoA is normally conducted during the MSA phase of the Defense Acquisition System, is a key input to the CDD, and supports the materiel solution decision at Milestone A. The AoA may be updated for the Development RFP Release Decision Point and Milestone C review if there are changes to the design that impact AoA assumptions., and authorizes the  DoD Components  The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. to conduct the Materiel Solution Analysis Phase. This decision point is the entry point into the acquisition process for all defense acquisition products; however, an “acquisition program” is not formally initiated (with the accompanying statutory requirements) until  Milestone  The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B or at Milestone C for those programs that enter directly at Milestone C. DoD Components may have conducted enough analysis to support preliminary conclusions about the desired product at this point. If so, that analysis may be used by the MDA to narrow the range of alternatives. If not, requirements are likely to be less well-defined or firm, and a wider range of alternatives will need to be considered.

(b) At the MDD, the DCAPE, (DoD Components equivalent) will present the AoA Study Guidance, and the Analysis of Alternatives (AoA) lead organization will present the AoA Study Plan. In addition, the Component will provide the plan to staff and fund the actions that will precede the next decision point (usually milestone A) including, where appropriate, competitive concept definition studies by  industry  The defense industry (private sector contractors) includes large and small organizations providing goods and services to DoD. Their perspective is to represent interests of the owners or stockholders..

(c) If the MDD is approved, the MDA will designate the lead DoD Components; determine the acquisition phase of entry; and identify the initial review milestone, usually, but not always, a specific milestone as described in one of the program models. MDA decisions will be documented in an ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews.. The approved AoA Study Guidance and AoA Study Plan will be attached to the ADM.

(2) Materiel Solutions Analysis (MSA) Phase

(a) Purpose. The purpose of this phase is to conduct the analysis and other activities needed to choose the concept for the product that will be acquired, to begin translating validated capability gaps into system-specific requirements including the Key Performance Parameters (KPP) Performance attribute of a system considered critical or essential to the development of an effective military capability. KPPs are contained in the Capability Development Document and the Capability Production Document and are included verbatim in the Acquisition Program Baseline. KPPs are expressed in term of parameters which reflect Measures of Performance using a threshold/objective format. KPPs must be measurable, testable, and support efficient and effective Test and Evaluation. Mandatory KPPs are specified in the JCIDS Manual. and Key System Attributes (KSA) Performance attribute of a system considered important to achieving a balanced solution/approach to a system, but not critical enough to be designated as a Key Performance Parameter. KSAs must be measurable, testable, and support efficient and effective Test and Evaluation. KSAs are expressed in terms of Measures of Performance., and to conduct planning to support a decision on the acquisition strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. for the product. Analysis of Alternatives (AoA) Assessment of potential materiel solutions to satisfy the capability need documented in the approved ICD. It focuses on identification and analysis of alternatives, Measures of Effectiveness, cost, schedule, concepts of operations, and overall risk, including the sensitivity of each alternative to possible changes in key assumptions or variables. The AoA also assesses critical technologies associated with each proposed materiel solution, including technology maturity, integration risk, manufacturing feasibility, and where necessary, technology maturation and demonstration needs. The AoA will also address the fully burdened cost of fuel for each alternative, when appropriate. The AoA is normally conducted during the MSA phase of the Defense Acquisition System, is a key input to the CDD, and supports the materiel solution decision at Milestone A. The AoA may be updated for the Development RFP Release Decision Point and Milestone C review if there are changes to the design that impact AoA assumptions. solutions, key trades among cost, schedule, and performance, affordability analysis Long-range planning and decision making that determines the resources a Component can allocate for each new capability by ensuring that the total of all such allocations - together with all other fiscal demands that compete for resources in the Component - are not above the Component’s future total budget projection for each year., risk analysis, and planning for risk mitigation are key activities in this phase.

(b) Phase Description

1. Minimum funding required for this phase is normally that needed to analyze and select an alternative for materiel development, and to complete the activities necessary to support a decision to proceed to the next phase; technology development and concept analysis and design efforts may also be funded in this phase.

2. The validated 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements. ICD The Initial Capabilities Document documents the DoD need for a materiel approach to satisfy specific capability gaps. The ICD essentially summarizes any capability analysis and defines those gaps in terms of the functional area; the relevant range of military operations; desired effects; timeframe; and recommendations and the AoA Study Plan Based on the AoA Study Guidance, the AoA Study Plan establishes a roadmap of how the analysis must proceed, who is responsible for the different elements, and why they are doing them. The Study Plan is a living document and must be updated throughout the AoA effort to reflect new information and changing study perceptions and direction. By design, the AoA Study Plan is structured so it can evolve into the AoA Final Report. For Acquisition Category (ACAT) I and IA programs, the AoA Study Guidance and AoA Study Plan are approved by the Director, Cost Assessment and Program Evaluation (DCAPE) prior to the Materiel Development Decision (MDD). Following the MDD, the organization responsible conducts the AoA and submits a report to the DCAPE, the Milestone Decision Authority (MDA), and the Joint Staff prior to the Milestone A review. For ACAT II and ACAT III programs, Component AoA procedures apply will guide the AoA and Materiel Solutions Analysis Phase activity. The analysis will be conducted in accordance with the procedures in Enclosure 9 of this instruction, and focus on identification and analysis of alternatives; measures of effectiveness; key trades between cost and capability; total life-cycle cost, including sustainment; schedule; concepts of operations; and overall risk. The AoA will inform and be informed by affordability analysis Long-range planning and decision making that determines the resources a Component can allocate for each new capability by ensuring that the total of all such allocations - together with all other fiscal demands that compete for resources in the Component - are not above the Component’s future total budget projection for each year., cost analysis, sustainment considerations, early systems engineering analyses, threat The sum of the potential strengths, capabilities, and strategic objectives of any adversary that can limit U.S. mission accomplishment or reduce force, system, or equipment effectiveness. It does not include (a) natural or environmental factors affecting the ability or the system to function or support mission accomplishment, (b) mechanical or component failure affecting mission accomplishment unless caused by adversary action, or (c) program issues related to budgeting, restructuring, or cancellation of a program projections, and market research.

3. Prior to the completion of this phase, the DoD Components The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD combat developer will prepare a  Concept of OperationsA verbal or graphic statement, in broad outline, of a commander’s assumptions or intent about an operation or series of operations. It is designed to give an overall picture of the operation. It is also called the Commander’s Concept./  Operational Mode Summary Contains a description of the concept of employment, describes all types of operational modes that apply to a system, and shows the anticipated relative frequency of occurrence of these modes during the life of the system as it functions across the anticipated operational environment. The OMS is a roll-up of the piece of equipment wartime usage for the number of mission/combat operations (mission profiles) that are being analyzed to determine (as appropriate) the total operating time, alert time, and calendar time associated with each mission profile. The Army and Marine Corps normally provide the OMS and Mission Profile (MP) in one document/ Mission Profile Contains a time-phased, detailed description of the operational events (equipment usage) and environments (natural and man-made) that a formation or system experiences from the beginning to the end of a specific mission. There is a MP for each mission/combat operation in the equipment’s wartime Operational Mode Summary (OMS). The Army and Marine Corps normally provide the OMS and MP in one document. (CONOPS/OMS/MP) that will include the operational tasks, events, durations, frequency, operating conditions and environment in which the recommended Materiel Solution A new item (including ships, tanks, self-propelled weapons, aircraft, etc., and related spares, repair parts, and support equipment, but excluding real property, installations, and utilities), developed or purchased to satisfy one or more capability requirements (or needs) and reduce or eliminate one or more capability gaps. is to perform each mission and each phase of a mission. The CONOPS/OMS/MP will be provided to the PM Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. and will inform development of the plans for the next phase including: acquisition strategy, test planning, and capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority. trades. It will be provided to industry The defense industry (private sector contractors) includes large and small organizations providing goods and services to DoD. Their perspective is to represent interests of the owners or stockholders as an attachment for the next acquisition phase RFP A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. RFPs for competitive acquisitions describe the Government’s requirement; anticipated terms and conditions that will apply to the contract; information required to be in the offeror’s proposal; and factors and significant sub-factors that will be used to evaluate the proposal and their relative importance.

4. This phase ends when a DoD Components The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD has completed the necessary analysis and the activities necessary to support a decision to proceed to the next decision point and desired phase in the acquisition process. The next phase can be Technology Maturation and Risk Reduction (TMRR), EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items., or P&D, depending on the actions needed to mature the product being acquired. Each of these phases has associated decision points to authorize entry: Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase A, Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs and Milestone B, or Milestone C. Each decision point and phase has information requirements identified in Table 2 in Enclosure 1 of this instruction, and other criteria as defined in paragraphs 5d(3) through 5d(14) in this instruction.

(c) Program Office Establishment and Next Phase Preparation. During the Material Solution Analysis Phase, the CAE Secretaries of the military departments or heads of agencies with the power of redelegation. In the military departments, the officials delegated as CAEs (also called SAEs are respectively, the ASA(AL&T); the ASN(RD&A); and the ASAF(A)). The CAEs are responsible for all acquisition functions within their components. This includes both the SAEs for the military departments and acquisition executives in other DoD components, such as SOCOM and DLA, which also have acquisition management responsibilities. will select a Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. and establish a Program Office to complete the necessary actions associated with planning the acquisition program with emphasis on the next phase. The Program Manager will review the information requirements for the upcoming decision event and may submit a request for waiver to statutory (when authorized by statute) and regulatory requirements to the to the cognizant approval authority (e.g., MDA, DoD CIO, DOT&E, DCAPE, JROC). The MDA will conduct a DAB planning meeting approximately 6 months before a DAB that includes RFP release decisions. The purpose of the meeting will be to ensure timely review of the business approach and other key elements of program planning before completion of the RFPs. An approved Acquisition Strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. will inform development of the final RFPs for the next phase of the program.

(3) Milestone A

(a) The  Milestone A  The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. decision approves program entry into the TMRR Phase and release of final  RFPs  A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. RFPs for competitive acquisitions describe the Government’s requirement; anticipated terms and conditions that will apply to the contract; information required to be in the offeror’s proposal; and factors and significant sub-factors that will be used to evaluate the proposal and their relative importance. for TMRR activities. The responsible  DoD Component  The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. may decide to perform technology maturation and risk reduction work in-house and/or award contracts associated with the conduct of this phase. Competitive  prototypes  An original or model on which a later system/item is formed or based. Early prototypes may be built and evaluated during the TMRR Phase, or later in the EMD Phase, or be the result of a Joint Capability Technology Demonstration or Advanced Technology Demonstration, and tested prior to Milestone C decision. Selected prototyping may continue after Milestone C, as required, to identify and resolve specific design or manufacturing risks, or in support of evolutionary acquisition. are part of this phase unless specifically waived by the MDA.

Key considerations are:

1.The justification for the preferred Materiel Solution A new item (including ships, tanks, self-propelled weapons, aircraft, etc., and related spares, repair parts, and support equipment, but excluding real property, installations, and utilities), developed or purchased to satisfy one or more capability requirements (or needs) and reduce or eliminate one or more capability gaps..

2. The affordability 1. A determination that the Life Cycle Cost of an acquisition program is in consonance with the long-range investment and force structure plans of the DoD or individual DoD components. 2. Conducting a program at a cost constrained by the maximum resources that the DoD or DoD component can allocated to that capability. and feasibility of the planned materiel solution.

3. The scope of the capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority. trade space and understanding of the priorities within that trade space.

4. The understanding of the technical, cost, and schedule risks of acquiring the Materiel Solution, and the adequacy of the plans and programmed funding to mitigate those risks prior to  milestone  The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B.

5. The efficiency and effectiveness of the proposed acquisition strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. (including the contracting strategy and the  Intellectual Property Includes inventions, trademarks, patents, industrial designs, copyrights, and technical information including software, data designs, technical know-how, manufacturing information and know-how, techniques, Technical Data Packages, manufacturing data packages, and trade secrets. Strategy) in light of the program risks and risk mitigation strategies.

6. The projected threat The sum of the potential strengths, capabilities, and strategic objectives of any adversary that can limit U.S. mission accomplishment or reduce force, system, or equipment effectiveness. It does not include (a) natural or environmental factors affecting the ability or the system to function or support mission accomplishment, (b) mechanical or component failure affecting mission accomplishment unless caused by adversary action, or (c) program issues related to budgeting, restructuring, or cancellation of a program. and its impact on the materiel solution.

(b) At the Milestone A Review:

1.The Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. will present the approach for acquiring the preferred  Materiel Solution  A new item (including ships, tanks, self-propelled weapons, aircraft, etc., and related spares, repair parts, and support equipment, but excluding real property, installations, and utilities), developed or purchased to satisfy one or more capability requirements (or needs) and reduce or eliminate one or more capability gaps. including: the acquisition strategy, the business approach, framing assumptions, an assessment of program risk and how specific technology development and other risk mitigation activities will reduce the risk to acceptable levels, and appropriate “Should Cost” management targets. Table 2 of Enclosure 1 lists program information requirements and identifies approval authorities for those requirements. Program Manager requests to tailor or waive information requirements associated with the next decision event may be submitted to the MDA at this milestone and at each subsequent program milestone. When the MDA is the approval authority for an information requirement, the MDA may approve the Program Manager’s request to tailor or waive that requirement. When another official is the approval authority for an information requirement, the MDA may endorse, but cannot approve, a Program Manager’s request to tailor or waive that requirement. An ADM will document decisions by the MDA or other approval officials to tailor or waive information requirement.

2. The DoD Component The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. will:

a. Present an affordability analysis Long-range planning and decision making that determines the resources a Component can allocate for each new capability by ensuring that the total of all such allocations - together with all other fiscal demands that compete for resources in the Component - are not above the Component’s future total budget projection for each year. and proposed  affordability goals  Unit procurement and sustainment constraints set early in a program to inform capability requirements and major design tradeoffs needed to define the product being acquired. They are reviewed at the next major decision review. based on the resources that are projected to be available to the DoD Component in the portfolio(s) or mission area(s) associated with the program under consideration. The analysis will be supported by a quantitative assessment of all of the programs in the prospective program’s portfolio or mission area that demonstrates the ability of the Component’s estimated budgets to fund the new program over its planned life cycle. Affordability analysis are not intended to produce rigid, long-range plans; their purpose is to inform current decisions about the reasonableness of embarking on long-term capital investments at specific capability levels. The affordability analysis  will support the Component’s proposed affordability goals for unit  production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. and sustainment costs for MDA approval and inclusion in the Milestone A  ADM  A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews.Enclosure 8 details the policy for affordability analysis and  constraints A program's unit procurement and sustainment cost goals or caps dictated by a Component’s affordability analysis. Constraints are determined in a top-down manner by the resources a Component can allocate for a system given inventory objectives and all other fiscal demands on the Component—not by cost estimates. When approved affordability constraints cannot be met, then technical requirements, schedule, and required quantities must be revisited..

b. Submit a DoD Component The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. cost estimate and DoD Component cost position for the preferred solution(s) identified by the  Analysis of Alternatives (AoA)  Assessment of potential materiel solutions to satisfy the capability need documented in the approved ICD. It focuses on identification and analysis of alternatives, Measures of Effectiveness, cost, schedule, concepts of operations, and overall risk, including the sensitivity of each alternative to possible changes in key assumptions or variables. The AoA also assesses critical technologies associated with each proposed materiel solution, including technology maturity, integration risk, manufacturing feasibility, and where necessary, technology maturation and demonstration needs. The AoA will also address the fully burdened cost of fuel for each alternative, when appropriate. The AoA is normally conducted during the MSA phase of the Defense Acquisition System, is a key input to the CDD, and supports the materiel solution decision at Milestone A. The AoA may be updated for the Development RFP Release Decision Point and Milestone C review if there are changes to the design that impact AoA assumptions.Enclosure 10 covers cost estimating in greater detail.

c. Demonstrate that the program will be fully funded within the FYDP at  Milestone A  The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. .

3. If Milestone A is approved, the MDA will make a determination on the  Materiel Solution  A new item (including ships, tanks, self-propelled weapons, aircraft, etc., and related spares, repair parts, and support equipment, but excluding real property, installations, and utilities), developed or purchased to satisfy one or more capability requirements (or needs) and reduce or eliminate one or more capability gaps., the plan for the TMRR Phase, any Program Manager information requirement waiver requests, release of the final  RFP  A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. RFPs for competitive acquisitions describe the Government’s requirement; anticipated terms and conditions that will apply to the contract; information required to be in the offeror’s proposal; and factors and significant sub-factors that will be used to evaluate the proposal and their relative importance. , and specific  Exit Criteria  Program-specific accomplishments that must be satisfactorily demonstrated before a program can progress further in the current acquisition phase or transition to the next acquisition phase. Exit criteria normally are selected to track progress in important technical, schedule, or management risk areas. They serve as gates that, when successfully passed or exited, demonstrate that the program is on track to achieve its final program goals and should be allowed to continue additional activities within an acquisition phase or be considered for continuation into the next acquisition phase. Exit criteria are some level of demonstrated performance outcome, the accomplishment of some process at some level of efficiency, or successful accomplishment of some event, or some other criterion that indicates that aspect of the program is progressing satisfactorily. Exit criteria are documented in the ADM. required to complete TMRR and enter  EMD  The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items.. The MDA will document these decisions in an  ADM  A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews..

(c) If substantive changes to the plan approved at Milestone A are required as a result of the  source selection  The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made. process, the DoD Component will notify the MDA who may, at his or her discretion, conduct an additional review prior to contract awards.

(4) Technology Maturity and Risk Reduction (TMRR) Phase

(a) Purpose. The purpose of this phase is to reduce technology, engineering, integration, and life-cycle cost risk to the point that a decision to contract for  EMD  The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. can be made with confidence in successful program execution for development,  production  The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. , and sustainment.

(b) Phase Description

1. This phase should include a mix of activities intended to reduce the specific risks associated with the product to be developed. This includes additional design trades and requirements trades necessary to ensure an affordable product and executable A program is executable if the program manager has adequate near-term approved funding development and production programs.  Capability requirements  A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority. are matured and  validated 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements., and  affordability caps Binding unit procurement and sustainment constraints set for a program at the Development Request for Proposal Release Decision Point, Milestone B, and beyond. Affordability caps provide fixed-cost requirements functionally equivalent to Key Performance Parameters. are finalized during this phase. The TMRR Phase requires continuous and close collaboration between the program office and the requirements communities and authorities. During this phase, any realized Should Cost management savings should normally be used to further reduce program risk and future program costs. Enclosure 2 describes baseline cost control and the use of Should Cost management.

2. This phase normally includes competitive sources conducting technology maturation and risk reduction activities and preliminary design activities up to and including a Preliminary Design Review (PDR) prior to  source selection The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made. for the  EMD Phase The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items.. Competitive risk reduction prototypes will be included if they will materially reduce engineering and manufacturing development risk at an acceptable cost. If competitive prototyping is not considered feasible, single prototypes at the system or subsystem level will be considered.

3. There are a number of ways to structure this phase which should be tailored to reduce the specific risks associated with the product being acquired.  Technology Readiness Levels  One level on a scale of one to nine, (e.g., TRL 3) signifying active research and development has been initiated. Pioneered by the NASA, adapted by the AFRL, and adopted by the DoD as a method of estimating technology maturity during the acquisition process. The lower the level of the technology at the time it is included in a product development program, the higher the risk that it will cause problems in subsequent product development., described in the Technology Readiness Assessment (TRA) Guidance (Reference (f)), should be used to benchmark technology risk during this phase; however, these indices are rough benchmarks, and not conclusive about the degree of risk mitigation needed prior to development. Deeper analysis of the actual risks associated with the preferred design and any recommended risk mitigation must be conducted and provided to the MDA.

(c) The  acquisition strategy  Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. will guide this phase. Multiple technology development demonstrations, defined in the acquisition strategy, may be necessary before the operational user and materiel developer can substantiate that a preferred solution is feasible, affordable, and supportable; satisfies validated  capability requirements A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority.; and has acceptable technical risk.  Critical program information Elements or components of a research, development, and acquisition program that, if compromised, could cause significant degradation in mission effectiveness; shorten the expected combat-effective life of the system; reduce technological advantage; significantly alter program direction; or enable an adversary to defeat, counter, copy, or reverse engineer the technology or capability. Includes: Information about applications, capabilities, processes, and end-items; Elements or components critical to a military system or network mission effectiveness; Technology that would reduce the US technological advantage if it came under foreign control. will be identified during this phase and  program protection The safeguarding of defense systems and technical data anywhere in the acquisition process, to include the technologies being developed, the support systems (e.g., test and simulation equipment), and research data with military applications. measures to prevent disclosure of critical information will be implemented consistent with section 13 in Enclosure 3. Planning for  EMD  The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items.,  production  The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. , developmental and operational test, and life-cycle sustainment of proposed products will occur during this phase. The government will update the program  IP Includes inventions, trademarks, patents, industrial designs, copyrights, and technical information including software, data designs, technical know-how, manufacturing information and know-how, techniques, Technical Data Packages, manufacturing data packages, and trade secrets. Strategy (see paragraph 6a(4) of Enclosure 2) to ensure the ability to compete future sustainment efforts consistent with the acquisition strategy to include competition An acquisition strategy whereby more than one contractor is sought to bid on a service or function; the winner is selected based on criteria established by the activity for which the work is to be performed. The law and DoD policy require maximum competition, to the extent possible, throughout the acquisition life cycle. for spares and depot repair.

(d) During this phase, and timed to support  CDD validation (or its equivalent), the Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. Program Manager  A document that captures the information necessary to develop a proposed program(s), normally using an evolutionary acquisition strategy. The CDD outlines an affordable increment of militarily useful, logistically supportable, and technically mature capability. The CDD may define multiple increments if there is sufficient definition of the performance attributes (key performance parameters, key system attributes, and other attributes) to allow approval of multiple increments. The CDD supports a Milestone B decision review. will conduct a systems engineering  trade-off  Selection among alternatives with the intent of obtaining the optimal, achievable system configuration. Often a decision is made to opt for less of one parameter in order to achieve a more favorable overall system result. analysis showing how cost and capability vary as a function of the major design parameters. The analysis will support the assessment of refined  KPPs Performance attribute of a system considered critical or essential to the development of an effective military capability. KPPs are contained in the Capability Development Document and the Capability Production Document and are included verbatim in the Acquisition Program Baseline. KPPs are expressed in term of parameters which reflect Measures of Performance using a threshold/objective format. KPPs must be measurable, testable, and support efficient and effective Test and Evaluation. Mandatory KPPs are specified in the JCIDS Manual./  KSAs  Performance attribute of a system considered important to achieving a balanced solution/approach to a system, but not critical enough to be designated as a Key Performance Parameter. KSAs must be measurable, testable, and support efficient and effective Test and Evaluation. KSAs are expressed in terms of Measures of Performance. in the CDD. Capability requirements A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority. proposed in the CDD (or equivalent requirements document) should be consistent with program  affordability goals  Unit procurement and sustainment constraints set early in a program to inform capability requirements and major design tradeoffs needed to define the product being acquired. They are reviewed at the next major decision review..

(e) Subsequent to CDD validation, the  Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. will conduct additional requirements analysis including: requirements decomposition and allocation, definition of internal and external interfaces, and design activities leading to a PDR. Unless waived by the MDA, the PDR will occur prior to Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B.

(f) Program Planning. During the TMRR Phase, the Program Manager will plan the balance of the program, and prepare for subsequent decision points and phases. The Program Manager will submit an updated Acquisition Strategy  Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. for MDA approval in sufficient time to inform development of the RFP for the next phase. The updated Acquisition Strategy will describe the overall approach to acquiring the capability to include the program schedule, risks, funding, and the business strategy. The business strategy will describe the rationale for the contracting approach and how  competition  An acquisition strategy whereby more than one contractor is sought to bid on a service or function; the winner is selected based on criteria established by the activity for which the work is to be performed. The law and DoD policy require maximum competition, to the extent possible, throughout the acquisition life cycle. will be maintained throughout the program life cycle, and detail how contract  incentives  Motivating the contractor in calculable monetary terms to turn out a product that meets significantly advanced performance goals to improve on the contract schedule up to and including final delivery, to substantially reduce costs of the work, or to complete the project under a weighted combination of some or all of these objectives. will be employed to support the Department’s goals.

(g) Life-Cycle Considerations During the TMRR Phase

1. Planning for the sustainment phase should begin in this phase, when requirements trades and early design decisions are still occurring. The  Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. will finalize sustainment requirements and decompose them into more detailed requirements to support the PDR and for the following uses:

a. Support system and product support package design trades.

b. Support  test and evaluation (T&E)  Process by which a system or components are exercised and results analyzed to provide performance-related information. The information has many uses including risk identification and risk mitigation and empirical data to validate models and simulations. T&E enables an assessment of the attainment of technical performance, specifications, and system maturity to determine whether systems are operationally effective, suitable and survivable for intended use, and/or lethal. There are various types of T&E defined in statute or regulation: DT&E, OT&E, LFT&E, and Interoperability Certification. planning.

c. Provide performance metrics definition for product support contracts and organic support requirements.

d. Provide logistics requirements, workload estimates, and logistics risk assessment.

2. The Program Manager will integrate the product support design into the overall design process, and assess enablers that improve  survivability  The capability of a system or its crew to avoid or withstand a manmade hostile environment without suffering an abortive impairment of its ability to accomplish its designated mission. , such as diagnostics and prognostics, for inclusion in the system performance specification. As the design matures, the Program Manager will ensure that life-cycle  affordability  1. A determination that the Life Cycle Cost of an acquisition program is in consonance with the long-range investment and force structure plans of the DoD or individual DoD components. 2. Conducting a program at a cost constrained by the maximum resources that the DoD or DoD component can allocated to that capability. is a factor in engineering and sustainment trades.

(5) CDD Validation and CSBs

(a) CDD Validation A document that captures the information necessary to develop a proposed program(s), normally using an evolutionary acquisition strategy. The CDD outlines an affordable increment of militarily useful, logistically supportable, and technically mature capability. The CDD may define multiple increments if there is sufficient definition of the performance attributes (key performance parameters, key system attributes, and other attributes) to allow approval of multiple increments. The CDD supports a Milestone B decision review..

1. During the TMRR Phase, the requirements Validation Authority The designated authority for validation of Joint Capabilities Integration and Development System capability requirement documents. The Joint Requirements Oversight Council is the ultimate validation authority unless otherwise delegated to a subordinate board or to a designated validation authority in a Service, Combatant Command, or other DOD Component. The validation authority is dependent on the Joint Staffing Designator of the document. will validate the CDD (or equivalent requirements document) for the program. This action will precede the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. and provides a basis for preliminary design activities and the PDR that will occur prior to Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B unless waived by the MDA. Active engagement between acquisition leadership, including the MDA, and the requirements leadership, including the Validation Authority (the JROC for MDAP An acquisition program that is designated by the USD(AT&L) as an MDAP; or is estimated to require an eventual total expenditure for RDT&E including all planned increments, of more than $480 million in FY 2014 constant dollars or, for procurement, including all planned increments, of more than $2.79 billion in FY 2014 constant dollars. and MAIS programs), during the development and review of proposed requirements trades is essential to ensuring that the validated requirements associated with the program continue to address the priorities of the DoD Component The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. and the joint force in a cost effective and affordable way. The MDA (and CAE Secretaries of the military departments or heads of agencies with the power of redelegation. In the military departments, the officials delegated as CAEs (also called SAEs are respectively, the ASA(AL&T); the ASN(RD&A); and the ASAF(A)). The CAEs are responsible for all acquisition functions within their components. This includes both the SAEs for the military departments and acquisition executives in other DoD components, such as SOCOM and DLA, which also have acquisition management responsibilities. when the MDA is the DAE The individual responsible for supervising the Defense Acquisition System. The DAE takes precedence on all acquisition matters after the Secretary of Defense and the Deputy Secretary of Defense. ) will participate in the validation authorities’ review and staffing of the CDD A document that captures the information necessary to develop a proposed program(s), normally using an evolutionary acquisition strategy. The CDD outlines an affordable increment of militarily useful, logistically supportable, and technically mature capability. The CDD may define multiple increments if there is sufficient definition of the performance attributes (key performance parameters, key system attributes, and other attributes) to allow approval of multiple increments. The CDD supports a Milestone B decision review. (or equivalent requirements document) prior to validation 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements., to ensure that requirements are technically achievable, affordable, and testable, and that requirements trades are fully informed by systems engineering trade-off Selection among alternatives with the intent of obtaining the optimal, achievable system configuration. Often a decision is made to opt for less of one parameter in order to achieve a more favorable overall system result. analyses completed by the Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. or the DoD Component.

2. The KPPs Performance attribute of a system considered critical or essential to the development of an effective military capability. KPPs are contained in the Capability Development Document and the Capability Production Document and are included verbatim in the Acquisition Program Baseline. KPPs are expressed in term of parameters which reflect Measures of Performance using a threshold/objective format. KPPs must be measurable, testable, and support efficient and effective Test and Evaluation. Mandatory KPPs are specified in the JCIDS Manual. and KSAs Performance attribute of a system considered important to achieving a balanced solution/approach to a system, but not critical enough to be designated as a Key Performance Parameter. KSAs must be measurable, testable, and support efficient and effective Test and Evaluation. KSAs are expressed in terms of Measures of Performance. included in the validated CDD, will guide the efforts leading up to PDR, and inform the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. . As conditions warrant, changes to KPPs and KSAs may be proposed to the applicable capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority. validation authority The designated authority for validation of Joint Capabilities Integration and Development System capability requirement documents. The Joint Requirements Oversight Council is the ultimate validation authority unless otherwise delegated to a subordinate board or to a designated validation authority in a Service, Combatant Command, or other DOD Component. The validation authority is dependent on the Joint Staffing Designator of the document.. All non-KPP requirements (when delegated by the capability requirement validation authority) are subject to cost-performance trades and adjustments to meet affordability constraints A program's unit procurement and sustainment cost goals or caps dictated by a Component’s affordability analysis. Constraints are determined in a top-down manner by the resources a Component can allocate for a system given inventory objectives and all other fiscal demands on the Component—not by cost estimates. When approved affordability constraints cannot be met, then technical requirements, schedule, and required quantities must be revisited.. Cost performance trades (for non-KPP requirements) will be coordinated with the cognizant capability requirements validation authority.

(b) CSBsAdd a Tooltip Text. For ACAT I and ACAT IA programs, and following CDD A document that captures the information necessary to develop a proposed program(s), normally using an evolutionary acquisition strategy. The CDD outlines an affordable increment of militarily useful, logistically supportable, and technically mature capability. The CDD may define multiple increments if there is sufficient definition of the performance attributes (key performance parameters, key system attributes, and other attributes) to allow approval of multiple increments. The CDD supports a Milestone B decision review. Validation 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements., the Acquisition Executive The individual within each DoD Component charged with overall acquisition management responsibilities. of each DoD Component The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. will form and chair a CSB Established by CAE to review all requirements and significant technical configuration changes that have potential to impact cost and schedule of ACAT I and IA programs. Generally, changes will be rejected and deferred to future increments unless funds are identified and schedule impacts are addressed. The Program Manager, in consultation with the PEO, will on at least an annual basis, identify and propose to the CSB a set of descoping options that reduce program cost and/or moderate requirements. Final decisions on descoping option implementation will be coordinated with the capability requirements officials. Required by DoDI 5000.02 for ACAT I and IA programs; required by public law (FY 2009 NDAA, section 814) for ACAT I programs. with broad executive membership including senior representatives from the Office of the USD(AT&L) (including the Assistant Secretary of Defense for Acquisition), the Joint Staff (Director of Force Structure, Resources, and Assessments, J-8), DOT&E (or designated representative), and the DoD CIO; empowered representatives from the Service Chief of Staff and comptroller offices of the Military Department concerned; representatives from other Military Departments where appropriate; the Military Deputy to the CAE Secretaries of the military departments or heads of agencies with the power of redelegation. In the military departments, the officials delegated as CAEs (also called SAEs are respectively, the ASA(AL&T); the ASN(RD&A); and the ASAF(A)). The CAEs are responsible for all acquisition functions within their components. This includes both the SAEs for the military departments and acquisition executives in other DoD components, such as SOCOM and DLA, which also have acquisition management responsibilities.; the PEO A military or civilian official assigned program responsibilities for Acquisition Category I and IA and sensitive classified programs, or for any other program determined by the Component Acquisition Executive to require dedicated executive management.and other senior representatives from OSD and the DoD Component The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. , as appropriate, in accordance with section 814 of Public Law (P.L.) 110-417 (Reference (g)). A DoD Component equivalent board will serve as the CSB for an ACAT IA program that is a DBS. DoD components should form appropriate level and composition CSBs for lower ACAT programs.

1. The CSB Established by CAE to review all requirements and significant technical configuration changes that have potential to impact cost and schedule of ACAT I and IA programs. Generally, changes will be rejected and deferred to future increments unless funds are identified and schedule impacts are addressed. The Program Manager, in consultation with the PEO, will on at least an annual basis, identify and propose to the CSB a set of descoping options that reduce program cost and/or moderate requirements. Final decisions on descoping option implementation will be coordinated with the capability requirements officials. Required by DoDI 5000.02 for ACAT I and IA programs; required by public law (FY 2009 NDAA, section 814) for ACAT I programs. will meet at least annually, and more frequently as capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority. or content trades are needed, to review all requirements changes and any significant technical configuration changes for ACAT I and IA programs in development, production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. , and sustainment that have the potential to result in cost and schedule impacts to the program. The CSB will review potential capability requirements changes and propose to the requirements validation authority The designated authority for validation of Joint Capabilities Integration and Development System capability requirement documents. The Joint Requirements Oversight Council is the ultimate validation authority unless otherwise delegated to a subordinate board or to a designated validation authority in a Service, Combatant Command, or other DOD Component. The validation authority is dependent on the Joint Staffing Designator of the document. those changes that may be necessary to achieve affordability constraints A program's unit procurement and sustainment cost goals or caps dictated by a Component’s affordability analysis. Constraints are determined in a top-down manner by the resources a Component can allocate for a system given inventory objectives and all other fiscal demands on the Component—not by cost estimates. When approved affordability constraints cannot be met, then technical requirements, schedule, and required quantities must be revisited. on schedule impacts are addressed. The CSB will monitor changes in program requirements and ensure that the Service Chief, in consultation with the Secretary of the Military Department concerned and the JROC, approves of any proposed changes that could have an adverse effect on program cost, schedule, or performance. Program requirements will fall under the cognizance of the CSB upon receipt of a validated CDD A document that captures the information necessary to develop a proposed program(s), normally using an evolutionary acquisition strategy. The CDD outlines an affordable increment of militarily useful, logistically supportable, and technically mature capability. The CDD may define multiple increments if there is sufficient definition of the performance attributes (key performance parameters, key system attributes, and other attributes) to allow approval of multiple increments. The CDD supports a Milestone B decision review. or other validated requirements document, and before the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. . CSBs may also be formed earlier in the program at the discretion of the CAE Secretaries of the military departments or heads of agencies with the power of redelegation. In the military departments, the officials delegated as CAEs (also called SAEs are respectively, the ASA(AL&T); the ASN(RD&A); and the ASAF(A)). The CAEs are responsible for all acquisition functions within their components. This includes both the SAEs for the military departments and acquisition executives in other DoD components, such as SOCOM and DLA, which also have acquisition management responsibilities..

2. The Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority., in consultation with the PEO and the requirements sponsor, will, on at least an annual basis, identify and propose to the CSB a set of recommended requirements changes to include descoping options that reduce program cost and/or moderate requirements and changes needed to respond to any threat The sum of the potential strengths, capabilities, and strategic objectives of any adversary that can limit U.S. mission accomplishment or reduce force, system, or equipment effectiveness. It does not include (a) natural or environmental factors affecting the ability or the system to function or support mission accomplishment, (b) mechanical or component failure affecting mission accomplishment unless caused by adversary action, or (c) program issues related to budgeting, restructuring, or cancellation of a program. developments. These options will be presented to the CSB Established by CAE to review all requirements and significant technical configuration changes that have potential to impact cost and schedule of ACAT I and IA programs. Generally, changes will be rejected and deferred to future increments unless funds are identified and schedule impacts are addressed. The Program Manager, in consultation with the PEO, will on at least an annual basis, identify and propose to the CSB a set of descoping options that reduce program cost and/or moderate requirements. Final decisions on descoping option implementation will be coordinated with the capability requirements officials. Required by DoDI 5000.02 for ACAT I and IA programs; required by public law (FY 2009 NDAA, section 814) for ACAT I programs. with supporting rationale addressing operational implications. The chair of the CSB will recommend to the DoD Component The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. requirements authority, the Validation Authority The designated authority for validation of Joint Capabilities Integration and Development System capability requirement documents. The Joint Requirements Oversight Council is the ultimate validation authority unless otherwise delegated to a subordinate board or to a designated validation authority in a Service, Combatant Command, or other DOD Component. The validation authority is dependent on the Joint Staffing Designator of the document., and the DAE The individual responsible for supervising the Defense Acquisition System. The DAE takes precedence on all acquisition matters after the Secretary of Defense and the Deputy Secretary of Defense. (if an ACAT ID or MAIS program and KPPs Performance attribute of a system considered critical or essential to the development of an effective military capability. KPPs are contained in the Capability Development Document and the Capability Production Document and are included verbatim in the Acquisition Program Baseline. KPPs are expressed in term of parameters which reflect Measures of Performance using a threshold/objective format. KPPs must be measurable, testable, and support efficient and effective Test and Evaluation. Mandatory KPPs are specified in the JCIDS Manual. are affected) which of these options should be implemented.

(6) Development RFP Release Decision Point

(a) This decision point authorizes the release of RFPs A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. RFPs for competitive acquisitions describe the Government’s requirement; anticipated terms and conditions that will apply to the contract; information required to be in the offeror’s proposal; and factors and significant sub-factors that will be used to evaluate the proposal and their relative importance. for EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. and often for LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. or Limited Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. options. This review is the critical decision point in an acquisition program. The program will either successfully lead to a fielded capability or fail, based on the soundness of the capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority., the affordability 1. A determination that the Life Cycle Cost of an acquisition program is in consonance with the long-range investment and force structure plans of the DoD or individual DoD components. 2. Conducting a program at a cost constrained by the maximum resources that the DoD or DoD component can allocated to that capability. of the program, and the executability A program is executable if the program manager has adequate near-term approved funding of the acquisition strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program.. The acquisition strategy is put into execution at this decision point by asking industry The defense industry (private sector contractors) includes large and small organizations providing goods and services to DoD. Their perspective is to represent interests of the owners or stockholders. for bids that comply with the strategy. Release of the RFP for EMD sets in motion all that will follow. This is the last point at which significant changes can be made without a major disruption.

(b) The purpose of the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. is to ensure, prior to the release of the solicitation In contracting, the term means to go out to prospective bidders and request their response to a proposal.  for EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items., that an executable A program is executable if the program manager has adequate near-term approved funding and affordable program has been planned using a sound business and technical approach. One goal at this point is to avoid any major program delays at Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B, when source selection The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made. is already complete and award is imminent. Therefore, prior to release of final RFPs A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. RFPs for competitive acquisitions describe the Government’s requirement; anticipated terms and conditions that will apply to the contract; information required to be in the offeror’s proposal; and factors and significant sub-factors that will be used to evaluate the proposal and their relative importance. , there needs to be confidence that the program requirements to be bid against are firm and clearly stated; the risk of committing to development and presumably production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. has been or will be adequately reduced prior to contract award and/or option exercise; the program structure, content, schedule, and funding are executable; and the business approach and incentives Motivating the contractor in calculable monetary terms to turn out a product that meets significantly advanced performance goals to improve on the contract schedule up to and including final delivery, to substantially reduce costs of the work, or to complete the project under a weighted combination of some or all of these objectives. are structured to both provide maximum value to the government and treat industry The defense industry (private sector contractors) includes large and small organizations providing goods and services to DoD. Their perspective is to represent interests of the owners or stockholders.  fairly and reasonably.

(c) At the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. , the Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. will summarize TMRR Phase progress and results, and review the Acquisition Strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. for the EMD Phase The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items.. Specific attention will be given to overall affordability 1. A determination that the Life Cycle Cost of an acquisition program is in consonance with the long-range investment and force structure plans of the DoD or individual DoD components. 2. Conducting a program at a cost constrained by the maximum resources that the DoD or DoD component can allocated to that capability.; the competition strategy An acquisition strategy whereby more than one contractor is sought to bid on a service or function; the winner is selected based on criteria established by the activity for which the work is to be performed. The law and DoD policy require maximum competition, to the extent possible, throughout the acquisition life cycle. and incentive Motivating the contractor in calculable monetary terms to turn out a product that meets significantly advanced performance goals to improve on the contract schedule up to and including final delivery, to substantially reduce costs of the work, or to complete the project under a weighted combination of some or all of these objectives. structure; provisions for small business utilization; source selection The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made. criteria including any “best value The expected outcome of an acquisition that, in the Government's estimation, provides the greatest overall benefit in response to the requirement. It represents the most advantageous tradeoff between price and performance for the government. Best value is determined through a process that compares—in accordance with selection criteria—strengths, weaknesses, risk, price, and performance to select the value that is most advantageous to the government. An agency can obtain best value in negotiated acquisitions by using any one or a combination of source selection approaches.” determination; framing assumptions; engineering and survivability The capability of a system or its crew to avoid or withstand a manmade hostile environment without suffering an abortive impairment of its ability to accomplish its designated mission. trades and their relationship to validated capability requirements A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority.; the threat The sum of the potential strengths, capabilities, and strategic objectives of any adversary that can limit U.S. mission accomplishment or reduce force, system, or equipment effectiveness. It does not include (a) natural or environmental factors affecting the ability or the system to function or support mission accomplishment, (b) mechanical or component failure affecting mission accomplishment unless caused by adversary action, or (c) program issues related to budgeting, restructuring, or cancellation of a program. projections applicable to the system; Should Cost targets; risk management plans; and the basis for the program schedule.

(d) Documents required for the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. will be submitted no later than 45 calendar days prior to the review. These documents may have to be updated for final approval by the appropriate authority prior to Milestone B and any associated EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. contract awards based on the results of the source selection The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made. . For programs for which the DAE The individual responsible for supervising the Defense Acquisition System. The DAE takes precedence on all acquisition matters after the Secretary of Defense and the Deputy Secretary of Defense. is the MDA, appropriate sections of the EMD RFP A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. RFPs for competitive acquisitions describe the Government’s requirement; anticipated terms and conditions that will apply to the contract; information required to be in the offeror’s proposal; and factors and significant sub-factors that will be used to evaluate the proposal and their relative importance. and its attachments will be reviewed by relevant OSD staff personnel in support of this decision point, after obtaining specific authority in writing from the cognizant contracting officer  A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings for the U.S. government. In the DoD, these functions are often divided between the Administrative Contracting Officer and the Procuring Contracting Officer. .

(e) For MDAPs An acquisition program that is designated by the USD(AT&L) as an MDAP; or is estimated to require an eventual total expenditure for RDT&E including all planned increments, of more than $480 million in FY 2014 constant dollars or, for procurement, including all planned increments, of more than $2.79 billion in FY 2014 constant dollars. and major systems A combination of elements that shall function together to produce the capabilities required to fulfill a mission need, including hardware, equipment, software, or any combination thereof, but excluding construction or other improvements to real property. A system shall be considered a major system if it is estimated by the DoD component head to require an eventual total expenditure for RDT&E of more than $185 million in FY14 constant dollars, or for procurement of more than $835 million in FY14 constant dollars, or is designated as major by the DoD component head., the MDA will determine the preliminary LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. quantity (or the scope of limited deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. for MAIS programs) at the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. . LRIP quantities will be the minimum needed to provide production representative A system that accurately represents the production configuration system for both hardware and software, such as a mature EDM, but not produced on a final production line. System-Level CDR, qualification testing, all FCAs for major CIs, and SVR should have been completed. While highly desirable, the item does not have to be manufactured on a formal production line to be considered production representative. Production representative articles must be demonstrated in their intended environment during the EMD phase of the DAS. Production, or production representative, articles also must be used for the dedicated phase of IOT&E that supports the FRP decision (or for ACAT IA or other automated information system programs, the full-deployment decision).  test articles for operational test and evaluation (OT&E)  The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests.  (as determined by DOT&E for MDAPs An acquisition program that is designated by the USD(AT&L) as an MDAP; or is estimated to require an eventual total expenditure for RDT&E including all planned increments, of more than $480 million in FY 2014 constant dollars or, for procurement, including all planned increments, of more than $2.79 billion in FY 2014 constant dollars. or Special Interest Services that, by their nature or the circumstances related to their acquisition, deserve special attention or care during planning, review, approval, and oversight. programs), to establish an initial production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. base for the system and provide efficient ramp up to Full-Rate Production 1. The second effort part of the P&D phase as defined and established by DoDI 5000.02 after Low-Rate Initial Production and following a successful Full-Rate Production Decision Review. The system is produced at rate production and deployed to the field or fleet. This phase overlaps the O&S phase since fielded systems are operated and supported (sustained) while Full-Rate Production is ongoing. 2. The production level contracted for once the production process has been stabilized. Ideally, it would coincide with the Economics Production Rate. , and to maintain continuity in production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. pending completion of Operational Testing. The final LRIP quantity for an MDAP (with rationale for quantities exceeding 10 percent of the total production quantity documented in the Acquisition Strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program.) must be included in the first Selected Acquisition Report Standard, comprehensive, summary status report of a Major Defense Acquisition Program (ACAT I) required for periodic submission to Congress. It includes key cost, schedule, and technical information.  submitted to Congress after quantity determination. Table 5 in Enclosure 1 provides details about the Selected Acquisition Report.

(f) For incrementally deployed software intensive programs A system in which software represents the largest segment in one or more of the following criteria: system development cost, system development risk, system functionality, or development time. , the MDA will determine the preliminary scope of limited deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. that will be adequate to evaluate fielding Fielding a weapon system by placing it into operational use with units in the field/fleet. plan execution and support OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. prior to a Full Deployment Decision Decision made by the Milestone Decision Authority of a Major Automated Information System acquisition program authorizing an increment of the program to deploy software for operational use. for each capability increment In the context of Joint Capabilities Integration and Development System, a militarily useful and supportable operational capability that can be effectively developed, produced, acquired, deployed and sustained. Each increment of capability will have its own set of threshold and objective values set by the user..

(g) Decisions resulting from the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. will be documented in an ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews.. The ADM will document specific criteria required for Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. approval including needed test accomplishments, LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. quantities, affordability 1. A determination that the Life Cycle Cost of an acquisition program is in consonance with the long-range investment and force structure plans of the DoD or individual DoD components. 2. Conducting a program at a cost constrained by the maximum resources that the DoD or DoD component can allocated to that capability. requirements, and FYDP funding requirements. Table 2 in Enclosure 1 of this instruction identifies the requirements that must be satisfied at this review.

(7) Preliminary Design Review (PDR)

(7) PDR. During the TMRR Phase, and unless waived by the MDA, a PDR will be conducted so that it occurs before Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B and prior to contract award for EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items.. The timing of the PDR relative to the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. is at the discretion of the DoD Component The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. . The Component should balance the need for more mature design information to support source selection The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made. with the costs of either: (1) extending multiple sources’ design activities from the PDR until award of the full EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. contract or (2) having a gap in development prior to EMD award. Unless waived by the MDA, PDR results will be assessed by the MDA prior to the MDA Certification and Determiniation pursuant to section 2366b of Title 10, U.S. Code (Reference (h)) and Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B approval for MDAPs An acquisition program that is designated by the USD(AT&L) as an MDAP; or is estimated to require an eventual total expenditure for RDT&E including all planned increments, of more than $480 million in FY 2014 constant dollars or, for procurement, including all planned increments, of more than $2.79 billion in FY 2014 constant dollars. (hereafter, U.S. Code citations are presented as [title #] U.S.C. [section #], e.g., “10 U.S.C. 2366b”). Table 6 in Enclosure 1 of this instruction lists required waiver documentation and actions.

(8) Milestone B

(a) This milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. provides authorization to enter into the EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. Phase and for the DoD Components The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. to award contracts for EMD. It also commits the required investment resources to the program. Most requirements for this milestone should be satisfied at the Development RFP Release Decision Point Considered the critical decision point in an acquisition program in the sense that this is the last point at which significant changes can be made without a major disruption. The MDA reviews the results of the TMRR Phase prototyping effort and key related planning documents for the EMD phase. Following a successful Development RFP Release decision, the MDA authorizes release of the final RFP and source selection for the EMD contract. (The EMD contract cannot be awarded until after a successful Milestone B.) The MDA may also authorize the release of the RFP for LRIP or Limited Deployment options for applicable programs. ; however, if any significant changes have occurred, or if additional information not available at the Development RFP Release Decision Point could impact this decision, it must be provided at the Milestone B. Milestone B requires final demonstration that all sources of risk have been adequately mitigated to support a commitment to design for production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. . This includes technology, engineering, integration, manufacturing, sustainment, and cost risks. Validated capability requirements  A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority., full funding in the FYDP, and compliance with affordability goals Unit procurement and sustainment constraints set early in a program to inform capability requirements and major design tradeoffs needed to define the product being acquired. They are reviewed at the next major decision review. for production and sustainment, as demonstrated through an independent cost estimate (ICE)Add a Tooltip Text, are required. The framing assumptions central to shaping the program’s cost, schedule, and performance expectations are also required.

(b) Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B is normally the formal initiation of an acquisition program with the MDA’s approval of the Acquisition Program Baseline (APB) An agreement between the PM and the MDA that reflects the approved program and contains schedule, performance, and cost parameters that are the basis for satisfying an identified mission need. The first APB is approved by the MDA prior to a program entering EMD, or at program initiation, whichever occurs later. As a minimum, the APB contains the objective and threshold values for major milestones and significant schedule events, KPPs from the approved requirements document, and the LCCE approved for the program.. The APB is the agreement between the MDA and the Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. and his or her acquisition chain of command that will be used for tracking and reporting for the life of the program or program increment In the context of Joint Capabilities Integration and Development System, a militarily useful and supportable operational capability that can be effectively developed, produced, acquired, deployed and sustained. Each increment of capability will have its own set of threshold and objective values set by the user. (see section 4 in Enclosure 1 of this instruction for additional policy regarding APBs). The ABP will include the affordability caps Binding unit procurement and sustainment constraints set for a program at the Development Request for Proposal Release Decision Point, Milestone B, and beyond. Affordability caps provide fixed-cost requirements functionally equivalent to Key Performance Parameters. for unit production and sustainment costs. Affordability caps are established as fixed cost requirements equivalent to KPPs Performance attribute of a system considered critical or essential to the development of an effective military capability. KPPs are contained in the Capability Development Document and the Capability Production Document and are included verbatim in the Acquisition Program Baseline. KPPs are expressed in term of parameters which reflect Measures of Performance using a threshold/objective format. KPPs must be measurable, testable, and support efficient and effective Test and Evaluation. Mandatory KPPs are specified in the JCIDS Manual..

(c) At the milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. , the MDA will:

1. Approve the LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. quantity or the scope of limited  deployment  Fielding a weapon system by placing it into operational use with units in the field/fleet., as applicable.

2. Specify the technical event-based criteria for initiating production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. or making deployment decisions.

3. Decide whether to accept any Program Manager information waiver requests for the next decision event.

4. Document decisions in an ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews. .

(d) Table 2 in Enclosure 1 identifies the statutory and regulatory requirements for Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B.

(9) Engineering and Manufacturing Development (EMD) Phase

(a) Purpose. The purpose of the EMD Phase The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. is to develop, build, and test a product to verify that all operational  Validated needs that are generated by the user or user-representative and generated validated needs developed to address mission area deficiencies, evolving threats, emerging technologies, or weapon system cost improvements. Operational performance requirements from the Capability Development Document and Capability Production Document provide the foundation for weapon system technical specifications and contract requirements.  and derived requirements These arise from constraints, consideration of issues implied but not explicitly stated in the requirements baseline, factors introduced by the selected architecture, cybersecurity requirements and the design. Derived requirements are definitized through requirements analysis as part of the overall systems engineering process and are part of the allocated baseline. have been met, and to support production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. or deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. decisions.

(b) Phase Description

1. General. EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes An original or model on which a later system/item is formed or based. Early prototypes may be built and evaluated during the TMRR Phase, or later in the EMD Phase, or be the result of a Joint Capability Technology Demonstration or Advanced Technology Demonstration, and tested prior to Milestone C decision. Selected prototyping may continue after Milestone C, as required, to identify and resolve specific design or manufacturing risks, or in support of evolutionary acquisition. or first articles First article includes preproduction models, initial production samples, test samples, first lots, pilot models, and pilot lots; and approval involves testing and evaluating the first article for conformance with specified contract requirements before or in the initial stage of production under a contract.  to verify compliance with capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority.; and prepares for production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. or deployment Fielding a weapon system by placing it into operational use with units in the field/fleet.. It includes the establishment of the initial product baseline [/tooltip] for all An aggregation of hardware, firmware, computer software, or any of their discrete portions, which satisfies an end-use function and is designated by the government for separate configuration management. CIs may vary widely in complexity, size, and type, from an aircraft, electronic or ship system, to a test meter or round of ammunition. Any item required for logistics support and designated for separate procurement is a CI. configuration items Documentation describing all of the necessary functional and physical characteristics of the Configuration Item (CI); the selected functional and physical characteristics designated for production acceptance testing; and tests necessary for deployment/installation, operation, support, training, and disposal of the CI. The initial product baseline is usually established and put under configuration control at each CI’s Critical Design Review (CDR), culminating in an initial product baseline at the system-level CDR. The system product baseline is finalized and validated at the Physical Configuration Audit..

a. Design. The system design effort usually includes a standard series of design reviews prior to test article fabrication and/or software build or Increment In the context of Joint Capabilities Integration and Development System, a militarily useful and supportable operational capability that can be effectively developed, produced, acquired, deployed and sustained. Each increment of capability will have its own set of threshold and objective values set by the user. coding. Multiple design iterations Repetitive requirement; for example, numerous re-drafts of a document or reworking a funding profile to satisfy everyone involved.  may be necessary to converge on a final design for production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. . The SEP An acquisition program’s primary technical planning document. It serves as the blueprint for the integration and management of technical processes and design development in order to define and balance system performance, cost, schedule, risk, and security within the program and throughout its life cycle. The SEP is a living document in which Systems Engineering planning should be kept current and fidelity should evolve as the program progresses through each acquisition phase. , described in section 2 in Enclosure 3 of this instruction, provides the basis for design activities.

b. Post-Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B PDR. If a PDR prior to Milestone B has been waived, the Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. will plan for a PDR as soon as feasible after program initiation.

2. Developmental Test and Evaluation (DT&E) 1. Any testing used to assist in the development and maturation of products, product elements, or manufacturing or support processes. 2. Any engineering-type test used to verify status of technical progress, verify that design risks are minimized, substantiate achievement of contract technical performance, and certify readiness for initial operational testing. Developmental tests generally require instrumentation and measurements and are accomplished by engineers, technicians, or soldier operator-maintainer test personnel in a controlled environment to facilitate failure analysis.. Developmental test and evaluation provides feedback to the Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. on the progress of the design process and on the product’s compliance with contract requirements In addition to specified performance requirements, contract requirements include those defined in the Statement of Work; specifications, standards, and related documents; the Contract Data Requirements List; management systems; and contract terms and conditions. . DT&E activities also evaluate the ability of the system to provide effective combat capability, including its ability to meet its validated 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements. and derived These arise from constraints, consideration of issues implied but not explicitly stated in the requirements baseline, factors introduced by the selected architecture, cybersecurity requirements and the design. Derived requirements are definitized through requirements analysis as part of the overall systems engineering process and are part of the allocated baseline.  capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority., including the verification of the ability of the system to achieve KPPs Performance attribute of a system considered critical or essential to the development of an effective military capability. KPPs are contained in the Capability Development Document and the Capability Production Document and are included verbatim in the Acquisition Program Baseline. KPPs are expressed in term of parameters which reflect Measures of Performance using a threshold/objective format. KPPs must be measurable, testable, and support efficient and effective Test and Evaluation. Mandatory KPPs are specified in the JCIDS Manual. and KSAs Performance attribute of a system considered important to achieving a balanced solution/approach to a system, but not critical enough to be designated as a Key Performance Parameter. KSAs must be measurable, testable, and support efficient and effective Test and Evaluation. KSAs are expressed in terms of Measures of Performance., and that initial system production and deployment and OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. can be supported. The effort requires completion of DT&E 1. Any testing used to assist in the development and maturation of products, product elements, or manufacturing or support processes. 2. Any engineering-type test used to verify status of technical progress, verify that design risks are minimized, substantiate achievement of contract technical performance, and certify readiness for initial operational testing. Developmental tests generally require instrumentation and measurements and are accomplished by engineers, technicians, or soldier operator-maintainer test personnel in a controlled environment to facilitate failure analysis. activities consistent with the TEMP Documents the overall structure and objectives of the T&E program and articulates the necessary resources to accomplish each phase of test. It provides a framework within which to generate detailed T&E plans and documents schedule and resource implications associated with the T&E program. The TEMP also identifies the necessary DT&E, OT&E, and Live Fire Test & Evaluation activities, and provides a clear roadmap connecting evaluation objectives, test measures, requirements, test methodologies, decision points, test events, and resources. For multi-Service or joint programs, a single integrated TEMP is required. . Successful completion of adequate testing with production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. or deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. representative prototype An original or model on which a later system/item is formed or based. Early prototypes may be built and evaluated during the TMRR Phase, or later in the EMD Phase, or be the result of a Joint Capability Technology Demonstration or Advanced Technology Demonstration, and tested prior to Milestone C decision. Selected prototyping may continue after Milestone C, as required, to identify and resolve specific design or manufacturing risks, or in support of evolutionary acquisition. test articles will normally be the primary basis for entering LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. or Limited Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet.. Enclosure 4 includes more detailed discussions of DT&E 1. Any testing used to assist in the development and maturation of products, product elements, or manufacturing or support processes. 2. Any engineering-type test used to verify status of technical progress, verify that design risks are minimized, substantiate achievement of contract technical performance, and certify readiness for initial operational testing. Developmental tests generally require instrumentation and measurements and are accomplished by engineers, technicians, or soldier operator-maintainer test personnel in a controlled environment to facilitate failure analysis. requirements.

3. Early OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. Events. Independent operational assessments, conducted by the Component The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. Operational Test organization, will normally also occur during EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items.. These events may take the form of independent evaluation of developmental test  1. Any testing used to assist in the development and maturation of products, product elements, or manufacturing or support processes. 2. Any engineering-type test used to verify status of technical progress, verify that design risks are minimized, substantiate achievement of contract technical performance, and certify readiness for initial operational testing. Developmental tests generally require instrumentation and measurements and are accomplished by engineers, technicians, or soldier operator-maintainer test personnel in a controlled environment to facilitate failure analysis. results or of separate dedicated test events such as Limited User Tests. developmental span and Operational Test activities should, to the extent feasible, be planned in conjunction with one another to provide as efficient an overall test program as possible. Enclosures 4 and 5 provide more detailed discussions of DT&E 1. Any testing used to assist in the development and maturation of products, product elements, or manufacturing or support processes. 2. Any engineering-type test used to verify status of technical progress, verify that design risks are minimized, substantiate achievement of contract technical performance, and certify readiness for initial operational testing. Developmental tests generally require instrumentation and measurements and are accomplished by engineers, technicians, or soldier operator-maintainer test personnel in a controlled environment to facilitate failure analysis. and OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. .

(c) Preparation for production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. , Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet., and Sustainment. During EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items., the Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. will finalize designs for product support elements and integrate them into a comprehensive product support package. Early in the EMD Phase The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items., the Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority.’s initial product support performance requirements allocations will be refined based on the results of engineering reviews. Later in this phase, programs will demonstrate product support performance through test, to ensure the system design and product support package meet the sustainment requirements within the affordability caps Binding unit procurement and sustainment constraints set for a program at the Development Request for Proposal Release Decision Point, Milestone B, and beyond. Affordability caps provide fixed-cost requirements functionally equivalent to Key Performance Parameters. established at milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B.

(d) EMD Phase The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. Completion. The EMD Phase will end when: (1) the design is stable; (2) the system meets validated 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements. capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority. demonstrated by developmental and initial operational testing Dedicated Operational Test and Evaluation conducted on production, or production representative articles, to determine whether systems are operationally effective and suitable to support a Full-Rate Production decision. The term IOT&E is normally associated with programs on the Director, Operational Test and Evaluation Oversight List. as required in the TEMP Documents the overall structure and objectives of the T&E program and articulates the necessary resources to accomplish each phase of test. It provides a framework within which to generate detailed T&E plans and documents schedule and resource implications associated with the T&E program. The TEMP also identifies the necessary DT&E, OT&E, and Live Fire Test & Evaluation activities, and provides a clear roadmap connecting evaluation objectives, test measures, requirements, test methodologies, decision points, test events, and resources. For multi-Service or joint programs, a single integrated TEMP is required. ; (3a) manufacturing processes have been effectively demonstrated and are under control; (3b) software sustainment processes are in place and functioning; (4) industrial production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. capabilities are reasonably available; and (5) the system has met or exceeds all directed EMD Phase The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. Exit Criteria Program-specific accomplishments that must be satisfactorily demonstrated before a program can progress further in the current acquisition phase or transition to the next acquisition phase. Exit criteria normally are selected to track progress in important technical, schedule, or management risk areas. They serve as gates that, when successfully passed or exited, demonstrate that the program is on track to achieve its final program goals and should be allowed to continue additional activities within an acquisition phase or be considered for continuation into the next acquisition phase. Exit criteria are some level of demonstrated performance outcome, the accomplishment of some process at some level of efficiency, or successful accomplishment of some event, or some other criterion that indicates that aspect of the program is progressing satisfactorily. Exit criteria are documented in the ADM. and Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. entrance criteria. EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. will often continue past the initial production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. or fielding Fielding a weapon system by placing it into operational use with units in the field/fleet. decision until all EMD activities have been completed and all requirements have been tested and verified Confirms that a system element meets design-to or build-to specifications. Throughout the system’s life cycle, design solutions at all levels of the physical architecture are verified through a cost-effective combination of analysis, examination, demonstration, and testing, all of which can be aided by modeling and simulation..

(e) Concurrency Part of an acquisition strategy that would combine or overlap. between EMD and Production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. . In most programs for hardware intensive products, there will be some degree of concurrency between initial production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. and the completion of developmental testing; and perhaps some design and development work, particularly completion of software, that will be scheduled to occur after the initial production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. decision. Concurrency between development and production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. can reduce the lead time to field a system, but it also can increase the risk of design changes and costly retrofits after production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. has started. Program planners and decision authorities should determine the acceptable or desirable degree of concurrency based on a range of factors. In general, however, there should be a reasonable expectation, based on developmental testing of full-scale EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. prototypes An original or model on which a later system/item is formed or based. Early prototypes may be built and evaluated during the TMRR Phase, or later in the EMD Phase, or be the result of a Joint Capability Technology Demonstration or Advanced Technology Demonstration, and tested prior to Milestone C decision. Selected prototyping may continue after Milestone C, as required, to identify and resolve specific design or manufacturing risks, or in support of evolutionary acquisition. , that the design is stable and will not be subject to significant changes following the decision to enter production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. . At milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B, the specific technical event-based criteria for initiating production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. or fielding Fielding a weapon system by placing it into operational use with units in the field/fleet. at Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. will be determined and included in the Milestone B ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews. .

(f) Release of the P&D RFP A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. RFPs for competitive acquisitions describe the Government’s requirement; anticipated terms and conditions that will apply to the contract; information required to be in the offeror’s proposal; and factors and significant sub-factors that will be used to evaluate the proposal and their relative importance. . If the strategy and associated business arrangements planned and approved at milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B have been changed as a result of EMD Phase The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. activity, or if the validated 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements. capability requirement A capability required to meet an organization’s roles, functions, and missions in current or future operations. To the greatest extent possible, capability requirements are described in relation to tasks, standards, and conditions in accordance with the Universal Joint Task List or equivalent DOD Component Task List. If a capability requirement is not satisfied by a capability solution, there is also an associated capability gap. A requirement is considered to be ‘draft’ or ‘proposed’ until validated by the appropriate authority. have changed, an updated Acquisition Strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. will be submitted for MDA review and approval prior to the release of the RFP A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. RFPs for competitive acquisitions describe the Government’s requirement; anticipated terms and conditions that will apply to the contract; information required to be in the offeror’s proposal; and factors and significant sub-factors that will be used to evaluate the proposal and their relative importance. for competitive source selection The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made. or the initiation of sole source negotiations. In any event, an updated Acquisition Strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. will be submitted prior to Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. and contract award, consistent with the procedures specified in this document. Paragraph 6a in Enclosure 2 provides additional detail about the Acquisition Strategy.

(g) Additional EMD Phase The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. Requirements

1. Inherently Government Functions and Lead System Integrators (LSI). Program managers will emphasize the importance of appropriate checks and balances when contractors perform acquisition-related activities and ensure that the government is singularly responsible for the performance of inherently governmental functions. If the Acquisition Strategy Describes the Program Manager’s plan to achieve program execution and programmatic goals across the entire program life cycle. Summarizes the overall approach to acquiring the capability. Contains sufficient detail to allow senior leadership and the MDA to assess whether the strategy makes good business sense, effectively implements laws and policies, and reflects management’s priorities. Once approved by the MDA, the Acquisition Strategy provides a basis for more detailed planning. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. for a Major System A combination of elements that shall function together to produce the capabilities required to fulfill a mission need, including hardware, equipment, software, or any combination thereof, but excluding construction or other improvements to real property. A system shall be considered a major system if it is estimated by the DoD component head to require an eventual total expenditure for RDT&E of more than $185 million in FY14 constant dollars, or for procurement of more than $835 million in FY14 constant dollars, or is designated as major by the DoD component head. calls for the use of a LSI, a contract will not be awarded to an offeror that either has or is expected to acquire a direct financial interest in the development or construction of an individual system or an element of a system of systems within the major system under the LSI. Exceptions may be granted by the MDA, as provided in 10 U.S.C. 2410p (Reference (g)), that require certification to the Committees on Armed Services of the Senate and House of Representatives. Table 6 in Enclosure 1 of this instruction provides details about the exception reporting.

2. Advanced Procurement of Long Lead Production Items Those components of a system or piece of equipment for which the times to design and fabricate are the longest, and therefore, to which an early commitment of funds may be desirable to complete the system by the earliest possible. . The MDA may authorize long lead at any point during EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. or at the Development RFP Release Decision or milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B, subject to the availability of appropriations. These items are procured in advance of a Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. decision in order to provide for a more efficient transition to production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. . The amount of  long lead  Those components of a system or piece of equipment for which the times to design and fabricate are the longest, and therefore, to which an early commitment of funds may be desirable to complete the system by the earliest possible.  appropriate for a given program depends on the type of product being acquired. The product’s content dictates the need for early purchase of selected components or subsystems to implement a smooth production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. process. Long lead authorization will be documented in an ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews. and limited in content (i.e., listed items) and/or dollar value within the authorizing ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews. .

(10) Milestone C

(a) Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. and the Limited Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. Decision are the points at which a program or Increment In the context of Joint Capabilities Integration and Development System, a militarily useful and supportable operational capability that can be effectively developed, produced, acquired, deployed and sustained. Each increment of capability will have its own set of threshold and objective values set by the user. of capability is reviewed for entrance into the P&D Phase or for Limited Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet.. Approval depends in part on specific criteria defined at milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. B and included in the Milestone B ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews. . The following general criteria will normally be applied: demonstration that the production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. /Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. design is stable and will meet stated and derived requirements based on acceptable performance in developmental test events; an operational assessment; mature software capability consistent with the software development schedule 1. Series of things to be done in a specific sequence within a given period of time. 2. A timetable. 3. A listing of activities and events organized by time. ; no significant manufacturing risks; a validated 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements. Capability Production Document (CPD) A document that addresses the production elements specific to a single increment of an acquisition program. The CPD must be validated and approved before a Milestone C decision review. The refinement of performance attributes and Key Performance Parameters is the most significant difference between the Capability Development Document (CDD) and CPD. The CPD format is contained in DoD 5000.02 and CJCSI 3170.01H or equivalent requirements document; demonstrated interoperability; demonstrated operational survivability The capability of a system or its crew to avoid or withstand a manmade hostile environment without suffering an abortive impairment of its ability to accomplish its designated mission. ; costs within affordability caps Binding unit procurement and sustainment constraints set for a program at the Development Request for Proposal Release Decision Point, Milestone B, and beyond. Affordability caps provide fixed-cost requirements functionally equivalent to Key Performance Parameters.; full funding in the FYDP; properly phased production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. ramp up; and Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. support.

1. In making Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. and Limited Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. decisions, the MDA will consider any new validated 1. The review and approval of capability requirement documents by a designated validation authority. 2. The process by which the contractor (or as otherwise directed by the DoD Component procuring activity) tests a publication/technical manual for technical accuracy and adequacy. 3. The process of evaluating a system or software component during, or at the end of, the development process to determine whether it satisfies specified requirements. threat The sum of the potential strengths, capabilities, and strategic objectives of any adversary that can limit U.S. mission accomplishment or reduce force, system, or equipment effectiveness. It does not include (a) natural or environmental factors affecting the ability or the system to function or support mission accomplishment, (b) mechanical or component failure affecting mission accomplishment unless caused by adversary action, or (c) program issues related to budgeting, restructuring, or cancellation of a program. environments that were not included in the CPD A document that addresses the production elements specific to a single increment of an acquisition program. The CPD must be validated and approved before a Milestone C decision review. The refinement of performance attributes and Key Performance Parameters is the most significant difference between the Capability Development Document (CDD) and CPD. The CPD format is contained in DoD 5000.02 and CJCSI 3170.01H and might affect operational effectiveness, and will consult with the requirements Validation Authority The designated authority for validation of Joint Capabilities Integration and Development System capability requirement documents. The Joint Requirements Oversight Council is the ultimate validation authority unless otherwise delegated to a subordinate board or to a designated validation authority in a Service, Combatant Command, or other DOD Component. The validation authority is dependent on the Joint Staffing Designator of the document. as part of the production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. decision making process to ensure that capability requirement are current.

2. MDA decisions at Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. and Limited Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. Decisions will be documented in an ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews. following the review. Table 2 in Enclosure 1 identifies the statutory and regulatory requirements that will be satisfied at Milestone C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. .

(b) High-Cost First Article First article includes preproduction models, initial production samples, test samples, first lots, pilot models, and pilot lots; and approval involves testing and evaluating the first article for conformance with specified contract requirements before or in the initial stage of production under a contract.  Combined Milestone B and C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. Decisions. Some programs, notably spacecraft and ships, will not produce prototypes An original or model on which a later system/item is formed or based. Early prototypes may be built and evaluated during the TMRR Phase, or later in the EMD Phase, or be the result of a Joint Capability Technology Demonstration or Advanced Technology Demonstration, and tested prior to Milestone C decision. Selected prototyping may continue after Milestone C, as required, to identify and resolve specific design or manufacturing risks, or in support of evolutionary acquisition. during EMD The third phase of the Defense Acquisition System, usually beginning after MS B, as defined and established by DoDI 5000.02. The purpose of the EMD Phase is to develop, build, and test a product to verify that all operational and derived requirements have been met and to support production or deployment decisions. EMD completes all needed hardware and software detailed design; systemically retires any open risks; builds and tests prototypes or first articles to verify compliance with capability requirements; and prepares for production or deployment. It includes the establishment of the initial product baseline for all configuration items. for use solely as test articles because of the very high cost of each article. In this case, the first articles produced will be tested and then fielded as operational assets. These programs may be tailored by measures such as combining the development and initial production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. investment commitments. When this is the case, a combined Milestone B and C The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. will be conducted. Additional decision points with appropriate criteria may also be established for subsequent low rate production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. commitments that occur prior to OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. and a Full-Rate Production Decision 1. The second effort part of the P&D phase as defined and established by DoDI 5000.02 after Low-Rate Initial Production and following a successful Full-Rate Production Decision Review. The system is produced at rate production and deployed to the field or fleet. This phase overlaps the O&S phase since fielded systems are operated and supported (sustained) while Full-Rate Production is ongoing. 2. The production level contracted for once the production process has been stabilized. Ideally, it would coincide with the Economics Production Rate. .

(11) Production and Deployment (P&D) Phase

(a) Purpose. The purpose of the P&D Phase is to produce and deliver requirements-compliant products to receiving military organizations.

(b) Phase Description. In this phase, the product is produced and fielded for use by operational units. The phase encompasses several activities and events: LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. , Limited Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet., OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. , and the Full-Rate Production Decision 1. The second effort part of the P&D phase as defined and established by DoDI 5000.02 after Low-Rate Initial Production and following a successful Full-Rate Production Decision Review. The system is produced at rate production and deployed to the field or fleet. This phase overlaps the O&S phase since fielded systems are operated and supported (sustained) while Full-Rate Production is ongoing. 2. The production level contracted for once the production process has been stabilized. Ideally, it would coincide with the Economics Production Rate. or the Full Deployment Decision Decision made by the Milestone Decision Authority of a Major Automated Information System acquisition program authorizing an increment of the program to deploy software for operational use. followed by Full-Rate Production 1. The second effort part of the P&D phase as defined and established by DoDI 5000.02 after Low-Rate Initial Production and following a successful Full-Rate Production Decision Review. The system is produced at rate production and deployed to the field or fleet. This phase overlaps the O&S phase since fielded systems are operated and supported (sustained) while Full-Rate Production is ongoing. 2. The production level contracted for once the production process has been stabilized. Ideally, it would coincide with the Economics Production Rate. or Full Deployment. In this phase, all system sustainment and support activities are initiated if they haven’t already commenced. During this phase the appropriate operational authority will declare IOC when the defined operational organization has been equipped and trained and is determined to be capable of conducting mission operations. During this phase Should Cost management and other techniques will be used continuously to control and reduce cost.

1. LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. and Limited Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet.. LRIP establishes the initial production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. base for the system or capability Increment In the context of Joint Capabilities Integration and Development System, a militarily useful and supportable operational capability that can be effectively developed, produced, acquired, deployed and sustained. Each increment of capability will have its own set of threshold and objective values set by the user., provides the OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. test articles, provides an efficient ramp up to Full-Rate Production 1. The second effort part of the P&D phase as defined and established by DoDI 5000.02 after Low-Rate Initial Production and following a successful Full-Rate Production Decision Review. The system is produced at rate production and deployed to the field or fleet. This phase overlaps the O&S phase since fielded systems are operated and supported (sustained) while Full-Rate Production is ongoing. 2. The production level contracted for once the production process has been stabilized. Ideally, it would coincide with the Economics Production Rate. , and maintains continuity in production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. pending OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. completion. While this portion of the phase should be of limited duration so that efficient production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. rates can be accomplished as soon and as economically as possible, it should be of sufficient duration to permit identification and resolution of any deficiencies prior to Full-Rate Production 1. The second effort part of the P&D phase as defined and established by DoDI 5000.02 after Low-Rate Initial Production and following a successful Full-Rate Production Decision Review. The system is produced at rate production and deployed to the field or fleet. This phase overlaps the O&S phase since fielded systems are operated and supported (sustained) while Full-Rate Production is ongoing. 2. The production level contracted for once the production process has been stabilized. Ideally, it would coincide with the Economics Production Rate. . Limited Deploy/Deployment Fielding a weapon system by placing it into operational use with units in the field/fleet. for software developments is principally intended to support OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. and can, consistent with the program strategy, be used to provide tested early operational capability to the user prior to Full Deployment.

2. OT&E. The appropriate Operational Test organization will conduct Operational Testing in a realistic threat The sum of the potential strengths, capabilities, and strategic objectives of any adversary that can limit U.S. mission accomplishment or reduce force, system, or equipment effectiveness. It does not include (a) natural or environmental factors affecting the ability or the system to function or support mission accomplishment, (b) mechanical or component failure affecting mission accomplishment unless caused by adversary action, or (c) program issues related to budgeting, restructuring, or cancellation of a program. environment. The threat environment will be based on the program’s Validated On-line Life-cycle Threat Report and appropriate scenarios. For MDAPs An acquisition program that is designated by the USD(AT&L) as an MDAP; or is estimated to require an eventual total expenditure for RDT&E including all planned increments, of more than $480 million in FY 2014 constant dollars or, for procurement, including all planned increments, of more than $2.79 billion in FY 2014 constant dollars., MAIS programs, and other programs on the DOT&E Oversight List, the DOT&E will provide a report providing the opinion of the DOT&E as to whether the program is operationally effective, suitable, and survivable before the MDA makes a decision to proceed beyond LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. . For programs on the DOT&E Oversight List, Operational Testing will be conducted in accordance with the approved TEMP Documents the overall structure and objectives of the T&E program and articulates the necessary resources to accomplish each phase of test. It provides a framework within which to generate detailed T&E plans and documents schedule and resource implications associated with the T&E program. The TEMP also identifies the necessary DT&E, OT&E, and Live Fire Test & Evaluation activities, and provides a clear roadmap connecting evaluation objectives, test measures, requirements, test methodologies, decision points, test events, and resources. For multi-Service or joint programs, a single integrated TEMP is required.  and Operational Test plan. If LRIP is not conducted for programs on the DOT&E Oversight List, fully production-representative articles must nonetheless be provided for the conduct of the required Operational Testing. Enclosures 4 and 5 provide details about developmental and Operational Testing and the TEMP.

(12) Full-Rate Production (FRP) Decision or Full Deployment Decision (FDD)

(12) Full-Rate Production Decision Milestone Decision Authority review to assess the results of Initial Operational Test and Evaluation and initial manufacturing and deployment to determine whether or not to approve proceeding to Full-Rate Production or Full Deployment. Continuing into Full-Rate Production or Full Deployment requires demonstrated control of the manufacturing process, acceptable performance and reliability, and the establishment of adequate sustainment and support. or Full Deployment Decision. Decision made by the Milestone Decision Authority of a Major Automated Information System acquisition program authorizing an increment of the program to deploy software for operational use. The MDA will conduct a review to assess the results of initial OT&E The field test, under realistic conditions, of any item (or key component) of weapons, equipment, or munitions for the purpose of determining the effectiveness and suitability of the weapons, equipment, or munitions for use in combat by typical military users; and the evaluation of the results of such tests. , initial manufacturing, and limited deployment Fielding a weapon system by placing it into operational use with units in the field/fleet., and determine whether or not to approve proceeding to Full-Rate Production 1. The second effort part of the P&D phase as defined and established by DoDI 5000.02 after Low-Rate Initial Production and following a successful Full-Rate Production Decision Review. The system is produced at rate production and deployed to the field or fleet. This phase overlaps the O&S phase since fielded systems are operated and supported (sustained) while Full-Rate Production is ongoing. 2. The production level contracted for once the production process has been stabilized. Ideally, it would coincide with the Economics Production Rate. or Full Deployment. Continuing into Full-Rate Production or Full Deployment requires demonstrated control of the manufacturing process, acceptable performance and reliability, and the establishment of adequate sustainment and support systems.

(a) In making the Full-Rate Production Decision or the Full Deployment Decision, the MDA will consider any new validated threat environments that might affect operational effectiveness, and may consult with the requirements validation authority as part of the decision making process to ensure that capability requirements are current.

(b) Except as specifically approved by the MDA, critical deficiencies identified in testing will be resolved prior to proceeding beyond LRIP The first part of the P&D phase. LRIP is intended to result in completion of manufacturing development in order to ensure adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production or production-representative articles for IOT&E; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to Full Product Rate upon successful completion of operational testing. or limited deployment. Remedial action will be verified in follow-on test and evaluation.

(c) The decision to proceed into full-rate production or full deployment will be documented in an ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews.. Table 2 in Enclosure 1 identifies the statutory and regulatory requirements associated with this decision.

(13) Full-Rate Production or Full Deployment. In this part of the P&D Phase, the remaining production or deployment of the product is completed, leading to Full Operational Capability In general, attained when all units and/or organizations in the force structure scheduled to receive a system have received it and have the ability to employ and maintain it. The specifics for any particular system FOC are defined in that system’s Capability Development Document and Capability Production Document. or Full Deployment.

(14) Operations and Support (O&S) Phase

(a) Purpose. The purpose of the O&S Phase is to execute the product support strategy, satisfy materiel readiness and operational support performance requirements, and sustain the system over its life cycle (to include disposal). The O&S Phase begins after the production or deployment decision and is based on an MDAapproved LCSP Initially prepared for Milestone A and updated for the Development RFP Release Decision Point, Milestone B, Milestone C, Full-Rate Production Decision Review and at least every 5 years after a system’s IOC. It contains the results of life cycle sustainment planning accomplished during the MSA phase and the TPRR phase and spans the system’s entire life cycle from Milestone A to disposal. The LCSP addresses how the PM and other organizations will acquire and maintain oversight of the fielded system.. Enclosure 6 includes a more detailed discussion of sustainment planning; Enclosure 7 addresses planning for human systems integration. Includes the integrated and comprehensive analysis, design and assessment of requirements, concepts and resources for system manpower, personnel, training, safety and occupational health, habitability, personnel survivability, and human factors engineering. (b) Phase Description. The phase has two major efforts, Sustainment and Disposal 1. The second effort of the Operations and Support phase as established and defined by DoDI 5000.02. At the end of its useful life, a system shall be demilitarized and disposed of in accordance with all legal and regulatory requirements and policy relating to safety (including explosives safety), security, and the environment. 2. The act of getting rid of excess, surplus, scrap, or salvage property under proper authority. Disposal may be accomplished by, but not limited to, transfer, donation, sale, declaration, abandonment, or destruction. . The LCSP, prepared by the Program Manager Designated individual with responsibility for and authority to accomplish program objectives for development, production, and sustainment to meet the user’s operational needs. The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. and approved by the MDA, is the basis for the activities conducted during this phase.

1. Sustainment. During this phase, the Program Manager will deploy the product support package The integrated product support elements and any sustainment process contracts or agreements used to attain and sustain the maintenance and support concepts needed for materiel readiness. and monitor its performance according to the LCSPInitially prepared for Milestone A and updated for the Development RFP Release Decision Point, Milestone B, Milestone C, Full-Rate Production Decision Review and at least every 5 years after a system’s IOC. It contains the results of life cycle sustainment planning accomplished during the MSA phase and the TPRR phase and spans the system’s entire life cycle from Milestone A to disposal. The LCSP addresses how the PM and other organizations will acquire and maintain oversight of the fielded system.. The LCSP may include time-phased transitions between commercial, organic, and partnered product support providers. The Program Manager will ensure resources are programmed and necessary IP Includes inventions, trademarks, patents, industrial designs, copyrights, and technical information including software, data designs, technical know-how, manufacturing information and know-how, techniques, Technical Data Packages, manufacturing data packages, and trade secrets. deliverables and associated license rights, tools, equipment, and facilities are acquired to support each of the levels of maintenance that will provide product support; and will establish necessary organic depot maintenance capability in compliance with statute and the LCSP.

a. A successful program meets the sustainment performance requirements, remains affordable 1. A determination that the Life Cycle Cost of an acquisition program is in consonance with the long-range investment and force structure plans of the DoD or individual DoD components. 2. Conducting a program at a cost constrained by the maximum resources that the DoD or DoD component can allocated to that capability., and continues to seek cost reductions by applying Should Cost management and other techniques throughout the O&S Phase. Doing so requires close coordination with the war-fighting sponsor (i.e., user), resource sponsors, and materiel enterprise stake holders, along with effective management of support arrangements and contracts. During O&S, the Program Manager will measure, assess, and report system readiness using sustainment metrics and implement corrective actions for trends diverging from the required performance outcomes defined in the APB An agreement between the PM and the MDA that reflects the approved program and contains schedule, performance, and cost parameters that are the basis for satisfying an identified mission need. The first APB is approved by the MDA prior to a program entering EMD, or at program initiation, whichever occurs later. As a minimum, the APB contains the objective and threshold values for major milestones and significant schedule events, KPPs from the approved requirements document, and the LCCE approved for the program. and LCSP.

b. Over the system life cycle, operational needs, technology advances, evolving threats, process improvements, fiscal constraints, plans for follow-on systems, or a combination of these influences and others may warrant revisions to the LCSP. When revising the LCSP, the Program Manager will revalidate the supportability analyses and review the most current product supportThe package of support functions required to field and maintain the readiness and operational capability of major weapon systems, subsystems, and components, including all functions related to weapon system readiness. requirements, senior leader guidance, and fiscal assumptions to evaluate product support changes or alternatives and determine best valueThe expected outcome of an acquisition that, in the Government's estimation, provides the greatest overall benefit in response to the requirement. It represents the most advantageous tradeoff between price and performance for the government. Best value is determined through a process that compares—in accordance with selection criteria—strengths, weaknesses, risk, price, and performance to select the value that is most advantageous to the government. An agency can obtain best value in negotiated acquisitions by using any one or a combination of source selection approaches..

2. Disposal.1. The second effort of the Operations and Support phase as established and defined by DoDI 5000.02. At the end of its useful life, a system shall be demilitarized and disposed of in accordance with all legal and regulatory requirements and policy relating to safety (including explosives safety), security, and the environment. 2. The act of getting rid of excess, surplus, scrap, or salvage property under proper authority. Disposal may be accomplished by, but not limited to, transfer, donation, sale, declaration, abandonment, or destruction. At the end of its useful life, a system will be demilitarizedThe act of destroying the military offensive or defensive capability inherent in certain types of equipment or materiel. The term includes mutilation, scrapping, melting, burning, or alteration designed to prevent the further use of this equipment and materiel for its originally intended military or lethal purpose. It applies equally to materiel in unserviceable or serviceable condition that has been screened through an Inventory Control Point and declared excess or foreign excess. and disposed of in accordance with all legal and regulatory requirements and policy relating to safety (including explosives safety), security, and the environment.

 

e. Additional Procedures and Guidance

(1) The enclosures to this instruction contain additional acquisition policy and procedures that guide program planning.

(a) Enclosure 1 details the programmatic requirements established by statute or regulation. It defines acquisition program categories and compliance requirements for those categories.

(b) Enclosures 2 through 10 and Enclosure 14 provide specific policy and procedures applicable in various functional areas across the life cycle of the acquired system.

(c) Enclosure 11 provides specific policy applicable to programs containing information technology.

(d) Reference (cw) provides specific policy and procedures applicable to Defense Business System An information system, other than a national security system, operated by, for, or on behalf of DoD, including financial systems, management information systems, financial data feeder systems, and the information technology and cybersecurity infrastructure used to support business activities, such as contracting, pay and personnel management systems, some logistics systems, financial planning and budgeting, installations management, and human resource management..

(e) Enclosure 13 provides specific policy and procedures applicable to satisfying urgent needs in less than 2 years.

(2) Consistent with program requirements and subparagraphs 4b and 4c of this instruction, MDAs may tailor the information requirements and procedures in this section of the instruction and in Enclosures 1 through 14. As stated in paragraph 4c, some exceptions to regulatory policy may require coordination with the cognizant authority. Statutory requirements will not be waived unless permitted by the statute.