DODI 5000.02 Enclosure 2: Program Management

1. PURPOSE

This enclosure describes policies applicable to Program Managers 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., PEOs 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 Component Acquisition Executives (CAEs) 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. for defense acquisition programs. The enclosure also includes a range of applicable statutory and regulatory program management policies and responsibilities

2. ACQUISITION CHAIN OF COMMAND

The chain of command for acquisition programs runs upward from the Program Manager, through 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. 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., and for Acquisition Category (ACAT) I and IA and other programs so designated, to the Defense Acquisition Executive (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. ). The responsibility and authority for program management, to include program planning and execution, is vested in these individuals. Staff and other organizations provide support to this chain of command. “Program Management” in this enclosure refers to this chain of command.

3. ASSIGNMENT OF PEOs

a. 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.s will assign acquisition program responsibilities to a 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. for all ACAT I and IA and sensitive classified programs, or for any other program determined by the CAE to require dedicated executive management.

b. A PEO must be experienced, qualified, and certified in program management, including having been a Program Manager for an ACAT I or IA program comparable to the programs he or she will be responsible for as PEO.

c. The PEO will be dedicated to executive management of assigned programs and will not have other command responsibilities.

d. 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. may waive the provisions of paragraphs 3a, 3b, and/or 3c on a case-by-case basis.

e. The CAE will make this assignment no later than program initiation, or within 3 months of program cost estimates reaching the dollar threshold for an ACAT I or IA program. CAEs may determine that a specific program manager will report directly, without being assigned to a PEO, whenever such direct reporting is appropriate due to program size or criticality. The CAE will notify the DAE of the decision to have a program manager report directly to the CAE, and request a waiver from the DAE of the requirement to appoint a PEO.

f. Acquisition program responsibilities for programs not assigned to a PEO or a direct-reporting program manager may be assigned to a commander of a systems, logistics, or materiel command. A program may be transferred from a PEO or direct reporting program manager to a commander of a systems, logistics, or materiel command only after the program or increment of capability has passed Initial Operational Capability and has been approved for 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.

4. ASSIGNMENT OF PROGRAM MANAGERS

a. A program manager will be designated for each acquisition program A directed, funded effort that provides a new, improved, or continuing materiel, weapon, information system, or service capability in response to an approved need. Acquisition programs are divided into categories that are established to facilitate decentralized decision making, execution, and compliance with statutory requirements. by the appropriate 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.. This designation will be 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. A (as the Technology Maturation and Risk Reduction Phase is being planned) or the milestone associated with the entry phase specified by the MDA at the Materiel Development Decision.

b. It is essential that program managers be defense acquisition professionals with experience managing relevant engineering development or technology efforts, and who have a deep knowledge of contracting, financial systems, industry perspectives, and user needs. Unless a waiver is granted by 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. or CAE, a program manager will be experienced in similar acquisition programs and Defense Acquisition Workforce Improvement Act Level III certified in program management. Waivers should be granted rarely.

c. By law, any Program Manager for an ACAT I or IA program assigned 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 will be assigned at least through Milestone B approval. Any ACAT I or IA Program Manager assigned immediately following Milestone B approval will be assigned until initial operational capability is achieved. Program Managers outside of these periods will be assigned for at least 4 years or until the completion of the phase of the program that occurs closest in time to the date on which the person has served in the position for 4 years. Waivers for these tenure requirements can be granted by the respective CAE if it is determined that either of the above described periods is so long that it would not be appropriate for a single individual to serve as Program Manager for the entire period. CAEs will assist with the collection of data on waivers granted to assist OSD in recognizing status and trends.

d. The measure of a Program Manager’s performance should be the successful execution of a phase that the Program Manager has submitted for approval. 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. s should, whenever possible, assign incoming Program Managers to programs approximately 6 months before a major milestone so that they are responsible for approval of a plan that they will execute. Early arrival will assist them in monitoring and, where applicable, influencing the plan to be approved at the upcoming milestone review.

e. Program Managers for the period leading to Milestone B approval will have responsibilities that include: (1) Bringing technologies to maturity and identifying the manufacturing processes that will be needed to carry out the program. (2) Ensuring continuing focus during program development on meeting stated mission requirements and other requirements of the Department of Defense. (3) Recommending trade-offs between program cost, schedule, and performance for the life-cycle of the program. (4) Developing a business case for the program. (5) Ensuring that appropriate information is available to MDA to complete the Certification and Determination required by 10 U.S.C. 2366b (Reference (h)) and make the Milestone B decision.

f. The Program Manager responsibilities for an 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. immediately after Milestone B include: (1) Consultations on the addition of new program requirements that would be inconsistent with the Program Management Agreement (PMA) directed by paragraph 4g in this enclosure. (2) Recommendation of trade-offs between cost, schedule, and performance, consistent with the PMA. (3) Development of interim goals and milestones to achieve the parameters established in the PMA.

g. PMA agreements establish achievable and measurable annual plans that are fully resourced and reflect the approved program. (1) To maximize management accountability, ACAT I and IA Program Managers are required to enter into a PMA with the manager’s immediate supervisor for such program within 6 months of assignment. Specifically, this agreement will: (a) Establish expected parameters for the cost, schedule, and performance of the program consistent with the business case for the program. (b) Provide the supervisor’s commitment to the level of funding and resources required to meet such parameters. (c) Provide the assurance of the Program Manager that such parameters are achievable and that the Program Manager will be accountable for meeting such parameters. (2) PMAs will be updated annually or more frequently if the conditions that formed the basis of the agreement (requirements, funding, or execution plans) have changed. (3) The PMA format is at the discretion of the Component and may be as simple as a cover memo for all signatories with the Acquisition Program Baseline, budget exhibits, and capabilities documents attached.

h. Program managers for ACAT II and other significant non-major programs will be assigned for not less than 3 years.

5. PROGRAM OFFICE STRUCTURE AND ORGANIZATIONS

a. Program Office Structure. It is program management’s responsibility to fully understand the skills and capacity required for successful program execution and for 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. to provide those skills to ensure that the program executes successfully. For new starts, program managers will establish program offices as soon as possible after their selection. Program offices for Major Defense Acquisition Programs (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.s) and Major Automated Information System (MAIS) programs will be staffed in key leadership positions with military or DoD civilian employees qualified in accordance with DoD Instruction 5000.66 (Reference (ax)), as amended by the Under Secretary of Defense for Acquisition, Technology, and Logistics’ Policy Memorandum, Key Leadership Positions and Qualification Criteria, (Reference (ay)). Key leadership positions include the Program Manager and Deputy Program Manager, and the additional positions identified in Reference (ay).

b. Joint Program Office Organization (1) A Joint Program Office will be established when a defense acquisition program A directed, funded effort that provides a new, improved, or continuing materiel, weapon, information system, or service capability in response to an approved need. Acquisition programs are divided into categories that are established to facilitate decentralized decision making, execution, and compliance with statutory requirements. involves the satisfaction of validated capability requirements from multiple DoD Components and/or international partners, and is funded by more than one Component or partner during any phase of the acquisition process In most joint programs, a lead Component will be designated to manage the acquisition process and act as the acquisition agent for the participating 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. . The participating Components, those with a requirement for the program’s products, support and participate with the lead DoD Component in managing the acquisition process. Joint programs will be managed in accordance with the provisions of a memorandum of agreement, and with the lead DoD Component’s acquisition procedures and acquisition chain of command, unless directed otherwise by 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. . (2) DoD Components will neither terminate nor substantially reduce participation in joint MDAP and MAIS programs without capability requirements validation authority review and DAE approval. The DAE may require a DoD Component to continue some or all funding, as necessary, to sustain the joint program in an efficient manner, despite approving a request to terminate or reduce participation. Memorandums of agreement between 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. should address termination or reduced participation by any parties to the agreement. Substantial reduction will be determined by the MDA in coordination with the requirements validation authority, and is defined as a funding or quantity decrease that impacts the viability of the program and/or significantly increases the costs to the other participants in the program.

6. PROGRAM MANAGEMENT RESPONSIBILITIES

Program managers direct the development, production, and deployment of new defense systems. Management activities will be designed to achieve the cost, 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. , and performance parameters specified in the MDA-approved 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 following tools will be used to facilitate effective program planning and execution.

a. 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.

  • (1) Overview. The Program Manager will develop and execute an approved Acquisition Strategy. This document is the Program Manager’s plan for program execution across the entire program life cycle. It is a comprehensive, integrated plan that identifies the acquisition approach and key framing assumptions, and describes the business, technical, and support strategies that the Program Manager plans to employ to manage program risks and meet program objectives. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. The Acquisition Strategy defines the relationship between the acquisition phases and work efforts, and key program events such as decision points and reviews. The strategy must reflect the Program Manager’s understanding of the business environment; technical alternatives; small business strategy; costs, risks and risk mitigation approach; contract awards; the incentive structure; test activities; production lot or delivery quantities; operational deployment objectives; opportunities in the domestic and international markets; foreign disclosure, exportability, technology transfer, and security requirements; and the plan to support successful delivery of the capability at an affordable life-cycle price, on a realistic schedule. Acquisition Strategies are baseline plans for the execution of the program and should be prepared and submitted in time to obtain approval to support more detailed planning and the preparation of Request For Proposal 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. . The Acquisition Strategy is an approved plan; it is not a contract. Minor changes to the plan reflected in the Acquisition Strategy due to changed circumstances or increased knowledge are to be expected and do not require MDA pre-approval. Major changes, such as contract type or basic program structure, do require MDA approval prior to implementation. All changes should be noted and reflected in an update at the next program decision point 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. .
  • (2) Business Approach and Risk Management. The business approach detailed 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. should be designed to manage the risks associated with the product being acquired. It should fairly allocate risk between industry and the government. The approach will be based on a thorough understanding of the risks associated with the product being acquired and the steps that should be taken to reduce and manage that risk. The business approach should be based on market analysis that considers market capabilities and limitations. The contract type and incentive structure should be tailored to the program and designed to motivate industry to perform in a manner that rewards achievement of the government’s goals. The incentives in any contract strategy should be significant enough to clearly promote desired contractor behavior and outcomes the government values, while also being realistically attainable. When risk is sufficiently reduced, Program Managers will consider the use of fixed-price contracts when the use of such contracts is cost-effective.
  • (3) Competition. The Acquisition Strategy will address how program management will create and sustain a competitive environment, from program inception through sustainment. Program management should use both direct competition at various levels and indirect means to create competitive environments that encourage improved performance and cost control. Decisions made in the early phases of the acquisition process can either improve or reduce program management’s ability to maintain a competitive environment throughout the life cycle of a program. Strategies to be considered include: competitive prototyping 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. , dual sourcing, and a Modular Open Systems Architecture A system that employs modular design, uses widely supported and consensus based standards for its key interfaces, and has been subjected to successful validation and verification tests to ensure the openness of its key interfaces. that enable competition for upgrades, acquisition of complete technical data packages, and competition at the subsystem level. This also includes providing opportunities for small business and organizations employing the disabled.
  • (4) IP Strategy. Program management must establish and maintain an IP Strategy to identify and manage the full spectrum of IP and related issues (e.g., technical data and computer software deliverables, patented technologies, and appropriate license rights) from the inception of a program and throughout the life cycle. The IP Strategy will describe, at a minimum, how program management will assess program needs for, and acquire competitively whenever possible, the IP deliverables and associated license rights necessary for competitive and affordable acquisition and sustainment over the entire product life cycle, including by integrating, for all systems, the IP planning elements required by subpart 207.106 (S-70) of the Defense Federal Acquisition Regulation Supplement (Reference (al)) for major weapon systems and subsystems thereof. The IP Strategy will be updated throughout the entire product life cycle, initially as part of the Acquisition Strategy, and during the Operations and Support Phase as part of the Life-Cycle Sustainment Plan.
  • (5) MOSA. Program management is responsible for evaluating and implementing a MOSA to the maximum extent feasible and cost effective. This approach integrates technical requirements with contracting mechanisms and legal considerations to support a more rapid evolution of capabilities and technologies throughout the product life cycle through the use of architecture modularity, open systems standards, and appropriate business practices. The Acquisition Strategy for the system should identify where, why, and how a MOSA will or will not be used in the program.

b. Program Baseline Development and Management. The Program Manager is responsible for developing the APB. The APB (see section 4 in Enclosure 1 of this instruction) is a summary of the program cost, schedule, and performance baselines, and is the fundamental binding agreement between the MDA, the CAE (if applicable), 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 the Program Manager. The APB serves as the basis for reporting to the MDA through the DoD management information system.

c. Earned Value Management (EVM). EVM is one of DoD’s and industry’s most powerful program planning and management tools. It is normally used in conjunction with cost plus and fixed-price incentive contracts with discrete work scope. The purpose of EVM is to ensure sound planning and resourcing of all tasks required for contract performance. It promotes an environment where contract execution data is shared between project personnel and government oversight staff and in which emerging problems are identified, pinpointed, and acted upon as early as possible. EVM provides a disciplined, structured, objective, and quantitative method to integrate technical work scope, cost, and schedule objectives into a single cohesive contract baseline plan called a Performance Measurement Baseline for tracking contract performance. Table 8 in Enclosure 1 summarizes EVM applicability and Table 9 summarizes EVM reporting requirements.

d. Risk Management

(1) The Program Manager is responsible for implementing effective risk management and tracking to include the identification of all known risks, key assumptions, probability of occurrence, consequences of occurrence (in terms of cost, schedule, and performance) if not mitigated, analysis of mitigation options, decisions about actions to mitigate risk, and execution of those actions. Risk management is proactive and should be focused on the actions that will be taken and resources that will be allocated to reduce both the likelihood and consequences of risks being realized. Effective risk management is not just risk identification and tracking.

(2) Program Managers are responsible for prioritizing programmatic risks and mitigating them within program constraints. Most of program management is about the process of eliminating programmatic risk over the life of the program. Formal risk management is one tool to accomplish that objective. Top program risks and associated risk mitigation plans will be detailed in the program acquisition strategy and presented at all relevant decision points and milestones. At a minimum, the Program Manager will consider the following risk management techniques:

  • (a) Prototyping at the system, subsystem, or component level; and competitive prototyping, where appropriate.
  • (b) Modeling and simulation (detailed in section 9 in Enclosure 3), to include the need for development of any new modeling and simulation tools to support a comprehensive risk management and mitigation approach.
  • (c) Technology demonstrations and decision points to discipline the insertion of planned technologies into programs or the selection of alternative technologies (sections 3 through 8 in Enclosure 3 provide additional discussions of technical management activities).
  • (d) Multiple design approaches.
  • (e) Alternative designs, including designs that meet requirements but with reduced performance.
  • (f) Phasing program activities or related technology development efforts to address high-risk areas early. (g) Manufacturability (section 10 in Enclosure 3 addresses manufacturing and producibility in more detail).
  • (h) Industrial base availability and capabilities (further discussed in section 8 of this enclosure).
  • (i) Independent risk assessments by outside subject matter experts.
  • (j) Providing schedule and funding margins for identified risks.

e. Cost Baseline Control and Use of “Should Cost” Management

  • (1) 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.s and MAIS programs, it is DoD policy to budget to the DCAPE Independent Cost Estimate (ICE) unless an alternative estimate is specifically approved by the MDA. However, program managers will develop a Should Cost estimate as a management tool to control and reduce cost. Program managers should not allow the ICE to become a self-fulfilling prophecy. Should Cost is a management tool designed to proactively target cost reduction and drive productivity improvement into programs. Should Cost management challenges managers to identify and achieve savings below budgeted most-likely costs. Should Cost analysis can be used during contract negotiations (particularly for sole source procurements), and throughout program execution including sustainment. Program managers are to proactively seek out and eliminate low-value-added or unnecessary elements of program cost, to motivate better cost performance wherever possible, and to reward those that succeed in achieving those goals. Should Cost estimates used in contract negotiations will be based on the government’s reasonable expectation of successful contractor performance, consistent with the contractor’s previous experience and other relevant data. Realized Should Cost savings will be retained at the lowest organizational level possible and applied to priority needs. Should Cost applies to programs in all ACATs, in all phases of the product’s life cycle, and to all elements of program cost.
  • (2) Program management will develop, own, track, and report against Should Cost targets. Estimates and results will be provided at milestone reviews and at specified decision points. For MDAPs and MAIS programs, program managers will report progress against Should Cost goals at Defense Acquisition Executive Summary reviews.
7. INTERNATIONAL ACQUISITION AND EXPORTABILITY

a. International Acquisition and Exportability Considerations. Program management is responsible for integrating international acquisition and exportability considerations into the program’s Acquisition Strategy at each major milestone or decision point. Program management will consider the potential demand and likelihood of cooperative development or production, Direct Commercial Sales, or Foreign Military Sales early in the acquisition planning process; and consider U.S. export control laws, regulations, and DoD policy for international transfers when formulating and implementing the acquisition strategy; in accordance with DoD Instruction 2040.02 (Reference (az)). Where appropriate, program managers will pursue cooperative opportunities and international involvement throughout the acquisition life cycle to enhance international cooperation and improve interoperability in accordance with DoD Instruction 2010.06 (Reference (ba)).

b. International Cooperative Program Management

  • (1) An international cooperative program (ICP) is any acquisition program or technology project that includes participation by the U.S. and one or more foreign nations, through an international agreement, during any phase of a system’s life cycle. When applicable, program staff members are encouraged to use streamlined agreement procedures. All ICPs will consider applicable U.S.-ratified materiel international standardization agreements in accordance with Chairman of the Joint Chiefs of Staff Instruction 3170.01I (Reference (e)), and fully comply with applicable foreign disclosure, export control, technology transfer, program protection, and security requirements. Programs containing classified information will have a Delegation of Disclosure Authority Letter or other written authorization issued by the DoD Component’s cognizant foreign disclosure office prior to entering discussions with potential foreign partners.
  • (2) DoD Components will notify and obtain the approval of the DAE for MDAP and MAIS programs before terminating or substantially reducing participation in ICPs under signed international agreements. The DAE may require the DoD Component to continue to provide some or all of the funding for that program. A substantial reduction is defined as a funding or quantity decrease that impacts the viability of the program and/or significantly increases the costs to the other participants in the program.

c. Waivers. Any foreign military sales or direct commercial sales of major defense equipment prior to successful completion of operational test and evaluation require Under Secretary of Defense for Acquisition, Technology and Logistics approval (i.e., a Yockey Waiver). (Details of this requirement are found in paragraph C5.1.8.3. in the Security Assistance Management Manual (Reference (bb))).

8. INDUSTRIAL BASE ANALYSIS AND CONSIDERATIONS

a. Industrial Base That part of the total private- and government-owned industrial production and depot-level equipment and maintenance capacity in the United States and its territories and possessions and Canada. It is or shall be made available in an emergency for the manufacture of items required by the U.S. military services and selected allies. analysis is a continuing process with two primary components, both of which rely in part on information from program management. The first gathers program specific industrial base information to create the appropriate acquisition strategy for a program; the second engages throughout the life cycle of the program to provide feedback and updates. The objective is to ensure that the Department can:

  • (1) Identify and support economic and stable 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. rates.
  • (2) Identify and mitigate industrial capabilities risks such as single points of failure and unreliable suppliers.
  • (3) Avoid, to the maximum extent practicable, lock-in to sole and single source suppliers at any tier.
  • (4) Support resilience of critical defense industrial base capabilities.
  • (5) Support DoD’s management of defense procurement surges and contractions.

b. Program management is responsible for incorporating industrial base analysis, to include capacity and capability considerations, into acquisition planning and execution. The industrial base considerations should be 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. and include identification of industrial capability problems (e.g., access to raw materials, export controls, production capabilities) that have the potential to impact the DoD near- and long-term, and identification of mitigation strategies that are within the scope of program management. Program management provided information is aggregated with other sources of information at 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. and 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. levels to inform Service and Department level industrial base decisions.

9. LIFE-CYCLE MANAGEMENT OF INFORMATION AND DATA PROTECTION

Program managers will ensure that all program office documents and records, regardless of media or security classification, are created, maintained, used, and disposed of or preserved in accordance with DoD 5015.02-STD (Reference (bc)).