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Acquisition at the Air Armament CenterAcquisition at the Air Armament Center

War Winning Capabilities…On Time, On Cost

Judy A. StokleyDeputy PEO And Executive DirectorAir Armament CenterEglin AFB FL

DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited.

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Acquisition at the Air Armament CenterAcquisition at the Air Armament Center

Pulling It All Together… Government & Industry

19 Feb, 28 Feb Government Days

18 Mar Industry Day

19 Mar One-on-Ones with Companies Upon Request

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PurposesPurposes

• Provide information on what we are doing at the Air Armament Center to improve our program results

• Foster alignment of expectations between our Government teams and our Industry counterparts

• Get creative juices flowing on “both sides of the table” to develop better ways to establish and execute our programs

• Integrate and rationalize improvement efforts

On-Time, On Cost… CRADLE-TO-GRAVE!For Our Warfighters

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OverviewOverview

• Organization• Execution• Our Journey to Excellence• Zero Based Documentation

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Air Armament CenterAir Armament Center

Program Executive Officer for Weapons andCommander

Maj Gen Eidsaune

308th ARSWDr Simpson

EN (Engineering & AE)Mr Israel

XR (Capabilities Integ)Dr Corley

Deputy PEO and Executive Director

Ms Stokley

Vice CommanderDeputy For Support

Brig Gen Wilson

XP (Planning)Mr Arnold

PK (Contracting)Ms Jay

SE (Safety)Mr Phillips

CS (Chief of Staff)Col Buell

JA (Judge Advocate)Col Caggiano

FM (Financial)Col Shaw

DP (Manpower)Ms McGehee

IG (Inspector Gen)Col Denison

96th Air Base WingCol Pohland

46th Test WingCol Plumb

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308th Armament Systems Wing308th Armament Systems Wing

Lynda RutledgeDirector

708th ARSG850-882-3525 x3311

(DSN 872)

Col John R. GriggsCommander308th ARSG

850-883-5340 (DSN 875)

Col Richard D. JusticeCommander918th ARSG

850-882-7321 x2253DSN (872)

Gary A. WilliamsChief of Contracting

850-883-0688 (DSN 875)

Margaret R. VillagranChief of Logistics

850-883-0674 (DSN 875)

Terrence MayDirector

408th ARSG850-883-3801 (DSN 875)

Della R. McPhailChief Financial Officer850-883-0304 (DSN 875)

Col Cyril SochaCommander 728th ARSG

850-883-1088 (DSN 875)

Christopher L. ClayTechnical Director

850-883-3083 (DSN 875)

Col Scott RumphCommander328th ARSG

850-883-0343 (DSN 875)

Brian RutledgeDirector

808th ARSG 850-883-3531 (DSN 875)

John S. BatogVice Director Navy

850-882-8623 (DSN 872)

Dr. L. Bruce Simpson, SESDirector

850-883-0673 (DSN 875)Col Michelle Miller PeckVice Director

850-883-0687 (DSN 875)

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308th Armament Systems Wing308th Armament Systems Wing308th ARSW

Dr. Bruce Simpson, CLMr. Batog, DV (Navy)Col Miller Peck, DV

408th ARSGArmament Support

308th ARSGLong Range Systems 328th ARSG

Air Dominance728th ARSG

Test and Training808th ARSG

Advanced Programs918th ARSG

Miniature Munitions 708th ARSG

Direct Attack

Technical Director:Mr. ClayChief Of Contracting: Mr. WilliamsChief Financial Officer: Ms. McPhail

Chief Of Logistics: Ms. Villagran

MALD

HTS

AIM-9X

AMRAAM

P5

CRIIS

AMRAAMFMSJASSM Impact

SFW Impacts

WCMD

C&IT andInfrastructure

SDB

ARTSMTRS

UMT

SDB Test Flight

SDB Impact

Weaponeering

New/JSuW

AFSAT

JDAM

DSU-33

JPF

IM BLU-122

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Capabilities Integration DirectorateCapabilities Integration DirectorateAAC/XRAAC/XR

Acquisition Intel (A2)Mr. Paul Schroeder

Deputy DirectorLt Col Will Evans

Director Dr. John Corley

Business OperationsMs. DeAnna Morales

Capability Development (A5)Mr. Roger Barrett

Tech DirectorMr. Gene Estep

Hard & DeeplyBuried Targets

(HDBT)Ms. Marya Bard

Directed Energy

Mr. Steve Whitten

Advanced Concepts

Mr. Ron Johnson

Cross Enterprise

Mr. James Schoeneman

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BudgetBudget

RDT&E

$621M

FMS

$2,709M

Sustainment

$28M

Procurement

$2493M

Portfolio Funding = $5,851MFMS is for All Active CasesRDT&E is for FY07 & FY08Procurement is for FY06, FY07, & FY08Sustainment is for FY08

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OverviewOverview

• Organization• Execution• Our Journey to Excellence• Zero Based Documentation

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CY 2007 Overall Program Health

1011 11 11 11 11 11 11 11

12 12 12

54 4

34 4 4 4 4 2 2 2

1 1 12

1 1 1 1 12 2 2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Months Red ProgramsYellow ProgramsGreen Programs

AAC Portfolio PerformanceAAC Portfolio Performance

FY 08: Add 6 Projects

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Overall Portfolio HealthOverall Portfolio Health

Program Jan 07MAR

Jan 08MAR

Jan 08PoPS

Program Jan 07MAR

Jan 08MAR

Jan 08PoPS

AFSAT 81 MALD 64

AMRAAM 80 MDS HTS 90

ARTS* 69 P5CTS 87.5

JASSM 76 QF4 92

JASSM ER 72 SDB I 95

JDAM 97 SDB II 84

JPF 85.5 SFW* 81

JTE 71 WCMD* 84

*Program Transition Planned

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Focus and Transition Focus and Transition Weapons TechnologyWeapons Technology

2010 Program Objective Memorandum (POM) Initiatives

• Hard Target Void Sensing Fuze• Eglin Steel Producibility Enhancement• Active Denial System • Counter Electronics HPM• Airborne Tactical Laser Weapon• Mk-82 Reactive Liner • Chemical Biological Agent Defeat • Reliable Replacement Warhead-2

Damaged Containers & Remaining Viable Agent

Neutralized Vented Agent

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Just Some of Our SuccessesJust Some of Our Successes

• Delivered 181,611 Joint Direct Attack Munitions – Zero late• Delivered 11 Quick Reaction Variants of JDAMs/Aircraft

Integrations to War – record timelines, Zero late• Delivered 5,855 Joint Programmable Fuzes over last 12 months

– 3,269 combat drops--6X more than previous 12 months• Delivered 22,634 DSU-33 height of burst sensors over last 12

months– 1,362 combat drops--50%+ increase over previous 12 months

• Maintained 887 hours MTBF on AMRAAMs (Req’t is 450 hours)– Over 1,500,000 total AMRAAM flight hours flown

• SDB logged 40,000 captive carry hrs & 49 combat drops in FY07 • Matured FLM technology & transitioned from lab to field in less

than 19 months--delivered to warfighter 2 months early!

~107 Promotions, ~124 Awards for Acquisition Workforce

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OverviewOverview

• Organization• Execution• Our Journey to Excellence• Zero Based Documentation

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Our Journey to ExcellenceOur Journey to Excellence

LtGen Hoffman, On restoring credibility in Air Force acquisition:

… I mentioned the widespread view that our weapon systems cost too much and take longer than predicted. We need to ensure "false optimism" does not cloud our judgment. I am a natural optimist, but we need to be firmly grounded in reality as we assess program risk. Wanting something badly does not make it happen. This is especially important as we start a program….do we have a solid lock on the requirements, have we included all the elements of the program, do we have our best estimate of cost and schedule? Once we define the start of the program, we will be forever measured by that definition so take the time to do it right.

We are on a quest to launch more realistic programs and bolster existing programs.

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Our EnvironmentOur Environment

Program Acquisition

Team

CongressS&T

LaboratoriesDefense Threat

Reduction Agency (DTRA)Defense Advanced Research

Projects Agency (DARPA)

Industry

Primes & Suppliers

Warfighters

Major CommandsCombatant Commanders

Joint Staff

Financial Management

Planning, Programming and Budgeting System (PPBE)

Service StaffsOSD

Congress

Oversight

Program Executive OfficesMateriel Commanders

Service Acquisition ExecutivesOffice of

Secretary of Defense (OSD)

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What are the Expectations?What are the Expectations?

• Safe, effective, reliable, affordable products on time and within budget

• Ownership of product health without legal wrangling

• Realistic marketing and budget entries

• Technical competencies to leverage leading edge technologies

• Agility to surge or decrease production and respond to changing rule-sets

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Integrating & Rationalizing Improvement EffortsIntegrating & Rationalizing Improvement Efforts

Sub-Functional PillarsSystems Engineering Risk Assessment & Management

Cost Estimating Programming

Reliability Financial Execution

Technology & Integration Readiness Earned Value Management System

Manufacturing Readiness Award & Incentive Fees

Logistics Health Assessment Contract Performance Asst Reports

Integrate and Rationalize for Workable Program Constructs

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Overarching TopicsOverarching Topics

• Reliability• Joint Capabilities Integration & Development System (JCIDS)

–Training / Certification Program• Networked Weapons• Open Architectures• M-Code – Next GPS Challenges

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Red Flags for Weapons Programs*Red Flags for Weapons Programs*

1) Relying on COTS/NDI to meet Robust Military Requirements – Systems Engineering – staffing and tasks

2) Going into SDD without RR or “SDD-readiness” phase3) Lack of early wind tunnel and instrumented captive carry4) Program Plans, Budget, IBR missing key elements

– Explicit requirements/verification of captive carry and in-flight reliabilities and service life

– Transition to Production– Reliability Growth program– Safety-of-flight analyses at design reviews

5) Contractors decline to make an offer6) Back-loaded development budget

*From Study of Troubled Weapon Programs 1997-2007

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High-Confidence ProgramsHigh-Confidence ProgramsKey Characteristics*Key Characteristics*

• Good “Should-Cost” Estimate• Budget/Cost Estimate alignment• Approved time-phased CDD requirements• Program office resourcing• Requirements stability• Budget stability mechanism• Incremental program plan• Short-duration capability release/production schedules• SDD phase no greater than 6 years• Tech maturity assessment thresholds met• Integrated sustainment and depot strategy• Realistic test planning, Approved IOT&E plan• Life-cycle acquisition strategy – time certain success incentive• Executing according to “plan”• Probability of Program Success (PoPS) measures

* As Defined by Develop & Sustain Weapon Systems (D&SWS) design teams

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Engineering -- design, verification, manufacturing, Engineering -- design, verification, manufacturing, and quality, throughout voluminous supplier base and quality, throughout voluminous supplier base -- determines fate of programs-- determines fate of programs

It’s the Engineering!It’s the Engineering!

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Team DynamicsTeam Dynamics

I CAN DO IT!

Warfighters

Capability Needs

Budget Choices

Program Execution Team

What’s In, What’s Out

How Much Risk?

NATURAL AMERICAN OPTIMISM

COMPETITION FOR BUDGET

FRAGMENTED AUTHORITIES

(REQUIREMENTS, PROGRAMMING, ACQUISITION)

START AGGRESSIVE SDD ASAP

DO YOU HEAR ME?

Is the Information Compelling?

How do we use the

Information?

Mixed messages

from the Bosses

& the “System”

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Proven Acquisition ApproachProven Acquisition Approach

• Structure ROBUST SDD-Readiness Phase to size a realistic SDD phase

– Block requirements into increments - deliver in 3-6 year SDD phases– Execute SDD-Readiness contract(s) for each increment– Demonstrate technologies in robust environment– Mature design to PDR or later– Build SDD plan including Integrated Baseline Review (Design, V&V, OT,

Transition to production and support) during readiness phase– Program funds to realistic cost estimate based on detailed SDD Plan and

rigorous benchmarking

• Conduct Rigorous Milestone A & B Reviews whether required or not

Launch incremental and realistic SDD phases that position programs for long term success

SDD is where we spend most of the development dollars, and determine most of the production and sustainment costs for Weapons.

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Win-Win Business ArrangementWin-Win Business Arrangement

CongressOSD

Service(s)

Affordable, Combat Ready Products to

Warfighters

Stockholders, Corporate Construct,

Profits, Marketing, Suppliers

ProfitsNew Business

Reputation

RequirementsResourcesReports Government and

Industry Team

Accountable Accountable

ACCOUNTABLE

Develop and Execute Win-Win Strategies In An Atmosphere of Teamwork and Trust

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OverviewOverview

• Organization• Execution• Our Journey to Excellence• Zero Based Documentation

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A Golden Opportunity A Golden Opportunity AAC Zero Based Documentation Pilot ProgramAAC Zero Based Documentation Pilot Program

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Zero – Based Documentation Pilots at AACZero – Based Documentation Pilots at AAC

• Pilot Programs Approved by Senior Acquisition Executive Memo 6 Nov 2007

• Retain the documents that the Program Manager needs• Consolidate other documents into Life Cycle Management

Plan (LCMP)• Develop one each Systems Engineering Plan (SEP) and Risk

Management Plan (RMP) for AAC– Declare compliance, variances and program specifics in LCMP – For the Pilot Programs, use QF-4 for QF-16 and Miniature Air

Launched Decoy (MALD) for MALD-J• Allow Program Manager discretion on format, including the

use of briefing charts

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What a Program Manager Needs to What a Program Manager Needs to Run ProgramsRun Programs

• Requirements– Initial Capabilities Document (ICD) – Capability Development Document (CDD)– Capability Production Document (CPD)

• Test & Evaluation Master Plan (TEMP)• Life Cycle Management Plan (LCMP)• Program Status

– Earned Value Management System (EVMS)– Integrated Master Plan (IMP)– Integrated Master Schedule (IMS)– Technical Performance Measures

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What AFPEO for WeaponsWhat AFPEO for WeaponsUses to Drive Portfolio PerformanceUses to Drive Portfolio Performance

• Personal Interfaces• Acquisition Strategies &

Baselines• Integrated Assessment Tools

• Status Reporting– Activity Reports– Monthly Acquisition Reviews– PEO Chats

• Customer Relationships– Expectation Management

Agreements

CostSufficiency

Review

ManufacturingReadiness

Assessment

TechnologyReadiness

Assessment

Probabilityof Program

Success(PoPS)

SystemsEngineeringAssessment

SufficiencyReview

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Approach to Coordination forApproach to Coordination for Pilot Programs Pilot Programs

• Approvals delegated as low as allowable

• When required, approval chain is Group to PEO to SAE

• AAC/ACE will codify distribution list that includes all current coordination/approval offices

– Copies will be provided electronically FYI only

– Offices will be given 2 working days to respond with CAT I and CAT II Deficiencies* if they choose to respond

– AAC/ACE will maintain log through this process for learning

* CAT I changes program content; CAT II needed for record or compliance with law/reg; CAT III comments and suggestions

GOAL: Final approval of meaningful, quality documents within 2 weeks of PM release

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Expected BenefitsExpected Benefits

• Put focus on Integrated Life Cycle Management• Allow workforce to focus on establishing and

executing successful programs• Garner enthusiasm and pave way for standard work• Elevate our workforce from drudgery to innovation• Promote critical thinking and collaboration

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It’s a JourneyIt’s a Journey

Move our culture to one that warfighters and stakeholders can depend on for realistic expectations and high quality, high performing, affordable products.

Vision: War Winning Capabilities…On Time, On Cost!

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It’s a JourneyIt’s a Journey

• Wouldn’t it be wonderful if the DoD had to develop a process to allocate the margin we did not spend each year instead of determining which programs to terminate or stretch out due to overruns?

• Wouldn't it be wonderful if Combatant Commanders spoke of us, Industry and Government, as “those Acquisition people – the ones we can always count on…”

War Winning Capabilities … On Time, On Cost …Cradle-to-Grave

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Thank You for All You Do for our CountryThank You for All You Do for our Country

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AgendaAgenda

Welcome/Announcements/Opening Remarks Mr IsraelOverview of Acquisition at the AAC Ms StokleyUpdate on Integrated Tools/AssessmentsMr IsraelLogistics Health Assessment (LHA) Ms BrinstonSystem Engineering Update Mr MistrettaAnnouncement on Symposium’s SE Panel Mr MistrettaAcquisition Cost Estimating Update Ms Golden, Mr KennedyNunn McCurdy Legislation and Impacts Ms McPhailMorning Recap & Answers to Questions Ms StokleyIndependent Review Team (IRT) Results Mr ClayAAC response to IRT Results Mr ClayAcquisition Contracting Update Ms JayFuture Concepts & Capabilities LtCol Evans, Mr FurlongPortfolio Results Col Miller PeckQuestion/Answer Session All