2
The Current State of the Air Force’s Acquisition Policies, Processes, and Workforce

From its founding, the United States Air Force (USAF) was based on the premise that gaining and maintaining technological supremacy were essential to its combat success. This technological superiority provided great benefit for both the Air Force and the nation. Comparing its current efforts to its past achievements and successes, the Air Force today finds itself struggling to successfully field new technology in its weapons systems on schedule and within budget. According to a recent independent assessment:

[T]he AF has experienced a number of symptoms that indicate problems with its acquisition system and processes [that bring new technology into operational use]. Some of the most pressing of these symptoms have been: (a) numerous cost-schedule-performance issues; (b) numerous Nunn-McCurdy unit cost breaches; (c) increased time to bring major systems to the field; and (d) successful protests by contractors on major programs.1

This chapter identifies key issues that affect the ability of the Air Force to specify, develop, test, and insert new technology into its major new systems.

CURRENT AND HISTORICAL POLICIES AND PROCESSES RELATED TO TECHNOLOGY DEVELOPMENT

The statement of task for this study required the committee to “examine appropriate current or historical Department of Defense (DoD) policies and processes,

1

Gary E. Christle, Danny M. Davis, and Gene H. Porter. 2009. CNA Independent Assessment. Air Force Acquisition: Return to Excellence. Alexandria, Va.: CNA Analysis & Solutions.



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2 The Current State of the Air Force’s Acquisition Policies, Processes, and Workforce From its founding, the United States Air Force (USAF) was based on the premise that gaining and maintaining technological supremacy were essential to its combat success. This technological superiority provided great benefit for both the Air Force and the nation. Comparing its current efforts to its past achievements and successes, the Air Force today finds itself struggling to successfully field new technology in its weapons systems on schedule and within budget. According to a recent independent assessment: [T]he AF has experienced a number of symptoms that indicate problems with its acquisi- tion system and processes [that bring new technology into operational use]. Some of the most pressing of these symptoms have been: (a) numerous cost-schedule-performance issues; (b) numerous Nunn-McCurdy unit cost breaches; (c) increased time to bring major systems to the field; and (d) successful protests by contractors on major programs.1 This chapter identifies key issues that affect the ability of the Air Force to specify, develop, test, and insert new technology into its major new systems. CURRENT AND HISTORICAL POLICIES AND PROCESSES RELATED TO TECHNOLOGY DEVELOPMENT The statement of task for this study required the committee to “examine appro- priate current or historical Department of Defense (DoD) policies and processes, 1 Gary E. Christle, Danny M. Davis, and Gene H. Porter. 2009. CNA Independent Assessment. Air Force Acquisition: Return to Excellence. Alexandria, Va.: CNA Analysis & Solutions. 33 R01861 AF PTD--CS4 final.indd 33 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 34 of including the Planning, Programming, Budgeting, and Execution System, DoD Instruction 5000.02, the Air Force Acquisition Improvement Plan, the Joint Capa- bilities Integration and Development System, and DoD and Air Force competitive prototyping policies to comprehend their impact on the execution of pre-program of record technology development efforts” (for the full statement of task, see Box 1-1 in Chapter 1). The descriptions in the following subsections summarize the above policies and processes. Table 2-1 lists the current policies and processes, as well as their unintended consequences or shortfalls. A more comprehensive discussion of these policies and processes is provided in Appendix C. Planning, Programming, Budgeting, and Execution System In the planning phase of the Planning, Programming, Budgeting, and Execu- tion System (PPBES), the Office of the Secretary of Defense (OSD) and the Joint Staff collaboratively articulate national defense policies and military strategy in the Strategic Planning Guidance (SPG).2 The result is a set of budget-conscious priorities for program development (military force modernization, readiness, and sustainability; and supporting business processes and infrastructure), which is promulgated in the Joint Programming Guidance (JPG). The next phase of the PPBES, programming, begins with the writing of the Air Force Program Objective Memorandum (POM). The POM balances program budgets as set down in the JPG. The third phase, budgeting, happens concurrently with the programming phase. Each DoD department and agency submits its bud- get estimate with its POM. The DoD departments and agencies then convert their program budgets into the congressional appropriation structure format and submit them, along with justification. The budget forecasts only the next 2 years, but with more detail than the POM. Execution is the responsibility of the individual ser- vices. The Planning, Programming, Budgeting, and Execution (PPBE) process is a very high level strategic process, and as such it addresses preacquisition technology development only indirectly.3 Department of Defense Instruction 5000.02 Although DoD Instruction 5000.02 discusses the preacquisition phase, it pro- vides little “how-to” guidance, nor does it provide any formal direction regarding 2 Abstracted from the Defense Acquisition Web site. Available at https://dap.dau.mil/aphome/ppbe/ Pages/Default.aspx. Accessed August 10, 2010. 3 Thomas Thurston, Program Manager, PPBE Processes and Training Programs, Science Applica - tions International Corporation (SAIC). 2010. “PPBE Executive Training.” Presentation to the com - mittee, April 21, 2010. R01861 AF PTD--CS4 final.indd 34 2/18/11 2:26 PM

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TABLE 2-1 Current DoD Policies and Processes and Their Unintended Consequences Technology Policy/Process, Formal Formal Development Results Date Instituted Office Policy? Process? Addressed? Metric? Intent Potential Unintended Consequences or Shortfalls R01861 AF PTD--CS4 final.indd 35 PPBES, OUSD Yes Yes No No Institute a rigorous Technology development not adequately May 22, 1984 (C) budgetary process addressed JCIDS, CJCS/J8 Yes Yes No No Include COCOM Technology development “how-to’s” not June 2003 priorities in addressed modernization efforts Section 852 of the Congress Yes Yes No Yes Recruit, retain, Recruiting focused on systems engineers, 2008 NDAA, educate, and train DoD contracting officers, and cost estimators; January 28, 2008 acquisition workforce insourcing of work done by support contractors; lack of flexibility; increased program office cost; recruiting in high-cost areas; loss of quick- response specialized domain expertise CP, OUSD Yes Yes Yes Yes Preserve competition Preserves industry design teams; all critical core December 8, 2008 (AT&L) and gain the benefits of subsystems not assessed; significant changes to maximum innovation requirements after prototype development DoDI 5000.02, OUSD Yes Yes Yes Yes Define acquisition Technology development oversight may become December 8, 2008 (AT&L) process and policy onerous AIP, SAF/AQ Yes Yes No No Revitalize Air Force Fails to address technology development May 2009 acquisition process WSARA, Congress Yes Yes Yes No Reform and improve Additional nonproductive oversight May 22, 2009 DoD acquisition and technology development NOTE: Acronyms are defined in the list in the front matter of this report. 35 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 36 of the employment of DoD Instruction 5000.02, the training of the acquisition work- force, or the assessment of acquisition workforce skills.4 One significant change incorporated in DoD Instruction 5000.02 is the increased emphasis on technology development and maturation.5 Previously, in DoD Instruction 5000.2, technol- ogy development was part of the pre-systems acquisition phase, focused more on concept exploration and Analysis of Alternatives (AoA).6 Many of the technology transition objectives and mechanisms cited in DoD Instruction 5000.2 have been retained in the current DoD Instruction 5000.02, but the pre-systems acquisition phase between Milestone A and Milestone B is now focused on reducing technology risk prior to contracting for Engineering and Manufacturing Development (EMD). The entrance criteria for technology development at Milestone A now include the requirement for a technology development strategy (TDS) and full funding for the technology development phase of the acquisition program. The new DoD Instruction 5000.02 includes two additional mandates that need to be addressed in future Air Force acquisition programs. The instruction requires the acquisition authority to fund two or more competing prototypes of the system or key system elements and, when consistent with technology development phase objectives, to accomplish a Preliminary Design Review prior to Milestone B.7 Prototyping can certainly reduce risk if the prototype is truly representative of the production concept in function, performance characteristics, and emergent properties. Likewise, early design review will bolster confidence if it is accomplished at an appropriate level of detail and analytical rigor. The challenge to the acquisition community going forward is to take on these two mandates in a meaningful way. It may be that in this context “one size can’t fit all.” The funding and schedule al- locations required to accomplish meaningful prototypes of more complex systems (e.g., aircraft and spacecraft) or systems of systems (e.g., battlespace management information technology, multiple autonomous systems) are likely to reach a point of diminishing returns. 4 DoD. 2008. Department of Defense Instruction. Subject: Operation of the Defense Acquisition System. 5000.02. Washington, D.C.: DoD. Available at http://www.dtic.mil/whs/directives/corres/pdf/500002p. pdf. Accessed August 11, 2010. 5 Ibid. 6 USAF. 2008. Analysis of Alternatives (AoA) Handbook: A Practical Guide to Analysis of Alterna - tives. Kirtland Air Force Base, N.Mex.: Air Force Materiel Command (AFMC) Office of Aerospace Studies. Available at http://www.oas.kirtland.af.mil/AoAHandbook/AoA%20Handbook%20Final. pdf. Accessed June 10, 2010. 7 DoD. 2008. Department of Defense Instruction. Subject: Operation of the Defense Acquisition System. 5000.02. Washington, D.C.: DoD. Available at http://www.dtic.mil/whs/directives/corres/pdf/500002p. pdf. Accessed August 11, 2010. R01861 AF PTD--CS4 final.indd 36 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 37 of and Air Force Acquisition Improvement Plan The only mention of technology in the Air Force Acquisition Improvement Plan (AIP) is a caution to warfighters to “resist the temptation to pursue high risk requirements that are too costly and take too long to deliver in favor of an incremental acquisition strategy that delivers most, if not all, requirements in the initial model with improvements added as technology matures. . . .”8 It makes no mention of mechanisms by which technology will be developed and matured in the preacquisition phase, or, for that matter, in any phase of the acquisition life cycle. Joint Capabilities Integration and Development System Chairman of the Joint Chiefs of Staff Instruction (CJCSI) 3170.01G describes the need for requirement support in concert with the resourcing and acquisition processes, to support the preacquisition program phase as well as Milestone B and beyond.9 However, CJCSI 3170.01G describes the need and directs the strong involvement of the requirements community in the preacquisition phase, but the Joint Capabilities Integration and Development System (JCIDS) manual written to implement CJCSI 3701.01G provides insufficient “how-to” guidance on integration of the requirement into the acquisition and resource processes. Competitive Prototyping Although DoD and Air Force competitive prototyping policies and processes do focus on the preacquisition program phase, the DoD documentation does not provide clear methodologies, is silent on workforce training policies, and offers few metrics for tracking progress. The Air Force competitive prototyping policy, Air Force Instruction (AFI) 63-101, however, does provide processes, methodologies, and some measures for tracking progress.10 One shortcoming of AFI 63-101 is that it lacks a waiver process, whereas the Weapon Systems Acquisition Reform Act of 2009 (WSARA; Public Law 111-23) and DoD policy allow for waivers. 8 USAF. 2009. Acquisition Improvement Plan. Washington, D.C.: Headquarters United States Air Force. May 4. Available at http://images.dodbuzz.com/wp-content/uploads/2009/05/acquisition- improvement-plan-4-may-09.pdf. Accessed January 29, 2011. p. 6. 9 Joint Chiefs of Staff. 2009. Joint Capabilities Integration and Development System. Chairman of the Joint Chiefs of Staff Instruction. CJCSI 3170.01G. March 1. Washington, D.C.: Joint Chiefs of Staff. Available at http://www.dtic.mil/cjcs_directives/cdata/unlimit/3170_01.pdf. Accessed August 10, 2010. 10 USAF. 2010. Air Force Guidance Memorandum to AFI 63-101: Acquisition and Sustainment Life Cycle Management. Washington, D.C.: Department of Defense. Available at http://www.af.mil/shared/ media/epubs/AFI63-101.pdf. Accessed August 11, 2010. R01861 AF PTD--CS4 final.indd 37 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 38 of FINDING 2-1 The Air Force competitive prototyping policy, AFI 63-101, lacks a waiver pro- cess for competitive prototyping. HISTORICAL GOVERNANCE RELATED TO TECHNOLOGY DEVELOPMENT Recently, several high-profile studies11,12,13,14 have discussed, at least tangen- tially, technology development. In addition, various policies, processes, and laws have been enacted over the years addressing technology development.15,16,17,18,19 Table 2-2 provides a summary of the committee’s assessment of the policies and processes discussed above and highlights specific unintended consequences or shortfalls in the context of technology development. THE TRUST “DEATH SPIRAL” As discussed in Chapter 1, in the subsection “The Right People,” forces exter- nal and internal to the technology development and acquisition processes have 11 NRC. 2008. Pre-Milestone A and Early-Phase Systems Engineering: A Retrospective Review and Benefits for Future Air Force Systems Acquisition. Washington, D.C.: The National Academies Press. 12 Assessment Panel of the Defense Acquisition Performance Assessment Project. 2006. Defense Acquisition Performance Assessment Report. A Report by the Assessment Panel of the Defense Acqui- sition Performance Assessment Project for the Deputy Secretary of Defense. Available at https://acc. dau.mil/CommunityBrowser.aspx?id=18554. Accessed June 10, 2010. 13 Gary E. Christle, Danny M. Davis, and Gene H. Porter. 2009. CNA Independent Assessment. Air Force Acquisition: Return to Excellence. Alexandria, Va.: CNA Analysis & Solutions. 14 Business Executives for National Security. 2009. Getting to Best: Reforming the Defense Acquisi- tion Enterprise. A Business Imperative for Change from the Task Force on Defense Acquisition Law and Oversight. Available at http://www.bens.org/mis_support/Reforming%20the%20Defense.pdf. Accessed June 10, 2010. 15 USAF. 2008. Analysis of Alternatives (AoA) Handbook: A Practical Guide to Analysis of Alterna - tives. Kirtland Air Force Base, N.Mex.: Air Force Materiel Command (AFMC) Office of Aerospace Studies. Available at http://www.oas.kirtland.af.mil/AoAHandbook/AoA%20Handbook%20Final. pdf. Accessed June 10, 2010. 16 Office of History Headquarters, Air Force Systems Command. 1979. History of the Air Force Sys- tems Command—Calendar Year 1978. October 15. Washington, D.C.: U.S. Air Force. 17 The Defense Acquisition Workforce Improvement Act (Public Law 101-510). More information is available at http://www.dau.mil/pubscats/PubsCats/acker/garci.pdf. Accessed August 13, 2010. 18 The Department of Defense Acquisition Workforce Development Fund under Title X. More in - formation is available at http://www.law.cornell.edu/uscode/10/usc_sec_10_00001705----000-.html. Accessed August 13, 2010. 19 The Weapon Systems Acquisition Reform Act of 2009 (Public Law 111-23). More information is available at http://www.ndia.org/Advocacy/PolicyPublicationsResources/Documents/WSARA- Public-Law-111-23.pdf. Accessed August 13, 2010. R01861 AF PTD--CS4 final.indd 38 2/18/11 2:26 PM

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TABLE 2-2 Historical DoD Policies and Processes and Their Unintended Consequences Technology Policy/Process, Formal Formal Development Results Date Instituted Office Policy? Process? Addressed? Metric? Intent Unintended Consequences R01861 AF PTD--CS4 final.indd 39 PPBS, OUSD Yes Yes No No Institute a rigorous Failure to achieve much of the Early 1960s (C) budgetary process intended benefit Vanguard, AFSC/XR Yes Yes Yes Yes Establish a rigorous, Congressional staff saw the Late 1970s comprehensive Development results as a threat to budget Planning process. Provide discipline. the Air Force an annual, cooperatively approved strategic and tactical roadmap of Air Force capabilities and provided rigorous justification for it in budget requests Goldwater-Nichols Congress Yes Yes No No Fix inter-service rivalries; Dual chain of command for Department of Defense provide for shared programs, separated requirements Reorganization Act, procurement; shift and money from acquisition October 1, 1986 acquisition responsibility chain of command, adversely to the Secretariat from the impacted programs, reduced trust, military chain of command. increased rules and regulations Defense Acquisition Congress Yes Yes Yes Yes Improve acquisition While attempting to enhance the Workforce Improvement Act, workforce professionalism of the acquisition November 5, 1990 corps, it has made these professionals more insular from the warfighter and other service professionals. DoD Instruction 5000.2, OUSD Yes Yes Yes No Instill acquisition discipline; Growth in the complexity of major April 5, 2002 (AT&L) provide independent program management oversight Program Budget Decision OSD No Yes No No Reduce acquisition and Smaller acquisition workforce, lost 720, technology workforce skills and expertise, loss of trust, 2005 more oversight NOTE: Acronyms are defined in the list in the front matter of this report. 39 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 40 of caused a major reduction in the numbers of people at the execution level, and large numbers of experienced, motivated, and skilled acquisition and technology profes- sionals have left the government workforce, either voluntarily or involuntarily. In the words of the Commander of Air Force Materiel Command: “We have lost the ability to grade our contractors’ homework.”20 Additionally, the Air Force’s increased use of Total System Performance Re- sponsibility (TSPR) as a contracting strategy resulted in a substantial loss of in-house technical expertise, as well as additional reductions of nontechnical personnel supporting the acquisition process. For example, Figures 2-1 and 2-2 illustrate the significant decline in the engineering workforce at both the Air Force Materiel Command (AFMC) and the Air Force Space and Missile Systems Center (SMC).21,22 An additional complicating factor was a congressional cap on supporting Federally Funded Research and Development Centers (FFRDCs) that substantially reduced the outside technical support provided to some, but not all, of the Product Centers.23 During a period of increased programmatic and technical complexity, there has been a significant loss of the most experienced members of the acquisition workforce, without an adequate replacement pipeline. Additionally, without the necessary management emphasis, there has been “a systematic failure to update specifications, standards, and handbooks” that are essential to a successful acquisition system.24,25,26 Such significant personnel losses, combined with the atrophy of relevant guid- ance and documentation, have contributed to technology development and acqui- 20 Donald Hoffman, General, Commander, Air Force Materiel Command, USAF. Personal com- munication to the committee, July 15, 2010. 21 Vincent Russo, Executive Director, Aeronautical Systems Center, United States Air Force. 2003. “An Overlooked Asset: The Defense Civilian Workforce.” Statement before the Committee on Gov- ernmental Affairs Subcommittee on Oversight of Government Management, United States Senate. 22 Dwyer Dennis, Brigadier General, Director, Intelligence and Requirements Directorate, Head - quarters Air Force Materiel Command, Wright-Patterson Air Force. 23 GAO. 1996. Federally Funded R&D Centers: Issues Relating to the Management of DoD-Sponsored Centers. Washington, D.C.: GAO. Available at http://www.gao.gov/archive/1996/ns96112.pdf. Accessed July 22, 2010. 24 Arthur Huber, Colonel, Vice Commander, Aeronautical Systems Center, Wright-Patterson Air Force Base; and Gerald Freisthler, Executive Director, Aeronautical Systems Center, Wright-Patterson Air Force Base. 2010. “Aeronautical Systems Center Involvement in Applied Technology Councils.” Presentation to the committee, June 1, 2010. 25 GAO. 2005. Information Technology: DoD’s Acquisition Policies and Guidance Need to Incorporate Additional Best Practices and Controls. Washington, D.C.: GAO. Available at http://www.gao.gov/new. items/d04722.pdf. Accessed July 22, 2010. 26 Information on workforce decline is also found in GAO. 2009. Defense Critical Infrastructure: Ac- tions Needed to Improve the Consistency, Reliability, and Usefulness of DoD’s Tier 1 Task Critical Asset List. Washington, D.C.: GAO. Available at http://www.roa.org/site/DocServer/GAO_Defense_Infra- structure_17_Jul_09.pdf?docID=19801. Accessed July 22, 2010. R01861 AF PTD--CS4 final.indd 40 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 41 of and Authorizations with a Scientists (61S) or Developmental Engineering (62E) AFSC FIGURE 2-1 Summary of Air Force Materiel Command (AFMC) science and engineering workforce authorizations. SOURCE: Steven Butler, Former Executive Director, Air Force Materiel Command, USAF. Personal communication with the 2-1_AFMC authorizations FY92-FY10.eps committee, August 24, 2010. bitmap with vector bottom label sition failures. Those failures have caused the Congress, the Office of the Secretary of Defense, and higher headquarters in the Air Force to lose confidence in the executing organizations, and as a remedy, additional layers of oversight have been added.27,28,29 Although oversight can be value-added when conducted by knowl- edgeable people in a constructive manner, the very nature of such oversight tends to be based on distrust rather than on trust. Ever-increasing oversight resulting from this lack of trust has greatly added to the workload of the people at the execution level, further reducing the time 27 Dwyer Dennis, Brigadier General, Director, Intelligence and Requirements Directorate, Head- quarters Air Force Materiel Command, Wright-Patterson Air Force Base, Ohio. 2010. “Development Planning.” Presentation to the committee, March 31, 2010. 28 Steven Walker, Senior Executive Service, Deputy Assistant Secretary of the Air Force for Science, Technology and Engineering, Washington, D.C., SAF/AQR. 2010. “Evaluation of Air Force Preacquisi- tion Technology Development.” Presentation to the committee, March 30, 2010. 29 Michael Sullivan, Director, Acquisition and Sourcing Management Team, GAO. 2010. “Survey of GAO Studies and Findings.” Presentation to the committee, April 21, 2010. R01861 AF PTD--CS4 final.indd 41 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 42 of Authorizations with a Scientists (61S) or Developmental Engineering (62E) AFSC FIGURE 2-2 Summary of Air Force Space Command (AFSPC) science and engineering workforce authorizations. NOTE: The Space and Missile Systems Center (SMC) transitioned from the Air Force Materiel Command to AFSPC (start - ing in fiscal year 2002). SOURCE: Donald Wussler, Colonel, Director, Development Planning, Space and Missile 2-2_SMC & SE Manpower history.eps Systems Center, USAF. Personal communication with the committee, August 27, 2010. bitmap with vector bottom label available to them to manage technology development and acquisition programs responsibly.30 One result of this declining trust has been the passage of WSARA, directing independent assessments of Technology Readiness Levels (TRLs) at the OSD-level. A remedy—the reconstitution of an experienced and capable Air Force acquisi- tion workforce that would include program managers, financial and contracting personnel, testers, and evaluators, as well as the technical staff to support program offices—has been initiated, but it will take much time and effort. There has been considerable emphasis placed recently on the reinvigoration of systems engineer- ing; however, organic subject-matter experts within each of the domains are of equal importance. After two decades of atrophy, pipelines for the accession and 30 Dwyer Dennis, Brigadier General, Director, Intelligence and Requirements Directorate, Head - quarters Air Force Materiel Command, Wright-Patterson Air Force Base, Ohio. 2010. “Development Planning.” Presentation to the committee, March 31, 2010. R01861 AF PTD--CS4 final.indd 42 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 43 of and development of technically skilled and broadly experienced military and Civil Service personnel must be reestablished. This will require exceptional constancy and consistency of purpose from Air Force leadership. Similarly, the reestablishment of trust will take time and is dependent on the redevelopment of a capable and experienced workforce, with the wisdom and dis- cipline necessary to avoid the numerous acquisition problems that have plagued the process over the past 20 years. If appropriate and effective corrective action to rebuild the workforce is not taken, the result will be worsening levels of perfor- mance and an ever-more-hostile environment in which technology development and acquisition are conducted. Such a cycle can result in an ever-worsening “Death Spiral,” in which lack of trust and the resultant excessive independent oversight exacerbate programmatic instability, as shown in Figure 2-3. INSTABILITY CYCLE Budget, Schedule Budget, and Requirements Program Instability Adjustments Made Unpredictable Program Cost, More Oversight Schedule, Applied Performance Leadership Loses More Con dence in Intervention Acquisition System FIGURE 2-3 The management and oversight systems of the Department of Defense generate significant program instabil - ity. SOURCE: Reprinted from Assessment Panel of the Defense Acquisition Performance Assessment Project. 2006. Defense Acquisition Performance Assessment Report. A Report by the Assessment Panel of the Defense Acquisition Performance Assessment Project for the Deputy Secretary of Defense. Available at https://acc.dau. mil/CommunityBrowser.aspx?id=18554. Accessed June 10, 2010. R01861 AF PTD--CS4 final.indd 43 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 51 of and FIGURE 2-7 2-7.eps Department of Defense (DoD) hardware Technology Readiness Levels. SOURCE: Based on information derived from the Department of Defenseappearances, the type converted to outlines. and the National Aeronautics and Space Administration. To preserve The current DDR&E is placing strong emphasis on Development Planning and prototyping, as well as on the role of systems engineering in the developmental process, to include risk assessment.43 The Weapon Systems Acquisition Reform Act of 2009 established several new requirements relating to technological maturity that are summarized below. Among its other provisions, WSARA requires the following: · Periodic review and assessment of the technological maturity and integra- tion risk of critical technologies of Major Defense Acquisition Programs 43 Zachary Lemnios, Director, Defense Research and Engineering, Department of Defense. 2010. “Development Planning Initiative Within DoD.” Presentation to the committee, May 12, 2010. R01861 AF PTD--CS4 final.indd 51 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 52 of (MDAPs), and development of knowledge-based standards against which to measure technological maturity and integration risk; · An annual report to Congress on technological maturity and integration risk; and · A report to Congress on additional resources required to implement the legislation.44 The first annual DDR&E report45 to Congress on the technological maturity and integration risk of major DoD acquisition programs was submitted in April 2010. During 2009, DDR&E completed 11 Technology Readiness Assessments of MDAPs and 1 special assessment. The more robust technology readiness oversight role required by the legislation should serve to reinforce the initiatives taken re- cently by the Air Force to improve the technology maturation process. A number of Government Accountability Office (GAO) studies in recent years have addressed technology development practices and the importance of techno- logical maturity.46 A recent article states: [A]lthough the Defense Department and the GAO remain at odds over the right technol- ogy readiness level (TRL) for new systems, the debate is unlikely to escalate. The Pentagon states that the two organizations continue to disagree on the meaning of mature technology before launching into system development. GAO advocates TRL 7, while the DoD prefers TRL 6. The DoD has taken the position that TRL 6 is adequate at milestone B.47 A Case Study on the Importance of Ensuring Technological Readiness: The Joint Strike Fighter Overly optimistic Technology Readiness Assessments have been a root cause of cost and schedule performance problems on complex programs in the past. The F-35 Joint Strike Fighter (JSF) program, for example, has embraced many new tech- nologies to provide the specified operational performance in a stealthy, multi-role fighter, producible at high production rates. Some notable technologies include a digital “thread” that controls the engineering, tooling, fabrication, assembly, and support systems for the aircraft and also controls several advanced subsystems and components. Although a large majority of the individual technologies incorporated into the F-35 have proven to be sufficiently mature, some of the Engineering and 44 Weapon Systems Acquisition Reform Act of 2009 (Public Law 111-23, May 22, 2009). 45 DoD. Department of Defense Report: Technology Maturity and Integration Risk of Critical Technolo- gies for CY 2009. Washington, D.C.: DoD. 46 GAO. 2006. Best Practices: Stronger Practices Needed to Improve DoD Technology Transition Pro - cesses. GAO-06-883. Washington, D.C.: GAO. Available at http://www.zyn.com/sbir/reference/GAO- d06883.pdf. Accessed June 10, 2010. 47 Inside Defense News. 2010. “GAO, Pentagon Disagreement on TRLs Unlikely to Escalate.” Inside the Pentagon, April 22. R01861 AF PTD--CS4 final.indd 52 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 53 of and Manufacturing Development cost increase has resulted from an unanticipated need for additional technology maturation. Although the increased cost for the EMD program cannot be attributed solely to the shortfalls in TRL, several technologies in retrospect were not at the required TRL 6, and those have contributed to the JSF’s delayed development and cost growth. Public reports indicate that some of the cost increase for the EMD phase of the program has resulted from unanticipated technology maturation during full- scale development of the production configuration.48 The F-35 EMD program was structured to develop three variants with a high degree of commonality, and cost and schedule were based on assessments of Technology Readiness Levels above TRL 6. For example, one critical technology adopted for the JSF is the electro-hydrostatic actuation system used to power the flight controls. The contractor focused on developing this new technology and demonstrated a prototype subsystem in an F-16 before proposing to use it, but significant problems have been encountered nonetheless. In retrospect, more rigorous maturation of the high-power electronics and the specialized actuators in a representative environment was required for an appropriate level of confidence in the TRL for this complex subsystem. FINDING 2-4 The absence of independent, rigorous, analytically-based assessments of Tech- nology, Manufacturing, and Integration Readiness Levels will reduce the like- lihood of successful program outcomes. Furthermore, despite the existence of clear and compelling examples to the contrary, the Air Force continues to initiate system acquisition prior to completing the required technology development. Although expert opinions differ about when requirements should be baselined and about the appropriate assessment level to be used as a threshold for entry into EMD, concurrent evolution of technology and requirements should be the norm up to System Requirements Review (SRR.) At SRR, the capabilities of the selected technologies should be clear and the limitations that the technologies place on the operational requirements must be accepted, and either the technology develop- ment phase must be extended or the program terminated. One key SRR success criterion to be evaluated is whether the operational requirements can be met given the technology maturation achieved. FINDING 2-5 After System Requirements Review, stable requirements and a well-defined operational environment are essential to successful technology insertion. 48 More information on the F-35 is available at http://en.wikipedia.org/wiki/Lockheed_Martin_F-35_ Lightning_II. Accessed September 2, 2010. R01861 AF PTD--CS4 final.indd 53 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 54 of FINDING 2-6 Some important technology insertion efforts have failed to mature due to the lack of (or subsequent loss of) a specific targeted program of record—for example, a new engine technology being developed for a proposed aircraft. Thus, a successful and useful technology may go dormant until a new program can be identified to host it. In this manner, even valuable technology advance- ments that cannot be inserted in a timely way into a program of record can be relegated to the “Valley of Death.” FINDING 2-7 The array of technology possibilities always exceeds the resources available to pursue them. One result is that the technology planning process tends to over- commit available resources and does not always ensure that every technology investment has an executable plan (with a corresponding budget) that enables near-term production readiness. Resources Stable, clear, feasible and well-understood requirements are essential to the success of acquisition programs. Equally important are stable funding and robust processes that can reliably create satisfactory programmatic outcomes. As seen above, some of these processes are problematic. Some current processes are in- adequately implemented, and others—like the ATCs—work for a time and then slide into disuse. Other processes do work—like the TRL system successfully used in industry and elsewhere in government (NASA, for example)—but for a variety of reasons fail to be used in a disciplined way, with risky and insufficiently proven technology comprising important parts of major programs. But the most signifi- cant—and surprising—process shortfall was the lack of an articulate and formal Air Force-level S&T strategy. To the contrary, a number of Air Force stakeholders asserted that there is no such overarching strategy, often unfavorably comparing the Air Force’s failure in this area to what they considered the more successful Future Naval Capabilities process of the U.S. Navy.49,50 Even a successfully resuscitated DP capability is not a substitute for an Air Force-level S&T strategy. The developmental planners at each Product Center strive to identify and prioritize technology development activities to match the require- 49 NeilKacena,Vice President, Advanced Development Programs Deputy, Lockheed Martin Aero- nautics Company. 2010. “Technology Development: Approaches and Challenges.” Presentation to the committee, May 12, 2010. 50 A. Thomas Young, Retired Executive Vice President, Lockheed Martin Corporation. 2010. “Best Practices.” Presentation to the committee, May 12, 2010. R01861 AF PTD--CS4 final.indd 54 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 55 of and ments of their particular Major Command (MAJCOM) customers; nevertheless, the committee heard from multiple presenters that the Air Force does not attempt in any disciplined way to set technology priorities across the entire service. A telling example of this need for an Air Force-level technology prioritization strategy can be found in the Technology Horizons study recently conducted by the Air Force Chief Scientist.51 Technology Horizons is the most recent in a succession of major S&T vision studies conducted at the Headquarters Air Force level. The study is an effort long overdue to help define key, priority S&T investments to provide the Air Force with the capabilities that it will need over the next 10 to 20 years. However, the study is focused on and written from the perspective of the S&T world. Although it identifies potential capability areas that might benefit from Air Force S&T activities, it does not answer the operationally oriented question of what future capabilities the Air Force needs to acquire. In other words, the technol- ogy opportunities described in the study need to be matched to the requirements established by operational Air Force organizations in order to optimize the Air Force’s S&T investments. Similarly, ongoing efforts to reinvigorate ATCs that have fallen into decline will not substitute for an Air Force-level technology strategy. Balancing modern- ization needs and existing program support with available resources is a constant challenge. Pressures from oversubscribed Air Force budgets repeatedly drive short- suspense reprogramming actions on research and development funding, often with little in the way of rational analysis.52 Absent a technology strategy and prioritized list of technology maturation needs, the Air Force POM and budget process will not provide a solid foundation for future acquisition program success, as illustrated in Figure 2-8. FINDING 2-8 The Air Force lacks an effective process for determining which technology transitions to fund. Nonetheless, a revived and rechartered ATC process could provide a forum for integrating MAJCOM capability needs with technology opportunities and technology maturation funding priorities. Consequently, the Air Force might con- sider means to link ATCs with MAJCOM representation to an Air Force-level S&T council, as shown in Figure 2-9, that provides top leadership consideration of all 51 Air Force Chief Scientist. 2010. Report on Technology Horizons: A Vision for Air Force Science and Technology During 2010-2030. Washington, D.C.: Department of Defense. Available at http://www. airforce-magazine.com/SiteCollectionDocuments/TheDocumentFile/Strategy%20and%20Concepts/ TechnologyHorizonsVol1_2010.pdf. Accessed August 26, 2010. 52 Donald Hoffman, General, Commander, Air Force Materiel Command, USAF. Personal com - munication to the committee, July 15, 2010. R01861 AF PTD--CS4 final.indd 55 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 56 of FIGURE 2-8 Air Force budget process. Current technology development funding is spread across multiple budget panels without an overarching investment strategy or prioritization. This could result in technology gaps in multiple acquisition programs. 2-8.eps To preserve appearance, type converted to outline. R01861 AF PTD--CS4 final.indd 56 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 57 of and FIGURE 2-9 A possible Air Force-level science and technology (S&T) council organization structure under consideration by an Air Force Tiger Team chartered to examine S&T strategy governance and strategic planning processes. The S&T council would potentially review and approve all S&T guidance and oversee technology transition progress. SOURCE: Michael Kuliasha, Chief Technologist, Air Force Research Laboratory. 2010. “AFRL Perspective on Improving Technology Development and Transition.” Presentation to the committee, May 13, 2010. MAJCOM priorities, all laboratory S&T contributions, and all appropriate (6.3 and 6.4) funding. Such a process is needed if the Air Force is ever to have a strategic technology planning process. Air Force leadership, after watching the number of funded Advanced Technol- ogy Demonstrations dwindle from 65 in 2000 to just 2 in 2009, recently chartered a Tiger Team to examine options for strengthening the S&T strategy planning process.53 The Tiger Team will identify opportunities for improvement in com- munication and governance that can lead to consistent S&T and transition pri- orities across all organization levels and to improved visibility and accountability of S&T needs and solutions. Tiger Team members are drawn from organizations across the Air Force and DoD and are assessing a range of possible S&T strategy governance options. 53 Ibid. R01861 AF PTD--CS4 final.indd 57 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 58 of FINDING 2-9 Although the Air Force Chief Scientist has developed an “art of the possible” science and technology strategic plan for the 2010 to 2030 time frame, there exists no Air Force-level unifying strategy, inextricably linked to operational re- quirements, to guide decision making for science and technology investments. FINDING 2-10 Successful technology development and technology transition require (1) in- tegration of warfighter requirements with science and technology investments and systems acquisition strategies, and (2) close collaboration among all gov- ernment and industry partners. FINDING 2-11 MAJCOM ownership of Budget Category 4 Program Elements and the current Air Force Budget formulation process do not provide development planners with sufficient priorities for execution of maturation funding. At a higher level, the Air Force lacks an overarching strategy for technology development, or a process that involves key decision makers. As a result, there is no integrated view of warfighter needs and technological possibilities, and there is inadequate guidance for determining what technology transitions to fund.54 The Right People The third of the “Three Rs”—the right people—is the most important. Without the right people, programs are more likely to fail, even when requirements and resources are addressed successfully. The phrase “right people” implies that there are enough people with the necessary knowledge and experience, in both govern- ment and industry, who are educated, trained, mentored, experienced, credible, empowered, and trusted to do the job at hand—that is, people who can, with the resources, meet the requirements and deliver needed capability to the warfighter. 54 Budget Activity 4, Advanced Component Development and Prototypes (ACD&P): Efforts neces - sary to evaluate integrated technologies, representative modes, or prototype systems in a high-fidelity and realistic operating environment are funded in this budget activity. The ACD&P phase includes system-specific efforts that help expedite technology transition from the laboratory to operational use. Emphasis is on proving component and subsystem maturity prior to integration in major and complex systems, and may involve risk-reduction initiatives. Program elements in this category in- volve efforts prior to Milestone B and are referred to as advanced component development activities and include technology demonstration. Completion of Technology Readiness Levels 6 and 7 should be achieved for major programs. Program control is exercised at the program and project level. A logical progression of program phases and development and/or production funding must be evident in the FYDP. DoD Financial Regulation, Volume 2B, Chapter 5, June 2004. R01861 AF PTD--CS4 final.indd 58 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 59 of and Losses suffered by the Air Force acquisition workforce over the past two de- cades have been significant. Highlighted in the Kaminski report as well as in other reports were the ramifications of mandated reductions in acquisition personnel in the 1990s.55 Further, the Air Force Acquisition Improvement Plan states: The Air Force acquisition workforce is staffed with outstanding men and women dedicated to their mission and their country. . . . However, while they perform top quality work, we have failed to adequately manage their professional development and maintain sufficient numbers of these experienced professionals. The result is an acquisition workforce eager and willing to take on any challenge, but in many cases one that is inadequately prepared for the task at hand. In some cases, the workforce lacks the necessary training or educa- tion to accomplish the mission. In others, the workforce simply does not have the depth of experience or specific skill sets necessary to accomplish the critical tasks. As we better develop our workforce, we must also ensure it is appropriately sized to perform essential, inherently governmental functions and is flexible enough to meet con - tinuously evolving demands. The size of the Air Force acquisition workforce, as currently defined, was decreased from a total of 43,100 in 1989 to approximately 25,000 in 2001 where it has remained since.56 The cumulative impact of all of the reductions and changes to the workforce can best be summarized in the following statements from a 2009 report of Business Executives for National Security (BENS): Today the government too often finds itself with minimally experienced and transient individuals leading major acquisition programs, able to attract new people only after long delays, unable to couple rewards to performance, and with many senior positions simply unoccupied. Talented and dedicated people can often overcome a poor organizational structure, but a good organizational structure cannot overcome inadequate performance. When qualified people are combined with sound organizations and practices, success is virtually assured. The acquisition process, unlike most government pursuits, is a business function. It demands skills and talents that are far more common to the business world than to government and military operations.57 In building Lockheed Martin’s Skunk Works, Kelly Johnson learned the impor- tance of having good people and that quantity was no substitute for quality and 55 NRC. 2008. Pre-Milestone A and Early-Phase Systems Engineering: A Retrospective Review and Benefits for Future Air Force Systems Acquisition. Washington, D.C.: The National Academies Press. 56 USAF. 2009. Acquisition Improvement Plan. Washington, D.C.: Headquarters USAF. May 4, p. 4. Available at http://www.dodbuzz.com/wp-content/uploads/2009/05/acquisition-improvement-plan- 4-may-09.pdf. Accessed June 11, 2010. 57 Business Executives for National Security. 2009. Getting to Best: Reforming the Defense Acquisi- tion Enterprise. A Business Imperative for Change from the Task Force on Defense Acquisition Law and Oversight, p. 7. Available at http://www.bens.org/mis_support/Reforming%20the%20Defense.pdf. Accessed June 10, 2010. R01861 AF PTD--CS4 final.indd 59 2/18/11 2:26 PM

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e va l u at i o n u. s . a i r f o rc e P r e ac q u i s i t i o n t e c h n o lo g y d ev e lo P m e n t s 60 of experience. To paraphrase Johnson: “You can’t stack enough average people high enough to equal one good person.” But that is exactly the situation facing the Air Force today. The loss of quality and experience over the past 20 years means that with few experienced people left to mentor newer hires, the Air Force must rely on large numbers of inexperienced and unproven acquisition professionals. One presenter to the committee spoke of a program to which the contractor had as- signed 80 engineers, who stood stunned as a government review team arrived with 137 participants, most of them junior military and civilian employees.58 When the number of “checkers” nearly doubles the number of “doers,” it is hard to see that as a path to recapturing acquisition excellence. Strong and innovative hiring efforts are under way and are aimed not only at encouraging new entrants to join the workforce, but also at capturing mid-career professionals from other agencies and industries. Those efforts are necessary and will pay off years down the road, but right now and for the foreseeable future, the Air Force is learning a hard lesson, similar to the lesson from the demise of Development Planning: An asset can be lost in the blink of an eye, but rebuilding it is the work of decades. FINDING 2-12 The size and experience of the Air Force technology and development plan- ning workforces are inadequate. Despite concerted efforts to fulfill the vision of a revitalized Development Planning function, recovery in this area will take a substantial period of time and a constancy and consistency of purpose from Air Force leadership. CONCLUDING THOUGHTS Historically, successful acquisition programs have followed a dedicated period of technology development and maturation. In the late 1990s, Congress eliminated funding for key organizations and processes that enabled that technology devel- opment and maturation (e.g., the Product Center Development Planning Orga- nizations, known as XRs). This resulted in the dispersal of the DP workforce, as resources were reassigned to other activities. The resultant technology development and maturation vacuum was, to some extent, filled by aerospace industry firms, advisory and assistance support contractors, and other ad hoc efforts, many of which lacked the focus and coherence of previous DP organizations and processes. Product Centers recognized the risk to program success caused by this situation 58 Dwyer Dennis, Brigadier General, Director, Intelligence and Requirements Directorate, Head - quarters Air Force Materiel Command, Wright-Patterson Air Force Base, Ohio. 2010. “Development Planning.” Presentation to the committee, March 31, 2010. R01861 AF PTD--CS4 final.indd 60 2/18/11 2:26 PM

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t h e c u r r e n t s tat e acquisition Policies, Processes, workforce 61 of and and began homegrown efforts to restore the XRs, but the resultant organizations have remained chronically underfunded, understaffed, and underequipped.59,60,61 Other efforts, such as the ATCs, at one time fostered timely and effective decision making regarding scarce technology maturation and funding. However, in some areas, ATCs and similar initiatives have been allowed to wither. Meanwhile, poorly performing and failed programs have caused great frustra- tion in the Congress and the OSD, leading to a serious erosion of trust of the Air Force’s stewardship of force modernization efforts. This distrust has resulted in statute- and policy-driven increases in program oversight during all phases of the acquisition cycle. This increased oversight is moving earlier in the process, being applied to preacquisition technology development activities (e.g., Material De- velopment Decisions to Milestone B). One result is an increase in the number of “checkers” at the expense of the “doers”—an overemphasis on people performing review and oversight rather than executing the basics of technology development and program management. The “right people” means the right numbers of people, with the right experience and skills, doing the right things. Increased oversight also has led, at times, to unrealistic program goals prior to Milestone B. Recently passed legislation and resultant DoD policy initiatives—for example, Section 852 of the 2008 National Defense Authorization Act (NDAA), competitive prototyping, DoD Instruction 5000.02, AIP, and WSARA—appear to address some of the negative impacts of the dissolution of DP organization and processes. However, sufficient funding levels are not yet evident, and the growing oversight environment, particularly pre-Milestone B, does not bode well for the full restoration of a robust preacquisition technology development capability. 59 Donald E. Wussler, Colonel, Director, Development Planning, Space and Missile Systems Center, USAF. “SMC/XR Function Brief.” Presentation to the committee, April 22, 2010. 60 Charles Kelley, Director, Capability Integration, Electronic Systems Center, Hanscom Air Force Base, Massachusetts. “ESC/XR Function Brief.” Presentation to the committee, April 21, 2010. 61 Edward Stanhouse, Colonel, Requirements and Capabilities Integration, Aeronautical Systems Center. “ASC/XR Function Brief.” Presentation to the committee, April 22, 2010. R01861 AF PTD--CS4 final.indd 61 2/18/11 2:26 PM