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Speaker’s Forum Co-sponsored by: Air Force Association (AFA) POC - Candace Robey, 883 -1900 Speaker’s Forum Co-sponsored by: Air Force Association (AFA) POC - Candace Robey, 883 -1900 Association of Old Crows (AOC) POC - Steve Czonstka, 897 -4775 International Test and Evaluation Association (ITEA) POC - Donna Self, 883 -5364 National Defense Industrial Association (NDIA) POC - Len Iannuzzo, 883 -1088 Judy A. Stokley Deputy PEO/WP & Executive Director 25 January 2006

Leadership Changes PEO and AAC Commander Maj. Gen. Jeff Riemer Deputy PEO and Executive Leadership Changes PEO and AAC Commander Maj. Gen. Jeff Riemer Deputy PEO and Executive Director Ms. Judy Stokley, SES Vice Commander and Deputy for Support Brig. Gen. (S) Joseph Lanni 2 060125_Speakers Forum_Stokley

Overview • Defense Acquisition Performance Assessment Project • Air Force Acquisition Transformation Council • Overview • Defense Acquisition Performance Assessment Project • Air Force Acquisition Transformation Council • Acquisition Focus Areas at AAC • Words from the War • Summary 3 060125_Speakers Forum_Stokley

DAPA - The Task Issued By Acting Deputy Secretary Of Defense England, 7 June DAPA - The Task Issued By Acting Deputy Secretary Of Defense England, 7 June 2005 “… I am authorizing an integrated acquisition assessment to consider every aspect of acquisition, including requirements, organization, legal foundations…decision methodology, oversight, checks and balances – every aspect…” “The output… will be a recommended acquisition structure and processes with clear alignment of responsibility, authority and accountability. ” “Simplicity is desirable… Restructuring acquisition is critical and essential. ” 4 060125_Speakers Forum_Stokley

DAPA Membership And Support Teams The Panel Advisors Lieutenant General Ron Kadish USAF (Ret) DAPA Membership And Support Teams The Panel Advisors Lieutenant General Ron Kadish USAF (Ret) Dr. Francis W. Ahearn Partner, and VP Aerospace Market Group Booz, Allen Hamilton Professor – Industrial College of the Armed Forces, NDU Panel Chairman Professor – Industrial College of the Armed Forces, NDU Dr. Gerald Abbott Professor – Industrial College of the Armed Forces, NDU Mr. Frank Cappuccio Executive Vice President – Lockheed Martin Corporation Dr. Linda S. Brandt Ms. Judy A. Stokley Deputy for Acquisition – Air Armament Center Mr. Alfred G. Hutchins, Jr. President – Hutchins & Associates, Inc. General Richard Hawley, USAF (Ret) Aerospace Consultant General Paul Kern, USA (Ret) The Cohen Group Mr. Don Kozlowski Former Vice President, Mc. Donnel Douglas Corporation Mr. J. David Patterson, Project Director Ms. K. Eileen Giglio, Deputy Project Director Col. Alan Boykin, USAF, Staff Director Support Staff Lt. Col. Rene Bergeron, USAF Lt. Col. Annette Foster, USAF Mr. Stephen Hayes, USA Ms. Maggie Souleyret Ms. Annette Atoigue 5 060125_Speakers Forum_Stokley

Performance Assessment Process • Reviewed Over 1, 500 Documents To Establish Baseline Of Previous Performance Assessment Process • Reviewed Over 1, 500 Documents To Establish Baseline Of Previous Recommendations • Held Open Meetings And Maintained A Public Web-site To Obtain Public Input • Heard From 107 Experts, Received Over 170 Hours of Briefings • Surveyed Over 130 Government And Industry Acquisition Professionals • Developed 1. 069 Observations • Identified 42 Areas Of Interest • Created Integrated Acquisition Performance Assessment. • Defined Eight Performance Improvements LITERATURE SEARCH Issue Identification Performance Improvements Situational Assessment PUBLIC INPUT SURVEY OF PRACTITIONERS SUBJECT MATTER EXPERT BRIEFINGS 060125_Speakers Forum_Stokley 1, 069 OBSERVATIONS 42 ISSUE AREAS INTEGRATED ASSESSMENT 8 PERFORMANCE IMPROVEMENTS Assessment Performance Improvement Major Findings Performance Assessment Implementation Criteria 6

Integrated Look At Key Issues Oversight Acquisition Strategy Number of Observations Requirement Process PM Integrated Look At Key Issues Oversight Acquisition Strategy Number of Observations Requirement Process PM Expertise Need for Leadership Program Structure Process Discipline Complex Acquisition System Joint Requirement Development Industry Motivation & Behavior RAA Allocation Acquisition Career Path PPBE Process 42 Issue Areas 7 060125_Speakers Forum_Stokley

Our Integrated Assessment An effective acquisition system requires stability and continuity that can only Our Integrated Assessment An effective acquisition system requires stability and continuity that can only be achieved through integration of the major elements upon which it depends. For example: Organization, Workforce, Budget, Requirements, Acquisition, and Industry, as well as Leadership and Congressional Oversight. In Theory - Cohesive and Stable 060125_Speakers Forum_Stokley 8

Our Integrated Assessment There are fundamental disconnects in Do. D management systems and Congressional Our Integrated Assessment There are fundamental disconnects in Do. D management systems and Congressional oversight, driven by competing values and objectives that create government-induced instability in our acquisition programs HOW MUCH AND WHEN TO BUY • CONTROL, OVERSIGHT AND BALANCE INSTABILITY THAT ADVOCACY CREATES • • STABILITY TRAINING JOB SATISFACTION EXPERIENCE • • WHY AND WHAT TO BUY • MISSION SUCCESS AT LOWEST COST IN LIFE • SERVICE ADVOCACY • • SURVIVAL PREDICTABILITY STOCKHOLDER VALUE VENDOR BASE VITALITY COMPLIANCE CONSISTENCY CONTROL OVERSIGHT HOW TO BUY • BALANCE OF COST, SCHEDULE AND PERFORMANCE • TECHNOLOGY AVAILABLE vs. PERFORMANCE, COST AND TIME TO NEED In Practice – Disconnected and Unstable (government induced) 060125_Speakers Forum_Stokley 9

Performance Improvement Reducing government-induced instability through transformation of these key elements of the Acquisition Performance Improvement Reducing government-induced instability through transformation of these key elements of the Acquisition system can reduce cost, enhance acquisition performance and accelerate key capabilities by years. 10 060125_Speakers Forum_Stokley

Performance Improvements – Organization • OSD Acquisition, Technology and Logistics (AT&L) – – – Performance Improvements – Organization • OSD Acquisition, Technology and Logistics (AT&L) – – – Focus on what, not how, to buy Member of JROC Own Acquisition Stabilization Account (ASA) Compete capability needs and chair Materiel Selection Board Disestablish OIPT process • Service Acquisition Executives (SAEs) – – Elevate to Level 3 Make 5 -year Fixed Presidential Appointments renewable for second term Create pool of pre-qualified candidates Post Milestone B execution • Service Chiefs/CNO – Pre-milestone B execution • Service 4 -Star Acquisition Commander – – – Dual report to SAE and Service Chief/CNO Integrate budget, requirements, acquisition Advocate for technological future Advocate and manage Acquisition workforce Oversee day-to-day program execution Direct and manage preparation of service materiel solution proposals 11 060125_Speakers Forum_Stokley

Performance Improvements – Budget and Requirements Budget • Create separate ASA programmed and executed Performance Improvements – Budget and Requirements Budget • Create separate ASA programmed and executed by AT&L • Create management reserve at Service level • Adjust all accounts to 80/20 confidence level in 08 POM submission Requirements • Replace JCIDS with COCOM-led requirements process in which the Services and Do. D agencies compete to provide solutions – Create 15 -year Joint Capability Acquisitions and Divestment Plan (JCADP), 2 -yr cycle • Time-phased, fiscally-informed and prioritized capability needs – AT&L compete among Services and select Materiel Solutions – Require TEMP and IOT&E Plan for Milestone B decision – Add ”operationally acceptable” category to Operational Test evaluation – Require JROC approval to test outside Requirements – PMs can reschedule requirements 12 060125_Speakers Forum_Stokley

Performance Improvements – Acquisition • Pre-milestone B, PM is operator trained in acquisition, DPM Performance Improvements – Acquisition • Pre-milestone B, PM is operator trained in acquisition, DPM is acquisition professional • Post-milestone B, PM is acquisition professional, DPM is operator trained in acquisition • 4 -Star Acq Cmdr is certification authority for Acquisition workforce – Incl budget, reqts, test officers from Service Staffs/other Commands • Make time a KPP • Require Time Certain Development - NGT 6 years from MS A to 1 st del • Require Risk Based Source Selections - replace development cost bid with negotiated most-probable cost • Baseline at Milestone B NET Preliminary Design Review • Require TEMP and IOT&E Plan at Milestone B- PEO/PM signator on both • Give PM explicit authority to defer requirements post Milestone B • Appoint PM accountable for each baseline with tenure from Milestone B through Beyond Low Rate Initial Production report 13 060125_Speakers Forum_Stokley

Performance Improvements – Workforce and Industry Workforce • 4 -Star Acq Cmdr is certification Performance Improvements – Workforce and Industry Workforce • 4 -Star Acq Cmdr is certification authority for Acq workforce – Workforce includes personnel from budget, requirements, test, etc. – Establish mentor program for PMs – Stabilize PM tour – NLT MS B - Beyond Low Rate Initial Prod Report Industry • Establish Roundtable hosted by SECDEF to share Joint Capability Acquisition and Divestment Plan – Align industry and defense strategic planning • Convert to Risk-based Source Selections – Award to minimum risk proposals at negotiated most probable cost – Favor formal competitions by primes vice traditional make/buy 14 060125_Speakers Forum_Stokley

DAPA – Closure • Results presented in public forum 14 Dec 05 • Release DAPA – Closure • Results presented in public forum 14 Dec 05 • Release of full report expected 27 Jan 06 • Results provided to QDR panel http: //www. acq. mil/dapaproject - 1 Feb 06 http: //www. dau. mil/library/ - Date TBD 15 060125_Speakers Forum_Stokley

Air Force Acquisition Transformation Council • The Umbrella – “SMART OPS 21” – LEAN Air Force Acquisition Transformation Council • The Umbrella – “SMART OPS 21” – LEAN – Process Efficiency – Balanced Scorecard • Acquisition Improvement Efforts – Transparency in Governance - Program Stability – Risk Assessment Methodology - Program Planning & Baselines – Oversight - Test – OT Evaluations • Risk Assessment Methodology – Ms. Betsy Thorn – “Center of Gravity” for Acquisition Improvements – SPIRAL 1, Beta Tests, Operating Guide by 30 Sept 06 – Acquisition Strategies, Source Selections, Milestone/Program Decisions WAR-WINNING CAPABILITIES… ON TIME, ON COST 16 060125_Speakers Forum_Stokley

AF Goal “G OIN GG RE Overall 8% 33% 59% Cost 6% 14% 80% AF Goal “G OIN GG RE Overall 8% 33% 59% Cost 6% 14% 80% Schedule 9% 35% 57% Technical 3% 16% 81% Funding 8% 35% 57% Now- Much is Subjective (Old Culture!) Source: AF PEO Portfolio, Oct 05 MAR 060125_Speakers Forum_Stokley EN ” Reset Program Success Factors to Risk Based 95% By 2010 (New Culture!) Majority Objective 17

Acquisition Focus Areas at AAC • Credibility – – – – Risk Assessment Methodology Acquisition Focus Areas at AAC • Credibility – – – – Risk Assessment Methodology Risk-focused Source Selections Sufficiency Reviews College of Acquisition Curriculum Expectation Management Agreements – Annual Commitments PEO reviews – Balanced Scorecard Financial Execution • Capability Needs – – – Counter MANPADS Net-ready weapon data links Chemical Biological Radiological Nuclear & Explosive (CBRNE) Universal Armament Interface Urban CAS Reliability • Air Armament Symposium – 3 -4 October 06 18 060125_Speakers Forum_Stokley

Words From The War “My concern is that this war has reached a point Words From The War “My concern is that this war has reached a point where a tactical error can have strategic implications so everything in our arsenal needs to work first time, every time. We have also become the victim of our own success in that the ground troops “know” we can shack the target every time and pretty much control collateral damage. As such, we only drop one at a time so when one doesn’t work as advertised it becomes obvious. ” -Lt Gen Walter Buchanan Commander of 9 th Air Force 19 060125_Speakers Forum_Stokley

Summary War-Winning Capabilities… On Time, On Cost Thank You for All You Do 20 Summary War-Winning Capabilities… On Time, On Cost Thank You for All You Do 20 060125_Speakers Forum_Stokley