THE DHS ACQUISITION LIFE CYCLE And
THE DHS ACQUISITION LIFE CYCLE and
THE REQUIREMENTS PROCESS
The systems acquisition process exists to provide equipment, software, and services to users so that they can keep our nation safe and secure. Requirements for capabilities arise from a variety of sources. Within DHS, those sources include:
-Component users, who first capture capability gaps in a Preliminary Mission Needs Statement (P-MNS)
-The Joint Requirements Council (JRC), who look for ways to leverage the benefits of acquisition programs across multiple DHS sponsors
-The strategic planning portion of the Planning, Programming, Budgeting and Execution (PPBE) process, in which annual Integrated Planning Guidance (IPG) identifies new requirements as input for the programming phase of the PPBE process
-The DHS Enterprise Architecture (EA), which can identify shortfalls in capabilities for Information Technology (IT)
In addition to internal requirements, Congress and the President can generate requirements to be met through the acquisition process.
As a program moves through the Acquisition Life Cycle, it flows through a series of activities and must meet certain criteria before it can proceed to the next phase. These ‘exit criteria’ can be general accomplishments that all programs must meet as well as specific achievements specified by the Acquisition Decision Authority (ADA). Between each phase of the life cycle, Acquisition Decision Events (ADEs) are conducted to ensure the program is adequately planned, the technology is sufficiently mature, and the risks are well managed. A typical program based on a Component-generated requirement would travel the following path:
Before ADE-0, users within the Component prepare a Preliminary Mission Needs Statement (P-MNS) to identify gaps in capability. Components should consider gaps in terms of doctrines & plans, training, material, leadership, personnel, facilities, regulations, grants and standards (DOTMLPF+R/G/S).
At ADE-0, the Component approves the Preliminary Mission Needs Statement (P-MNS) and sends it to the Acquisition Program Management Division (APMD) and Joint Requirements Council (JRC) for review at DHS Headquarters. At this point, the program has entered the Need Phase. If the program is a new start, the Component will submit the P-MNS along with their Resource Allocation Plan (RAP) to request funds from the Program Review Board (PRB).
The main purpose of the Need Phase is to identify a gap in capability that can be met with a materiel solution. Three documents are prepared during the Need Phase in preparation for ADE-1:
The Mission Needs Statement (MNS) expands on the P-MNS to answer the question: “What does the user need?” It summarizesin 4-8 pages the functional capabilities that the Component must have in order to effectively accomplish theirmission and objectives. There are four steps to preparing and staffing the Mission Needs Statement (MNS):
1. Components identify the capabilities that their users need in order to accomplish the mission (whether or not the current capability exists).
2. Components compare their current capabilities with existing and future mission needs to identify and prioritize any gaps.
3. Components document the results of their analysis in a MNS, expressing the benefits of filling the gaps and the negative impact of not filling the gaps.
4. The Joint Requirements Council (JRC) and Acquisition Program Management Division review the MNS to determine whether the need is valid.
The Joint Requirements Council (JRC) and Acquisition Program Management Division (APMD) review the Mission Needs Statement (MNS). They look for overlaps with other DHS initiatives and compare the MNS to the Integrated Planning Guidance (IPG) to determine if the need is consistent with the overall strategic direction of DHS. The MNS is approved by the Acquisition Decision Authority (ADA) at Acquisition Decision Event 1 (ADE-1).
The Acquisition Plan(AP)indicates possible sources of goods and services required by the user, an overview of source selection procedures, and the type of contract(s) to be used.
The Capabilities Development Plan (CDP) is an agreement between the PM and the Acquisition Decision Authority (ADA) about the activities, cost, schedule and performance boundaries for the work to be done in the Analyze/Select Phase. It identifies the possible range of alternatives to be examined and indicates whether an Alternatives Analysis (AA) or an Analysis of Alternatives (AoA) will be used.
At ADE-1, the acquisition program can be classified into one of three levels:
Level 1 programs have life cycle costs of $1 billion or more. They are normally overseen by the DHS Deputy Secretary or Under Secretary for Management.
Level 2 programs have life cycle costs between $300 million and $1 billion. They are normally overseen by the Under Secretary for Management and may be delegated to the Component Acquisition Executive (CAE).
Level 3 programs have life cycle costs under $300 million. They are normally overseen by the Component Head.
Level 3 programs are reviewed and approved at the Component level. For Level 2 and Level 1 programs, the MNS, Acquisition Plan, and CDP are reviewed by the Acquisition Review Board (ARB). The ARB is supported by the Acquisition Review Team (ART), who will review the documents, screen them for completeness, and attempt to resolve issues before the senior ARB members conduct their review at Acquisition Decision Event 1 (ADE-1). In addition, information technology (IT) programs are reviewed by the Enterprise Architecture Board (EAB), and vehicular and real property programs are reviewed by the DHS Asset Review Board (DARB), before they are considered by the ARB. The ARB is chaired by the Acquisition Decision Authority (ADA), who makes the ultimate decision to approve the program.
The purpose of ADE-1 is to ensure that the needs are aligned with DHS strategic direction, adequate planning has been accomplished, and sufficient resources are available for upcoming phases. After all the reviews are complete, the Acquisition Decision Authority (ADA) approves the MNS and signs the Acquisition Decision Memorandum (ADM), which records his/her formal approval of the acquisition program. The ADM also documents any program-specific exit criteria that the program must accomplish in the next phase. When the ADA signs the ADM, the acquisition program is officially initiated and the program moves into the Analyze/Select Phase.
The purpose of the Analyze/Select Phase is to determine the most effective and affordable way to fill the capability gap that was identified in the MNS during the Need Phase. The primary activity of this phase is conductinganAnalysis of Alternatives (AoA)to determine the optimal way to meet the requirement. The AoA evaluates the cost, effectiveness, and risk of potential materiel alternatives to meet a mission requirement. For example, if Customs and Border Protection needs a better way to maintain security and reduce congestion at border crossings, they might consider the costs and benefits of increasing manpower at checkpoints versus developing new vehicle screening technology.
The AoA Study Plan is prepared by the sponsor, Program Manager (PM),and the organizationwho will lead the analysis. However, the AoA itself is conducted by an independent Study Team, who identify alternatives, develop the Concept of Operations (CONOPS) for employing the solution, conduct the analysis, and report their results.
If the user already knows the best way to meet their need, they may propose an Alternatives Analysis (AA), instead of an AoA. For example, if the Coast Guard needs a new cutter to patrol deep waters, the AA would look at different cutter designs rather than the full range of sea-going vehicles. The format is similar to that of an AoA, but less extensive. The PM proposes the use of an AAto the Acquisition Decision Authority (ADA) atADE-1.
After the Component Acquisition Executive (CAE) approves the Study Plan, the Study Team evaluates the operational effectiveness and life cycle cost of each alternative. Effectiveness analysis involves assessing how well each option meets the needs described in the Mission Needs Statement (MNS), based on a hierarchy of metrics:
Mission Tasks (MTs)are expressed as general actions to be performed by the system. (Example: detect intruders at the border)
Measures of Effectiveness (MOEs) are objective measures of system performance. MOEs indicate the degree to which a system performs a task under certain conditions. (Example: number of illegal crossings). MOEs may be qualitative in nature.
Measures of Performance (MOPs) are quantitative measures of a system characteristic in support of a MOE. They indicate the lowest level of physical performance or characteristic of a system. MOPs flow down to Key Performance Parameters (KPP) in the Operational Requirements Document (ORD) and serve as criteria for testing the system. (Example: probability of detection).
The AoA Study Team selects and applies the MOEs, MOPs, and up front them systematically to each alternative. The team also selects and applies the appropriate cost estimating method(s) to project the life cycle cost of each alternative. Finally, the respective costs, benefits, and risks of each alternative are weighed to determine the optimal solution to carry forward into the Obtain Phase. The results of the analysis and the Study Team’s recommendation are presented to the Acquisition Decision Authority (ADA) for decision at Acquisition Decision Event 2A (ADE-2A).
The following program documents are developed during the Analyze/Select Phase and approved at the Component level:
Analysis of Alternatives (AoA) or Alternative Analysis (AA), discussed above.
The Concept of Operations (CONOPS) describes a proposed system from the point of view of the individual(s) who will use, operate, and interact with it. The CONOPS provides a framework for assessing alternatives in the context of real-world, scenario-based, operational environments.
The Life Cycle Cost Estimate (LCCE)projects all the resources and associated cost elements required to develop, produce, deploy, and sustain a program. Typically, a LCCE addresses four phases: research & development, procurement & investment, operations & support, and disposal.
The Acquisition Plan (AP)serves as a roadmap for carrying out the entire program. across all phases of the acquisition life cycle. It documents the strategy for managing the separate acquisitions, or contractual actions, that make up the overall program.
The following documents are developed during the Analyze/Select Phase and approved by the Acquisition Decision Authority (ADA):
The Operational Requirements Document (ORD)is written by the user/sponsor to establish minimum and desirable performance characteristicsof a system. It contains Key Performance Parameters (KPPs), identified by the user, that the system must achieve to meet accomplish its mission. KPPs are expressed in terms of thresholds and objectives: athreshold is the minimum acceptable level of performance, while an objective is a goal that improves system performance, safety, or supportability beyond the threshold value. The ORD provides a bridge between the operational needs spelled out in the MNS and the detailed technical requirements found in the system technical specifications.
The Acquisition Program Baseline (APB)is an agreement between the Program Manager (PM), Component Head, and Acquisition Decision Authority (ADA) on program cost, schedule and performance goals. Like the ORD, the APB expresses these parameters as minimally acceptable thresholds and desired objectives.
If a program fails to meet a cost, performance or schedule threshold identified in the APB, a condition known as a “breach” occurs. The PM cannot wait until a breach has occurred to take action. If the PM expects that the program will not meet a schedule or performance threshold, or if the cost threshold will be exceeded by 8% or more, the PM must formally notify the ADA and/or DHS Headquarters of the potential breach within 30 days, along with the cause and recommended corrective action. Within 90 days of the breach, the program should either be back on track, be rebaselined, or have undergone a program review. The Acquisition Decision Authority (ADA) must assess the breach, direct corrective actions, and approve any revisions to the APB.
TheIntegrated Logistics Support Plan (ILSP) lays out the PM’s plan for ensuring the supportability and sustainability of a system. It describes the approach, schedule, and funding requirements for integrating supportability requirements into the systems engineering process (“designing the system for support”) and for obtaining an integrated systems support package, such as spares, support equipment and technical manuals (“supporting the design).”
ADE-2A marks the end of the Analyze/Select Phase, in which DHS decides which approach will best satisfy the requirement, and the beginning of the Obtain Phase, in which the program management team designs and develops the selected approach into an operational solution.
The purpose of the Obtain Phase is to design, develop, test, and prepare the system for production. Two documents are developed early in the Obtain Phase[1] and approved at Acquisition Decision Event 2B (ADE-2B):
The Test and Evaluation Master Plan (TEMP) formally identifies the tasks and activities required to adequately test and evaluate the entire system. It defines test parameters, identifies resources, and allocates responsibilities for testing the system to ensure that it meets technical performance requirements and will be operationally effective and suitable once it is deployed.
The Systems Engineering Life Cycle (SELC) Project Tailoring Plan documents the development approach for the program and its projects. It describes how the proposed development methodology aligns with the Systems Engineering Life Cycle and the Acquisition Review Process, and it explainswhy that methodology is the best option for successfully completing the project.
During the Obtain Phase, developmental testing and operational assessments/tests are conducted in accordance with test plans, and the results are recorded in T&E Reports. In addition, a series of technical reviews are held, such as the Preliminary Design Review (PDR), to control technical risk as the system evolves.
Acquisition Decision Event 2B (ADE-2B) is the only acquisition event that occurs within a phase of the Acquisition Life Cycle. At ADE-2B, the ADA will approve the TEMP and the SELC Tailoring Plan, along with updated versions of the APB, ILSP, ORD and AP. Prior to ADE-2B, the Acquisition Plan will be expanded to include acquisitions for all of the projects within a program, as well as any service contracts required to support the program.
After ADE-2B, the Obtain Phase continues to support the design, development, integration, and test of the system. Technical reviews are conducted as the system moves from one SELC stage to the next. As the program approaches the end of the Obtain Phase, operational tests are conducted to ensure the system is ready to enter full rate production. In addition, the Acquisition Program Baseline (APB), Integrated Logistics Support Plan (ILSP), and Life Cycle Cost Estimate(LCCE) are updated in preparation for Acquisition Decision Event 3 (ADE-3).
At the end of the Obtain Phase, based on successful testing and production and sustainment reviews, ADE-3 is held. The ADA makes the production decision for the program to advance to the Produce/Deploy/Support Phase, when the system will be produced in quantity, deployed to the field or fleet, and then operated and maintained throughout its useful life.
The key program documents prepared and/or updated in each phase of the Acquisition Life cycle are shown in the figure below.
Key Program Documents and the Acquisition Life Cycle
MNS ORD Update ORD Update ORD
CDP ILSP Update ILSP Update ILSP
Acq Plan Update Acq Plan Update Acq Plan
APB Update APBUpdate LCCE
LCCE Update LCCE
CONOPS SELC Tailoring Plan
AoA or AA TEMP
AA: Alternatives Analysis
Acq Plan: Acquisition Plan
AoA: Analysis of Alternatives
APB: Acquisition Program Baseline
CDP: Capabilities Development Plan
CONOPS: Concept of Operations
ILSP: Integrated Logistics Support Plan
LCCE: Life Cycle Cost Estimate
MNS: Mission Needs Statement
SELC Tailoring Plan: Systems Engineering Life Cycle Tailoring Plan
[1] These documents may be drafted in an earlier phase of the Acquisition Life Cycle.