Major Themes, "#1 Teamwork". After highlighting the importance of cross-functional teams, relatively limited coverage of IPPD (and its importance as an integrating function) and IPT's thereafter in 5000.1/2. (p. 2)
Major Themes, "#5 Commercial Products". Should state emphasized reliance on commercial components, processes, and practices, in addition to products. (p. 3)
Major Themes, "#4 Cost as an Independent Variable". Add the words "and other program characteristics" after "performance requirements".
Key Forums, "The Integrated Product Team (IPT)". Add to first sentence, "balance affordability with performance". (p. 9)
Core Acquisition Management Issues
If section is to be retained, should add the following issues:
"Have obstacles to performance-based acquisition been removed to enable the adoption of business processes characteristics of World Class Suppliers?"
"Is there a requirements management system in place to enable the use of performance specifications and commercial specifications and standards for technical and business matters without imposing the latter as contract requirements.?"
"Has the commercial marketplace been specifically canvassed as the primary solution in whole or in part with other solutions as the alternative?"
"Has the use of the digital data environment been integrated to the extent practicable and affordable?" (p. 5)
Acquiring Quality Products
If not addressed elsewhere in the final document, should add the following bullet:
Requirements Management. Product and process definition and requirements documents shall be selected and applied to meet performance attributes with minimum
government oversight and data in accordance with this priority: statutory documents; nongovernment standards, including company specifications and standards; commercial item descriptions; and DoD or other Federal Agency specifications and standards. The criteria for selection and application shall be technical and economic suitability. Nonproduct ("how-to") documents shall not be imposed on industry. (p. 3)
Paragraph 2.3 Evolutionary Requirements Definition". Should recognize the importance of feature affordability as well as performance. (p. 2)
Paragraph 2.3.1, "Evaluation of Requirements Based on Commercial Market Potential".
Should include the following:
"Researching the potential or actual products and processes of the commercial marketplace to meet system performance objectives is the primary element of building a sound set of requirements; other potential or real solutions to the system performance objectives shall be considered the alternative".
Part 3, Program Structure
Paragraph 3.3.1, "Sources". Should state that an existing or "under development" commercial item should be considered the primary option as a source of supply.
Paragraph 126.96.36.199, "Commercial Items". It should be stated that while few COTS are useable at a system level, numerous commercial components, processes, and practices should have application to DoD systems.
Paragraph 3.3.3, "Cost as an Independent Variable". Add, "If CAIV is to be realized, trade-offs of performance and other program characteristics (e.g., SOW, CDRL, management systems, terms and conditions, et. al.) vs. cost must start in conceptual design and be conducted continuously thereafter". (p. 6)
Paragraph 188.8.131.52, "Cost/Performance Trade-offs". These trade-offs should continue to be iterated at key events and milestones throughout the acquisition cycle. Specifically, as the RFP and other scope definition documents are generated and continuing on through the SRR, SDR, PDR, CDR and testing cycle, the performance-oriented trade-offs will be iterated and expanded to cover all program cost drivers, including Statement of Work tasks, data requirements, management systems and terms and conditions". (p. 6)
Paragraph 184.108.40.206, "Cost Management Incentives". CPAF contracting or a combination of CPAF/CPIF terms will be used as a principal approach to CAIV incentives during program execution with industry. Award Fee Plans will be designed to foster a teamwork-based approach to the cost-benefit tradeoff of performance and other program characteristics.
Paragraph 3.3.4, "Contract Approach". Add, "The acquisition strategy shall discuss the types of contracts contemplated for each succeeding phase, with emphasis on the use of cost type contracts for Phase 0, I and II effort which are specifically structured with incentive, award fee and other terms designed to be compatible with and promote the Cost-As-An-Independent-Variable, cost-benefit tradeoff and other acquisition principles herein. Fixed price type contracts are not to be used for programs employing the above acquisition principles, and shall not in any event be used for contracts involving development effort in excess of $10,000,000".
Paragraph 220.127.116.11, "Competition". Add to end of first paragraph "A balance needs to be struck between the benefits of competition and the objectives of program stability, long-term commercial-type supplier relationships, and respect for intellectual property development". (p. 7)
Part 4, Program Design
Paragraph 4.3, "Systems Engineering". Should state that cost/performance trade-offs are to be continuously performed through the systems engineering design review and testing process and that affordability is to be evaluated equally with systems performance. (p. 2)
No mention of Cost as an Independent Variable as defined in Part 3.
Paragraph 18.104.22.168., "WBS Specifications". A contradiction exists between items #1 and #3. Also, what have items #1, #2, and #3 to do with specifications? (p. 10) We understand that this paragraph is being deleted.
SUGGESTED FOR INCLUSION IN ACQUISITION DESKBOOK
Part 1, Acquisition Management Process
Phase 1: Program Definition and Risk Reduction". Should identify entrance and exit criteria. (p. 4, 5)