DOD 5000.2 PDF

AiDA provides the acquisition community with a digitized and interactive version of DODI to facilitate easier and faster navigation of this policy. Some of the hyperlinked pages provide a more detailed explanation of key acquisition concepts e. Assigns, reinforces, and prescribes procedures for acquisition responsibilities related to cybersecurity in the Defense Acquisition System. Incorporates and cancels Directive-type Memorandum Reference cl. POLICY The overarching management principles and mandatory policies that govern the Defense Acquisition SystemThe Defense Acquisition System is an event-based process where acquisition programs proceed through a series of milestone reviews and other decision points that may authorize entry into a significant new program phase.

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The PM shall be accountable for credible cost, schedule, and performance reporting to the Milestone Decision Authority. The CAEs are responsible for all acquisition functions within their components. The enclosure also includes a range of applicable statutory and regulatory program management policies and responsibilities 2. The responsibility and authority for program management, to include program planning and execution, is vested in these individuals. Staff and other organizations provide support to this chain of command.

CAE Secretaries of the military departments or heads of agencies with the power of redelegation. The PEO will be dedicated to executive management of assigned programs and will not have other command responsibilities. CAEs may determine that a specific program manager will report directly, without being assigned to a PEO, whenever such direct reporting is appropriate due to program size or criticality.

Acquisition program responsibilities for programs not assigned to a PEO or a direct-reporting program manager may be assigned to a commander of a systems, logistics, or materiel command. A program may be transferred from a PEO or direct reporting program manager to a commander of a systems, logistics, or materiel command only after the program or increment of capability has passed Initial Operational Capability and has been approved for Full-Rate Production 1.

The system is produced at rate production and deployed to the field or fleet. The production level contracted for once the production process has been stabilized. Ideally, it would coincide with the Economics Production Rate. A program manager will be designated for each acquisition program A directed, funded effort that provides a new, improved, or continuing materiel, weapon, information system, or service capability in response to an approved need.

Acquisition programs are divided into categories that are established to facilitate decentralized decision making, execution, and compliance with statutory requirements.

This designation will be prior to Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i. Milestones established by DoDI It is essential that program managers be defense acquisition professionals with experience managing relevant engineering development or technology efforts, and who have a deep knowledge of contracting, financial systems, industry perspectives, and user needs.

Waivers should be granted rarely. By law, any Program Manager for an ACAT I or IA program assigned before Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i. B will be assigned at least through Milestone B approval. Program Managers outside of these periods will be assigned for at least 4 years or until the completion of the phase of the program that occurs closest in time to the date on which the person has served in the position for 4 years.

Waivers for these tenure requirements can be granted by the respective CAE if it is determined that either of the above described periods is so long that it would not be appropriate for a single individual to serve as Program Manager for the entire period. CAEs will assist with the collection of data on waivers granted to assist OSD in recognizing status and trends. Early arrival will assist them in monitoring and, where applicable, influencing the plan to be approved at the upcoming milestone review.

Program Managers for the period leading to Milestone B approval will have responsibilities that include: 1 Bringing technologies to maturity and identifying the manufacturing processes that will be needed to carry out the program.

PMA agreements establish achievable and measurable annual plans that are fully resourced and reflect the approved program. Specifically, this agreement will: a Establish expected parameters for the cost, schedule, and performance of the program consistent with the business case for the program. Program Office Structure. For new starts, program managers will establish program offices as soon as possible after their selection. Key leadership positions include the Program Manager and Deputy Program Manager, and the additional positions identified in Reference ay.

Joint Program Office Organization 1 A Joint Program Office will be established when a defense acquisition program A directed, funded effort that provides a new, improved, or continuing materiel, weapon, information system, or service capability in response to an approved need.

The DAE may require a DoD Component to continue some or all funding, as necessary, to sustain the joint program in an efficient manner, despite approving a request to terminate or reduce participation. Management activities will be designed to achieve the cost, schedule 1. Series of things to be done in a specific sequence within a given period of time.

A timetable. A listing of activities and events organized by time. As a minimum, the APB contains the objective and threshold values for major milestones and significant schedule events, KPPs from the approved requirements document, and the LCCE approved for the program. The following tools will be used to facilitate effective program planning and execution.

Summarizes the overall approach to acquiring the capability. The strategy evolves over time and should continuously reflect the current status and desired goals of the program. The Program Manager will develop and execute an approved Acquisition Strategy. It is a comprehensive, integrated plan that identifies the acquisition approach and key framing assumptions, and describes the business, technical, and support strategies that the Program Manager plans to employ to manage program risks and meet program objectives.

The Acquisition Strategy defines the relationship between the acquisition phases and work efforts, and key program events such as decision points and reviews. Acquisition Strategies are baseline plans for the execution of the program and should be prepared and submitted in time to obtain approval to support more detailed planning and the preparation of Request For Proposal A document used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals.

The Acquisition Strategy is an approved plan; it is not a contract. Minor changes to the plan reflected in the Acquisition Strategy due to changed circumstances or increased knowledge are to be expected and do not require MDA pre-approval. Major changes, such as contract type or basic program structure, do require MDA approval prior to implementation.

All changes should be noted and reflected in an update at the next program decision point or milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i. It should fairly allocate risk between industry and the government. The approach will be based on a thorough understanding of the risks associated with the product being acquired and the steps that should be taken to reduce and manage that risk.

The business approach should be based on market analysis that considers market capabilities and limitations. The incentives in any contract strategy should be significant enough to clearly promote desired contractor behavior and outcomes the government values, while also being realistically attainable. When risk is sufficiently reduced, Program Managers will consider the use of fixed-price contracts when the use of such contracts is cost-effective.

The Acquisition Strategy will address how program management will create and sustain a competitive environment, from program inception through sustainment. Program management should use both direct competition at various levels and indirect means to create competitive environments that encourage improved performance and cost control. Selected prototyping may continue after Milestone C, as required, to identify and resolve specific design or manufacturing risks, or in support of evolutionary acquisition.

This also includes providing opportunities for small business and organizations employing the disabled. Program management must establish and maintain an IP Strategy to identify and manage the full spectrum of IP and related issues e. The IP Strategy will describe, at a minimum, how program management will assess program needs for, and acquire competitively whenever possible, the IP deliverables and associated license rights necessary for competitive and affordable acquisition and sustainment over the entire product life cycle, including by integrating, for all systems, the IP planning elements required by subpart Program management is responsible for evaluating and implementing a MOSA to the maximum extent feasible and cost effective.

This approach integrates technical requirements with contracting mechanisms and legal considerations to support a more rapid evolution of capabilities and technologies throughout the product life cycle through the use of architecture modularity, open systems standards, and appropriate business practices. The Acquisition Strategy for the system should identify where, why, and how a MOSA will or will not be used in the program.

Program Baseline Development and Management. The APB see section 4 in Enclosure 1 of this instruction is a summary of the program cost, schedule, and performance baselines, and is the fundamental binding agreement between the MDA, the CAE if applicable , the PEO A military or civilian official assigned program responsibilities for Acquisition Category I and IA and sensitive classified programs, or for any other program determined by the Component Acquisition Executive to require dedicated executive management.

It is normally used in conjunction with cost plus and fixed-price incentive contracts with discrete work scope. The purpose of EVM is to ensure sound planning and resourcing of all tasks required for contract performance.

It promotes an environment where contract execution data is shared between project personnel and government oversight staff and in which emerging problems are identified, pinpointed, and acted upon as early as possible.

EVM provides a disciplined, structured, objective, and quantitative method to integrate technical work scope, cost, and schedule objectives into a single cohesive contract baseline plan called a Performance Measurement Baseline for tracking contract performance. Risk Management 1 The Program Manager is responsible for implementing effective risk management and tracking to include the identification of all known risks, key assumptions, probability of occurrence, consequences of occurrence in terms of cost, schedule, and performance if not mitigated, analysis of mitigation options, decisions about actions to mitigate risk, and execution of those actions.

Risk management is proactive and should be focused on the actions that will be taken and resources that will be allocated to reduce both the likelihood and consequences of risks being realized. Effective risk management is not just risk identification and tracking. Most of program management is about the process of eliminating programmatic risk over the life of the program.

Formal risk management is one tool to accomplish that objective. Top program risks and associated risk mitigation plans will be detailed in the program acquisition strategy and presented at all relevant decision points and milestones.

At a minimum, the Program Manager will consider the following risk management techniques: a Prototyping at the system, subsystem, or component level; and competitive prototyping, where appropriate. However, program managers will develop a Should Cost estimate as a management tool to control and reduce cost.

Program managers should not allow the ICE to become a self-fulfilling prophecy. Should Cost is a management tool designed to proactively target cost reduction and drive productivity improvement into programs.

Should Cost management challenges managers to identify and achieve savings below budgeted most-likely costs. Should Cost analysis can be used during contract negotiations particularly for sole source procurements , and throughout program execution including sustainment. Program managers are to proactively seek out and eliminate low-value-added or unnecessary elements of program cost, to motivate better cost performance wherever possible, and to reward those that succeed in achieving those goals.

Realized Should Cost savings will be retained at the lowest organizational level possible and applied to priority needs. Estimates and results will be provided at milestone reviews and at specified decision points. International Acquisition and Exportability Considerations. Program management will consider the potential demand and likelihood of cooperative development or production, Direct Commercial Sales, or Foreign Military Sales early in the acquisition planning process; and consider U.

Where appropriate, program managers will pursue cooperative opportunities and international involvement throughout the acquisition life cycle to enhance international cooperation and improve interoperability in accordance with DoD Instruction International Cooperative Program Management 1 An international cooperative program ICP is any acquisition program or technology project that includes participation by the U.

When applicable, program staff members are encouraged to use streamlined agreement procedures. All ICPs will consider applicable U. Any foreign military sales or direct commercial sales of major defense equipment prior to successful completion of operational test and evaluation require Under Secretary of Defense for Acquisition, Technology and Logistics approval i.

Details of this requirement are found in paragraph C5. Industrial Base That part of the total private- and government-owned industrial production and depot-level equipment and maintenance capacity in the United States and its territories and possessions and Canada. It is or shall be made available in an emergency for the manufacture of items required by the U. The first gathers program specific industrial base information to create the appropriate acquisition strategy for a program; the second engages throughout the life cycle of the program to provide feedback and updates.

The objective is to ensure that the Department can: 1 Identify and support economic and stable development and Production The process of converting raw materials by fabrication into required material. It includes the functions of production-scheduling, inspection, Quality Control, and related processes. Program management is responsible for incorporating industrial base analysis, to include capacity and capability considerations, into acquisition planning and execution.

Program management provided information is aggregated with other sources of information at CAE Secretaries of the military departments or heads of agencies with the power of redelegation.


DODI 5000.02 Enclosure 2: Program Management

Therefore, no redline text appears in this version of DoDI This instruction: 1. Authorizes Milestone Decision Authorities MDAs to tailor the regulatory requirements and acquisition procedures in this instruction to more efficiently achieve program objectives, consistent with statutory requirements and Reference a. Assigns, reinforces, and prescribes procedures for acquisition responsibilities related to cybersecurity in the Defense Acquisition System. Incorporates and cancels Directive-type Memorandum Reference cl. The overarching management principles and mandatory policies that govern the Defense Acquisition System are described in Reference a. This instruction provides the detailed procedures that guide the operation of the system.


DoDI 5000.02: Operation of the Defense Acquisition System


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