Para 2.3 Program
The acquisition strategy shall specifically address
the benefits and risks associated with
reducing lead-time through concurrency and the risk mitigation and tests planned if concurrent
development is used.
Para 2.5 Risk
The acquisition strategy shall address risk management. The PM shall identify the risk areas of the program and integrate risk management within overall program management.
The strategy shall explain how the risk
management effort shall reduce system-level risk to acceptable levels by the interim progress
review preceding system demonstration and by Milestone C.
Para 2.6.2 Information Sharing and DoD
DoD oversight activities (i.e., contract management offices, contracting
offices, technical activities, and program management offices) shall consider
all relevant and credible information that might mitigate risk
and reduce the need for DoD oversight before defining and applying direct DoD
oversight of contractor operations.
Para 2.6.6 Tailoring and Streamlining
Acquisition strategies shall incorporate a
performance-based business environment (PBBE) to enable government customers and
contractor suppliers to jointly capitalize on commercial process efficiencies to
improve acquisition and sustainment processes. The PM shall structure the PBBE
to accomplish the following:...
(5) Encourage life cycle risk management versus risk avoidance;
(6) Simplify acquisition and support operating methods
by transferring tasks to industry where cost effective, risk-acceptable, commercial capabilities exist;
Para 2.8 Support
As part of the acquisition strategy, the PM shall
develop and document a support strategy for life-cycle sustainment and
continuous improvement of product affordability, reliability, and
supportability, while sustaining readiness.... The support strategy shall
continue to evolve toward greater detail, so that by Milestone C, it contains
sufficient detail to define how the program will address the support and
fielding requirements that meet readiness and performance objectives, lower TOC,
reduce risks and avoid harm to the
environment and human health. The support strategy shall address all applicable
support requirements to include, but not be limited to, the following
Para 22.214.171.124 Supply Source of
The PM shall use a competitive process to select the best value supply
support provider. Access to multiple sources of supply is encouraged to reduce
the risks associated with a single source.
Para 2.8.4 Environment, Safety, and
Occupational Health (ESOH) Considerations
As part of risk reduction, the PM shall prevent ESOH
hazards, where possible, and shall manage ESOH hazards where they cannot be
avoided. The support strategy shall contain a summary of the Programmatic ESOH
Evaluation (PESHE) document, including ESOH risks, a strategy for integrating ESOH
considerations into the systems engineering process, identification of ESOH
responsibilities, and a method for tracking progress (see 5.2.10
Para 2.8.7 Post Deployment
The PM shall select the parameters for evaluations based on their
relevance to future modifications or evolutionary block upgrades for
performance, sustainability, and affordability improvements, or when there is a
high level of risk that a KPP will not be sustained over the
life of the system.
Para 126.96.36.199.2 Sub-Tier
During early exchanges of information with industry (e.g., the draft
request for proposal process), PMs shall identify the critical product and
technology areas that the primes plan to provide internally or through exclusive
teaming. The PM shall assess the possible competitive effects of these choices.
The PM shall take action to mitigate areas of risk.
Para 188.8.131.52.2 Commercial and Non-Developmental
If acquiring products with closed interfaces, the PM
shall conduct a business case analysis to justify acceptance of the associated
economic impacts on TOC and risks to
technology insertion and maturation over the service life of the system.
Para 184.108.40.206.4 Industrial
The acquisition strategy shall summarize an analysis
of the industrial base capability to design, develop, produce, support, and, if
appropriate, restart the program (10 USC 2440) as
appropriate for the next program phase. This analysis (see DoDD 5000.60 and DoD 5000.60-H)
shall identify DoD investments needed to create or enhance certain
industrial capabilities, and the risk of
industry being unable to provide program design or manufacturing capabilities at
planned cost and schedule.... In many cases, commercial demand now sustains the
national and international technology and industrial base. The PM shall
structure the acquisition strategy to promote sufficient program stability to
encourage industry to invest, plan, and bear risks.
Para 220.127.116.11 Contract Type
For each major contract, the acquisition strategy
shall identify the type of contract planned (e.g., firm fixed-price (FFP); fixed
price incentive, firm target; cost plus incentive fee; or cost plus award fee)
and the reasons it is suitable, including considerations of risk assessment and reasonable risk-sharing by the Government and the
Para 18.104.22.168 Integrated Baseline Reviews
PMs and their technical staffs or IPTs shall evaluate contract performance
risks inherent in the contractor's planning baseline. This
evaluation shall be initiated within 6 months after contract award or
intra-government agreement is reached for all contracts requiring EVMS or C/SSR
compliance. PMs shall include IBR planning and results in their
risk management plans.
Para 22.214.171.124 Warranties
The PM shall examine the value of warranties on major systems and pursue
them when appropriate and cost-effective. If appropriate, the PM shall
incorporate warranty requirements into major systems contracts in accordance
with FAR Subpart 46.7. The PM shall emphasize the use of warranties to
mitigate the risks of conversion of product definition data for
sub-systems, components, and spares to performance requirements during
Para 126.96.36.199 Component
The PM shall consider component breakout on every program and break out
components when there are significant cost savings (inclusive of Government
administrative costs), the technical or schedule risk of
furnishing government items to the prime contractor is manageable, and there are
no other overriding Government interests (e.g., industrial capability
considerations or dependence on contractor logistics support).