Acquisition of Information Technology Trends Within The Department of Defense

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1 OASD (Networks and Information Integration) Acquisition of Information Technology Trends Within The Department of Defense September 10, 2009 Don Johnson Advisor to the Defense Science Board Task Force Investigating DoD Policies and Procedures in the Acquisition of Information Technology

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3 ASD NII/DoD CIO Organization Secretary of Defense Deputy Secretary of Defense Assistant Secretary of Defense (NII) / DoD Chief Information Officer Defense Information Systems Agency Deputy Assistant Secretaries of Defense (DASD) for: Information Management, Integration and Technology C3ISR & IT Acquisition Command, Control, Communications, Space and Spectrum Information and Identity Assurance Resources Deputy for National Leadership Command Capabilities Five DASD s, One Agency - Driving Net Centric Information Sharing 3

4 ASD(NI)/ DoD CIO Running the Enterprise Title 10 Assistant Secretary of Defense Principal Staff Assistant Titles 10, 40 & 44 Chief Information Officer Advise the Secretary Command and Control Comm & Information Networks Information Assurance RF Spectrum Management Position, Navigation, Timing Non-Intelligence Space Net-Centric Operations Expertise Authorities NII Charter (DoDD May 2, 2005) Section 113, Title 40, U.S.C., (formerly Clinger-Cohen Act of 1996 as amended) Responsibilities and Control Matrix Enable Net-Centric Operations Executive Enterprise-level strategist from the information & IT perspective Enterprise-wide information policy Information Technology architect for the DoD Enterprise DoD-wide information sharing executive Ensure the capability is delivered 4

5 Challenges in the New Strategic Era National Academies sponsored Is America Falling Off the Flat Earth, Norm Augustine, 2007 Nearly 60% of the patents filed with the US Patent and Trademark Office in the field of IT now originate in Asia In Business Week s ranking of the world s IT companies, only 1 of the top 10 is based in the US China has supplanted the US as the world s number 1 hightechnology exporter (in 10 year period US went from $40B in exports to $50B of imports of high tech manufacturing) IT is the essential fuel that will propel the knowledge-based society of the 21st century In the 18th and 19th century we faced a threat where ships crossed the ocean in days..in World War II, aircraft could cross the ocean in hours In the Cold War, missiles could do it in minutes.and now today, cyberattacks can strike in milliseconds. 5

6 Challenges in the New Strategic Era If attacked in milliseconds, we can t take days to organize and coordinate our defenses If our networks to be were to be disrupted or damaged, we d need to respond rapidly, at network speed, before the networks could become compromised and ongoing operations or the lives of our military are threatened In addition to speed, IT resides in a domain where change occurs in small timeframes, both for technology and for the ability of adversaries to procure, adapt, and employ the technologies 6

7 Current Generation of C4I War Fighters Today's leaders & soldiers are digital natives and use IT technologies to their advantage for situational awareness and collaborative, agile decision making Lack of information and services that are visible, accessible and understandable Information silos -- capability needed to move information from one stove-pipe to another Hard-wire interfaces aimed at predetermined needs unresponsive to dynamic environment Continue to not leverage the latest information technology solutions available commercially digital natives trapped in industrial-era institution 7

8 View of DoD s Acquisition Process 2009 FOREIGN AFFAIRS Today s acquisition process is resulting in platforms growing even more baroque The efficacy of the current acquisition process is in question, given the apparent need to bypass existing institutions and procedures To protect U.S. troops on the battlefield to counter improvised explosive devices, build Mine Resistant Ambush Protected (MRAP) vehicles, and quickly expand U.S. ISR capabilities 8

9 Call For Change DoD Leadership Responsible for IT Hon John Grimes (Former ASD(NII)/DoD(CIO) Hardware development processes ill-suited to IT acquisition LTG Charles Croom (Former DISA Commander) I would change the acquisition process in how the DoD buys IT in a New York minute. LTG Jeff Sorenson (Army CIO/G-6) How we can make it better. Policy Acquiring IT not like tanks Defense Acquisition Performance Assessment (3/2006) The current system is focused on programs, not on improving and standardizing the processes of acquisition; it inhibits rather than promotes steady improvement in achieving program success GAO Assessment on Information Technology: DOD s Acquisition Policies and Guidance Need To Incorporate Additional Best Practices And Controls (July/2004) As you know, the way in which DOD has historically acquired information technology (IT) systems has been cited as a root cause of these systems failing to deliver promised capabilities and benefits on time and within budget 9

10 Outline

11 Congressional Direction 2008 National Defense Authorization Act mandating a Defense Science Board (DSB) to Study: DOD policies and procedures for acquiring information technology, to include national security systems, major automated information systems and business information systems, and other information technology Roles and responsibilities in implementing policies and procedures Application of such policies and procedures to information technologies that are an integral part of critical weapons or weapon systems Suitability of DOD acquisition regulations, including DODD , DODI 500.2, and accompanying milestones, to the acquisition of IT systems Adequacy and transparency of metrics used by DOD for acquiring IT systems Adequacy of operational and development test resources (including infrastructure and personnel) 11 11

12 March 2009 DSB on IT Policies & Procedures in Acquisition of IT Panel Co-Chairs Executive Secretary Vince Vitto,* Private Consultant Ron Kerber,* Private Consultant Panel Members Pricilla Guthrie, IDA Paul Hoeper, Private Consultant Paul Kaminski,* Technovation Tony Lengerich, Oracle Noel Longuemare, Private Consultant Mark Maybury, MITRE Richard Roca, JHU APL John Stenbit, Private Consultant Alan Wade, Private Consultant Skip Hawthorne, OUSD(AT&L) Government Advisor Don Johnson, OASD(NII) Military Assistants Karen Walters, OUSD(AT&L) * DSB Members 12

13 Bottom Line Information Technology (IT) is a critical enabler and force multiplier; offers unprecedented interoperability across spectrum of operations Equally critical to embedded and stand alone systems (infrastructure, business, C2, weapon systems) Can offer a significant comparative advantage with its inherent flexibility and agility to respond to changing environments Growing concerns with IT has become a national issue via cyber threats and pipeline of available/skilled workforce Deliberate and cumbersome process through which IT is acquired by DoD today cannot keep pace with: Speed at which new capabilities are being introduced in today s information age Speed with which potential adversaries can produce, adapt, and employ those same capabilities against our national interests DoD is not effectively organized at highest levels to address concerns Need to Fix/Improve IT Acquisition System 13

14 Acquisition Complexity Information technology systems are pervasive through DOD, ranging from administrative systems to weapons their importance is growing Software is a consistent and persistent thread through all DoD system acquisition programs Whereas in 1970, IT accounted for approx 20% of weapon system functionality, by 2000 it accounted for as much as 80% Today it is reported IT can deliver 90% or more of functionality Rapidly growing software code base, e.g., Navy DDG M LOC, 36% > Aegis 7.1R baseline FA18 is 10M LOC going to 20M in JSF COTS OS growing to 100M LOC Embedded weapon systems (such as, handheld grenade launcher with smart projectiles guided by 2,000 lines of code) Increased interconnectivity (e.g., GIG, coalitions) Lines of Code (M)

15 Available Skilled Workforce Declining U.S. software pipe line Increased gap in supply/demand Globalization and off shoring* worsen situation Low skill/experience results in expensive rework (GAO Report - 40% rework)

16 U.S. National Security Apparatus Requires Significant Reforms to Meet the Challenges of a New Strategic Era (Cont) Stove Pipes Ope Middleware Open Services 1970 / 1980 Stove piped systems 1990 / 2000 Middleware glued to mission applications Today Service-oriented architecture (SOA) Shared CBM applications Tool and services Future Middleware SOA Infrastructure Operating System Network/Servers Infrastructure Commercial Infrastructure and Standards Acquisition Paradigms & Existing Business Models Ill-Suited

17 Today s Acquisition Cycle Time Planning Phase Milestone B Build Phase Initial Operational Capability Analysis of Alternatives Economic Analysis Development MS C Test 5 Long Cycle-Time Driven by Processes Developed to Counter a Cold War Adversary In Industrial Age Society *Metrics calculated by OASD(NII) on 32 Major Automated Information Systems (MAIS) 17

18 As Is: Acquisition Process The Materiel Development Decision precedes entry into any phase of the acquisition management system User Needs Technology Opportunities & Resources Entrance criteria met before entering phase Evolutionary Acquisition or Single Step to Full Capability A B (Program Initiation) C IOC FOC Materiel Solution Analysis Technology Development Engineering and Manufacturing Development Production & Deployment Operations & Support Materiel Development Decision Post- PDR A Post- CDR A LRIP/IOT&E FRP Decision Review Pre-Systems Acquisition Systems Acquisition Sustainment = Decision Point = Milestone Review = Decision Point if PDR is not conducted before Milestone B Big Bang Approach Equally Applied to IT and Major Hardware Acquisitions 18

19 New IT Acquisition Process ICD Materiel Design Decision Business Case Analysis and Development Architectural Development and Risk Reduction Prototypes Coordinated DOD stakeholder involvement Up to 2 years Milestone Build Decision CDD RELEASE 1 Development & Demonstration Iteration1 Iteration 2 Iteration N Integrated DT / OT 6 to 18 months Fielding RELEASE 2 Prototypes Development & Demonstration Iteration 1 Iteration 2 Iteration 3 Fielding ICD Initial Capability Document CDD Capabilities Development Document Decision Point RELEASE N Prototypes Development & Demonstration Iteration 1 Iteration 2 Iteration 3 Fielding Continuous Technology/Requirements Development & Maturation Requirement Documents established by streamlined Joint Staff validation process Acquisition baseline for N releases established at milestone build decision All releases fully funded at milestone build decision Release N+1 restarts entire process 19

20 Imperatives of a New IT Acquisition Model Effective & Value-add Governance Community of Interest (COI) Concept Upfront System Architecture and System Engineering Technical Peer Relationship With Contractor Iterative Requirements Prioritization Small, Time-Definite Increments Modern IT Practices Agile, Scrum, Test Driven Development, Model Driven Development, 20

21 Authority 2010 NDAA Policy Section 804 Demonstration Authority For Alternative Acquisition Process For Defense Information Technology May designate up to 10 IT programs annually to be included in a demonstration of an alternate acquisition process for rapidly acquiring IT capabilities Procedures SECDEF should establish procedures for the exercise of authority including processes for measuring effectiveness of an alternative acquisition processes SECDEF should notify Congressional Defense Committees of those procedures before any exercise of that authority Annual Reports By March 1st of each year beginning in March 1, 2010 and ending on March 1, 2016, the SECDEF shall submit to the Congressional defense committees a report on

22 Implementation Strategy Overview Policy, Procedure, Guidance Development Governance Structure Selecting & Executing Pilot Projects Characteristics of Pilots Changes to Acquisition Strategy and Source Selection Process Select & Define IT Platforms Define Initial Test & Integration Capability Change Management, Communications, and Awareness Reporting and Metrics

23 Detailed Guidance IT Services COTS Integration Custom Development SOA Applications Legacy IT 23

24 Way Ahead Objectives What is the Congress & Warfighter demanding of IT SPEED -- Dramatically reduced cycle times AGILITY -- Ability to accommodate changing requirements, evolving operational environment and new opportunities TRANSPARENCY -- Visibility & data needed to evolve the solution and build confidence EFFICIENCY -- Maximize the value per dollar invested by eliminating unproductive acquisition activities and management 24