DEPARTMENT OF THE NAVY HEADQUARTERS UNITED STATES MARINE CORPS 3000 MARINE CORPS PENTAGON WASHINGTON DC 20350-3000 Canc: Jan 2018 MCBul 3900 CD&I (CDD) MARINE CORPS BULLETIN 3900 From: Commandant of the Marine Corps To: Distribution List Subj: IMPLEMENTATION AND EXECUTION OF CAPABILITY PORTFOLIO MANAGEMENT Ref: (a) MROC DM 07-2013 (NOTAL) (b) MARADMIN 036/13 (c) MROC DM 13-2015 (NOTAL) (d) DoD Directive 7045.20, Capability Portfolio Management, September 25, 2008 (e) CJCSI 3170.01H, Joint Capabilities Integration and Development System, January 10, 2012 (f) Joint Capability Areas, April 8, 2011 (g) DoD Directive 7045.14, The Planning, Programming, Budgeting, and Execution (PPBE) Process, January 25, 2013 (h) MROC DM 04-2013 (NOTAL) (i) MCO 5230.20 (j) MARADMIN 329/12 (k) SECNAVINST 5000.36A (l) SECNAV M-5210.1 (m) SECNAVINST 5211.5E 1. Purpose. This Bulletin provides direction and guidance regarding implementation and execution of Capability Portfolio Management (CPM). 2. Background a. Reference (a) is the Marine Requirements Oversight Council (MROC) Decision Memorandum (DM) on capability portfolio review methodology. Reference (b) reports the results of the Assistant Commandant of the Marine Corps directed Green Team Study, and directs the Deputy Commandant for Combat Development and Integration (DC CD&I) to develop an implementation plan for CPM. Reference (c) is the MROC DM approving this CPM implementation and execution policy. Reference (d) is the DoD directive on CPM. Reference (e) is the Joint Capabilities Integration and Development System (JCIDS) instruction. Reference (f) is the Joint Capability Area (JCA) taxonomy and definitions. Reference (g) is the DoD directive on PPBE. Reference (h) is the MROC DM for the Program Objective Memorandum (POM)-15 Marine Corps Enterprise Integration Plan (MCEIP), which directs DC CD&I to publish the Marine Corps Force Development System (MCFDS) Order. Reference (i) is the Marine Corps Order for Marine Corps Enterprise Architecture, which describes the purpose and governance structure for development of the enterprise architecture. Reference (j) is MARADMIN 329/12, which assigns Deputy Commandant for Installations and Logistics (DC I&L) as the Marine Corps Enterprise Ground Equipment Manager (EGEM). DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited.
b. References (a) and (b) resulted from the four-month Green Team Study to review and assess the Marine Corps processes for requirements determination, acquisition, resourcing, and sustainment of ground equipment. The study was conducted to provide senior leaders recommendations to improve the effectiveness of program prioritization and resource allocation, and to implement more timely and effective program oversight decisions. During the course of the study, CPM emerged as the preferred approach to achieve the stated goals. The Green Team developed a framework for CPM that included four core components: focusing DC CD&I along JCAs; aligning advocates and proponents to capability portfolios vice individual programs in the early stages of planning; establishing a Capability Portfolio Review Board (CPRB); and designing an enhanced MCEIP, chapter 8. References (a) and (b) assigned DC CD&I as the lead for CPM, and directed that DC CD&I more fully develop the CPM concept and provide an implementation plan and plan of action and milestones (POA&M) for MROC approval. In accordance with references (a) and (b), DC CD&I led an Integrated Process Team (IPT) and designed the implementation plan for CPM. 3. Definitions. The CPM IPT derived the following definitions using references (b), (d), (e), (f), and (g). Some definitions have been modified to better support use in Marine Corps CPM and force development processes. a. Capability Portfolio Management. The process of integrating capability development activities while managing existing capabilities in order to optimize resources, inform investment planning, and promote crossportfolio Doctrine, Organization, Training, Materiel, Leadership and Education, Personnel, Facilities, and Policy (DOTMLPF-P) decision-making. b. Capability. The ability to achieve a desired effect by performing a set of tasks, under specified standards and conditions, through combinations of ways and means. c. Capability Area. Collections of like capabilities functionally grouped to support capability analysis, strategy development, investment decision-making, capability portfolio management, and capabilities-based force development and operational planning. The JCA taxonomy provides a common framework and lexicon for organization of DoD capability portfolios. d. Capability Requirement. A capability required to meet an organization s roles, functions, and missions in current or future operations. e. Capability Solution. A materiel solution or non-materiel solution to satisfy one or more capability requirements (or needs) and reduce or eliminate one or more capability gaps. f. Capabilities Development. Identifying, assessing, validating, and prioritizing Marine Corps capability requirements, gaps, and solutions; identifying areas to accept or reduce risk (across the enterprise); and performing follow-on actions that attain the selected and resourced set of materiel and non-materiel capability solutions. Capabilities development comprises both capabilities planning and solution development (both described in paragraph 5a). g. Monitor. The ability to adequately observe and assess events or the effects of a decision, and report assessment results for use in follow-on planning and decision-making. 2
h. Solution Developer. An organization that develops materiel and/or non-materiel capability solutions, including those that develop doctrinal or policy changes associated with one or more capabilities. 4. Intent. CPM is a management approach that focuses all Marine Corps capabilities development activities on attainment of CMC strategic goals. CPM also facilitates effective application of limited resources in order to create and maintain the most effective and suitable force possible. CPM implementation will establish management and governance processes for capabilities development, and will provide mechanisms through which capability portfolio managers will inform, influence, and monitor programming, budgeting, and execution activities. 5. Execution. DC CD&I will lead implementation and execution of CPM to include establishing a governance structure, appointing capability portfolio managers, establishing CPM Working Groups (CPM-WG), and establishing a crossportfolio integration and decision-support mechanism for capabilities planning. The functional approach and organizational concept outlined below represent the initial conceptual framework for CPM implementation and execution. While many of the activities, roles, and responsibilities described will be implemented during the year this Bulletin is in effect, it is expected that some activities will not be fully implemented until the second or third year of CPM execution. In some cases challenges and opportunities may necessitate changes to the framework presented. Lessons learned and modifications to the initial implementation plan will be incorporated in an update to this Bulletin and follow-on force development directives. a. Functional Approach. The CPM approach includes roles in four major institutional processes: planning, resourcing, solution development, and performance measurement and assessment. These processes are not necessarily linear in practice and can be accomplished simultaneously or sequentially. (1) Planning. Led by DC CD&I, planning is the first component of the Marine Corps PPBE process. Planning is divided into two parts: strategic planning, and capabilities planning. Strategic planning produces service guidance for force development and the Marine Corps Service Campaign Plan (MCSCP), produced by the Deputy Commandant for Plans, Policies, and Operations (DC PP&O). Expeditionary Force 21, produced by the DC CD&I, describes the 10-year future objective Marine Corps, and the MCSCP will provide intermediate objectives to achieve that 10-year objective. In capabilities planning, the Authorized Strength Report (ASR) is produced by DC CD&I in the Total Force Structure Process, and the MCEIP is produced by DC CD&I in the Marine Corps Capabilities-Based Assessment (CBA) process. The MCEIP is a capabilities-based and resource informed plan generated annually to inform and guide resourcing and solution development processes. The MCEIP will summarize the results of analysis conducted during the planning phase of PPBE, and will describe implementation actions to achieve the MCSCP intermediate objectives. The MCEIP is informed by the ASR, and includes the Marine Corps Capabilities List (MCCL), the Marine Corps Gap List (MCGL), the Marine Corps Solutions Development Directive (MCSDD) and other content. In accordance with reference (b), MCEIP chapter 8, the Marine Corps Cababilities Investment Plan (MCCIP) will describe the approach for moving from the current state to the 10-year objective, within the framework provided by the MCSCP. Capability portfolio managers, assisted by CPM-WGs, are responsible for developing proposed MCEIP content for their assigned capability areas, to include areas to accept or reduce risk within their portfolios. Capability portfolio manager inputs are then integrated by Capabilities Development 3
Directorate (CDD) (MAGTF Integration Division) and the Capability Portfolio Integration Board (CPIB). This integration includes determination of areas to accept or reduce risk across the enterprise, relative to all capability portfolios. The MCEIP is validated by DC CD&I and approved by the MROC. Per reference (h), policy for planning will be promulgated in a Marine Corps force development order. (2) Resourcing. As defined by reference (g), resourcing includes the Programming, Budgeting, and Execution components of PPBE. Resourcing is led by the Deputy Commandant for Programs and Resources (DC P&R), and is informed and guided by the MCEIP. Capability portfolio managers will monitor resourcing activities and provide support as required. Additionally, Director CDD, as the CPIB chair, will provide recommendations to DC CD&I to inform his participation in the DC P&R year of execution reinvestment process. (3) Solution Development. Development of a capability solution begins after a materiel or non-materiel solution strategy is approved during capabilities planning, and sufficient resources have been allocated to begin development. The term Solution Development is often confused with Solutions Analysis, the phase of the Marine Corps CBA in which solution strategies, or plans for solution development, are made during capabilities planning. Solution development is the development of the capability solution in accordance with the approved solution strategy. Capability portfolio managers, in coordination with their CPM-WG, are responsible for identifying actions required for solution development (in accordance with policies and procedures for each DOTMLPF-P element) and documenting them in the SDD during planning (Solutions Analysis). The SDD, included in the annual MCEIP, which is approved by the MROC and updated quarterly by the CPIB, provides official tasking to solution developers (but does not replace JCIDS or service approved materiel requirements documents) and visibility of planned or ongoing solution development efforts to decision-makers. Capability portfolio managers will monitor and support ongoing solution development activities to ensure solution implementation and gap closure. (4) Performance Measurement and Assessment. Performance measurement and assessment provides information about the current state of Marine Corps capabilities. This information is used to inform decision-making during the planning and resourcing processes. Some current enterprise processes that provide this function are readiness reporting, Marine Corps Strategic Health Assessment (MCSHA), Marine Corps enterprise architecture, and the Marine Corps Lessons Learned Program. Capability portfolio managers, assisted by CDD s knowledge management and decision-support capability, will leverage these and other data sources to assess the current state of the Marine Corps during capabilities planning. b. Organizational Concept (1) Capability Portfolio Review Board (CPRB). The CPRB is the senior executive coordinating authority for capabilities development and CPM matters. It is co-chaired by Director, CDD and ADC, P&R (Programs). Its voting membership replicates the structure of the MROC Review Board. CPRB non-voting member organizations are: Training and Education Command (TECOM); Marine Corps Systems Command (MCSC); Marine Corps Logistics Command (LOGCOM); Marine Corps Forces Cyberspace (MARFORCYBER); Marine Corps Installations Command (MCICOM); Program Analysis and Evaluation (PA&E); Intelligence 4
Department; and Command, Control, Communications, and Computers Department. The CPRB will carry out the following responsibilities: (a) Monitoring the conduct of force structure review projects to ensure that the planning assumptions used are consistent with CMC strategic goals, and reporting observations and assessment results to DC CD&I. (b) Assessing Marine Corps CBA products and processes, providing recommendations to DC CD&I for adjudication of unresolved issues regarding the MCCL, MCGL, MCSDD, or the MCCIP. (c) Reviewing all requirements documents, to include results of CBAs conducted outside the Marine Corps CBA process. (d) Reviewing CPIB assessments of MCEIP implementation and, as appropriate, reporting to DC CD&I proposed modifications to resourcing or solution development actions. (2) Capability Portfolio Integration Board (CPIB). The CPIB is an O- 6 level body chaired by the Director, CDD. It will replace the Capabilities Development Integration Board (CDIB), assuming all CDIB responsibilities, including review of solution recommendations for urgent and deliberate needs. CPIB voting membership includes O-6 level representatives of the voting members of the CPRB. CPIB non-voting members are: O-6 level representatives of TECOM, MCSC, LOGCOM, MARFORCYBER, MCICOM, PA&E, Intelligence Department, C4 Department, Futures Directorate, Seabasing Integration Division, and all nine capability portfolio managers. CPIB responsibilities include: (a) Assuming all duties and responsibilities of the CDIB, to include reviewing all universal need statements. (b) Serving as the O-6 level voting body for Marine Corps force development actions. (c) Reviewing all requirements documents, to include all CBAs and all JCIDS-compliant capabilities documents, prior to their submission to the CPRB. (d) Monitoring the conduct of CPM activities and providing change recommendations to DC CD&I. (3) Capability Portfolio Management Working Groups (CPM-WG). CPM-WGs will support and advise capability portfolio managers as they execute their responsibilities in capabilities planning and monitoring of resourcing and solution development activities. A CPM-WG will be established for each tier I JCA, as listed below. CPM-WGs will include subject matter experts representing the MARFORS, advocates, proponents, Information Technology (IT) functional area managers, solution developers, and external stakeholders as required. (4) Capability Portfolio Managers. DC CD&I will assign primary responsibility for each tier I JCA to an Integration Division (ID) director within CDD as described below. By exception, Director CDD may direct that some tier II or III capability areas be managed by a different capability portfolio manager for better portfolio alignment. (a) Total Force Structure Division: JCA 1 Force Support. 5
(b) Intelligence ID: JCA 2 Battlespace Awareness. (c) Fires and Maneuver ID: JCA 3 Force Application. (d) Logistics ID: JCA 4 Logistics. (e) Command, Control, Cyber, and Electronic Warfare ID: JCA 5 Command and Control; JCA 6 Net-Centric. (f) Force Protection ID: JCA 7 Protection. (g) Irregular Warfare ID: JCA 8 Building Partnerships. (h) MAGTF ID: JCA 9 Corporate Management and Support. (5) Capability portfolio managers roles within their designated capability areas include, but are not limited to: (a) Lead their respective CPM-WG. (b) In support of capabilities planning: 1. Conduct capabilities analysis, ensuring alignment to concepts, designated defense planning scenarios, concepts of operation (CONOPS), and other guidance provided by Director, CDD. This task includes guiding CPM-WG members in identification of capability requirements specific to the organizations and functions they represent, and then refining and integrating these requirements (to include universal needs) in support of updating the MCCL. 2. Conduct Gap Analysis. This task includes guiding CPM-WG members in the review and refinement of previously identified gaps, and identification of new capability gaps and unnecessary redundancies (based on the revised MCCL and universal need statements that have not been previously incorporated) in support of updating the MCGL. 3. Conduct Solutions Analysis. This task includes reviewing and updating solution strategies from the previous year and, in coordination with CPM-WG members, developing solution strategies as required for newly identified and validated gaps. This task also includes determining the feasibility and estimated cost of proposed solutions, and documenting specific actions necessary to implement solution strategies for designated priority capability gaps within the portfolio. 4. Conduct Risk Analysis. In coordination with CPM-WG, set investment priorities within assigned capability areas in support of MCCIP development. 5. Assist the CPIB with cross-portfolio integration during review and validation of the MCEIP, prior to its submission for MROC approval. 6. Provide input to their respective segment of the Marine Corps enterprise architecture in support of policy set forth in reference (i). 7. Coordinate additional functional (within portfolio) CBAs for capability refinement as required. 6
(c) In support of resourcing processes: 1. Develop responses to DC P&R requests for clarification. 2. Support the CPIB in resolving MCEIP issues. 3. Monitor portfolio reinvestment needs and provide recommendations to the CPIB. 4. Participate (in a non-voting status, or as designated by process owner) in Program Evaluation Board (PEB) and POM (Program Objective Memorandum) Working Group (PWG) meetings. 5. Monitor resourcing actions within portfolio in coordination with CPM-WG, advise appropriate PEB chair(s), and report relevant findings to the CPIB. (d) In support of solution development, initiate approved and funded capability solutions (across DOTMLPF-P) in coordination with solution developers, and support and monitor solution development activities for identified capability gaps within the portfolio. (e) Support annual MCSHA and maintenance of the Performance Management Framework. (6) Cross Portfolio Integration. CDD will establish a crossportfolio integration mechanism to assist capability portfolio managers and the CPIB, and to ensure alignment of capability portfolios to strategic guidance. This cross-portfolio integration mechanism will provide knowledge management and operations functions to facilitate the following: improved management of capabilities data; visibility of cross-portfolio capability interdependencies that require CPM coordination and integration; application of data analytics and visualization technologies to support decision-making; requirements transition; and visibility and tracking of solution development efforts. 6. Tasks a. Deputy Commandant for Combat Development and Integration (DC CD&I) (1) Serve as the capability portfolio integrator, and the supported deputy commandant, responsible for CPM across the Marine Corps. (2) Charter the nine CPM-WGs. (3) Establish a cross-portfolio integration capability, to include knowledge management and decision-support for capability portfolio managers, CPM-WGs, and the CPIB in the execution of their CPM and capability portfolio integration roles. (4) Develop and maintain the Expeditionary Force 21 Capstone Concept. (5) Develop and validate the MCEIP using the CPM organizational and governance structures described in this MCBUL. (6) Develop draft policy for CPM to capture needed changes based on CPM implementation and execution. 7
(7) Review and validate all enterprise materiel solution requirements prior to their submission to the MROC, and prior to action by materiel developers in accordance with the MCSC Requirements Transition Process (RTP). Include affordability analyses at the enterprise portfolio and individual program level in the validation process. (8) Ensure that any force development-related products issued by your Blue in Support of Green (BISOG) products, are consistent with the guidance provided in the MCEIP. (9) As an advocate, provide guidance to proponents on their roles and responsibilities with regard to participation in CPM. b. Deputy Commandant for Programs and Resources (DC P&R) (1) Incorporate the MCEIP into the programming process. (2) Review and consider DC CD&I recommendations during the year of execution re-investment decision-making process. (3) Provide subject matter experts to participate in CPM-WGs and (4) Provide CPM-WG, CPIB, and CPRB members, and support MCEIP development and other CPM responsibilities in capability areas 9.2 and 9.5, which include PPBE-related capabilities. (5) Ensure that any force development-related products issued by your concept (Expeditionary Force 21). To the extent possible, ensure that resourcing actions undertaken by your organization or subject to your authority are consistent with the guidance provided in the MCEIP. It is understood that statutory authority, established policy, and sound budget and financial management practices originating at the service headquarters or above (DON, OSD, OMB, Congress, GAO, etc.) might require deviations from the MCEIP during the programming, budgeting and execution processes. c. Deputy Commandant for Aviation (DC AVN) (1) Provide subject matter experts to participate in CPM-WGs and (2) Participate in CPM implementation, and provide sufficient (3) Ensure that any force development-related products issued by your (4) As an advocate, provide guidance to proponents on their roles and responsibilities with regard to participation in CPM. 8
d. Deputy Commandant for Installations and Logistics (DC I&L) (1) As the EGEM (per reference (j)), provide positions on ground equipment management and sustainment to the CPM organizational and governance structures during MCEIP development and throughout resourcing processes. (2) Align the tiered EGEM governance structure to develop and provide input to CPMs, and the CPIB, in order to support ground equipment capabilities planning and solution development decisions. (3) Provide accurate and consistent ground equipment ownership cost information to support capabilities planning and resourcing decisions. (4) Conduct ground equipment cost and performance analyses in support of enterprise performance measurement and assessment. (5) Assess the role of the EGEM within the CPM construct. (6) Provide subject matter experts to participate in CPM-WGs and (7) Participate in CPM implementation and provide sufficient (8) Ensure that any force development-related products issued by your (9) As an advocate, provide guidance to proponents on their roles and responsibilities with regard to participation in CPM. e. Deputy Commandant for Plans, Policies, and Operations (DC PP&O) (1) Provide the MCSCP, informed by Expeditionary Force 21, to deliver service intermediate objectives that support MCEIP development. (2) Provide subject matter experts to participate in CPM-WGs and (3) Participate in CPM implementation, and provide sufficient (4) Ensure that any force development-related products issued by your (5) As an advocate, provide guidance to proponents on their roles and responsibilities with regard to participation in CPM. f. Deputy Commandant for Manpower and Reserve Affairs (DC M&RA) 9
(1) Provide subject matter experts to participate in CPM-WGs and (2) Participate in CPM implementation and provide sufficient (3) Ensure that any force development-related products issued by your (4) As an advocate, provide guidance to proponents on their roles and responsibilities with regard to participation in CPM. g. Commanding General, Marine Corps Combat Development Command (CG MCCDC) (1) Provide advice to capability portfolio managers, the CPIB and CPRB on enterprise training and education, as well as value and risk assessments of training and education initiatives. (2) Provide subject matter experts to participate in CPM-WGs and (3) Participate in CPM implementation and provide sufficient (4) Ensure that any force development-related products issued by your h. Counsel to CMC. Participate in the CPM process by providing legal input to capability portfolio managers, CPIB, CPRB, and others as needed. i. Director, Intelligence Department (1) Provide subject matter experts to participate in CPM-WGs and (2) Participate in CPM implementation and provide sufficient (3) Ensure that any force development-related products issued by your j. Director, Command, Control, Communications, and Computers Department (1) Provide advice to capability portfolio managers and the CPIB on enterprise-wide IT execution and investment strategies; IT investment opportunities; value and risk assessments of IT initiatives; development of IT and information resource management requirements; technical oversight and reporting requirements in accordance with reference (k); IT standardization, 10
security, and economies through capital planning; and compliance with Deputy Department of the Navy Chief Information Officer (Marine Corps) (DDCIO (MC)) goals and objectives, the enterprise architecture, and laws, regulations, policies and standards pertaining to IT. (2) Provide subject matter experts to participate in CPM-WGs and (3) Participate in CPM implementation and provide sufficient (4) Ensure that any force development-related products issued by your k. Commander, Marine Corps Systems Command (MCSC) (1) Develop, maintain, and promulgate policy for the MCSC RTP and affordability initiatives. (2) Accept only those materiel development requirements that have been approved or endorsed by DC CD&I. (3) Provide subject matter experts to participate in CPM-WGs and (4) Participate in CPM implementation and provide sufficient (5) Ensure that any force development-related products issued by your l. Commander, Marine Forces Command; Commander, Marine Forces Pacific; Commander, Marine Forces Central Command; Commander, Marine Forces Reserve; Commander, MARFORSOC; Commander, MARFORCYBER. (1) Provide subject matter experts to participate in CPM-WGs and (2) Participate in CPM implementation and provide sufficient (3) Ensure that any force development-related products issued by your 7. Administration and Logistics a. Records created as a result of this Bulletin shall be managed according to National Archives and Records Administration approved dispositions per reference (l) to ensure proper maintenance, use, accessibility and preservation, regardless of format or medium. 11
b. The generation, collection, or distribution of Personally Identifiable Information (PII), and management of privacy sensitive information shall be in accordance with the Privacy Act of 1974, as amended, per reference (m). Any unauthorized review, use, disclosure, or distribution is prohibited. 8. Reserve Applicability. This Bulletin is applicable to the Marine Corps Total Force. DISTRIBUTION: PCN 10203570000 G. M. WALTERS Assistant Commandant of the Marine Corps 12