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Definition
The degree to which the technology proposed for the program has demonstrated sufficient maturity to be realistically capable of meeting all of the program's objectives. Basic risks range from fielding problems caused by introduction of immature technologies to the negative impacts (cost, readiness) of obsolescence over the expected service life of the system.
General/Information/Narrative
It is important to assess the technology risk associated with any program and to identify strategies to reduce this risk. In the Material Solution Analysis phase, an Analysis of Alternatives (AoA) is conducted to identify potential materiel solutions, based on a cost-benefit analysis. These materiel solutions should then undergo an early evaluation of technological maturity, provided sufficient technical information exists to support such an evaluation. This evaluation will identify candidate critical technologies or critical technology areas for each of the potential materiel solutions.
Prior to Milestone B, major defense acquisition programs are required to undergo a Technology Readiness Assessment (TRA). A TRA is a formal, systematic, metrics-based process and accompanying report that assesses the maturity of technologies called Critical Technology Elements (CTEs) to be used in systems. CTEs can be hardware or software. A technology element is “critical” if the system being acquired depends on this technology element to meet operational requirements (within acceptable cost and schedule limits) and if the technology element or its application is either new or novel or in an area that poses major technological risk during detailed design or demonstration.
An Independent Review Team (IRT) of subject matter experts uses Technology Readiness Levels (TRLs) as the metric to assess CTE maturity. The TRL scale ranges from one through nine. The definitions are as follows:
- TRL 1: Basic principles observed and reported
- TRL 2: Technology concept and/or application formulated
- TRL 3: Analytical and experimental critical function and/or characteristic proof of concept
- TRL 4: Component and/or breadboard validation in a laboratory environment
- TRL 5: Component and/or breadboard validation in a relevant environment
- TRL 6: System/subsystem model or prototype demonstration in a relevant environment
- TRL 7: System prototype demonstration in an operational environment
- TRL 8: Actual system completed and qualified through test and demonstration
- TRL 9: Actual system proven through successful mission operations.
Title 10 United States Code (U.S.C.) Section 2366b requires, in part, that the Milestone Decision Authority (MDA) certify that the technology in Major Defense Acquisition Programs (MDAPs), including space MDAPS, has been demonstrated in a relevant environment (TRL 6) before Milestone B approval. The law allows the MDA to waive the certification requirement if it determines that such a requirement would hinder the DoD’s ability to meet critical national security objectives.
Technological risk can be thought of as the chance that a CTE under development will not meet the required TRL in time for the TRA, resulting in a slip in the schedule and extra costs incurred. The intent of risk mitigation planning is to answer the question “What is the program approach for addressing this potential unfavorable consequence?” One or more of these mitigation options may apply:
- Avoiding risk by eliminating the root cause and/or the consequence,
- Controlling the cause or consequence,
- Transferring the risk, and/or
- Assuming the level of risk and continuing on the current program plan.
Risk mitigation planning is the activity that identifies, evaluates, and selects options to set risk at acceptable levels given program constraints and objectives. Risk mitigation planning is intended to enable program success. It includes the specifics of what should be done, when it should be accomplished, who is responsible, and the funding required to implement the risk mitigation plan. The most appropriate program approach is selected from the mitigation options listed above and documented in a risk mitigation plan. The level of detail depends on the program life-cycle phase and the nature of the need to be addressed. However, there must be enough detail to allow a general estimate of the effort required and technological capabilities needed based on system complexity.
Policies, Directives, Regulations, Laws
United States Code § 2366b
DODI 5000.02 Operation of the Defense Acquisition System
Best Practices, Lessons Learned, Stories, Guides, Handbooks, Templates, Example Tools, Communities of Practice, LEC Tools
DoD Technology Readiness Assessment (TRA) Deskbook: http://www.dod.gov/ddre/doc/DoD_TRA_July_2009_Read_Version.pdf
Risk Management Guide for DoD Acquisition: http://www.dau.mil/pubs/gdbks/docs/RMG%206Ed%20Aug06.pdf
Training Resources
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