Acquisition Program Baseline 2
Definition
Baseline that reflects the threshold and objective values for the minimum number of cost, schedule, and performance attributes (called "key performance parameters") that describe the program over its life cycle. Cost values reflect the life cycle cost estimate; scheduled dates include key activities such as milestones and the Initial Operational Capability (IOC), and performance attributes reflect the operational performance required for the fielded system. The Key System Attributes (KSAs) that support the Sustainment KPP are also reflected in the APB. See Key Performance Parameters (KPPs), Key System Attributes (KSAs), and Initial Operational Capability (IOC).
General/Information/Narrative
Defense Acquisition Guidebook, Chapter 2, Section 2.1.1. The Acquisition Program Baseline (APB) - DoD Instruction 5000.02 requires every program manager to propose and document program goals prior to, and for approval at, program initiation for all Acquisition Category (ACAT) programs. The APB satisfies the requirements in 10 USC 2435 and 10 USC 2220 for ACAT I Programs. The APB is an important document for program management and should reflect the approved program being executed.
Program goals consist of an objective value and a threshold value for each Key Performance Parameter (KPP)/Key System Attribute (KSA) parameter. Cost, schedule and performance are intrinsically linked and the threshold and objective values of all program goals should be developed with these relationships in mind. The program manager (PM) is responsible for managing the trade space between program goals within the bounds of cost, schedule and performance.
Objective values represent the desired operational goal associated with a performance attribute beyond which any gain in utility does not warrant additional expenditure. Generally, the objective value is an operationally significant increment above the threshold. An objective value may be the same as the threshold when an operationally significant increment above the threshold is not useful.
Thresholds represent the minimum acceptable operational value below which the utility of the system becomes questionable. For performance, a threshold represents either a minimum or maximum acceptable value, while for schedule and cost parameters, thresholds would normally represent maximum allowable values. The failure to attain program thresholds may degrade system performance, delay the program (possibly impacting related programs or systems), or make the program too costly. The failure to attain program thresholds, therefore, places the overall affordability of the program and/or the capability provided by the system into question.
As noted above, each APB parameter must have both an objective and a threshold. For each performance parameter, if no objective is specified, the threshold value will serve as the objective value, and if no threshold is specified, the objective value will serve as the threshold value. For schedule and cost parameters, there are specified default threshold values: the default threshold for schedule is the objective value plus 6 months; and the default threshold for cost is the objective value plus ten percent of the objective value. Despite these guidelines, the PM may propose with justification an appropriate threshold value to optimize program trade space, subject to Milestone Decision Authority (MDA) and user approval.
The PM derives the APB from the users' performance requirements, schedule planning and requirements, and best estimates of total program cost consistent with projected funding. The sponsor of a capability needs document (i.e., Capability Development Document or Capability Production Document) provides a threshold and an objective value for each attribute that describes an aspect of a system or capability to be developed or acquired. The PM will use this information to develop an optimal product within the available trade space. APB parameter values should represent the program as it is expected to be developed, produced and/or deployed, sustained and funded.
Per 10 USC 2435, the Department of Defense (DoD) may not obligate funds for Major Defense Acquisition Programs after entry into Engineering and Manufacturing Development without an MDA-approved baseline unless the Under Secretary of Defense for Acquisition, Technology, and Logistics (USD(AT&L)) specifically approves the obligation. DoD Instruction 5000.02 extends this policy to ACAT IA programs. For an ACAT IA program, the Assistant Secretary of Defense for Networks and Information Integration must approve the obligation, unless the USD(AT&L) has retained oversight.
Policies, Directives, Regulations, Laws
DoDI 5000.02, Operation of the Defense Acquisition System
United States Code Title 10 § 2220
United States Code Title 10 § 2435
Best Practices, Lessons Learned, Stories, Guides, Handbooks, Templates, Example Tools, Communities of Practice, LEC Tools
Defense Acquisition Guidebook: https://acc.dau.mil/adl/en-US/350719/file/49150/dag_08-05-10pdf
MARCOR Acquisition Procedures Handbook: 6. Acquisition Program Baseline Agreement (APBA)
Acquisition Program Baselines (APBs) for Major Defense Acquisition Programs (MDAPs) (OUSD (AT&L) memo 17 Jul 07
The Computerized Optimization Model for Predicting and Analyzing Support Structures (COMPASS) is a system Level of Repair Analysis (LORA) modeling tool. LORA is the analytical methodology used to determine the maintenance repair levels where items should be removed and replaced; and ultimately repaired or discarded. COMPASS estimates the cost to repair or discard items at various maintenance levels, with contractor facilities included as a separate level. COMPASS optimizes both the maintenance and support to achieve your target operational availability (Ao). COMPASS can consider up to four levels of organic maintenance (supports Two-Level Maintenance studies), supply support, and contractor support. You can also use COMPASS output data as a source for developing the MAC and SMR codes. COMPASS is a free tool available to both DoD and contractors at: https://www.logsa.army.mil/lec/compass/.
The Cost Analysis Strategy Assessment (CASA) Life-Cycle Cost Estimating Software uses an engineering cost model to estimate total cost of ownership based on RDT&E, Acquisition/Procurement, O&S, and Disposal activities. CASA can be used to help establish a baseline program cost and update the cost estimate as new data becomes available. CASA is distributed freely to all US personnel. Request from foreign nations for CASA and associated training and technical support are handled through a Foreign Military Sales Case (FMS). CASA can be obtained here: https://www.logsa.army.mil/lec/casa/.
Training Resources
RQM 110 – Core Concepts for Requirements Management
TST 102 – Fundamentals of Test and Evaluation
CLB014 – Acquisition Reporting concepts and Policy Requirements for APB, DAES, and SAR
Related Articles
Exit Criteria
Major Defense Acquisition Programs (MDAP)
Major Automated Information System (MAIS)
Survivability Key Performance Parameter
Product Support Package/PBL Management
Key Performance Parameters (KPPs)
Capabilities-Based Assessment (CBA)
Service/JROC Validation & Approval
Net-Centric Operations & Warfare Reference Model
Required for:
Required for program initiation and must be approved at each Milestone Review.
Responsible Activity:
Definition General Info Policies Guides Communities Training Related
