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DEFINITION
The purpose of the EMD Phase is to develop a system or an increment of capability; complete full system integration (technology risk reduction occurs during Technology Development); develop an affordable and executable manufacturing process; ensure operational supportability with particular attention to minimizing the logistics footprint; implement human systems integration (HSI); design for producibility; ensure affordability; protect CPI by implementing appropriate techniques such as anti-tamper; and demonstrate system integration, interoperability, safety, and utility. The CDD, Acquisition Strategy, SEP, and Test and Evaluation Master Plan (TEMP) shall guide this effort.
GENERAL INFORMATION/NARRATIVE
Phase Description
(1) Before proposing a new acquisition program, the DoD Components shall affirmatively answer the questions at sub-paragraphs 5.d.(1)(b)1 through 5.d.(1)(b)3 of this enclosure.
(2) Prior to beginning EMD, users shall identify and the requirements authority shall approve a minimum set of key performance parameters (KPPs), included in the CDD, that shall guide the efforts of this phase. Consistent with paragraph 9.d. of this enclosure, these KPPs may be refined, with the approval of the requirements authority, as conditions warrant. The CDD defines the set of KPPs that will apply to each increment of EMD (or to the entire system in a single step to full capability). To maximize program trade space and focus test and evaluation, the MDA, PEO, and PM shall work closely with the requirements authority to minimize KPPs and limit total identified program requirements. Performance requirements that do not support the achievement of KPP thresholds shall be limited and considered a part of the engineering trade space during development. During OT&E, a clear distinction shall be made between performance values that do not meet threshold requirements in the user capabilities document and performance values that should be improved to provide enhanced operational capability in future upgrades.
(3) EMD begins at Milestone B, which is normally the initiation of an acquisition program. There shall be only one Milestone B per program or evolutionary increment. Each increment of an evolutionary acquisition shall have its own Milestone B unless the MDA determines that the increment will be initiated at Milestone C. At Milestone B, the MDA shall approve the Acquisition Strategy and the Acquisition Program Baseline (APB). The MDA decision shall be documented in an ADM. The tables in Enclosure 4 identify the statutory and regulatory requirements that shall be met at Milestone B.
(4) Final RFPs for the EMD Phase, or any succeeding acquisition phase, shall not be
released, nor shall any action be taken that would commit the program to a particular contracting 15 Statutes applicable to the Systems Development and Demonstration Phase shall be applicable to the EMD Phase. Strategy, until the MDA has approved the Acquisition Strategy. The PM shall include language in the RFP advising offerors that (1) the government will not award a contract to an offeror whose proposal is based on CTEs that have not been demonstrated in a relevant environment, and (2) that offerors will be required to specify the technology readiness level of the CTEs on which their proposal is based and to provide reports documenting how those CTEs have been demonstrated in a relevant environment.
(5) The MDA for an MDAP, without the authority to delegate, shall assess the program business case and sign a certification memorandum prior to Milestone B approval (section 2366b of Reference (k)). The memorandum shall include the statements in 10 U.S.C. 2366b without modification. If the program is initiated at a later date, i.e. Milestone C, a similar memorandum shall be prepared as a matter of policy. The ADM shall include the statement: “I have reviewed the program and the business case analysis and have made the certifications required, or executed a waiver of the applicability of one or more of the components of the certification required, as authorized by subsection 2366b(d) of title 10, United States Code.” The PM shall immediately notify the MDA of any program changes that alter the substantive basis of the MDA certification or otherwise cause the program to deviate significantly from the materiel presented to the MDA in support of such certification.
(6) EMD has two major efforts: Integrated System Design, and System Capability and Manufacturing Process Demonstration. Additionally, the MDA shall conduct a Post-PDR
Assessment when consistent with the Acquisition Strategy, and a Post-Critical Design Review (CDR) Assessment to end Integrated System Design.
(a) Integrated System Design. This effort is intended to define system and system of systems functionality and interfaces, complete hardware and software detailed design, and reduce system-level risk. Integrated System Design shall include the establishment of the product baseline for all configuration items.
(b) Post-PDR Assessment. If a PDR has not been conducted prior to Milestone B, the PM shall plan for a PDR as soon as feasible after program initiation. PDR planning shall be reflected in the Acquisition Strategy and conducted consistent with the policies specified in paragraph 5.d.(6). Following PDR, the PM shall plan and the MDA shall conduct a formal Post- PDR Assessment. The PDR report shall be provided to the MDA prior to the assessment and reflect any requirements trades based upon the PM’s assessment of cost, schedule, and performance risk. The MDA will consider the results of the PDR and the PM’s assessment, and determine whether remedial action is necessary to achieve APB objectives. The results of the MDA's Post-PDR Assessment shall be documented in an ADM.
(c) Post-CDR Assessment. The MDA shall conduct a formal program assessment
following system-level CDR. The system-level CDR provides an opportunity to assess design maturity as evidenced by measures such as: successful completion of subsystem CDRs; the percentage of hardware and software product build-to specifications and drawings completed and under configuration management; planned corrective actions to hardware/software deficiencies; adequate developmental testing; an assessment of environment, safety and occupational health risks; a completed failure modes and effects analysis; the identification of key system characteristics; the maturity of critical manufacturing processes; and an estimate of system reliability based on demonstrated reliability rates.
1. The PM shall provide a Post-CDR Report to the MDA that provides an overall assessment of design maturity and a summary of the system-level CDR results which shall include, but not be limited to:
a. The names, organizations, and areas of expertise of independent subject matter expert participants and CDR chair;
b. A description of the product baseline for the system and the percentage of build-to packages completed for this baseline;
c. A summary of the issues and actions identified at the review together with their closure plans;
d. An assessment of risk by the participants against the exit criteria for the
EMD Phase; and
e. Identification of those issues/risks that could result in a breach to the program baseline or substantively impact cost, schedule, or performance.
2. The MDA shall review the Post-CDR Report and the PM's resolution/mitigation plans and determine whether additional action is necessary to satisfy EMD Phase exit criteria and to achieve the program outcomes specified in the APB. The results of the MDA's Post-CDR Assessment shall be documented in an ADM.
3. Successful completion of the Post-CDR Assessment ends Integrated System
Design and continues the EMD Phase into System Capability and Manufacturing Process Demonstration.
(d) System Capability and Manufacturing Process Demonstration. This effort is intended to demonstrate the ability of the system to operate in a useful way consistent with the approved KPPs and that system production can be supported by demonstrated manufacturing processes. The program shall enter System Capability and Manufacturing Process Demonstration upon completion of the Post-CDR Assessment and establishment of an initial product baseline. This effort shall end when the system meets approved requirements and is demonstrated in its intended environment using the selected production-representative article; manufacturing processes have been effectively demonstrated in a pilot line environment; industrial capabilities are reasonably available; and the system meets or exceeds exit criteria and Milestone C entrance requirements. Successful developmental test and evaluation (DT&E) to assess technical progress against critical technical parameters, early operational assessments, and, where proven capabilities exist, the use of modeling and simulation to demonstrate system/system-of-systems integration are critical during this effort. T&E should be used to assess improvements to mission capability and operational support based on user needs and should be reported in terms of operational significance to the user. The completion of this phase is dependent on a decision by the MDA to commit to the program at Milestone C or a decision to end this effort.
Additional Phase Requirements
(1) For shipbuilding programs, the required program information shall be updated in support of the Milestone B decision, and the ICE shall be completed. The lead ship in a class shall normally be authorized at Milestone B. Technology readiness assessments shall consider the risk associated with critical subsystems prior to ship installation. Long lead for follow ships may be initially authorized at Milestone B, with final authorization and follow ship approval by the MDA dependent on completion of critical subsystem demonstration and an updated assessment of technology maturity.
(2) In an evolutionary acquisition program, the initial increment will be preceded by Materiel Development Decision. Development of each succeeding increment shall begin with the milestone or decision point determined by the MDA, consistent with statute and the demonstrated maturity of key technologies. Production resulting from that increment shall begin with a Milestone C. The requirements of the tables at Enclosure 4 shall apply to each increment based on the ACAT level of the entire planned program.
(3) Each program or increment shall have an APB (see Section 4 and Table 6 in Enclosure 4) establishing program goals – thresholds and objectives – for the minimum number of cost, schedule, and performance parameters that describe the program over its life cycle.
(4) An affordability determination results from the process of addressing cost during the requirements process and is included in each CDD using life-cycle cost or, if available, total ownership cost. Transition into EMD also requires full funding (i.e., inclusion of the dollars and manpower budget and out-year program), which shall be programmed in anticipation of the Milestone B decision. In general, a Milestone B should be planned when a system concept has been selected, a PM has been assigned, requirements have been approved, and engineering and manufacturing development is ready to begin. In no case shall Milestone B be approved without full funding.
The DoD Components shall fully fund their share of approved joint and international cooperative program commitments.
(5) At Milestone B, the MDA shall determine the Low-Rate Initial Production (LRIP) quantity for MDAPs and major systems. LRIP quantities shall be minimized. The LRIP quantity for an MDAP (with rationale for quantities exceeding 10 percent of the total production quantity documented in the Acquisition Strategy) shall be included in the first Selected Acquisition Report (SAR) after its determination. Any increase in quantity after the initial determination shall be approved by the MDA. The LRIP quantity shall not be less than one unit. The DOT&E, following consultation with the PM, shall determine the number of production or production-representative test articles required for live-fire test and evaluation (LFT&E) and initial operational test and evaluation (IOT&E) of programs on the OSD T&E Oversight List (MDAPs as defined in paragraph a(2)(B) of section 139 of Reference (k)). For a system that is not on the OSD Operational Test & Evaluation (OT&E) Oversight List, the operational test agency (OTA), following consultation with the PM, shall determine the number of test articles required for IOT&E. Modifications to an existing system with an established production base may not require low-rate production to provide production or production-representative articles for operational testing; test articles, if needed, may come from the existing production line.
(6) EMD effectively integrates the acquisition, engineering, and manufacturing development processes with T&E (see Enclosure 6). T&E shall be conducted in an appropriate continuum of live, virtual, and constructive system and operational environments. Developmental and operational test activities shall be integrated and seamless throughout the phase. Evaluations shall take into account all available and relevant data and information from contractor and government sources. The independent planning of dedicated IOT&E (i.e., the OT&E required by paragraphs (a) and (b) of section 2399 of Reference (k)), and Follow-on OT&E (FOT&E), if required, shall be the responsibility of the appropriate OTA. Evaluations shall include a comparison with current mission capabilities using existing data, so that measurable improvements can be determined. If such evaluation is considered costly relative to the benefits gained, the PM shall propose an alternative evaluation approach. This evaluation shall make a clear distinction between deficiencies uncovered during testing relative to the approved requirements and recommendations for improvement not directly linked to requirements. A DOT&E-approved LFT&E strategy shall guide LFT&E activity.
(7) The PM shall prepare and the MDA shall approve an Acquisition Strategy to guide activity during EMD.
(a) The Acquisition Strategy shall describe how the PM plans to employ contract incentives to achieve required cost, schedule, and performance outcomes.
(b) The strategy shall include a time-phased workload assessment identifying the manpower and functional competency requirements for successful program execution and the associated staffing plan, including the roles of government and non-government personnel.
(c) If the program is dependent on the outcome of other acquisition programs or must provide capabilities to other programs, those relationships shall be detailed in the acquisition strategy. Similarly, if a program is part of a system-of-systems or family-of-systems, the relationship and associated dependencies with other system elements shall be described.
(8) If the program acquisition strategy for a major system calls for the use of a lead system integrator, the MDA shall ensure that a contract is not awarded to an offeror that either has or is expected to acquire a direct financial interest in the development or construction of an individual system or an element of a system of systems. Exceptions may be granted as provided in section 2410p of Reference (k) which requires certification to the Committees on Armed Services of the Senate and House of Representatives. PMs shall stress the importance of appropriate checks and balances when contractors perform acquisition-related activities, and insist that the government will be singularly responsible for the performance of inherently governmental functions.
(9) The MDA for an MDAP shall select the contract type for a development program at Milestone B (section 818 of P.L. 109-364 (Reference (o))). The contract type shall be consistent with the level of program risk and may be either a fixed price or cost contract. The MDA may choose a cost-type contract only upon written determination that (1) the program is so complex and technically challenging that it would not be practicable to reduce program risk to a level that would permit the use of a fixed-price contract, and (2) the complexity and technical challenge of the program is not the result of a failure to meet the requirements of section 2366b of Reference (k). The MDA’s written determination shall include an explanation of the level of program risk, and, if the MDA determines that the program risk is high, the steps that have been taken to reduce program risk and the reasons for proceeding with Acquisition Strategy approval and/or Milestone B despite the high level of program risk.
(10) At Milestone B, the PM shall submit application(s) through the DoD Component to the ASD (NII)/DoD Chief Information Officer (CIO) for the review and assessment of new or modified communications waveforms. If a waveform is added or modified after Milestone B, the application shall be reviewed at Milestone C (DoD Instruction 4630.09 (Reference (p)).
(11) The MDA shall assess compliance with chemical, biological, radiological, and nuclear survivability requirements at Milestones B and C.
(12) Prior to beginning development, the DoD Component sponsoring an MDAP that will replace an existing system shall prepare a Replaced System Sustainment Plan for the existing system if the capability provided by the existing system will remain necessary and relevant during fielding of and transition to the new system. The sustainment plan shall provide for the budgeting to sustain the existing system until the new system assumes the majority of mission responsibility. The plan shall include the schedule for developing and fielding the new system, and include an analysis of the ability of the existing system to maintain mission capability against relevant threats (section 2437 of Reference (k) and Defense Intelligence Agency Directive 5000.200 (Reference (q))).
(13) PMs shall coordinate with the DoD Component manpower authority in advance of contracting for operational support services to ensure that tasks and duties that are designated as inherently governmental or exempt are not contracted. The determination of the workforce mix shall be accomplished in accordance with DoD Instruction 1100.22 (Reference (r)).
(14) The Department of Defense may not conduct OT&E, including operational assessment (OA), IOT&E, or FOT&E, until the DOT&E approves, in writing, the OT&E portions of the T&E plan for programs on the OSD T&E Oversight List and the adequacy of the plans (including the projected level of funding) for the OT&E to be conducted in connection with that program. This does not preclude the use of data from other test events in OT&E evaluations. OTA and DOT&E evaluators shall take into account all available and relevant data and information from contractor and government sources
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