ENCLOSURE 1 ADDITIONAL POLICY

DEFENSE ACQUISITION GUIDEBOOK
DoD Directive 5000.01

ENCLOSURE 1
ADDITIONAL POLICY

E1.1.1. Armaments Cooperation.

PMs shall pursue international armaments cooperation to the maximum extent feasible, consistent with sound business practice and with the overall political, economic, technological, and national security goals of the United States. International agreements for international armaments cooperation programs shall complete the interagency consultation and Congressional notification requirements contained in 10 U.S.C. 2350a (reference (f)), section 2751 of the Arms Export Control Act (reference (g)), and 10 U.S.C. 2531 (reference (h)).

E1.1.2. Collaboration.

The DoD acquisition, capability needs, and financial communities, and operational users shall maintain continuous and effective communications with each other by using Integrated Product Teams (IPTs). Teaming among warfighters, users, developers, acquirers, technologists, testers, budgeters, and sustainers shall begin during capability needs definition. MDAs and PMs are responsible for making decisions and leading execution of their programs, and are accountable for results.

E1.1.3. Competition.

Competition shall provide major incentives to industry and Government organizations to innovate, reduce cost, and increase quality. All of the DoD Components shall acquire systems, subsystems, equipment, supplies, and services in accordance with the statutory requirements for competition. Acquisition managers shall take all necessary actions to promote a competitive environment, including the consideration of alternative systems to meet stated mission needs; structuring Science and Technology (S&T) investments and acquisition strategies to ensure the availability of competitive suppliers throughout a program's life, and for future programs; ensuring that prime contractors foster effective competition for major and critical products and technologies; and ensuring that qualified international sources are permitted to compete. If competition is not available, PMs shall consider alternatives that will yield the benefits of competition.

E1.1.4. Cost and Affordability.

All participants in the acquisition system shall recognize the reality of fiscal constraints. They shall view cost as an independent variable, and the DoD Components shall plan programs based on realistic projections of the dollars and manpower likely to be available in future years. To the greatest extent possible, the MDAs shall identify the total costs of ownership, and at a minimum, the major drivers of total ownership costs. The user shall address affordability in establishing capability needs.

E1.1.5. Cost Realism.

Contractors shall be encouraged to submit cost proposals that are realistic for the work to be performed. "Buy-ins" shall be discouraged because they may subvert competition or lead to poor contract performance or cost overruns. Proposals shall be evaluated for cost realism in accordance with the Federal Acquisition Regulation (reference (i)).

E1.1.6. Cost Sharing.

The PM shall structure the acquisition in a way that neither imposes undue risk on contractors, nor requires unusual contractor investment. Contractors shall not be encouraged nor required to invest their profit dollars or independent research and development funds to subsidize defense research and development contracts, except in unusual situations where there is a reasonable expectation of a potential commercial application. Contractors are entitled to earn reasonable rewards on DoD contracts, including competitively awarded contracts.

E1.1.7. Financial Management.

The Defense Business Systems Management Committee shall develop a Business Enterprise Architecture and a transition plan in accordance with section 2222, title 10, U.S.C. (reference (j)) and shall approve any obligation of funds in excess of $1M for a defense business system modernization.

E1.1.8. Independent Operational Test Agency (OTA).

Each Military Department shall establish an independent OTA, reporting directly to the Service Chief, to plan and conduct operational tests, report results, and provide evaluations of effectiveness and suitability.

E1.1.9. Information Assurance.

Acquisition managers shall address information assurance requirements for all weapon systems; Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance systems; and information technology programs that depend on external information sources or provide information to other DoD systems. DoD policy for information assurance of information technology, including NSS, appears in DoD Directive 8500.01E, reference (k).

E1.1.10. Information Superiority.

Acquisition managers shall provide U.S. Forces with systems and families of systems that are secure, reliable, interoperable, compatible with the electromagnetic spectrum environment, and able to communicate across a universal information technology infrastructure, including NSS, consisting of data, information, processes, organizational interactions, skills, analytical expertise, other systems, networks, and information exchange capabilities.

E1.1.11. Integrated Test and Evaluation.

Test and evaluation shall be integrated throughout the defense acquisition process. Test and evaluation shall be structured to provide essential information to decision-makers, assess attainment of technical performance parameters, and determine whether systems are operationally effective, suitable, survivable, and safe for intended use. The conduct of test and evaluation, integrated with modeling and simulation, shall facilitate learning, assess technology maturity and interoperability, facilitate integration into fielded forces, and confirm performance against documented capability needs and adversary capabilities as described in the system threat assessment.

E1.1.12. Intelligence Support.

Intelligence and understanding threat capabilities are integral to system development and acquisition decisions. PMs shall keep threat capabilities current and validated in program documents throughout the acquisition process.

E1.1.13. Interoperability.

Systems, units, and forces shall be able to provide and accept data, information, materiel, and services to and from other systems, units, and forces and shall effectively interoperate with other U.S. Forces and coalition partners. Joint concepts and integrated architectures shall be used to characterize these interrelationships. DoD policy for the information technology, including NSS, aspects of interoperability and supportability appears in DoD Directive 4630.05, reference (l).

E1.1.14. Knowledge-Based Acquisition.

PMs shall provide knowledge about key aspects of a system at key points in the acquisition process. PMs shall reduce technology risk, demonstrate technologies in a relevant environment, and identify technology alternatives, prior to program initiation. They shall reduce integration risk and demonstrate product design prior to the design readiness review. They shall reduce manufacturing risk and demonstrate producibility prior to full-rate production.

E1.1.15. Legal Compliance.

The acquisition and procurement of DoD weapons and weapon systems shall be consistent with all applicable domestic law and treaties and international agreements (for arms control agreements, see DoD Directive 2060.1, reference (m)), customary international law, and the law of armed conflict (also known as the laws and customs of war). An attorney authorized to conduct such legal reviews in the Department shall conduct the legal review of the intended acquisition of weapons or weapons systems.

E1.1.16. Performance-Based Acquisition.

To maximize competition, innovation, and interoperability, and to enable greater flexibility in capitalizing on commercial technologies to reduce costs, acquisition managers shall consider and use performance-based strategies for acquiring and sustaining products and services whenever feasible. For products, this includes all new procurements and major modifications and upgrades, as well as reprocurements of systems, subsystems, and spares that are procured beyond the initial production contract award. When using performance-based strategies, contract requirements shall be stated in performance terms, limiting the use of military specifications and standards to Government-unique requirements only. Acquisition managers shall base configuration management decisions on factors that best support implementing performance-based strategies throughout the product life cycle.

E1.1.17. Performance-Based Logistics.

PMs shall develop and implement performance-based logistics strategies that optimize total system availability while minimizing cost and logistics footprint. Trade-off decisions involving cost, useful service, and effectiveness shall consider corrosion prevention and mitigation. Sustainment strategies shall include the best use of public and private sector capabilities through government/industry partnering initiatives, in accordance with statutory requirements.

E1.1.18. Products, Services, and Technologies.

The DoD Component(s) shall consider multiple concepts and analyze possible alternative ways to satisfy the user need. System concepts shall be founded in an operational context, consistent with the National Military Security Strategy, Strategic Planning Guidance, Joint Programming Guidance, Joint Concepts, and joint integrated architectures. The DoD Components shall seek the most cost-effective solution over the system's life cycle. They shall conduct market research and analysis to determine the availability, suitability, operational supportability, interoperability, safety, and ease of integration of the considered and selected procurement solutions. The DoD Components shall work with users to define capability needs that facilitate the following, listed in descending order of preference:

E1.1.18.1. The procurement or modification of commercially available products, services, and technologies, from domestic or international sources, or the development of dual-use technologies;

E1.1.18.2. The additional production or modification of previously-developed U.S. and/or Allied military systems or equipment;

E1.1.18.3. A cooperative development program with one or more Allied nations;

E1.1.18.4. A new, joint, DoD Component or Government Agency development program; or

E1.1.18.5. A new DoD Component-unique development program.

E1.1.19. Professional Workforce.

The Department of Defense shall maintain a fully proficient acquisition, technology, and logistics workforce that is flexible and highly skilled across a range of management, technical, and business disciplines. To ensure this, the USD(AT&L) shall establish education, training, and experience standards for each acquisition position based on the level of complexity of duties carried out in that position.

E1.1.20. Program Information.

Complete and current program information is essential to the acquisition process. Consistent with the tables of required regulatory and statutory information appearing in reference (b), decision authorities shall require PMs and other participants in the defense acquisition process to present only the minimum information necessary to establish the program baseline, describe program plans, understand program status, and make informed decisions. The MDA shall "tailor-in" program information. IPTs shall facilitate the management and exchange of program information.

E1.1.21. Program Stability.

The DoD Components shall develop realistic program schedules, long-range investment plans, and affordability assessments, and shall strive to ensure stable program funding. The MDA shall determine the appropriate point at which to fully fund an acquisition program, generally when a system concept and design have been selected, a PM has been assigned, capability needs have been approved, and system-level development is ready to begin. Full funding shall be based on the cost of the most likely system alternative.

E1.1.22. Research and Technology Protection.

Acquisition managers shall identify classified and controlled unclassified research and technology information requiring additional counter intelligence and security support early in the research and development, capability needs generation, and acquisition processes.

E1.1.23. Safety.

Safety shall be addressed throughout the acquisition process. Safety considerations include human (includes human/system interfaces), toxic/hazardous materials and substances, production/manufacturing, testing, facilities, logistical support, weapons, and munitions/explosives. All systems containing energetics shall comply with insensitive munitions criteria.

E1.1.24. Small Business Participation.

Acquisition strategies shall be structured to facilitate small business participation throughout a program’s life cycle through direct participation or, where such participation is not available, through fostering teaming with small business concerns.

E1.1.25. Software Intensive Systems.

Acquisition of software intensive systems shall use process improvement and performance measures. Selection of sources shall include consideration of product maturity and past performance.

E1.1.26. Streamlined Organizations.

The Department of Defense shall use a streamlined management structure in the acquisition system, characterized by short, clearly defined lines of responsibility, authority, and accountability. In no case, shall there be more than two levels of review between a PM and the MDA.

E1.1.27. Systems Engineering.

Acquisition programs shall be managed through the application of a systems engineering approach that optimizes total system performance and minimizes total ownership costs. A modular, open-systems approach shall be employed, where feasible.

E1.1.28. Technology Development and Transition.

The S&T program shall:

E1.1.28.1. Address user needs;

E1.1.28.2. Maintain a broad-based program spanning all Defense-relevant sciences and technologies to anticipate future needs and those not being pursued by civil or commercial communities;

E1.28.3. Preserve long-range research; and

E1.28.4. Enable rapid, successful transition from the S&T base to useful military products.

E1.1.29. Total Systems Approach.

The PM shall be the single point of accountability for accomplishing program objectives for total life-cycle systems management, including sustainment. The PM shall apply human systems integration to optimize total system performance (hardware, software, and human), operational effectiveness, and suitability, survivability, safety, and affordability. PMs shall consider supportability, life cycle costs, performance, and schedule comparable in making program decisions. Planning for Operation and Support and the estimation of total ownership costs shall begin as early as possible. Supportability, a key component of performance, shall be considered throughout the system life cycle.