Enclosure 2 -- 5. Technology Development Phase

5. Technology Development Phase

   a. Purpose. The purpose of this phase is to reduce technology risk, determine and mature the appropriate set of technologies to be integrated into a full system, and to demonstrate CTEs on prototypes. Technology Development is a continuous technology discovery and development process reflecting close collaboration between the S&T community, the user, and the system developer. It is an iterative process designed to assess the viability of technologies while simultaneously refining user requirements.

   b. Entrance Criteria. Entrance into this phase depends on the completion of the AoA, a proposed materiel solution, and full funding for planned Technology Development Phase activity.

   c. Phase Description

0. At Milestone A, the MDA shall review the proposed materiel solution and the draft Technology Development Strategy (TDS). The Technology Development Phase begins when the MDA has approved a materiel solution and the TDS, and has documented the decision in an ADM. The tables in Enclosure 4 identify all statutory and regulatory requirements applicable to Milestone A.
0. The MDA for an MDAP, without the authority to delegate, shall sign a certification memorandum for record prior to Milestone A approval (section 2366a of title 10, United States Code (U.S.C.) (Reference (k))). The memorandum shall include the statements in section 2366a of Reference (k) without modification. The ADM at Milestone A shall include the statement: "I have made the certifications required by section 2366a of title 10, United States Code."
0. If, during Technology Development, the cost estimate upon which the MDA based the Milestone A certification increases by 25 percent or more, the PM shall notify the MDA of the increase. The MDA shall again consult with the JROC on matters related to program requirements and the military need(s) for the system. The MDA shall determine whether the level of resources required to develop and procure the system remains consistent with the priority level assigned by the JROC. If not, the MDA may rescind the Milestone A approval if the MDA determines that such action is in the interest of national defense.
0. This effort normally shall be funded only for the advanced development work. Technology development for an MDAP shall not proceed without Milestone A approval. For business area capabilities, commercially available solutions shall be preferred. A favorable Milestone A decision DOES NOT mean that a new acquisition program has been initiated.
0. At Milestone A, the DoD Component shall submit a cost estimate for the proposed solution(s) identified by the AoA. If requested by the MDA, the Cost Analysis Improvement Group (CAIG) shall develop an independent cost assessment.
0. Final Requests for Proposals (RFPs) for the Technology Development Phase shall not be released, nor shall any action be taken that would commit the program to a particular contracting strategy for Technology Development, until the MDA has approved the TDS.
0. The TDS shall document the following:
   0. The rationale for adopting an evolutionary strategy (the preferred approach) or using a single-step-to-full-capability strategy (e.g., for common supply items or COTS items). For an evolutionary acquisition, the TDS shall include a preliminary description of how the materiel solution will be divided into acquisition increments based on mature technology and an appropriate limitation on the number of prototype units or engineering development models that may be produced in support of a Technology Development Phase;
   0. A preliminary acquisition strategy, including overall cost, schedule, and performance goals for the total research and development program;
   0. Specific cost, schedule, and performance goals, including exit criteria, for the Technology Development Phase;
   0. A description of the approach that will be used to ensure data assets will be made visible, accessible, and understandable to any potential user as early as possible (DoD Directive 8320.02 (Reference (l))).
   0. A list of known or probable Critical Program Information (CPI) and potential countermeasures such as anti-tamper in the preferred system concept and in the critical technologies and competitive prototypes to inform program protection (DoD Instruction 5200.39 (Reference (m))) and design integration during the Technology Development Phase.
   0. 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.
   0. A data management strategy (see Section 9 in Enclosure 12).
   0. A summary of the CAIG-approved Cost and Software Data Reporting (CSDR) Plan(s) for the Technology Development Phase (see Section 3 in Enclosure 7).
0. During Technology Development and succeeding acquisition phases, the PM shall give small business the maximum practical opportunity to participate. Where feasible, the PM shall leverage programs which employ people with disabilities.
0. The TDS and associated funding shall provide for two or more competing teams producing prototypes of the system and/or key system elements prior to, or through, Milestone B. Prototype systems or appropriate component-level prototyping shall be employed to reduce technical risk, validate designs and cost estimates, evaluate manufacturing processes, and refine requirements. Information technology initiatives shall prototype subsets of overall functionality using one or more teams, with the intention of reducing enterprise architecture risks, prioritizing functionality, and facilitating process redesign.

   d. Additional Phase Requirements

0. Additional considerations apply for shipbuilding and AIS programs.
   0. The MDA may initiate shipbuilding programs at the beginning of Technology Development. The information required by the tables in Enclosure 4 shall support program initiation. The CAIG shall prepare a cost assessment in lieu of an independent cost estimate (ICE), and the DoD Component shall provide a preliminary assessment of the maturity of key technologies. CAIG cost assessments for other acquisition category (ACAT) I and IA programs shall be prepared at the MDA's request.
   0. Before requesting a Milestone A decision for an AIS program, DoD Components shall affirmatively answer the following questions:
      0. Does the acquisition support core/priority mission functions that need to be performed by the Federal Government?
      0. Does the acquisition need to be undertaken by the DoD Component because no alternative private sector or governmental source can better support the function?
      0. Does the acquisition support work processes that have been simplified or otherwise redesigned to reduce costs, improve effectiveness, and make maximum use of COTS technology?
0. The ICD and the TDS shall guide, and systems engineering planning shall support, this effort. Multiple technology development demonstrations may be necessary before the user and developer agree that a proposed technology solution is affordable, militarily useful, and based on mature, demonstrated technology. Life-cycle sustainment of proposed technologies shall be planned. CPI shall be identified and shall inform the preparation of the Program Protection Plan (PPP).
0. If an evolutionary strategy is used, the initial capability represents only partial fulfillment of the overall capability described in the ICD, and successive technology development efforts continue until all capabilities have been achieved. In an evolutionary acquisition, the identification and development of the technologies necessary for follow-on increments continue in parallel with the acquisition of preceding increments, allowing the mature technologies to more rapidly proceed into the Engineering and Manufacturing Development (EMD) Phase. Each increment of an evolutionary acquisition program that includes a Milestone A shall have an MDA-approved TDS.
0. The management and mitigation of technology and technology integration risk, which allows less costly and less time-consuming systems development, is a crucial part of overall program management and is especially relevant to meeting cost and schedule goals. Objective assessment of technology maturity and risk shall be a routine aspect of DoD acquisition. Technology developed in S&T or procured from industry or other sources shall have been demonstrated in a relevant environment or, preferably, in an operational environment to be considered mature enough to use for product development (see the "Technology Readiness Assessment (TRA) Deskbook" (Reference (n))). Technology readiness assessments, and where necessary, independent assessments, shall be conducted. If technology is not mature, the DoD Component shall use alternative technology that is mature and that can meet the user's needs or engage the user in a dialog on appropriately modifying the requirements.
0. PMs for all programs shall formulate a viable Reliability, Availability, and Maintainability (RAM) strategy that includes a reliability growth program as an integral part of design and development. RAM shall be integrated within the Systems Engineering processes, documented in the program's Systems Engineering Plan (SEP) and Life-Cycle Sustainment Plan (LCSP), and assessed during technical reviews, test and evaluation (T&E), and Program Support Reviews (PSRs).
0. When consistent with Technology Development Phase objectives, associated prototyping activity, and the MDA-approved TDS, the PM shall plan a Preliminary Design Review (PDR) before Milestone B. PDR planning shall be reflected in the TDS and shall be conducted for the candidate design(s) to establish the allocated baseline (hardware, software, human/support systems) and underlying architectures and to define a high-confidence design. All system elements (hardware and software) shall be at a level of maturity commensurate with the PDR entrance and exit criteria. A successful PDR will inform requirements trades; improve cost estimation; and identify remaining design, integration, and manufacturing risks. The PDR shall be conducted at the system level and include user representatives and associated certification authorities. The PDR Report shall be provided to the MDA at Milestone B and include recommended requirements trades based upon an assessment of cost, schedule, and performance risk.
0. The project shall exit the Technology Development Phase when an affordable program or increment of militarily useful capability has been identified; the technology and manufacturing processes for that program or increment have been assessed and demonstrated in a relevant environment; manufacturing risks have been identified; a system or increment can be developed for production within a short timeframe (normally less than 5 years for weapon systems); or, when the MDA decides to terminate the effort. During Technology Development, the user shall prepare the Capability Development Document (CDD) to support initiation of the acquisition program or evolutionary increment, refine the integrated architecture, and clarify how the program will lead to joint warfighting capability. The CDD builds on the ICD and provides the detailed operational performance parameters necessary to complete design of the proposed system. A Milestone B decision follows the completion of Technology Development.