10.5.3. Preliminary Design Review (PDR) Review and Assessment
P.L. 111-23, the Weapon Systems Acquisition Reform Act of 2009, established conduct of PDR before MS B as a mandatory requirement for all MDAPs. The Program Manager (PM) shall plan a Preliminary Design Review (PDR); PDR planning shall be reflected in the Technology Development Strategy (TDS), details should be provided in the Systems Engineering Plan (SEP), and shall be conducted consistent with the policies specified in DoD Instruction 5000.02. The plan for PDR will be reflected in the TDS to be approved by the MDA at MS A. Post-PDR assessments will be conducted in association with MS B preparations and will be formally considered by the Milestone Decision Authority (MDA) at the MS B 2366b certification review.
PDRs before MS B for other than MDAPs will be approved by the MDA when consistent with TDS or Acquisition Strategy objectives. When the PDR is conducted before MS B, a post-PDR assessment will be conducted in association with the MS B review and formally considered by the MDA at the MS B review. If the PDR is conducted after MS B, the MDA will conduct a post-PDR assessment at a time reflected in the approved acquisition strategy.
If a PDR has not been conducted prior to Milestone B (non-MDAPs), 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) of DoD Instruction 5000.02.
10.5.3.1. Preliminary Design Review (PDR) Report
The PDR Report shall be provided as a memorandum to the Milestone Decision Authority (MDA). When the Under Secretary of Defense (Acquisition, Technology, and Logistics) (USD(AT&L)) is the MDA for a program, the PDR Report should b provided by a memorandum to the USD(AT&L), with copies to the Deputy Assistant Secretary of Defense (Systems Engineering) and the Overarching Integrated Product Team Leader.
The PDR Report should include:
- A comprehensive list of the systems engineering products that make up the allocated baseline (to include the preliminary design specifications for all configuration items) and that were subject to review;
- A list of the participants in the review including the PDR chair, applicable technical authorities, independent subject matter experts, and other key stakeholders;
- A summary of the action Items from the review and their closure status/plan;
- A risk assessment using the PDR risk assessment checklist (Found at Line 834 of the DOD PDR Checklist) or similar, and preliminary Environment, Safety, and Occupational Health hazard lists/assessments to determine readiness to commit to full detail design; and
- A recommendation from the PDR as to the approval of the program's system allocated baseline to support detail design.
The PDR Report shall be provided to the MDA prior to Milestone B and include recommended technical requirements trades based upon an assessment of cost, schedule, and performance risk.
10.5.4. Post-Preliminary Design Review (Post-PDR) Assessment Decision Review
When the system-level PDR is conducted after Milestone B (for non-MDAPs only), the Program Manager (PM) shall plan and the Milestone Decision Authority (MDA) shall conduct a formal Post-PDR Assessment Decision Review. The MDA shall conduct a formal program assessment and consider the results of the PDR and the PM's assessment in the PDR Report, and determine whether remedial action is necessary to achieve Acquisition Program Baseline objectives. The results of the MDA's Post-PDR Assessment shall be documented in an Acquisition Decision Memorandum. The Post-PDR assessment shall reflect any requirements trades based upon the PM's assessment of cost, schedule, and performance risk.
10.5.5. Post-Critical Design Review (Post-CDR) Assessment
The Milestone Decision Authority (MDA) may assess the program’s design maturity and technical risks following the system-level Critical Design Review (CDR).
- The Office of the Deputy Assistant Secretary of Defense (Systems Engineering) (DASD(SE)) will participate in CDRs for Major Defense Acquisition Programs (MDAPs) and prepare a brief assessment of design maturity and technical risk which may require MDA attention. Consequently, MDAP Program Managers (PMs) shall be required to invite DASD(SE) engineers to their system-level CDRs and make CDR artifacts available. The draft CDR assessment will be coordinated with the PM prior to forwarding to the MDA.
- Unless directed otherwise by their Component MDA, the PMs for non-MDAP programs shall provide a Post-CDR Report to the MDA as 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:
- The names, organizations, and areas of expertise of independent subject matter expert participants and CDR chair;
- A description of the product baseline for the system and the percentage of build-to packages completed for this baseline;
- A summary of the issues and actions identified at the review together with their closure plans;
- An assessment of risk by the participants against the exit criteria for the Engineering & Manufacturing Development Phase; and
- Identification of those issues/risks that could result in a breach to the program baseline or substantively impact cost, schedule, or performance.
- All PMs shall continue to document CDRs in accordance with Component best practices.
The CDR risk assessment checklist is designed as a technical review preparation tool, and should be used as the primary guide for assessing risk during the review. This checklist is available on the Systems Engineering Community of Practice.
The MDA shall review the Post-CDR Report (or Assessment for an MDAP) 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 Decision Review shall be documented in an ADM staffed by the DAB Executive Secretary.
10.5.6. Independent Program Assessment (IPA)
An IPA in this context is an independent, comprehensive, and systemic review of managerial and technical progress on a major program. IPAs are designed to identify program cost, schedule, and performance risks; formulate risk mitigation plans; and provide feedback both to the Program Manager and the Milestone Decision Authority (MDA).
For space programs, an IPA must be provided to support each milestone, at the Post-System Design Review Assessment, and at any other time as directed by the MDA. IPAs may also be used to assess other types of programs.
10.5.7. Performance Assessments and Root Cause Analyses (PARCA)
The Director, PARCA (D, PARCA) was established by the Weapon Systems Acquisition Reform Act of 2009 (section 103 of P.L. 111-23,) to conduct and oversee performance assessments and root cause analyses for Major Defense Acquisition Programs (MDAPs). (Note: D, PARCA has no program execution responsibility.)
10.5.7.1. Performance Assessments
Per section 103 P.L. 111-23, the Director, Performance Assessments and Root Cause Analyses (D, PARCA) is required to conduct assessments and analyses periodically or when requested by senior Department officials. At a minimum, the D, PARCA must also advise acquisition officials on performance issues regarding an MDAP that may arise:
- Prior to a critical cost breach (aka, Nunn-McCurdy) certification;
- Prior to entry into full-rate production; or
- In the course of consideration of any decision to request authorization of a multiyear procurement contract.
Also, per section 205 P.L. 111-23, in the case of a program that receives a Nunn-McCurdy certification, the D, PARCA must also assess the program not less often than semi-annually, in the year following a new milestone approval.
The D, PARCA’s performance assessments evaluate the cost, schedule, and performance of MDAPs, relative to current metrics, including performance requirements, and baseline parameters. These assessments determine the extent to which the level of program cost, schedule, and performance relative to established metrics is likely to result in the timely delivery of a capability to the warfighter.
10.5.7.2. Root Cause Analyses
Per section 103 P.L. 111-23, the Director, Performance Assessments and Root Cause Analyses (D, PARCA) is required to conduct Root Cause Analyses (RCAs) for MDAPs to determine the underlying cause or causes for shortcomings in cost, schedule, and performance including the role of unrealistic performance expectations, unrealistic baseline estimates for cost and schedule, immature technologies, unanticipated requirements changes, quantity changes, poor program management, funding instability, or any other matters. The RCAs are used to inform senior Departmental leadership of issues and are included as ‘one-pagers’ in the Nunn McCurdy certification packages sent to Congress.
10.5.8. Enterprise Risk Assessment Methodology (ERAM)
The Business Capability Lifecycle (BCL) model for Defense Business Systems (DBS) utilizes an independent risk assessment, known as ERAM, as mandatory input to MS A and B decisions for Major Automated Information Systems (MAIS) DBS.
The ERAM assessment is a collaborative, forward-looking, end-to-end view of internal and external program risk that:
- Provides critical insight to decision makers
- Identifies risks (not issues) and corresponding mitigation strategies, in collaboration with key program personnel
- Focuses on execution and implementation rather than compliance
Additional ERAM assessments may be requested by an Investment Review Board Chair, the DBS Certification Authority, or the Milestone Decision Authority. (The Component Acquisition Executive is responsible for establishing procedures designed to assess risk for DBS that do not meet the MAIS thresholds.)
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