2.8.8. Resources
2.8.8.1. Investment Program Funding and Quantities
Provide a copy of the program’s "Investment Program Funding and Quantities" Chart (see Figure 4), with a current "as of date." A template and instructions for the development of this chart are provided at: https://ebiz.acq.osd.mil/DABSchedule/Questions.aspx?text=IPT (login with password or Common Access Card required).
Figure 4. Example "Investment Program Funding and Quantities" Chart
If the chart reflects funding shortfalls, indicate how they will be addressed and state the programmatic impact if they are not.
If the program is jointly funded, provide a separate chart reflecting the funding contributions required of each joint participant.
Provide and briefly explain funding support from the Working Capital Fund.
If multiple program increments are in progress, funding will be tracked separately for each increment (e.g., for subsets of the program that will be subject to a separate Acquisition Program Baseline). Provide separate charts for each increment.
2.8.8.2. Cost
Indicate the established cost goals for the increment and the rationale supporting them.
If a Technology Development Strategy, indicate the Affordability Target that has been established for the program (initially, average unit acquisition cost and average operational support cost per unit). The affordability target should be presented in the context of the resources that are projected to be available in the portfolio(s) or mission area(s) associated with the program under consideration. For new start programs, provide the quantitative analytical basis for determining that the resources expected to be available in the portfolio/mission area can support the program under consideration. Employ a graphic to illustrate.
For Production Phase Acquisition strategies (including at Full-Rate Production) for ACAT I programs will specify (no more than one page) how the procurement rate and schedule were set, with reference to Economic Order Quantity (EOQ) and the affordability target set at Milestone A, as adjusted at Milestone B.
2.8.8.3. *Should-Cost*
Summarize the application of should-cost analysis to the acquisition. Identify the should-cost initiatives that have been planned for the program. Specify how the associated "should cost targets" will be used as a basis for contract negotiations and contract incentives, and to track contractor, PEO, and PM performance.
CONSIDERATIONS
- Explain if Should-Cost estimates were calculated using a Bottom Up approach, or if reductions were identified from "Will-Cost" estimates.
- List discrete and measurable items or initiatives that were identified in the Should-Cost Estimate. Include the projected cost savings for each initiative. Initiatives should both be explained and presented in a chart that includes "Will Cost," Should Cost, and the Delta for each item. In the Acquisition Strategy, Should-Cost initiatives should be categorized as:
- a. Near-term (within the program manager's tenure) or long-term initiatives; and,
- b. Program driven (within program manager's control), "Service Driven (within the services control)," or "Externally Driven (outside service control)."
- The presentation of each initiative should include a description, an implementation timeline identifying key events, associated risks, involved stakeholders and "help needed" of senior leaders.
- Summarize the application of should-cost analysis to the acquisition. Identify the should-cost initiatives that have been planned for the program. Specify how the associated "should cost targets" will be used as a basis for contract negotiations and contract incentives, and to track contractor, PEO, and PM performance.
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2.8.8.4. Funds Management
Explain how the cost management approach adequately considers funds management. Identify any contingent liabilities (award fee, special incentives, economic price adjustment, business base clauses, termination liability, etc.) planned for or associated with the program. Identify which contingent liabilities have been funded. Summarize the plan to obtain approval for any unfunded contingencies (see DFARS 217.171.a.(4) and 217.172.(e)).
For acquisitions of Federal Information Processing resources with expected costs greater than $100 million, identify the key outcome performance measures. Indicate the tracking system that will be used to measure and report on selected outcome performance measures.
Summarize plans to control program costs, specifically Program Acquisition Unit Cost, Average Procurement Unit Cost, and Life-Cycle Cost. List and describe cost control tools and processes.
Summarize the process to update estimates (e.g., x months before each decision review or x months before beginning each increment).
2.8.8.5. Program Office Staffing and Organization
2.8.8.5.1. Manning Profile
Provide a time-phased workload assessment identifying the manpower and functional competencies required for successful program execution. Considering the overall, technical, acquisition, sustainment, and management approach, specify the number of personnel, by functional area, that are required to manage this program for the next phase and through fielding. Include a projected manning profile based upon the overall approach and program schedule for government, Systems Engineering and Technical Assistance, and Federally Funded Research and Development Center(s) support.
2.8.8.5.2. Organization Chart
Provide an organization chart reflecting program manning requirements by functional area. Identify the Services filling billets for a joint program. Prepare a table to indicate whether billets are military, civilian, or contractor, the seniority level of the billets, and if the billets are currently filled or vacant. (See Table 5.)
Table 5. Notional table of Program Manning Requirements
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PROGRAM MANNING REQUIREMENTS
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Billet ID
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Billet Name
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(If Joint) DoD Component
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Manning Type
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Seniority Level
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DAWIA
Level
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Fill Status
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2.8.8.5.3. Acquisition Chain of Authority
Indicate specific lines of programmatic authority. Show how the authority chain meets the requirements identified in DoD Directive 5000.01, paragraph E.1.1.26.
2.8.8.5.4. Identify the Primary Stakeholders
Indicate the planned organization to effectively manage the program and ensure all stakeholders are involved (Integrated Product Teams (IPT), boards, reviews, etc.). If applicable, indicate how the contractor will be involved in program IPTs. Summarize the anticipated business management relationship between (1) the program office and the contractor, and (2) the program office and other government agencies.
NOTE
This section must also address Requirements Community involvement and specify how the customer-representing organization will interface with the program management office and acquisition chain of command to provide for timely and effective review of requirements and/or cost trade-offs. Define levels of authority required to change requirements of various types should be defined.
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