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Technology Maturation and Risk Reduction

APMT 062

DAU GLOSSARY DEFINITION

The second phase of the Major Capability Acquisition process. Its purpose is to reduce technology, engineering, integration, and life cycle cost risk to the point that a decision to contract for Engineering and Manufacturing Development (EMD) can be made with confidence in successful program execution for development, production, and sustainment. The phase includes activities intended to reduce specific risks associated with the product to be developed. Activities include additional design trades and requirements trades to ensure an affordable product and an executable development and production program. Capability requirements are matured and validated and affordability caps are finalized during this phase. This phase normally includes competitive sources conducting technology maturation and risk reduction activities to demonstrate new technologies in a relevant environmentr. A Preliminary Design Review prior to Milestone B will be conducted, unless waived by the Milestone Decision Authority.

Alternate Definition
The second phase of the Defense Acquisition Management System as defined and established by DoDI 5000.02. It is initiated by a successful Milestone A decision. The purpose of this phase is it to reduce technology, engineering, integration, and life-cycle cost risk to the point that the decision to contract for Engineering and Manufacturing Development (EMD) can be made with confidence for the successful program execution of development, production, and sustainment. This effort is normally funded only for advanced development work and does not mean that a new acquisition program has been initiated. See Initiation.
General Information

The purpose of the TMRR phase is to reduce technology, engineering, integration, and life-cycle cost risk to the point that the decision to contract for Engineering and Manufacturing Development (EMD) can be made with confidence for the successful program execution of development, production, and sustainment.

 

TMRR should include a mix of activities intended to reduce the specific risks associated with the product to be developed. This includes:

 

  • additional design trades and requirements trades necessary to ensure an affordable product and executable development and production programs
  • capability requirements are matured and validated
  • affordability caps are finalized during this phase.

 

The TMRR Phase requires continuous and close collaboration between the program office and the requirements communities and authorities. During this phase, any realized Should Cost management savings should normally be used to further reduce program risk and future program costs.

 

TMRR normally includes competitive sources conducting technology maturation and risk reduction activities and preliminary design activities up to and including a Preliminary Design Review (PDR) prior to source selection for the Engineering and Manufacturing Development (EMD) Phase. Competitive risk reduction prototypes will be included if they will materially reduce engineering and manufacturing development risk at an acceptable cost. If competitive prototyping is not considered feasible, single prototypes at the system or subsystem level will be considered.

 

There are a number of ways to structure this phase which should be tailored to reduce the specific risks associated with the product being acquired. Technology Readiness Levels, described in the “Technology Readiness Assessment (TRA) Guidance,” should be used to benchmark technology risk; however, these indices are rough benchmarks, and not conclusive about the degree of risk mitigation needed prior to development. Deeper analysis of the actual risks associated with the preferred design and any recommended risk mitigation must be conducted and provided to the Milestone Decision Authority (MDA).

 

The Acquisition Strategy (AS) (described in the Defense Acquisition Guidebook, chapter 1-4.1) will guide this phase. Multiple technology development demonstrations, defined in the acquisition strategy, may be necessary before the operational user and material materiel developer can substantiate that a preferred solution is feasible, affordable, and supportable; satisfies validated capability requirements; and has acceptable technical risk. Critical program information will be identified during this phase and program protection measures to prevent disclosure of critical information will be implemented. Planning for EMD, production, developmental and operational test, and life-cycle sustainment of proposed products will occur during this phase. The government will update the program Intellectual Property (IP) Strategy to ensure the ability to compete future sustainment efforts consistent with the Acquisition Strategy to include competition for spares and depot repair.

 

During this phase, and timed to support Capability Development Document (CDD) validation, the Program Manager will conduct a systems engineering trade-off analysis showing how cost and capability vary as a function of the major design parameters. The analysis will support the assessment of refined key performance parameters / key system attributes (KPPs/KSAs) in the CDD. Capability requirements proposed in the CDD should be consistent with program affordability goals.

 

Subsequent to CDD validation, the Program Manager will conduct additional requirements analysis including:

 

  • requirements decomposition and allocation,
  • definition of internal and external interfaces, and
  • design activities leading to a Preliminary Design Review (PDR). Unless waived by the MDA, the PDR will occur prior to Milestone B.

 

During the TMRR Phase, the Program Manager will plan the balance of the program, and prepare for subsequent decision points and phases, and. The Program Manager will submit an updated Acquisition Strategy for MDA approval in sufficient time to inform development of the request for proposals (RFP) for the next phase. The updated Acquisition Strategy will describe the overall approach to acquiring the capability to include the program schedule, risks, funding, and the business strategy. The business strategy will describe the rationale for the contracting approach and how competition will be maintained throughout the program life cycle, and detail how contract incentives will be employed to support the Department’s goals.

 

Planning for the sustainment phase should begin during TMRR, when requirements trades and early design decisions are still occurring. The Program Manager will finalize sustainment requirements and decompose them into more detailed requirements to support the PDR and for the following uses:

 

  • Support system and product support package design trades.
  • Support test and evaluation planning.
  • Provide performance metrics definition for product support contracts and organic support requirements.
  • Provide logistics requirements, workload estimates, and logistics risk assessment.

 

The Program Manager will integrate the product support design into the overall design process, and assess enablers that improve supportability, such as diagnostics and prognostics, for inclusion in the system performance specification. As the design matures, the Program Manager will ensure that life-cycle affordability is a factor in engineering and sustainment trades.

 

During the TMRR Phase, the requirements validation authority will validate the CDD for the program. This action will precede the Development RFP Release Decision Point and provides a basis for preliminary design activities and the PDR that will occur prior to Milestone B unless waived by the MDA.

 

For acquisition category (ACAT) I and ACAT IA programs, and following CDD Validation, the Acquisition Executive of each DoD Component will form and chair a configuration steering board (CSB) with broad executive membership. The CSB will meet at least annually, and more frequently as capability requirements or content trades are needed, to review all requirements changes and any significant technical configuration changes for ACAT I and IA programs in development, production, and sustainment that have the potential to result in cost and schedule impacts to the program. The CSB will review potential capability requirements changes and propose to the requirements validation authority those changes that may be necessary to achieve affordability constraints on production and sustainment costs or that will result in a more cost-effective product. Changes that increase cost will not be approved unless funds are identified and schedule impacts are addressed.

 

The Development RFP Release Decision Point authorizes the release of RFPs for EMD and often for low rate initial production (LRIP) or Limited Deployment options. This review is the critical decision point in an acquisition program. The program will either successfully lead to a fielded capability or fail, based on the soundness of the capability requirements, the affordability of the program, and the executability of the acquisition strategy. The acquisition strategy is put into execution at this decision point by asking industry for bids that comply with the strategy. Release of the RFP for EMD sets in motion all that will follow. This is the last point at which significant changes can be made without a major disruption.

 

The purpose of the Development RFP Release Decision Point is to ensure, prior to the release of the solicitation for EMD, that an executable and affordable program has been planned using a sound business and technical approach. One goal at this point is to avoid any major program delays at Milestone B, when source selection is already complete and award is imminent. Therefore, prior to release of final RFPs, there needs to be confidence that the program requirements to be bid against are firm and clearly stated; the risk of committing to development and presumably production has been or will be adequately reduced prior to contract award and/or option exercise; the program structure, content, schedule, and funding are executable; and the business approach and incentives are structured to both provide maximum value to the government and treat industry fairly and reasonably.

 

Decisions resulting from the Development RFP Release Decision Point will be documented in an acquisition decision memorandum (ADM). The ADM will document specific criteria required for Milestone C approval including needed test accomplishments, LRIP quantities, affordability requirements, and FYDP funding requirements.

 

During the TMRR Phase, and unless waived by the MDA, a PDR will be conducted so that it occurs before Milestone B and prior to contract award for EMD. The timing of the PDR relative to the Development RFP Release Decision Point is at the discretion of the DoD Component. The Component should balance the need for more mature design information to support source selection with the costs of either: (1) extending multiple sources’ design activities from the PDR until award of the full EMD contract or (2) having a gap in development prior to EMD award.