DOD issued an updated Change 1 to DoD Instruction 5000.02 Operation of the Defense Acquisition System on January 26, 2017.

IMPORTANT NOTE: DoD subsequently issued a Change 2 to DoD Instruction 5000.02 on February 2, 2017. See subsequent blog post entitled "New DoD Instruction 5000.02 (Change 2) and New DoD Instruction 5000.75 Business Systems Requirements and Acquisition" for additional details.

Change 1 updates are highlighted in red in the updated document. Key changes of potential interest to our community include:

General Acquisition

·         Page 1, under "Purpose", para 1.c. added and reads:  "Assigns, reinforces, and prescribes procedures for acquisition responsibilities related to cybersecurity in the Defense Acquisition System” and para 1.d. which reads “Incorporates and cancels Directive-type Memorandum 17-001.”

·         Page 2, under "Responsibilities," paragraphs 4(d), Secretaries of the Military Departments, and 4(e), Chiefs of the Military Services, have been added.

·         Page 3, new Para 5.a.(2)(c) is added which reads “In accordance with Section 806 of Public Law 114-92, the Secretary of Defense may waive acquisition law or regulation to acquire a capability that would not otherwise be available to the DoD Components. This waiver authority may not be delegated.”

·         Page 4, under "Program Decision Reviews and Milestones," para 4(g), is modified:  "DAB review preparation will be streamlined and efficient...."

·         Beginning on page 47, numerous modifications to the Tables in Enclosure 1, "Acquisition Program Categories and Compliance Requirements," to include Table 6, "Exceptions, Waivers, and Alternative Management and Reporting Requirements" beginning on page 71  and Table 8, "EVM Application Requirements" beginning on page 79. Table 9, "EVM Reporting Requirements," has been added on page 81.

·         Page 60, Table 2 deletes the requirement for a Manpower Estimate (see updated information in Enclosure 7, Para 3.d. on page 132)

·         Enclosure 2, Program Management, has many adds under Para 4, "Assignment of Program Managers," beginning on page 84. 

·         MOSA paragraph added in Enclosure 2 on page 88 (see also page 98-99 in Enclosure 3), and risk management section has been updated on page 89.  Note “Open Systems Architectures” terminology is now “Modular Open Systems Approach (MOSA)”

·         Enclosure 7, Para 3.d. on page 132 removes the requirement to report “the mix of military, DoD civilian, and contract support necessary to operate, maintain, and support (to include providing training) the system will be determined based on the manpower mix criteria” in a Manpower Estimate, stating “Manpower mix data will be reported to cost analysts and factored into the preparation of independent cost estimates and DoD Component cost estimates.” Additionally, the update deletes the former requirement that “The Manpower Estimate is approved by the DoD Component manpower authority and serves as the authoritative source for reporting manpower in other program documentation.”

·         Enclosure 10, Para 6.a. on Page 145, majority of paragraph on “Multi-Year Procurement – Cost Analysis Requirements” has been updated and now reads “In accordance with 10 U.S.C. 2306b a multi-year procurement contract is a contract for the purchase of property for more than 1, but not more than 5, program years. Multi-year contracts in an amount equal to or greater than $500 million may not be entered into unless the contract is specifically authorized by law in an Act other than an appropriations Act. In accordance with 10 U.S.C. 2306b, when submitting a request for authorization for a multi-year contract, the Secretary of Defense must include in the request a report containing the preliminary findings of the DoD Component head regarding the following:…"

·         Beginning on  Page 152, Enclosure on Acquisition of Defense Business Systems (DBS) (Enclosure 12), has been completely rewritten  

·         Beginning on Page 160, Rapid Fielding of Capabilities now called Urgent Capability Acquisition (Enclosure 13)

·         Beginning on Page 170, new “Cybersecurity in the Defense Acquisition System” enclosure (Enclosure 14)

Life Cycle Sustainment and Product Support

·         Enclosure 6, Para 2.a.(2) (page 126)  Added “…as part of the program’s plan to prevent the acquisition of counterfeit material in the DoD supply chain as required by DoD Instruction 4140.67” to existing paragraph “Ensure identification of obsolete parts in specifications and develop plans for suitable replacements in accordance with P.L. 113-66, section 803…”

·         Enclosure 6, Para 2.b.(4) (page 127) Added “Ensure Program Managers responsible for renewal of sustainment contracts that include public-private partnerships with DoD maintenance depots will include the use of Defense Logistics Agency (DLA) storage and distribution capacity in the terms of renewal public-private partnership arrangements and negotiate the transfer of government-owned inventory from commercial to DLA facilities, as specified in the arrangement.”

·         Enclosure 6, Para 3.d.(2) (page 129) Added “Program plans will include the use of DLA-operated storage and distribution facilities where collocated with the DoD Component’s selection of organic depot maintenance.”