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Defense Business System

Adaptive Acquisition Framework

Defense Business Systems (DBS) – Business Capability Acquisition Cycle (BCAC)

This BCAC model is directly from DOD Instruction 5000.75 Business System Requirements and Acquisition applicable to all defense business systemsInformation systems that are operated by, for, or on behalf of the DoD, including: financial, contracting, logistics, planning and budgeting, installations management, human resources management, and training and readiness..

Capability Needs Identification Phase

The functional sponsor leads this phase with guidance and support from the CMO. The objective is to establish a clear understanding of needed business capabilities so that the functional sponsor and MDA can decide to invest time and resources into investigating business solutions.

The purpose of this phase is to ensure:

  • The capability need is based on the desired end state in a business mission area, the problem(s) preventing it, and the future capabilities required to achieve it.
  • Definition of the future capabilities will include analysis of other organizations with similar capability needs.
Solution Analysis ATP

At this decision point, the CMO, with input from the functional sponsorThe senior leader with business function responsibility seeking to improve mission performance, confirm the need for improved business operations, and represent the user community interests throughout the BCAC. , approves the capability requirements, approves the work planned for the next phase, and verifies the capability is aligned with the Business Enterprise Architecture (BEA)A blueprint to guide development of integrated DoD business processes including viewpoints of: capabilities, activities, processes, data, info exchanges, business rules, system functions, services, system data exchanges, tech standards, terms, and linkages to laws, regulations and policies. as well as organizational strategy and IT portfolio management goals.

Information Requirements. Machine searchable capability requirements must be provided for the Solution Analysis ATP. Capability requirements must include:

  • A description of the business problem or opportunity and its impact on cost and mission performance.
  • Prioritized business capabilities and their attributes.
  • Capability performance measures and associated current and future values, including threshold and objective values for future capability performance.
  • Pertinent law, regulations and policies that will either require modification or constrain solutions.

The CMO is the decision authority for the Solution Analysis ATP.

There are no statutory requirements for the Solution Analysis ATP.

Considerations for Decision Criteria include:

  • Concise business problem and desired end state, with cost and performance improvements.
  • Documented laws, regulations and policies.
  • Alignment with and submission to the BEA.
  • Validated capabilities and capability performance measures.
  • Affordable capability with compelling business case for committing organizational resources for work planned up to next decision point.
Business Solution Analysis Phase

The functional sponsorThe senior leader with business function responsibility seeking to improve mission performance, confirm the need for improved business operations, and represent the user community interests throughout the BCAC. leads this phase with guidance from the CMO and support from the CMO and CAE or designee. The objective of this phase is to determine the high-level business processes supporting the future capabilities so that the functional sponsorThe senior leader with business function responsibility seeking to improve mission performance, confirm the need for improved business operations, and represent the user community interests throughout the BCAC. and CAE or designee can maximize use of existing business solutions and minimize creation of requirements that can only be satisfied by a business systemInformation systems that are operated by, for, or on behalf of the DoD, including: financial, contracting, logistics, planning and budgeting, installations management, human resources management, and training and readiness..

The purpose of this phase is to ensure:

  • Future capabilities are based on re-engineering the high-level future business processes that will deliver the capabilities. This includes selecting and tailoring commercial best practices to meet the needs of the end user community.
  • Definition of the future capabilities will include industry analysis of other organizations with similar capabilities to identify processes that can be adopted.
  • The initial implementation plan to achieve the future capabilities will include all business changes to deploy the capabilities, including a rough order of magnitude estimate and cost benefit analysis for any business systemsInformation systems that are operated by, for, or on behalf of the DoD, including: financial, contracting, logistics, planning and budgeting, installations management, human resources management, and training and readiness.
Functional Requirements ATP

At this decision point:

  • The CMO validates that sufficient business process reengineering has been conducted to determine that a business system is required.
  • The MDA approves execution of the implementation plan.
  • The functional sponsorThe senior leader with business function responsibility seeking to improve mission performance, confirm the need for improved business operations, and represent the user community interests throughout the BCAC. must provide full funding, to the approved cost estimate, available to support all of the business process activities being approved.

Information Requirements.

  • Business Processes. High-level business processes must be structured to focus on the work to be conducted and on the information used, not supporting IT.
  • Market Research. Market analysis must reflect engagement with other organizations with similar capabilities to understand their business process and supporting COTS/GOTS solutions.
  • Implementation Plan. In this phase, the implementation plan contains detailed plans for business process actions and high-level schedule and resource plans for acquisition actions. Additional information on the implementation plan is in Appendix 4B.

There are no statutory requirements for this ATP.

Considerations for Decision Criteria include:

  • High-level business processes include performance measures and supporting activities and tasks with inputs and outputs.
  • Business processes focus on work and not supporting systems or IT.
  • Clear understanding of the process and functional changes needed to achieve future business processes.
  • Key processes identified for improvement documented with changes in process models.
  • Business processes reflect knowledge of industry state of the art.
  • Business process actions identified, prioritized and included in implementation plan.
  • ROM cost estimate for all business changes to achieve future business processes.
  • Affordability targets for business system with compelling business case for committing organizational resources for work planned up to next decision point.
  • Acquisition strategy outlines planned decision points and decision authorities.
  • Consistency with DoD Information Enterprise policies and architecture.
  • Cybersecurity strategy consistent with DoD policies, standards and architectures.
Functional Requirements and Acquisition Planning Phase

During this phase, the functional sponsorThe senior leader with business function responsibility seeking to improve mission performance, confirm the need for improved business operations, and represent the user community interests throughout the BCAC. leads execution of business process actions in the implementation plan, definition of IT functional requirements, and determination of overall solution approach (e.g., COTS, GOTS, legacy modernization, or new development). Meanwhile, the MDA oversees development of the acquisition strategy. An objective of this phase is to establish the acquisition strategy that will support functional requirements.

The purpose of this phase is to ensure:

  • Functional requirements describe how the business system will achieve the future business processes.
  • The program managerLeads the development and delivery of the business systems and provides input to the functional sponsor on process design, requirements, training and other matters that may influence the acquisition strategy for business systems. engages further with industry (e.g., market research, benchmarking, requests for information, industry days) so that functional requirements reflect the current state of practice and inform the acquisition strategy.

Functional requirements will be linked to:

  • Inputs and outputs that define how the functional requirements support the business processes.
  • Technical and lifecycle support requirements that constrain how the functional requirements support the business process.
  • The appropriate cost agency will support development of alternatives and determination of the solution approach that best fits the needs and organizational goals based on economic analysis in accordance with DoDI 7041.03.
  • The acquisition strategy reflects the solution approach and describes how the program manager will identify potential business system solutions and perform solution selection. The program managerLeads the development and delivery of the business systems and provides input to the functional sponsor on process design, requirements, training and other matters that may influence the acquisition strategy for business systems., with support from the functional leadLeads business process reengineering, execution of business process changes, definition of functional requirements, training, and deployment for business systems. and the appropriate cost agency, establishes criteria for evaluating potential business system solutions.

Evaluation criteria must include:

  • Economic analysis (cost and benefit).
  • Satisfaction of functional requirements and inputs and outputs.
  • Satisfaction of technical requirements and lifecycle support requirements.
  • Overall risk.The acquisition strategy reflects the solution approach and describes how the program manager will identify potential business system solutions and perform solution selection.

Other criteria may also include:

  • Delivery schedule.
  • Evaluation of trade space for functional requirements.
  • Impacts to other programs.
  • The program managerLeads the development and delivery of the business systems and provides input to the functional sponsor on process design, requirements, training and other matters that may influence the acquisition strategy for business systems. may, with the approval of the MDA, conduct design specification activities normally conducted after the Acquisition ATP to inform the acquisition strategy.
Acquisition ATP

At this decision point:

  • The MDA authorizes acquisition of the business systemInformation systems that are operated by, for, or on behalf of the DoD, including: financial, contracting, logistics, planning and budgeting, installations management, human resources management, and training and readiness. and approves continued execution of the updated implementation plan.
  • The CMO approves initial CMO certification based on the chosen solution approach.

The DCMO:

  • Provides CMO certification for all priority business systems under Section 2222 Title 10, U.S.C., and for other business systems that are not under the authority of a MILDEP CMO.
  • May require any business system to receive CMO certification before development and may designate any business system as a priority business system.

The MILDEP CMOs:

  • Provide CMO certification for any business system of their respective military Department, other than a priority business system.
  • May designate a non-priority MILDEP business system as requiring CMO certification.

CMO CERTIFICATION.

  • The CMO will certify that business systems covered by Section 2222 of Title 10, U.S.C., meet the requirements of subsection (g)(1)(A) of Section 2222 of Title 10, U.S.C., before proceeding to development and on an annual basis thereafter, for any fiscal year in which appropriated or non-appropriated funds are expended for development or sustainment.
  • The initial CMO certification is conducted in conjunction with the Acquisition ATP.
  • Annual CMO certification after the initial CMO certification is conducted before each fiscal year in accordance with the procedures in February 6, 2015 DCMO Memorandum.
  • The MDA will require full funding, to the approved cost estimate, for the program to be available to support all of the acquisition activities approved at this decision.

Information Requirements.

  • Functional Requirements. Functional requirements will include enough detail to inform definition of potential business systemInformation systems that are operated by, for, or on behalf of the DoD, including: financial, contracting, logistics, planning and budgeting, installations management, human resources management, and training and readiness. solutions and evaluation criteria, but without including too much detail that would overly constrain solution selection.
  • Implementation Plan. During this phase, the implementation plan contains detailed plans, including resource loaded schedules, for actions required to deploy the future business processes. Additional information on the implementation plan is in Appendix 4B.
  • Draft Request for Proposal (RFP). The program managerLeads the development and delivery of the business systems and provides input to the functional sponsor on process design, requirements, training and other matters that may influence the acquisition strategy for business systems. will provide draft RFPs that align to the acquisition strategy for the contract actions that follow the Acquisition ATP.

Statutory Requirements:

  • Solution approach (fulfills analysis of alternatives and economic analysis)
  • Cybersecurity strategy (for mission essential IT)
  • CCA compliance (separate documentation of CCA compliance is not required)

Considerations for Decision Criteria:

  • Alternatives leverage market research on available COTS and GOTS products and services.
  • Potential business systemInformation systems that are operated by, for, or on behalf of the DoD, including: financial, contracting, logistics, planning and budgeting, installations management, human resources management, and training and readiness. solutions reflect traceability to functional requirements and decomposition.
  • Potential business system solutions include trade space to minimize customization.
  • Potentially expensive or high risk functional requirements are identified with recommended alternative approaches.
  • Potential business system solutions address technical and lifecycle support requirements.
  • Solution evaluation criteria include: economic analysis; satisfaction of functional requirements and information assets; satisfaction of technical requirements and lifecycle support requirements; and overall risk.
  • Solution evaluation criteria include (if needed): delivery schedule; evaluation of trade space for functional requirements; and enterprise impacts.
  • Technical management strategy identifies lifecycle methodology for development and delivery of the business system.
  • Consistency with DoD Information Enterprise policies and architecture.
  • Cybersecurity strategy consistent with DoD policies, standards and architectures.
Acquisition, Testing, and Deployment Phase

During this phase, the CAE or designee leads execution of contract award, supplier management, establishment of baselines, delivery of the business systemInformation systems that are operated by, for, or on behalf of the DoD, including: financial, contracting, logistics, planning and budgeting, installations management, human resources management, and training and readiness., and risk management. Meanwhile, the functional sponsor leads training and deployment. The objective of this phase is to achieve organizational change through business process changes and delivery of the supporting business system, with minimal customization.

The purpose of this phase is to ensure:

  • Detailed fit-gap analysis follows solution selection based on the acquisition strategy. Fit-gap analysis will be based on the known capabilities of the COTS/GOTS software in the selected business system solution.
  • Design specifications will reflect fit-gap analysis and prioritization of features to allow for cost and schedule trades within scope.
  • Development, delivery and capability support plans for the business system will be detailed in the implementation plan, expressed in terms of releases and deployments.
    • A limited deployment is any deployment before the Full Deployment ATP that does not provide full functionality to all planned users of the business system. Limited deployments will be approved at a Limited Deployment ATP.
    • The MDA will require adequate testing before Limited and Full Deployment ATPs. For business systems on the DOT&E Oversight List, DOT&E will approve all operational test plans, and an Initial Operational Test and Evaluation will be conducted before the Full Deployment ATP.
    • Full deployment is the delivery of full functionality planned to all planned users of the business system in accordance with the Full Deployment ATP.
  • The CAE or designee will oversee establishment of cost, schedule and performance parameters for each release before development or delivery.
Deployment ATPs

Limited Deployment ATP(s)

At this decision point, the MDA, in conjunction with the functional sponsor, considers the results of developmental and operational testing and approves deployment of the release to limited portions of the end user community.

Full Deployment ATP.

At this decision point, the MDA, with the support of the functional sponsor and CMO, considers the results of limited deployment(s) and operational testing and approves deployment to the entire user community.

The MDA is the decision authority for all Deployment ATPs

Statutory Requirements:

  • Solution approach (fulfills analysis of alternatives and economic analysis)
  • Cybersecurity strategy (for mission essential IT)
  • CCA compliance (separate documentation of CCA compliance is not required)

Considerations for Decision Criteria:

Limited Deployment

  • Maturity of developed or configured software through pre-production assessment of functional requirement coverage and defects impacting users.
  • Execution of change management, training and deployment plans.
  • Consistency with DoD Information Enterprise policies and architecture.
  • Results of cybersecurity adversarial assessment indicating adequate cybersecurity.
  • Program progress against baselined cost, schedule and performance.

Full Deployment

  • Measured performance of operational software in support of future business processes and technical and lifecycle requirements.
  • Organizational readiness for continued deployment.
  • Consistency with DoD Information Enterprise policies and architecture.
  • Results of cybersecurity adversarial assessment indicating adequate cybersecurity.
  • Program progress against baselined cost, schedule and performance.
Capability Support ATP

At this decision point, the functional sponsorThe senior leader with business function responsibility seeking to improve mission performance, confirm the need for improved business operations, and represent the user community interests throughout the BCAC. accepts full deployment of the system and approves transition to capability support.

Information Requirements.

  • Design Specifications. The design specifications satisfy the intent of a DoD CIO information support plan required by DoDI 8330.01. A separate information support plan document is not required for business systems developed in accordance with this issuance.
  • Test results. Supporting information for a Limited Deployment ATP or Full Deployment ATP must include the status of training and test results. This includes developmental or operational testing before the decision point based on the level of operational risk associated with the capability deployment.
  • Implementation Plan. The program manager updates the implementation plan throughout this phase to reflect releases, deployments, and capability support beginning with the first deployment.
  • Capability Support Plan. The capability support plan documents the roles, responsibilities for sustainment activities. The capability support plan must include:
    • A governance structure that provides resources, prioritizes changes, and approves implementation plans for changes that fall within scope of the original capability requirements.
    • A threshold for changes to determine whether or not the change requires a new BCAC initiative. Major capability changes that do not fall within the scope of the original capability requirements will require re-initiation of the process.
    • Plans for conducting a post implementation review.

The MDA is the Decision Authority

Statutory Requirements

  • Solution approach (fulfills analysis of alternatives and economic analysis)
  • Cybersecurity strategy (for mission essential IT)
  • CCA compliance (separate documentation of CCA compliance is not required)

Considerations for Decision Criteria:

  • Measured performance of implemented future business processes.
  • Organizational readiness for capability support.
Capability Support Phase

The functional sponsorThe senior leader with business function responsibility seeking to improve mission performance, confirm the need for improved business operations, and represent the user community interests throughout the BCAC. leads this phase with support from the CAE or designee. The objective of this phase is to provide enduring support for the capability established by the defense business systemsInformation systems that are operated by, for, or on behalf of the DoD, including: financial, contracting, logistics, planning and budgeting, installations management, human resources management, and training and readiness.. This includes active engagement in both functional and technical opportunities for continuous process improvement to maintain the relevance of the capability, the supporting technology, and the hosting solution.

The functional lead, with support from the program manager, identifies tailored implementation plans for changes that support continuous process improvement. The program manager and functional lead execute the implementation plans and update applicable enterprise architecture repositories to reflect capability changes.

Information Requirements. The functional lead and program manager develop tailored implementation plans and information requirements for this phase.

ATP Decision Points

Decisions will be informed by measures that assess the readiness to proceed to the next phase of the process. Decision-making will focus on executability and effectiveness of planned activities, including cost, schedule, acquisition strategy, incentive structure and risk.

All decisions are coordinated across stakeholders and made in a collective forum so that the decision authority is fully informed by the stakeholders at each decision point.

Depending on the decision point, either the Defense Business Council (DBC) or Defense Acquisition Board (DAB), or Component equivalents, will advise the decision authorities.

Decision authority is determined by phase content and type of decision being made. Decision authorities are described in more detail by phase in this section and summarized in Table 3 of Appendix 4A.

After the Functional Requirements ATP, the timing and number of all subsequent decision points are established as part of the implementation plan.

Statutory requirements, such as Clinger-Cohen Act compliance, that are normally associated with acquisition milestones must be completed and aligned with an appropriate decision point; statutory requirements cannot be waived unless the statute permits. Statutory requirements for decision points are summarized in Table 4 of Appendix 4A.

ATP decisions must be documented through a formal memorandum. Approval indicates satisfaction of all statutory and regulatory requirements unless otherwise stated in the memorandum. Information materials that supported the decision must be maintained in accordance with DoD records management procedures.

Considerations for decision criteria to use in support of decision points are included in Appendix 4A.