Project Management Circa 2025<br />PMI Global Congress -- North American <br />Chapter 19 – PM and Defense Acquisition 202...
PMI Global Congress -- North American <br />What is the largest Buying<br />Enterprise in the world?<br />Department of De...
Overview<br />External Drivers<br />Internal System<br />Industry<br />
External Drivers  <br />“The greatest strength of our armed forces is the initiative and adaptability of <br />our  people...
Politics
Weapon Systems
Research</li></li></ul><li>Threats<br />“What we do know is that the threats and challenges we face abroad in the first de...
Weakened economy
Partnerships</li></ul>Robert Gates - SECDEF<br />
Politics<br />“…more than any other single participant in the acquisition system, Congress shapes the<br />Regulatory Fram...
Congressional legislation</li></ul>Secretary Ashton B. Carter – USD AT&L<br />“The Department strongly supports the improv...
Weapon Systems<br />“What the department is seeking is timely synchronization and integrated delivery of <br />capabilitie...
Net-centric</li></li></ul><li>Research<br />“The greatest long-term threat to America, and to our close friends and allies...
Driver of technology vs. receiver of technology</li></li></ul><li>Internal System <br />“We must have well-identified requ...
Organization
Work Force</li></li></ul><li>Acquisition Process<br />“At the strategic level, DOD’s processes for identifying warfighter ...
Acquisition Process<br />“But for those programs that do have cost and schedule growth, the biggest<br />drivers are unsta...
Technology Maturity
Funding
Oversight</li></li></ul><li>Program Managers<br />“Program Managers are the heart of the defense acquisition process…”<br ...
Requirements Process<br />“To limit cost growth, the DOD should establish an early program baseline and <br />maintain it ...
Technology Maturity<br />“The GAO reported that of the programs assessed, only 15 percent entered <br />development with d...
Funding<br />“DOD pays for poorly performing programs by expropriating funds from other <br />programs.  This type of acti...
Oversight<br />The DOD needs to make tough decisions -- which programs to pursue, and <br />more importantly, not pursue; ...
Organization <br />“The organization is only as good as the people you put in it”  <br />28 March 2008<br />Top 100 Defens...
Organization<br />Stove Pipes<br />Nick Kuzemka – VP, Program Management, Lockheed Martin<br />The current joint programs ...
Experience<br />Program Management is a profession just like any other profession, and it must<br />have upward visibility...
Corporate Knowledge<br />20% of knowledge in an organization is information you can search for in <br />books, regulations...
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Project Management and Defense Acquisition

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These are the charts for the PMI Global Congress 2009—North America. Major Michelle "Shelli" Brunswick's presentation will be Tuesday, 13 Oct 2009, 0815. TRN21 : Project Management: Circa 2025 - Panel 1
Chapter 19: Project Management & Defense Acquisition

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Project Management and Defense Acquisition

  1. 1. Project Management Circa 2025<br />PMI Global Congress -- North American <br />Chapter 19 – PM and Defense Acquisition 2025<br />Major Michelle “Shelli” Brunswick, PMP<br />Acquisition & Space Professional in the USAF<br />Defense Acquisition University<br />The views presented here do not represent those of the DOD or DAU.<br />
  2. 2. PMI Global Congress -- North American <br />What is the largest Buying<br />Enterprise in the world?<br />Department of DeFense<br />$388 Billion in FY 2008<br />
  3. 3. Overview<br />External Drivers<br />Internal System<br />Industry<br />
  4. 4. External Drivers <br />“The greatest strength of our armed forces is the initiative and adaptability of <br />our people.” MILCOM 2006 Conference<br />Gordon England – DEPSECDEF<br /><ul><li>Threats
  5. 5. Politics
  6. 6. Weapon Systems
  7. 7. Research</li></li></ul><li>Threats<br />“What we do know is that the threats and challenges we face abroad in the first decade <br />of the 21st century will extend well beyond the traditional domain of any single <br />government agency.” Kansas State University Lecture, November 2007<br /><ul><li>Future threats
  8. 8. Weakened economy
  9. 9. Partnerships</li></ul>Robert Gates - SECDEF<br />
  10. 10. Politics<br />“…more than any other single participant in the acquisition system, Congress shapes the<br />Regulatory Framework and culture of defense acquisition through the mandates of <br />Federal law and its oversight function.” Business Executives for National Security, <br />Getting to Best: Reforming the Defense Acquisition Enterprise, July 2009<br /><ul><li>Congress authorizes the budget
  11. 11. Congressional legislation</li></ul>Secretary Ashton B. Carter – USD AT&L<br />“The Department strongly supports the improvements in the areas of defense acquisition <br />and policy that are addressed in S. 454, the Weapon Systems Acquisition Reform Act of <br />2009 and in H.R. 2101, the Weapons System Reform Through Technical Knowledge and <br />Oversight Act of 2009.” Secretary Ashton B. Carter, USD (AT&L), 12 May 2009<br />
  12. 12. Weapon Systems<br />“What the department is seeking is timely synchronization and integrated delivery of <br />capabilities—and to do it within projected costs and on schedule. The approach is to <br />identify gaps and seams, to eliminate redundancies except by design, and to make<br /> sure that solutions are completely interoperable.” MILCOM 2006Conference<br />Gordon England – DEPSECDEF<br /><ul><li>Information </li></ul> dominance<br /><ul><li>System-of-Systems
  13. 13. Net-centric</li></li></ul><li>Research<br />“The greatest long-term threat to America, and to our close friends and allies,<br /> is falling behind in science and technology.” MILCOM 2006Conference<br />Gordon England – DEPSECDEF<br /><ul><li>Current expenditures vs. long-term expenditures
  14. 14. Driver of technology vs. receiver of technology</li></li></ul><li>Internal System <br />“We must have well-identified requirements, adequate funding and robust <br />processes utilized by trained personnel that can execute the program.” <br />7 March 2008<br />Keith Ernst – former Acting Director, DCMA<br /><ul><li>Acquisition Process
  15. 15. Organization
  16. 16. Work Force</li></li></ul><li>Acquisition Process<br />“At the strategic level, DOD’s processes for identifying warfighter needs, <br />allocating resources, and developing and procuring weapon systems—which <br />together define DOD’s overall weapon system investment strategy—are <br />fragmented and broken.” 3 June 2008, GAO <br />
  17. 17. Acquisition Process<br />“But for those programs that do have cost and schedule growth, the biggest<br />drivers are unstable requirements, immature technologies, and funding <br />instability.” 3 June 2008<br />Hon. John J. Young, Jr. USD(AT&L) <br /><ul><li>Requirements Process
  18. 18. Technology Maturity
  19. 19. Funding
  20. 20. Oversight</li></li></ul><li>Program Managers<br />“Program Managers are the heart of the defense acquisition process…”<br />Business Executives for National Security, Getting to Best: Reforming the <br />Defense Acquisition Enterprise July 2009 <br />Little “A”<br />
  21. 21. Requirements Process<br />“To limit cost growth, the DOD should establish an early program baseline and <br />maintain it throughout the acquisition process.” Steven R. Meier, CIA, <br />March 2008<br />Hon. John J. Young, Jr. USD(AT&L) <br />“Stop tinkering with requirements for weapons systems because such actions<br />cause cost overruns and schedule delays.” 30 July 2007 <br />
  22. 22. Technology Maturity<br />“The GAO reported that of the programs assessed, only 15 percent entered <br />development with demonstrated high levels of technology maturity, causing <br />many programs to experience significant growth in development cost.” <br />15 November 2005, GAO<br />FCS<br />$159B<br />Incremental development vs quantum leaps<br />
  23. 23. Funding<br />“DOD pays for poorly performing programs by expropriating funds from other <br />programs. This type of action destabilizes the other programs and reduces<br />the overall buying power of the defense dollar.” 7 March 2008<br />KeithActing Director, DCMA Ernst – former<br />F-22<br />Nick Kuzemka – VP, Program Management, Lockheed Martin<br />“Funding instability on complex weapon systems causes renegotiation and re-<br />baselining of the plans, schedule and integration. This has a ripple effect <br />through the supply chain.” 6 March 2008<br />
  24. 24. Oversight<br />The DOD needs to make tough decisions -- which programs to pursue, and <br />more importantly, not pursue; make sure programs are executable; lock in <br />requirements before programs are ever started; and make it clear who is <br />responsible for what and hold people accountable when responsibilities are <br />not fulfilled. 29 April 2008<br />Hon. John J. Young, Jr. USD(AT&L) <br />“Take control of the processes to ensure you have an executable, funded, and <br />manageable program. Be prepared to be held accountable for execution of <br />your program.” 6 June 2008<br />
  25. 25. Organization <br />“The organization is only as good as the people you put in it” <br />28 March 2008<br />Top 100 Defense Contractors<br />Ralph DiCicco, JR – Acting Dir., AF/ ACE<br />“Agencies need to consider developing a total workforce strategy … address <br />the extent of contractor use and the appropriate mix of contractor and <br />civilian and military personnel…identifying and distinguishing the <br />responsibilities of contractors, civilians and military personnel are critical <br />to ensure the contractor roles are appropriate.” 11 March 2008<br />
  26. 26. Organization<br />Stove Pipes<br />Nick Kuzemka – VP, Program Management, Lockheed Martin<br />The current joint programs are not able to streamline the requirements process <br />across the Services. For example, the JSF Program Office has a Requirements<br />Board where the different Services convene. However, after a joint decision has<br />been made, each Service is still required to go through their individual approval<br />channels” 6 March 2008<br />
  27. 27. Experience<br />Program Management is a profession just like any other profession, and it must<br />have upward visibility and mobility. The Department must re-professionalize the<br />program management career field by providing personnel with formal education<br /> and practical experience. 19 February 2008<br />Lt . Gen Lawrence P. Farrell, Jr., USAF (Ret) -- President & CEO NDIA<br />The greatest challenge to developing experienced program managers is the <br />decrease in DOD weapon system procurement. One solution to this shortage<br />is to rotate DOD program managers with program managers in other U.S. <br />government agencies and industry and vice versa.<br />
  28. 28. Corporate Knowledge<br />20% of knowledge in an organization is information you can search for in <br />books, regulations or manual. The remaining 80% of the knowledge resides in<br />experience, insight and lessons learned. This corporate knowledge is the why <br />and how to do things, knowing what works and what doesn’t work. <br />12 February 2008<br />A single drop of water can send a ripple for miles; similarly a single idea,given at the right time, can help you for years to come.<br />Colonel William S. “Bill” Kaplan, (ret) USAF, Chief Knowledge Officer, Acquisition Solutions<br />Mentorship<br />
  29. 29. Industry <br />“Change is relentless…I’d say in a single word ‘more’. We see more foreign<br />ownership of U.S. assets…more export from U.S. companies into the global<br />marketplace…more global supply…more (international) partnering…the global<br />threat and the nature of warfare are changing…” June 2005<br />Mark H. Ronald -- President and CEO, BAE Systems North America, Inc.<br /><ul><li> Industry’s Role
  30. 30. Industrial Base Changes
  31. 31. Role of the Prime & Sub-Prime </li></ul>Contractor<br /><ul><li> Global Economy
  32. 32. Industry’s Response to Market Forces</li></li></ul><li>Industry’s Role <br />“I see industry’s role with the Government in 2025 to be an integrated solution <br />provider.” 2 May 2008<br />Lt. Gen George Muellner (ret) USAF, former President, of Advanced Systems, IDS, Boeing <br />Frederick C. Payne -- Corporate Director of Program Management for BAE Systems, Inc.<br />“The right direction is team-mate and partner with the government in <br />delivering a capability.” 27 February 2008<br />
  33. 33. Industrial Base Changes<br />“Domestic mergers will start to decline as compared to the last two decades,<br />but international mergers and acquisitions will increase.” 28 April 2008<br />Steve Goo -- VP, International Operations IDS, Boeing<br />Lt. Gen Ted Bowlds, USAF -- Commander ESC<br />This will lead to the introduction of many non-traditional suppliers, who have <br />not previously been associated with defense work…because of the increased <br />use of commercial products and the reduction in resources for the <br />development of unique military solutions. 24 February 2008<br />
  34. 34. Role of the Prime & Sub-Prime Contractor <br />“The shift is already underway with prime contractors and subprime contractors<br />having close working relationships. Contractor teams will align themselves <br />early on in the acquisition process with common goals and objectives, and they<br /> are willing to share the fee.” 10 Feb 2008<br />Nick Kuzemka – VP, Program Management, Lockheed Martin<br />George Guerra -- VP HALE System, Northrop Grumman Corp.<br />Transparency<br />In order for the prime/sub-prime contractor teams to collaborate and <br />communicate more effectively, common systems must be used…The trend<br />will be for the prime contractor’s systems and processes to be adopted by the <br />sub-prime. 6 Mar 2008<br />
  35. 35. Global Economy<br />“The Department must be prepared for more global involvement in the <br />manufacturing of the components going into weapon systems. This will require<br />a major cultural shift in thinking about how to produce military hardware <br />[coupled with] National Security concerns.” 14 February 2008<br />Col August J. Caponecchi (ret). USAF -- President Emeritus, Tactair Fluid Controls Inc.<br />ITAR<br />Buy America<br />Secretary Gary E. Payton, Deputy Under Secretary of the Air Force for Space Programs<br />“The government comprises 7% of industry’s space business revenue and <br />many of the subtiers are divesting from government contracts towards more <br />profitable markets. The subtier components are bound by legislation such as <br />ITAR that increases the cost of domestically manufactured products and dis-<br />advantages the U.S. supplier.” 27 March 2008<br />
  36. 36. Industry’s Response to Market Forces<br />“Industry supporting defense is reshaping itself to respond to significant <br />changes in military missions. Major defense firms are responding by <br />reducing excess capacity, streamlining processes, and revamping supplier<br />relationships.” Aug 2005<br />J. David Patterson -- Principal Deputy Under Secretary of Defense (Comptroller)<br />Nick Kuzemka – VP, Program Management, Lockheed Martin<br />The technical paradigms will evolve, leading to industry’s improved <br />responsiveness and advancement along the curve of flawless execution…this <br />will enhance industry’s ability to deliver to government expectations.<br />6 March 2008<br />
  37. 37. Conclusion<br />“Buy the right thing, the right way, with the right process.” 5 March 2008<br />Dr. Jacques Gansler -- former Under Secretary for AT&L<br />General Lester L. Lyles (Ret) USAF -- former Commander, AFMC<br />The acquisition process can go one of two ways. It can get more bureaucratic<br />and stringent or it can embrace solutions from various studies to improve<br />the whole process. 7 April 2008<br />
  38. 38. Contact Information<br />“I believe the initiative, talent and adaptability of our government and industry <br />team will succeed in providing an acquisition process that meets the <br />demanding requirements of our ever changing world.”<br />Major Brunswick, an Acquisition/Space Professional in the United States Air Force (USAF), is the Chief of USAF Acquisition Professional Development Program in the Office of the Assistance Secretary of the Air Force for Acquisition. She is Defense Acquisition Workforce Improvement Act (DAWIA) certified in Program Management Level III and a certified Space Professional Level II by the United States Air Force Space Professional Functional Authority. She attained her Project Management Professional (PMP) certification in 2002. She also holds Bachelor’s and Master’s degrees in Business Administration. Major Brunswick has served 24 years in the USAF. Prior to joining the USAF air Staff, she was a Professor of Acquisition Management at Defense Acquisition University (DAU) where she conducted her research and authored this chapter. Before her tenure at DAU, she was a Program Integrator at Defense Contract Management Agency (DCMA), where she led a multifunctional team on the Missile Defense Agency’s Space Tracking and Surveillance System. Prior to her assignment at DCMA, she participated in the Air Force Institute of Technology’s Education with Industry with the Boeing Corporation. She entered the acquisition career field with the Space and Missile Systems Center at Los Angeles Air Force Base, California, as a Project Manager and as a Test and Verification Project Officer for the Spacelift Range program. Major Brunswick has served one tour in Iraq with DCMA and a joint tour in Washington, D.C., with the Office for the Administrative Review of the Detention of Enemy Combatants under the authority of the Deputy Secretary of Defense. <br />shellibrunswick@gmail.com; 703-588-7273<br />The views presented here do not represent those of the DOD or DAU.<br />

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