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IT Acquisition Advisory Council (IT-AAC)
                     A non-partisan think tank, 501.C3



Roadmap for Sustainable IT Acquisition Reform

Leveraging non-traditional expertise and benchmarked standards of practices
                 That exceed CCA & Section 804 Mandates




                     Honorable John Grimes, Former OSD CIO
                  John Weiler, Vice Chairman, john@IT-AAC.org
             Dr. Marv Langston, IT-AAC Vice Chair marv@langston.org
                                     www.IT-AAC.org
                    904 Clifton Drive *703Alexandria * Virginia 22308
                                           768 0400
                           www.IT-AAC.org   *   (703) 768-0400
Senior Exec Briefing Summary
™
                           Assuring Business Value from every IT $ Spent



                                        Purpose

                                        Today's Situation

                                        Our Proposal to Assist

                                        Way Forward Recommendation

                                        Predictable Outcomes




“Together, these steps will help to catalyze a fundamental reform of Federal IT, which is essential to improving
          the effectiveness and efficiency of the Federal Government” White House, OMB Director
      501.C Non-Profit Research Institute        IT-AAC Proprietary               © 2008- 2010 All Rights Reserved   2
                                               703-768-0400 www.IT-AAC.org
™
                           Think Tank Purpose
To provide the Decision Makers with an alternative set of resources
and expertise needed to guide the establishment of a “best in class”
set of IT Acquisition Processes and Governance Structure.
Acquisition Practitioners and workforce will need commercial methods, access to deep
industry expertise and emerging standards of practice to overcome common failure patterns
and cultural impediments that have prevented previous attempts to achieve following
objectives:

Speed -- achieve 6-12 month cycle times vice 7-8 years (early pilots prove this is possible)

Incremental development, testing, and fielding -- vice one "big bang"

Actionable Requirements -- Sacrifice or defer customization for speed and COTS/OS utilization - Leverage
established standards of practice and open modular platforms

Meet DoD's wide-range IT needs -- from modernizing C2 to updating word processing software

Focused on Outcomes and Operational Effectiveness - Health IT, InfoSharing, Cyber Security, Consolidated
IT Infrastructure, Business Systems
                 “You can’t solve today’s problems with the same thinking that got you there” Albert Einstein

            501.C Non-Profit Research Institute       IT-AAC Proprietary                    © 2008- 2010 All Rights Reserved   3
                                                    703-768-0400 www.IT-AAC.org
IT-AAC Accomplishments
       ™                       can significantly reduce time, risk and cost

1. Established an alternative, conflict free think tank composed of the worlds top minds and most
   respected public service entities.

2. Completed Root Cause Analysis of Reoccurring Failure Patterns in DoD IT Acquisition and their
   devastating impact, derived from; over 40 major studies, 2 surveys, 121 interviews, 21 Leadership
   Workshops and 4 conferences.

3. Benchmarked Industry IT Architecture & Acquisition Best Practices and Common Failures, 10 of
   Fortune 50.

4. Completed agency pilots of alternative IT Acquisition processes covering; requirements, architecture,
   tech assessments, business case analysis, and source selection.

5. Standardized Agile Acquisition Framework, documentation, and case studies for rapid adoption

6. Partnership with DAU, which established an alternative IT Acquisition Training Curriculum.

   "It is not a great mystery what needs to change, what it takes is the political will and willingness, as Eisenhower possessed, to make
     hard choices -- choices that will displease powerful people both inside the Pentagon and out” Defense Secretary Robert Gates



              501.C Non-Profit Research Institute         IT-AAC Proprietary                     © 2008- 2010 All Rights Reserved           4
                                                        703-768-0400 www.IT-AAC.org
IT-AAC understands IT Acquisition Dilemma
         ™
                                Wave 3 Solutions can’t be acquired using MilSpec processes…

                                 We are in early stages of Wave 3 information technology
                                 Mainframe and Client-Server waves remain in place                          3. Internet - Cloud
Information Driven Capability




                                 Waves represent many co-dependent technologies,                                  • Virtualized compute; global
                                                                                                                     network enabled, plug & play
                                  matured over time                                                                • IT Infrastructure decoupled from
                                 Adding functional capability has                                                   Applications
                                                                                                                   • COTS & OSS Integration,
                                  become easier with each new wave                                                   Software as a Service
                                 But enterprise infrastructure                2. Client/Server - Decentralized
                                  gaps & vulnerabilities have                          • PC enabled and network
                                  become more critical                                 • Software distributed in both server and client
                                                                                         computers
                                                                                       • Heavy focus on software development and point to
                                                                                         point integration
                                                     1. Centralized - Mainframe
                                                             • Central computer center, slow turn around
                                                             • One size fits all
                                                             • Limited reuse of application modules

                                    1950            1960            1970    1980        1990         2000   2010         2020
                                                                        Information Technology Evolution
                                      DoD is using 1970s acquisition processes; to acquire Wave 3 IT capability
                                  501.C Non-Profit Research Institute           IT-AAC Proprietary                 © 2008- 2010 All Rights Reserved   5
                                                                              703-768-0400 www.IT-AAC.org
Understanding the Many Aspects of the
                       IT Acquisition Lifecycle
          ™




IT Acquisition Building Blocks:
 Governance and Oversight: how an enterprise supports, oversees and manages IT programs and on-going portfolio. SOA as defined in the commercial
    market is governance tool not technology. DoD5000 and BCL represent the current approaches.

 Decision Analytics: enables effective Program Management and Value Stream Analysis execution. As most of these sub-processes are designed to improve
    decision making, a relative new discipline has evolved (since 86), that addresses the human and cultural challenges in decision making. Decision Analytics is the
    discipline of framing the essence and success criteria of each gate in the acquisition lifecycle. It brings focus to the high risk areas of a program, and reduces
    analysis/paralysis.

 Requirements Development: Actionable requirements must be constrained by the realm of the possible. With pressures to do more with less, we must
    embrace mechanisms that force a relative valuation/impact of the gap/capability, with clearly defined outcomes

 Architecture: This is one of the most critical elements of the acquisition lifecycle, as it should represent all stake holder agreements. The market embrace of
    SOA is not about technology, but a refocusing of the EA on service level management and data.      A good architecture is a lexicon that links requirements,
    technologies and acquisition strategy.

 Technology Assessment: Understanding the limitation of technology early in the process is key. Without a clear view of the “realm of the possible” validated
    by real world results, we often find ourselves in high risk areas and over specification. Market research must be done early to help users constrain requirements
    and embrace the inherent business practices that codify. Recognizing that 70% make up of every IT application is vested in IT infrastructure (netcentric, cloud,
    SOA), it is critical to establish a common infrastructure/infrastructure standard by which all applications can share. The most prolific is ITIL to date.

 Business Case Analysis: Demonstrating the business value of technology investments, based on evidenced based research and lifecycle cost. This is a
    core requirement of Clinger Cohen Act.

 Performance Based Acquisition and Metrics: Software as a Service and SOA portent a new dynamic for acquisition of IT (health IT, cyber, business
    systems), that brings focus to Service Level Agreements (SLAs), Software as a Service (SaaS) and SL Management. If the previous activities do not directly feed
    the acquisition strategy or provide mechanisms for contractor accountability, all is lost.




                                         “IT Reform is about Operational Efficiency and Innovation”

                   501.C Non-Profit Research Institute                IT-AAC Proprietary                              © 2008- 2010 All Rights Reserved                  6
                                                                    703-768-0400 www.IT-AAC.org
Today’s Situation -- as highlighted by the
                HASC Panel on Defense Acquisition
     ™                         Reform

      Studies of both commercial and government IT projects have found some
        disturbing statistics;

       Only 16% of IT projects are completed on time and on budget.

       31% are cancelled before completion.

       The remaining 53% are late and over budget, with the typical cost growth exceeding the original
        budget more than 89%.

       Of the IT projects that are completed, the final product contains only 61% of the originally
        specified features.


    As was pointed out in testimony before the Panel, the traditional defense acquisition process is “ill-suited for
  information technology systems. Phase A is intended to mature technology; yet information technologies are now
  largely matured in the commercial sector”. Weapon system acquisition processes are often applied to IT systems
acquisition, without addressing unique aspects of IT. “the weapon systems acquisition process is optimized to manage
production risk and does not really fit information technology acquisition that does not lead to significant production
                                    quantities.” Defense Acquisition Panel, HASC
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                                                 703-768-0400 www.IT-AAC.org
OMB’s View of Federal IT
                                          Fundamentally Broken!
™




    501.C Non-Profit Research Institute         IT-AAC Proprietary          © 2008- 2010 All Rights Reserved   8
                                              703-768-0400 www.IT-AAC.org
Sources of Evidence
              Failure to fix IT is costing the tax payer $40Billion a Year
        ™




“We are buying yesterday’s technology tomorrow in the rare instances we are successful ”
 DSB IATF: “DoD reliance on FFRDCs is isolating it from sources of new technologies, and will hinder the departments ability to get
  the best technical advise in the future”

 AF Science Advisory Board 2000: PMs need greater access to real world lesson learned and innovations of the market to mitigate
  risk and cost overruns. PMs frequently enter high risk areas due to limited access to lessons learned from those who have already
  forged ahead.

 CMU SEI Study 2004: The DoDAF alone is not effective for IT architectures, lacks business view, performance metrics or means of
  avoiding over specification. DoDAF (C4ISR) was developed by Mitre and IDA in 1986 to provide DoD with a systems engineering
  documentation tool for existing system implementations. 2009 NDAA Sec 803 : Government needs a high integrity knowledge
  exchange by which innovations of the market can be objectively assessed.

 DSB 2009: Weapons Systems Style Solution Architecture and Acquisition Processes take too long, cost too much, recommend
  establishing a separate IT Acquisition market that is tuned for the fast paced market.

 IT-AAC 2009: Major IT Programs lack senior leadership support, and have few vested in the success. All participants, including
  oversight, must be incentivized in meeting program goals and outcomes.

 BENS RPT on ACQUISITION 2009: DoD needs independent architecture development that is not compromised by those with a
  vested interest in the outcome. FAR OCI rules must be better enforced.

 NDAA Sec 804 2010: DoD will establish a modular IT Acquisition process that is responsive to the fast paced IT market.

"Weapons systems depend on stable requirements, but with IT, technology changes faster than the requirements process can
  keep up," he said. "It changes faster than the budget process and it changes faster than the acquisition milestone process.
  For all these reasons, the normal acquisition process does not work for information technology.” DepSec Bill Lynn
  statement at the 2009 Defense IT Acquisition Summit hosted by IT-AAC
               501.C Non-Profit Research Institute       IT-AAC Proprietary                    © 2008- 2010 All Rights Reserved        9
                                                       703-768-0400 www.IT-AAC.org
Federal IT Acquisition Root Causes
   ™         compromising mission effectiveness and costing tax payer $40B/year


1. IT Acquisition Ecosystem Ineffective:
  – Missing incentives & metrics, redundant oversight, vague accountability, ineffective
    governance (MOE, SLA) puts focus on compliance vs outcomes.
  – Programs spending up to 25% on compliance without any reduction in risk.

2. Good laws (CCA, OMB 119, FAR, Sec804) lack enforcement:
  – Frequently compounded by Ad-hoc Implementations and MilSpec methods.
  – DODAF, JCIDS, NESI, LISI were designed for Weapons Systems, compete with
    standards and orthogonal to Industry Best Practices.

3. Conflict of Interest unenforced, optimal resources and expertise overlooked:
  – FAR prohibits Contractors with vested interests in implementation should not use
    “Chinese firewalls” to bypass rules or gain unfair advantage.
  – Optimal resources in IT Program planning, market research, and solution engineering
    overlooked, inhibiting access to real world best practices and innovations of the
    market. Standards bodies & non-profit research institutes under utilized.


    “Insanity is continuing the same process over and over again and expecting different results” Albert Einstein

         501.C Non-Profit Research Institute      IT-AAC Proprietary                 © 2008- 2010 All Rights Reserved   10
                                                703-768-0400 www.IT-AAC.org
Root Cause (cont.)
  ™


4. FFRDCs/SIs are Stifling Innovation and Decision Making due to Analysis/Paralysis:
  –   Traditional Sis/FFRDCs are insulated from IT innovations and commercial best practices.
  –   PMs lacks effective outreach/research capabilities needed to inform the requirements and
      acquisition lifecycle. Lacks timely access to innovations of the market, commercial
      expertise, or benchmarked best practices and lessons learned.
  –   Small Businesses, Innovators and Public Service entities (.edu, .org, SDOs) are under
      utilized, threatening Open Systems and Open Architecture efforts.

4. MilSpec Acquisition Processes in conflict with Open Systems, best practices and drive “design
   to spec” approach ( in spite of CCA and NDAA Section 804 directive to the contrary):
  –   MilSpec Requirements (JCIDS), Architecture (DoDAF), Tech Assessment (TRL/C&A),
      Business Case Analysis (AoA), Procurement (DoD5000) and Enterprise Management (CMM)
      processes are inconsistent with fast paced IT market (in spite of Paperwork Reduction Act,
      CCA, Section 804 and OMB A119 directives)
  –   Section 804 call Open Process cannot be implemented using the same resources and
      expertise that created the current MilSpec processes

4. Budgeting (POM) approaches drive stove pipe solutions:
  –   Frequently undermining ability to establish common & interoperable infrastructure services
      which accounts for 70% of every IT program buy. Concepts like SOA, Cloud Computing
      and Service Level Management cannot be embraced without a change in the above.
       501.C Non-Profit Research Institute     IT-AAC Proprietary          © 2008- 2010 All Rights Reserved   11
                                             703-768-0400 www.IT-AAC.org
™




                       IT Reform Way Forward




    501.C Non-Profit Research Institute     IT-AAC Proprietary          © 2008- 2010 All Rights Reserved   12
                                          703-768-0400 www.IT-AAC.org
Congressional Action to Reform
   ™               IT Acquisition: NDAA Sec804

“The Secretary of Defense shall develop and implement a new acquisition process for information technology
   systems. The acquisition process developed and implemented pursuant to this subsection shall, to the extent
   determined appropriate by the Secretary--

 be based on the recommendations in chapter 6 of the March 2009 report of the Defense Science Board Task
  Force on Department of Defense Policies and Procedures for the Acquisition of Information Technology; and

 be designed to include--
 – early and continual involvement of the user;
 – multiple, rapidly executed increments or releases of capability;
 – early, successive prototyping to support an evolutionary approach; and
 – a modular, open-systems approach”

Congress and DSB made these recommendations based on early adoptions by AF, Navy, USMC, and BTA of
   alternative methods like the Architecture Assurance Method (AAM), a risk management framework designed
   to improve decision making and assure stake holder value. AAM incorporates by reference industry best
   practices like SOA, ITIL, and Evidenced Based Research.




         501.C Non-Profit Research Institute     IT-AAC Proprietary          © 2008- 2010 All Rights Reserved   13
                                               703-768-0400 www.IT-AAC.org
OMB Guidance on IT Reform
  ™                                   from OMB’s 25 Point Plan




Align the Acquisition Process with the Technology Cycle
 Point 13. Design and develop a cadre of specialized IT acquisition professionals .

 Point 14. Identify IT acquisition best practices and adopt government-wide.

 Point 15. Issue contracting guidance and templates to support modular development

 Point 16. Reduce barriers to entry for small innovative technology companies"




       501.C Non-Profit Research Institute     IT-AAC Proprietary          © 2008- 2010 All Rights Reserved   14
                                             703-768-0400 www.IT-AAC.org
Partner with DAU to create a
™       Mentoring and Training Curriculum




    501.C Non-Profit Research Institute     IT-AAC Proprietary          © 2008- 2010 All Rights Reserved   15
                                          703-768-0400 www.IT-AAC.org
Resource Optimization Considerations
                          you cannot outsource risk or critical thinking
       ™




1. FFRDCs: Best suited for govt unique R&D and Weapon Systems Source Selection.

2. Standards Development Orgs (SDO), Trade Associations: Source of standardizations among
   suppliers, ISVs. Effective source for market communications and outreach.

3. Research Institutes, Labs & Academia: Excellent source of low cost research, piloting of emerging
   technologies not yet proven in the market. Effective in IT & acquisition training.

4. Consultancies, A&AS Firms: Excellent for IV&V and source selection if free of vendor relationships or
   implementation interests. Can mitigate OCI issues in acquisition.

5. Innovators, ISVs, Open Source: The engine of innovation. Most effective and efficient way of filling
   common industry IT gaps. Great source of customer case studies and best practices.

6. System Integrators: Optimized for large scale implementation and outsourcing. Have significant
   economies of scale and technology usability insights.




            501.C Non-Profit Research Institute     IT-AAC Proprietary          © 2008- 2010 All Rights Reserved   16
                                                  703-768-0400 www.IT-AAC.org
Resource Guide for Effective IT Acquisition
                             Based on Clinger Cohen Act and FAR Guidance
       ™


 Partner Type      FFRDC                User Groups,      Standards          Research        Consultants,     Innovators,           System
                                        Communities       development        Institutes,     IV&V, A&AS       Tech Mfg,             Integrators
SDLC       Phase                        of Practice       orgs, trade        Labs &          Firms            Open Source
                                                          associations       Academia

Requirement,       Only when            OMB Lines of      SDOs =             Provide         Limited access   Great source          FAR OCI
Gap Analysis       no other             Business          Primary driver     Conflict free   to industry      for customer          Rules limit
                   company can          offers Critical   for open           structure and   lessons          use cases,            participation
                   support (4).         Role (6,7)        systems.           economies of    learned.         lessons
                                                          Conflict free      scale (2,6)                      learned.
                                                          structures (2,3)

Architecture       Only when            Agency CxOs       Provide            Principle       Primary source FAR OCI rules FAR OCI rules
and Planning,      no other             provides          standards of       source of       of expertise   limit         prohibit direct
Mkt Research       company can          critical          practice, not      expertise                      participation support
                   support (4)          guidance (2, 3)   support

PMO & IV&V         Only when   Not inherently             Play            Optimized for      Key role         FAR OCI rules FAR OCI rules
Support            no other    governmental               supporting role this area                           prohibit      prohibit
                   company can                                                                                participation participation
                   support (4)

Material           Forbidden (4) Not inherently                              Support role    Support role     Provide       Primary
Solution                         Governmental                                                                 developmental partnership
Engineering                                                                                                                 area
System Impl.,      Forbidden (4) Not inherently           Forbidden          Lack            Internal IV&V    Provider of key Primary
Maint, &                         Governmental                                Resources &     for Prime        technologies    partnership
Support                                                                      Expertise       contract                         area
                                                                                             reduces risk.


              501.C Non-Profit Research Institute               IT-AAC Proprietary                      © 2008- 2010 All Rights Reserved            17
                                                              703-768-0400 www.IT-AAC.org
Critical Success Factors
                       for Sustainable IT Acquisition Reform
  ™




Clinger Cohen Act, FAR, and NDAA Sec804 directives cannot be accomplished with the same
thinking that got us their. FFRDCs are prohibited from competing with industry and therefore the
least effective resource for IT programs. The CSF include;

 Agile Methods derived from benchmarked commercial best practices (CCA, Sec804)

 Leverage existing investments and innovations of the market while avoiding competing with
industry or duplicating what already exists (Economy Act)

 Utilize public service institutes and standards bodies over FFRDCs (FAR)

 Should be based on Open, consensus based methods (OMB A119)

 Must be modular, services oriented (NDAA Section 804)

 Should be measurable, repeatable and sustainable, with supporting training, education and
mentoring (HR 5013)
      15 years of studies suggest the following critical success factors for sustainable IT Acquisition Reform. An
              “Open” IT Acquisition process will still need to conform to the rule of law (non-MilSpec):


       501.C Non-Profit Research Institute     IT-AAC Proprietary                   © 2008- 2010 All Rights Reserved   18
                                             703-768-0400 www.IT-AAC.org
Assessment of Alternative
                                                  IT Acquisition Processes
     ™


                       MilSpec                    Assessment                Alternative         Assessment                  Where
                       Acquisition                against Sec 804           Acquisition         against Sec 804             successfully
                       Processes                  Criteria                  Process             Criteria                    applied
Decision               Ad hoc, not                Largest gap in IT         Acquisition         Open,                       AF, Navy,
Analytics              formalized                 Lifecycle                 Assurance           Successfully                USMC, BTA,
                                                                            Method (AAM)        piloted, modular            GSA, DISA,
Requirements           JCIDS, IT Box              Not tuned for             Value Stream        Exceeds criteria            US TRANSCOM,
Development                                       COTS, SOA, OSS            Analysis w/ Agile                               DISA, CIA
                                                  Market                    Development
Architecture           DoDAF                      Missing Metrics,          OMB FEA RMs         Strong evidence,            PTO, DOC,
                       Systems                    Infrastructure View,      SEI SMART           Services Based              GPO, GSA, DOI,
                       Engineering                Stake holder                                                              DOT, DHS
                       Method                     perspectives
Technology             TRL                        IT Matures at a           AF Solution         COTS/OSS                    AF, USMC, BTA,
Assessment:            Assessment                 very fast rate            Assessment          Focused, support            Navy CANES,
                                                                            Process (ASAP)      BPR                         PTO, GPO, GSA
Risk & Cost            Analysis of                Time consuming,           ASAP/AAM BCA        Effective w/                AF, Navy,
Management             Alternatives,              not aligned with                              COTS based sys              USMC, BTA
                                                  industry B.P.             BTA ERAM            Limited risk mgt
Governance             DoD 5000                   Milestone based,          ICH Clinger         Integrated SOA              BTA, OSD HA,
and Oversight          Bus Capability             not effective for IT      Cohen Act Guide     best practices              Navy,
                       Lifecycle (BCL)
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                                                            703-768-0400 www.IT-AAC.org
™
                    Repeatable Patterns of Success
               when agencies tap IT expertise outside the Defense Industrial Complex!

 Navy: Assessment of AFLOAT Program –                         USAF: Streamlined COTS Acquisition                               USAF: Procurement of E-FOIA
    CANES SOA & Security Strategy                            Process. Applied to Server Virtualization.                             System using AAM

 Eliminated hi-risk Requirements by                        Established optimal arch with ROI of                         Completed AoA, BCA, AQ Selection
  23%, $100Ms in potential savings                             450% & $458 million savings                                      in just 4 months.


  USMC: AoA and BusCase for Cross                           GSA: Financial Mgt System consolidation                         BTA: Assessment of External DoD
    Domain, Thin Client Solutions                                        using AAM.                                            Hosting Options using AAM

Greatly Exceeded Forecasted Saving                            Moved FMS from OMB “red” to                               $300 million in potential savings with
  in both analysis and acquisition                            “green”. Eliminated duplicative                                   minimal investment
                                                               investments that saved $200M


 BTA: Apply AAM to complete AoA and                        GPO: Developed Acquisition Strategy for                        JFCOM: MNIS Evaluation of Alternatives
      BCA for DoD SOA Project                                      Future Digital System                                       for Cross Domain Solutions

Reduced pre-acquisition cycle time                          Led to successful acquisition and                           Evaluated 100’s of Options in 90 days,
  and cost of Analysis by 80%                              implementation on time, on budget                              enabling stake holder buy in and
        (4 months vs 18)                                   and 80% cheaper than NARA RMS                                          source selection.

       “. the concept of the Interoperability Clearinghouse is sound and vital. Its developing role as an honest broker of all interoperability technologies, no matter what the source,
       is especially needed. Such efforts should be supported by any organization that wants to stop putting all of its money into maintaining archaic software and obtuse data
       formats, and instead start focusing on bottom-line issues of productivity and cost-effective use of information technology.” OSD Commissioned Assessment of Interop.
       Clearinghouse (Mitre 2000)
                501.C Non-Profit Research Institute                      IT-AAC Proprietary                                   © 2008- 2010 All Rights Reserved                    20
                                                                       703-768-0400 www.IT-AAC.org
What Congress Should Encourage
           ™              to assure Sustainable IT Acquisition Reform

      1. Recommend using IT-AAC to Establish Measures of Effectiveness: tap alternative resources and expertise to provide critical
         resource support to the DepSec and IT Acquisition Task Force to establish performance metrics. Guide Task Force in establishing
         Governance Structure and Incentives for Sec804 and Operational Efficiencies in terms of process, culture, incentives and
         mentoring.
Phase 1
Phase 1




      2. Brief out Root Cause Analysis: of current acquisition ecosystem (processes, culture, acqu resources and incentives) with
         public/private partners. Repurpose existing studies developed by objective sources; GAO, DSB, AF SAB, BENS, CSIS, IAC/ACT,
         ICH, IT-AAC, RAND, Battelle, NDIA. Conduct impact assessment and cost of maintaining status quo. Establish Critical Success
         Factors

      3. Direct OMB and DoD to utilize IT-AAC to effect transformation. Build out IT-AAC Leadership Forums to identify existing
         capabilities, expertise, and emerging standards of practice. “804 Solution” must address weakness of all acquisition lifecycle
         processes; requirements (JCIDS), architecture (DoDAF), tech assessment (TRL), acquisition strategy, source selection, decision
         analytics (oversight).
Phase 2
Phase 2




      4. Require Agencies to leverage IT-AAC Benchmark IT Standards of Practice: Document emerging IT Requirements,
         Architecture, Assessment & Acquisition standards of practices, approaches, processes, processes standards that have already been
         proven in the market. Reduce cost and risk of “build from scratch” or “reshaping broken processes”. Identify high risk programs
         where new processes can be piloted.

      5. Institutionalize New IT Acquisition “Think Tank” that addresses Section 804, HR 5013 process implementation, training and
Phase 3
Phase 3




         piloting of the new IT Acquisition process. Mentor high profile IT programs ( who are already looking for change) through new 804
         process; TMA’s EHR, DEEMs, Army FCS, DISA NECC, AF SOA, etc.

      6. Work with DAU to establish IT Acquisition training curriculum and mentoring program. Build out DAU’s IT Clearinghouse to
         capture benchmarked industry best practices and proven innovations of the market.




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                                                          703-768-0400 www.IT-AAC.org
™
                                           What Agencies Should Do
                                      to achieve Efficiencies and Cut Waste

         1. Workforce Empowerment: Establish robust IT Acquisition Training and Mentoring program with
            the IT-AAC that builds on DAU/IT-AAC Partnership. Build out Best Practices Clearinghouse with
People
People




            reusable acquisition decision templates and solution architectures already proven in the market

         2. Mentor IT Program Management: Establish mentoring agreements, Measure of Effectiveness,
            and Leadership Forums to align with mission objectives. (stake holder value)

         3. Industry Benchmarking and Market research: Closing the knowledge gap. Baseline real world
Technology
Technology




            metrics and service levels. Leveraging ICH’s deep network of experts and expertise not available
            from traditional sources. (the realm of the possible).

         4. Capability Gap Analysis: What IT infrastructure capabilities & services (Netcentric) exist that can
            be readily leveraged (shared services), via SOA, IT Infrastructure, Cloud Computing best practices

         5. Embrace Open IT Acquisition Processes: Identify and eliminate legacy processes and policies
            that are no longer relevant to IT Acquisition outcomes. Establish streamlined set of methods &
            tools based on proven evidence to deliver. Leverage proven standards of practices that deliver.
Process
Process




         6. Acquisition Transformation Roadmap: Streamline current (Sec804, CCA)) IT Acquisition
            Processes by focusing on outcome, metrics and proven approaches. A Grey Beard Council that
            exposes real world expertise and lessons learned. (close the gap). Leverage existing processes
            and laws.
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™
                  Benefits to Agency Heads and PMs
                                       institutionalize transformation and operational efficiency

1. Acquisition Ecosystem Readiness Assessment: ID specific inefficiencies and gaps in current IT acquisition
   policy, governance/oversight, architecture, technology assessment, and procurement. Focus on alignment with
   agency mission objectives and outcomes. (not compliance)

2. Transform Oversight: eliminate redundancies and increase decision transparency. Establish incentives and
   MOEs that encourage risk management vs risk avoidance.

3. IT Value Chain Re-alignment: Establish Measure of Effectiveness with each of the stake holder’s to optimize
   contribution to mission outcomes; defense users, SIs, researchers, academia, innovators. (stake holder value)

4. Enhance DAU Industry Best Practices Clearinghouse: Closing the knowledge gap. Capture and reuse real
   world metrics and service levels. Leveraging IT-AAC’s deep network of experts and expertise not available from
   traditional sources. (the realm of the possible).

5. Common IT Infrastructure Services: Reduce duplication and increase interoperability by establishing a set of
   common infrastructure services. First document existing infrastructure capabilities & services that can be readily
   leveraged (the known). Capture lessons learned from both failures and successes; CANES, NECC, AFNETOPS,
   DII COE.

6. Transform Acquisition Lifecycle: Institutionalize “open processes” that have proven to work; Service Oriented
   Enterprise, Agile Development, Technology Assessment, Component-based Architectures, Decision Analytics

7. Acquisition Management Workforce Training & Mentoring: establish a conflict free pool of expertise and
   expertise that can mentor less experiences PMs. (drive cultural change)



              501.C Non-Profit Research Institute       IT-AAC Proprietary          © 2008- 2010 All Rights Reserved    23
                                                      703-768-0400 www.IT-AAC.org
™
                           IT-AAC Coalition of the Willing
                                                     Industry Participants (partial)

– Chairman Michael Wynne, former Secretary of USAF                            – Admiral Lenn Vincent (ret), Defense Acquisition
                                                                                University
– Gen (ret) Harry Raduege, former DISA Director, Chairman
  Center for Cyber Innovation, Deloitte                                       – Kevin Carroll, former Army PEO EIS, ICH Corp Relations
– Gen (ret) Arnold Punaro, Sr Fellow Defense Science Board                    – Rahul Gupta, IT-AAC Vice Chair, PRTM Director
                                                                              – Will Thomas, Director IT, Center for American Progress
– Honorable John Grimes, former DoD CIO and NII DepSec
                                                                              – John Weiler, ICH Founder & Chief Strategist, IT-AAC
– ADM (ret) Edmund Giambastiani, former Vice Chair, Joint                       Vice Chair
  Chiefs of Staff
                                                                              – Larry Allen, Executive Director, Coalition for Government
– ADM (ret) Mike Bachmann, former Navy SPAWAR CMDR                              Procurement
– Honorable Jack Gansler, PHD, UofMD School of Public Policy                  – Ed Black, President, Computers & Communications
                                                                                Industry Consortia
– Honorable Dave Oliver, former OSD ATL, EADS
                                                                              – Stephen Buckley, Kerberos Consortia, MIT Sloan
– Honorable Sue Payton, former AF AQ Director
                                                                              – Dr Joe Besselman, former AF GCSS PM
– Dr Susan Gragg, former NRO CIO                                              – Edward Hammersla, EVP Trusted Computing Solutions
– Randall Yim, former Deputy Director, GAO, former DepSec for                 – William Lucyshyn, Director of Research, School of Public
  Installations, first DHS FFRDC Managing Director, ICH Fellow                  Policy, U of MD
– Lt General (ret) Jack Woodward USAF, former AF Deputy CIO                   – Dan Johnson, Sr. Council, Computers &
  and Joint Staff J6                                                            Communications Industry Association
– Susan Maybaum-Wisniewski, BENS.org                                          – Kirk Phillips, ICH Fellow, Founder Kirk Group
– Dr. Marv Langston, former OSD C3I DCIO                                      – Frank Weber, former AF ESC 554 Wing Commander
– AF General (ret) Paul Nielson, CEO, SEI CMU                                 – Marty Evans, former AF AQI Director
– Dave Patterson, former OSD Comptroller, University Of                       – Skip Snow, former Citigroup SVP of Architectures
  Tennessee

               501.C Non-Profit Research Institute            IT-AAC Proprietary                     © 2008- 2010 All Rights Reserved       24
                                                            703-768-0400 www.IT-AAC.org
IT-AAC Coalition of the Willing
           ™                                            Government Participants (partial list)

                                                                             – Mike Kennedy, Director Operations, INTELINK, DNI
–   MGen Susan Lawrence, Army NetCom Commander                               – Steve Cooper, Former DHS CIO, CIO FAA OTA
–   LtGen Mark Shackelford, Deputy SAF, Acquisition
–   Blaise Durante, SES, AF AQ                                               – Frank Garcia, Professional Staff, House Permanent Select Committee
                                                                               on Intelligence
–   Dr. James McMichael, President, DAU (acting)
                                                                             – Dave Weddell, Deputy N6/CIO, Navy
–   Honorable Claude Bolton, Executive in Residence, DAU
                                                                             – Jake Haynes, Program Manager, Defense Contracting Management
–   Jan Frye, Chief Acquisition Officer, Veterans Administration               Agency
–   Tim Harp, SES Deputy Asst Secretary Acquisition, OSD NII                 – Kathy Laymon, Supply Chain Risk Mgt, US Army
–   Mark Bogart, SES, CAO, DIA                                               – Maureen Coyle, Deputy CIO, VA
–
                                                                             – MaryAnne Rochy, Deputy CIO and PEO Acquisition, OSD Health
    Gary Winkler, SES Director Army PEO EIS                                    Affairs
–   John Higbee, SES Defense Acquisition University,                         – David Schroeder, Director External Relations, OSD HA CIO
–   Ralph Roman, SES Director IT Acquisition Council, Department of          – Gino Magnifico, CIO, Army Contracting Command
    Homeland Security                                                        – Stewart Whitehead, SES J8, Joint Forces Command
–   Keith Seaman, DBSAE, BTA                                                 – Dr Paul Tibbits, Deputy CIO and Director Enterprise Development, VA
–   James (Raleigh) Durham, DDR&E, OSD ATL                                   – Dave Green, CTO, US Marine Corps
–   Chris Miller, Executive Director, PEO C4I, Navy                          – Brad Brown, Director of Acquisition Policy, Defense Acquisition
                                                                               University
–   Stephan Warren, Deputy CIO, VA
                                                                             – Barry Robella, Professor of Systems Engineering, Defense Acquisition
–   Rich Poff, Special Asst to Director, US TRANSCOM, former VP                University
    FedEx                                                                    – Dr. Tim Rudoph, CTO, AF ESC
                                                                             – Bill McKinsey, Chief IT Management, FBI
                                                                             – Terry Balven, CIO, AQ, Secretary of the AF
                                                                             – Michele Hopkins, Deputy AQI, Secretary of the AF


                  501.C Non-Profit Research Institute               IT-AAC Proprietary                   © 2008- 2010 All Rights Reserved     25
                                                                  703-768-0400 www.IT-AAC.org
Resources for Sustainable IT Reform
™
                           for when failure is not an option
                 Interoperability Clearinghouse (ICH)
                     • Repository of reusable Best Practices Frameworks (process and solution architectures)
                     • Conflict Free Research Coop dedicated to operationalizing Clinger Cohen Act directives
                     • Means of accessing wide range of SMEs and community of practices outside the Defense
                       Industrial Complex

                 Acquisition Assessment Method (AAM)
                     • Decision Analytics Tool for IT centric AoA, EoA, BCA, Risk and Technical Assessments
                     • Measurable, repeatable and sustainable method to enable cost avoidance and savings
                     • Incorporates by reference: SOA best practices, IT Infrastructure Libraries (ITIL) and
                       Evidenced Based Research (EBR)

                 Solution Architecture Innovation Lab (SAIL)
                     • Virtual Lab by which innovators can validate their solutions
    ™                • Solution Architecture patterns for e-Gov, IT Infrastructure, Cyber-Security & Health IT
                     • Means of tapping existing testing and implementation resources for rapid deployment

                 IT-Acquisition Advisory Council (IT-AAC)
                     • A non-partisan Government and industry think tank created to drive sustainable IT Acquisition
                       Reform
                     • Leverages expertise from academia, standards bodies, innovators and COIs
                     • Provide an interchange for senior level leadership interchange
        501.C Non-Profit Research Institute      IT-AAC Proprietary               © 2008- 2010 All Rights Reserved   26
                                               703-768-0400 www.IT-AAC.org

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Congressional it reform-roadmap_2011

  • 1. IT Acquisition Advisory Council (IT-AAC) A non-partisan think tank, 501.C3 Roadmap for Sustainable IT Acquisition Reform Leveraging non-traditional expertise and benchmarked standards of practices That exceed CCA & Section 804 Mandates Honorable John Grimes, Former OSD CIO John Weiler, Vice Chairman, john@IT-AAC.org Dr. Marv Langston, IT-AAC Vice Chair marv@langston.org www.IT-AAC.org 904 Clifton Drive *703Alexandria * Virginia 22308 768 0400 www.IT-AAC.org * (703) 768-0400
  • 2. Senior Exec Briefing Summary ™ Assuring Business Value from every IT $ Spent  Purpose  Today's Situation  Our Proposal to Assist  Way Forward Recommendation  Predictable Outcomes “Together, these steps will help to catalyze a fundamental reform of Federal IT, which is essential to improving the effectiveness and efficiency of the Federal Government” White House, OMB Director 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 2 703-768-0400 www.IT-AAC.org
  • 3. Think Tank Purpose To provide the Decision Makers with an alternative set of resources and expertise needed to guide the establishment of a “best in class” set of IT Acquisition Processes and Governance Structure. Acquisition Practitioners and workforce will need commercial methods, access to deep industry expertise and emerging standards of practice to overcome common failure patterns and cultural impediments that have prevented previous attempts to achieve following objectives: Speed -- achieve 6-12 month cycle times vice 7-8 years (early pilots prove this is possible) Incremental development, testing, and fielding -- vice one "big bang" Actionable Requirements -- Sacrifice or defer customization for speed and COTS/OS utilization - Leverage established standards of practice and open modular platforms Meet DoD's wide-range IT needs -- from modernizing C2 to updating word processing software Focused on Outcomes and Operational Effectiveness - Health IT, InfoSharing, Cyber Security, Consolidated IT Infrastructure, Business Systems “You can’t solve today’s problems with the same thinking that got you there” Albert Einstein 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 3 703-768-0400 www.IT-AAC.org
  • 4. IT-AAC Accomplishments ™ can significantly reduce time, risk and cost 1. Established an alternative, conflict free think tank composed of the worlds top minds and most respected public service entities. 2. Completed Root Cause Analysis of Reoccurring Failure Patterns in DoD IT Acquisition and their devastating impact, derived from; over 40 major studies, 2 surveys, 121 interviews, 21 Leadership Workshops and 4 conferences. 3. Benchmarked Industry IT Architecture & Acquisition Best Practices and Common Failures, 10 of Fortune 50. 4. Completed agency pilots of alternative IT Acquisition processes covering; requirements, architecture, tech assessments, business case analysis, and source selection. 5. Standardized Agile Acquisition Framework, documentation, and case studies for rapid adoption 6. Partnership with DAU, which established an alternative IT Acquisition Training Curriculum. "It is not a great mystery what needs to change, what it takes is the political will and willingness, as Eisenhower possessed, to make hard choices -- choices that will displease powerful people both inside the Pentagon and out” Defense Secretary Robert Gates 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 4 703-768-0400 www.IT-AAC.org
  • 5. IT-AAC understands IT Acquisition Dilemma ™ Wave 3 Solutions can’t be acquired using MilSpec processes…  We are in early stages of Wave 3 information technology  Mainframe and Client-Server waves remain in place 3. Internet - Cloud Information Driven Capability  Waves represent many co-dependent technologies, • Virtualized compute; global network enabled, plug & play matured over time • IT Infrastructure decoupled from  Adding functional capability has Applications • COTS & OSS Integration, become easier with each new wave Software as a Service  But enterprise infrastructure 2. Client/Server - Decentralized gaps & vulnerabilities have • PC enabled and network become more critical • Software distributed in both server and client computers • Heavy focus on software development and point to point integration 1. Centralized - Mainframe • Central computer center, slow turn around • One size fits all • Limited reuse of application modules 1950 1960 1970 1980 1990 2000 2010 2020 Information Technology Evolution DoD is using 1970s acquisition processes; to acquire Wave 3 IT capability 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 5 703-768-0400 www.IT-AAC.org
  • 6. Understanding the Many Aspects of the IT Acquisition Lifecycle ™ IT Acquisition Building Blocks:  Governance and Oversight: how an enterprise supports, oversees and manages IT programs and on-going portfolio. SOA as defined in the commercial market is governance tool not technology. DoD5000 and BCL represent the current approaches.  Decision Analytics: enables effective Program Management and Value Stream Analysis execution. As most of these sub-processes are designed to improve decision making, a relative new discipline has evolved (since 86), that addresses the human and cultural challenges in decision making. Decision Analytics is the discipline of framing the essence and success criteria of each gate in the acquisition lifecycle. It brings focus to the high risk areas of a program, and reduces analysis/paralysis.  Requirements Development: Actionable requirements must be constrained by the realm of the possible. With pressures to do more with less, we must embrace mechanisms that force a relative valuation/impact of the gap/capability, with clearly defined outcomes  Architecture: This is one of the most critical elements of the acquisition lifecycle, as it should represent all stake holder agreements. The market embrace of SOA is not about technology, but a refocusing of the EA on service level management and data. A good architecture is a lexicon that links requirements, technologies and acquisition strategy.  Technology Assessment: Understanding the limitation of technology early in the process is key. Without a clear view of the “realm of the possible” validated by real world results, we often find ourselves in high risk areas and over specification. Market research must be done early to help users constrain requirements and embrace the inherent business practices that codify. Recognizing that 70% make up of every IT application is vested in IT infrastructure (netcentric, cloud, SOA), it is critical to establish a common infrastructure/infrastructure standard by which all applications can share. The most prolific is ITIL to date.  Business Case Analysis: Demonstrating the business value of technology investments, based on evidenced based research and lifecycle cost. This is a core requirement of Clinger Cohen Act.  Performance Based Acquisition and Metrics: Software as a Service and SOA portent a new dynamic for acquisition of IT (health IT, cyber, business systems), that brings focus to Service Level Agreements (SLAs), Software as a Service (SaaS) and SL Management. If the previous activities do not directly feed the acquisition strategy or provide mechanisms for contractor accountability, all is lost. “IT Reform is about Operational Efficiency and Innovation” 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 6 703-768-0400 www.IT-AAC.org
  • 7. Today’s Situation -- as highlighted by the HASC Panel on Defense Acquisition ™ Reform Studies of both commercial and government IT projects have found some disturbing statistics;  Only 16% of IT projects are completed on time and on budget.  31% are cancelled before completion.  The remaining 53% are late and over budget, with the typical cost growth exceeding the original budget more than 89%.  Of the IT projects that are completed, the final product contains only 61% of the originally specified features. As was pointed out in testimony before the Panel, the traditional defense acquisition process is “ill-suited for information technology systems. Phase A is intended to mature technology; yet information technologies are now largely matured in the commercial sector”. Weapon system acquisition processes are often applied to IT systems acquisition, without addressing unique aspects of IT. “the weapon systems acquisition process is optimized to manage production risk and does not really fit information technology acquisition that does not lead to significant production quantities.” Defense Acquisition Panel, HASC 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 7 703-768-0400 www.IT-AAC.org
  • 8. OMB’s View of Federal IT Fundamentally Broken! ™ 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 8 703-768-0400 www.IT-AAC.org
  • 9. Sources of Evidence Failure to fix IT is costing the tax payer $40Billion a Year ™ “We are buying yesterday’s technology tomorrow in the rare instances we are successful ”  DSB IATF: “DoD reliance on FFRDCs is isolating it from sources of new technologies, and will hinder the departments ability to get the best technical advise in the future”  AF Science Advisory Board 2000: PMs need greater access to real world lesson learned and innovations of the market to mitigate risk and cost overruns. PMs frequently enter high risk areas due to limited access to lessons learned from those who have already forged ahead.  CMU SEI Study 2004: The DoDAF alone is not effective for IT architectures, lacks business view, performance metrics or means of avoiding over specification. DoDAF (C4ISR) was developed by Mitre and IDA in 1986 to provide DoD with a systems engineering documentation tool for existing system implementations. 2009 NDAA Sec 803 : Government needs a high integrity knowledge exchange by which innovations of the market can be objectively assessed.  DSB 2009: Weapons Systems Style Solution Architecture and Acquisition Processes take too long, cost too much, recommend establishing a separate IT Acquisition market that is tuned for the fast paced market.  IT-AAC 2009: Major IT Programs lack senior leadership support, and have few vested in the success. All participants, including oversight, must be incentivized in meeting program goals and outcomes.  BENS RPT on ACQUISITION 2009: DoD needs independent architecture development that is not compromised by those with a vested interest in the outcome. FAR OCI rules must be better enforced.  NDAA Sec 804 2010: DoD will establish a modular IT Acquisition process that is responsive to the fast paced IT market. "Weapons systems depend on stable requirements, but with IT, technology changes faster than the requirements process can keep up," he said. "It changes faster than the budget process and it changes faster than the acquisition milestone process. For all these reasons, the normal acquisition process does not work for information technology.” DepSec Bill Lynn statement at the 2009 Defense IT Acquisition Summit hosted by IT-AAC 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 9 703-768-0400 www.IT-AAC.org
  • 10. Federal IT Acquisition Root Causes ™ compromising mission effectiveness and costing tax payer $40B/year 1. IT Acquisition Ecosystem Ineffective: – Missing incentives & metrics, redundant oversight, vague accountability, ineffective governance (MOE, SLA) puts focus on compliance vs outcomes. – Programs spending up to 25% on compliance without any reduction in risk. 2. Good laws (CCA, OMB 119, FAR, Sec804) lack enforcement: – Frequently compounded by Ad-hoc Implementations and MilSpec methods. – DODAF, JCIDS, NESI, LISI were designed for Weapons Systems, compete with standards and orthogonal to Industry Best Practices. 3. Conflict of Interest unenforced, optimal resources and expertise overlooked: – FAR prohibits Contractors with vested interests in implementation should not use “Chinese firewalls” to bypass rules or gain unfair advantage. – Optimal resources in IT Program planning, market research, and solution engineering overlooked, inhibiting access to real world best practices and innovations of the market. Standards bodies & non-profit research institutes under utilized. “Insanity is continuing the same process over and over again and expecting different results” Albert Einstein 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 10 703-768-0400 www.IT-AAC.org
  • 11. Root Cause (cont.) ™ 4. FFRDCs/SIs are Stifling Innovation and Decision Making due to Analysis/Paralysis: – Traditional Sis/FFRDCs are insulated from IT innovations and commercial best practices. – PMs lacks effective outreach/research capabilities needed to inform the requirements and acquisition lifecycle. Lacks timely access to innovations of the market, commercial expertise, or benchmarked best practices and lessons learned. – Small Businesses, Innovators and Public Service entities (.edu, .org, SDOs) are under utilized, threatening Open Systems and Open Architecture efforts. 4. MilSpec Acquisition Processes in conflict with Open Systems, best practices and drive “design to spec” approach ( in spite of CCA and NDAA Section 804 directive to the contrary): – MilSpec Requirements (JCIDS), Architecture (DoDAF), Tech Assessment (TRL/C&A), Business Case Analysis (AoA), Procurement (DoD5000) and Enterprise Management (CMM) processes are inconsistent with fast paced IT market (in spite of Paperwork Reduction Act, CCA, Section 804 and OMB A119 directives) – Section 804 call Open Process cannot be implemented using the same resources and expertise that created the current MilSpec processes 4. Budgeting (POM) approaches drive stove pipe solutions: – Frequently undermining ability to establish common & interoperable infrastructure services which accounts for 70% of every IT program buy. Concepts like SOA, Cloud Computing and Service Level Management cannot be embraced without a change in the above. 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 11 703-768-0400 www.IT-AAC.org
  • 12. IT Reform Way Forward 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 12 703-768-0400 www.IT-AAC.org
  • 13. Congressional Action to Reform ™ IT Acquisition: NDAA Sec804 “The Secretary of Defense shall develop and implement a new acquisition process for information technology systems. The acquisition process developed and implemented pursuant to this subsection shall, to the extent determined appropriate by the Secretary--  be based on the recommendations in chapter 6 of the March 2009 report of the Defense Science Board Task Force on Department of Defense Policies and Procedures for the Acquisition of Information Technology; and  be designed to include-- – early and continual involvement of the user; – multiple, rapidly executed increments or releases of capability; – early, successive prototyping to support an evolutionary approach; and – a modular, open-systems approach” Congress and DSB made these recommendations based on early adoptions by AF, Navy, USMC, and BTA of alternative methods like the Architecture Assurance Method (AAM), a risk management framework designed to improve decision making and assure stake holder value. AAM incorporates by reference industry best practices like SOA, ITIL, and Evidenced Based Research. 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 13 703-768-0400 www.IT-AAC.org
  • 14. OMB Guidance on IT Reform ™ from OMB’s 25 Point Plan Align the Acquisition Process with the Technology Cycle  Point 13. Design and develop a cadre of specialized IT acquisition professionals .  Point 14. Identify IT acquisition best practices and adopt government-wide.  Point 15. Issue contracting guidance and templates to support modular development  Point 16. Reduce barriers to entry for small innovative technology companies" 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 14 703-768-0400 www.IT-AAC.org
  • 15. Partner with DAU to create a ™ Mentoring and Training Curriculum 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 15 703-768-0400 www.IT-AAC.org
  • 16. Resource Optimization Considerations you cannot outsource risk or critical thinking ™ 1. FFRDCs: Best suited for govt unique R&D and Weapon Systems Source Selection. 2. Standards Development Orgs (SDO), Trade Associations: Source of standardizations among suppliers, ISVs. Effective source for market communications and outreach. 3. Research Institutes, Labs & Academia: Excellent source of low cost research, piloting of emerging technologies not yet proven in the market. Effective in IT & acquisition training. 4. Consultancies, A&AS Firms: Excellent for IV&V and source selection if free of vendor relationships or implementation interests. Can mitigate OCI issues in acquisition. 5. Innovators, ISVs, Open Source: The engine of innovation. Most effective and efficient way of filling common industry IT gaps. Great source of customer case studies and best practices. 6. System Integrators: Optimized for large scale implementation and outsourcing. Have significant economies of scale and technology usability insights. 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 16 703-768-0400 www.IT-AAC.org
  • 17. Resource Guide for Effective IT Acquisition Based on Clinger Cohen Act and FAR Guidance ™ Partner Type FFRDC User Groups, Standards Research Consultants, Innovators, System Communities development Institutes, IV&V, A&AS Tech Mfg, Integrators SDLC Phase of Practice orgs, trade Labs & Firms Open Source associations Academia Requirement, Only when OMB Lines of SDOs = Provide Limited access Great source FAR OCI Gap Analysis no other Business Primary driver Conflict free to industry for customer Rules limit company can offers Critical for open structure and lessons use cases, participation support (4). Role (6,7) systems. economies of learned. lessons Conflict free scale (2,6) learned. structures (2,3) Architecture Only when Agency CxOs Provide Principle Primary source FAR OCI rules FAR OCI rules and Planning, no other provides standards of source of of expertise limit prohibit direct Mkt Research company can critical practice, not expertise participation support support (4) guidance (2, 3) support PMO & IV&V Only when Not inherently Play Optimized for Key role FAR OCI rules FAR OCI rules Support no other governmental supporting role this area prohibit prohibit company can participation participation support (4) Material Forbidden (4) Not inherently Support role Support role Provide Primary Solution Governmental developmental partnership Engineering area System Impl., Forbidden (4) Not inherently Forbidden Lack Internal IV&V Provider of key Primary Maint, & Governmental Resources & for Prime technologies partnership Support Expertise contract area reduces risk. 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 17 703-768-0400 www.IT-AAC.org
  • 18. Critical Success Factors for Sustainable IT Acquisition Reform ™ Clinger Cohen Act, FAR, and NDAA Sec804 directives cannot be accomplished with the same thinking that got us their. FFRDCs are prohibited from competing with industry and therefore the least effective resource for IT programs. The CSF include;  Agile Methods derived from benchmarked commercial best practices (CCA, Sec804)  Leverage existing investments and innovations of the market while avoiding competing with industry or duplicating what already exists (Economy Act)  Utilize public service institutes and standards bodies over FFRDCs (FAR)  Should be based on Open, consensus based methods (OMB A119)  Must be modular, services oriented (NDAA Section 804)  Should be measurable, repeatable and sustainable, with supporting training, education and mentoring (HR 5013) 15 years of studies suggest the following critical success factors for sustainable IT Acquisition Reform. An “Open” IT Acquisition process will still need to conform to the rule of law (non-MilSpec): 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 18 703-768-0400 www.IT-AAC.org
  • 19. Assessment of Alternative IT Acquisition Processes ™ MilSpec Assessment Alternative Assessment Where Acquisition against Sec 804 Acquisition against Sec 804 successfully Processes Criteria Process Criteria applied Decision Ad hoc, not Largest gap in IT Acquisition Open, AF, Navy, Analytics formalized Lifecycle Assurance Successfully USMC, BTA, Method (AAM) piloted, modular GSA, DISA, Requirements JCIDS, IT Box Not tuned for Value Stream Exceeds criteria US TRANSCOM, Development COTS, SOA, OSS Analysis w/ Agile DISA, CIA Market Development Architecture DoDAF Missing Metrics, OMB FEA RMs Strong evidence, PTO, DOC, Systems Infrastructure View, SEI SMART Services Based GPO, GSA, DOI, Engineering Stake holder DOT, DHS Method perspectives Technology TRL IT Matures at a AF Solution COTS/OSS AF, USMC, BTA, Assessment: Assessment very fast rate Assessment Focused, support Navy CANES, Process (ASAP) BPR PTO, GPO, GSA Risk & Cost Analysis of Time consuming, ASAP/AAM BCA Effective w/ AF, Navy, Management Alternatives, not aligned with COTS based sys USMC, BTA industry B.P. BTA ERAM Limited risk mgt Governance DoD 5000 Milestone based, ICH Clinger Integrated SOA BTA, OSD HA, and Oversight Bus Capability not effective for IT Cohen Act Guide best practices Navy, Lifecycle (BCL) 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 19 703-768-0400 www.IT-AAC.org
  • 20. Repeatable Patterns of Success when agencies tap IT expertise outside the Defense Industrial Complex! Navy: Assessment of AFLOAT Program – USAF: Streamlined COTS Acquisition USAF: Procurement of E-FOIA CANES SOA & Security Strategy Process. Applied to Server Virtualization. System using AAM Eliminated hi-risk Requirements by Established optimal arch with ROI of Completed AoA, BCA, AQ Selection 23%, $100Ms in potential savings 450% & $458 million savings in just 4 months. USMC: AoA and BusCase for Cross GSA: Financial Mgt System consolidation BTA: Assessment of External DoD Domain, Thin Client Solutions using AAM. Hosting Options using AAM Greatly Exceeded Forecasted Saving Moved FMS from OMB “red” to $300 million in potential savings with in both analysis and acquisition “green”. Eliminated duplicative minimal investment investments that saved $200M BTA: Apply AAM to complete AoA and GPO: Developed Acquisition Strategy for JFCOM: MNIS Evaluation of Alternatives BCA for DoD SOA Project Future Digital System for Cross Domain Solutions Reduced pre-acquisition cycle time Led to successful acquisition and Evaluated 100’s of Options in 90 days, and cost of Analysis by 80% implementation on time, on budget enabling stake holder buy in and (4 months vs 18) and 80% cheaper than NARA RMS source selection. “. the concept of the Interoperability Clearinghouse is sound and vital. Its developing role as an honest broker of all interoperability technologies, no matter what the source, is especially needed. Such efforts should be supported by any organization that wants to stop putting all of its money into maintaining archaic software and obtuse data formats, and instead start focusing on bottom-line issues of productivity and cost-effective use of information technology.” OSD Commissioned Assessment of Interop. Clearinghouse (Mitre 2000) 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 20 703-768-0400 www.IT-AAC.org
  • 21. What Congress Should Encourage ™ to assure Sustainable IT Acquisition Reform 1. Recommend using IT-AAC to Establish Measures of Effectiveness: tap alternative resources and expertise to provide critical resource support to the DepSec and IT Acquisition Task Force to establish performance metrics. Guide Task Force in establishing Governance Structure and Incentives for Sec804 and Operational Efficiencies in terms of process, culture, incentives and mentoring. Phase 1 Phase 1 2. Brief out Root Cause Analysis: of current acquisition ecosystem (processes, culture, acqu resources and incentives) with public/private partners. Repurpose existing studies developed by objective sources; GAO, DSB, AF SAB, BENS, CSIS, IAC/ACT, ICH, IT-AAC, RAND, Battelle, NDIA. Conduct impact assessment and cost of maintaining status quo. Establish Critical Success Factors 3. Direct OMB and DoD to utilize IT-AAC to effect transformation. Build out IT-AAC Leadership Forums to identify existing capabilities, expertise, and emerging standards of practice. “804 Solution” must address weakness of all acquisition lifecycle processes; requirements (JCIDS), architecture (DoDAF), tech assessment (TRL), acquisition strategy, source selection, decision analytics (oversight). Phase 2 Phase 2 4. Require Agencies to leverage IT-AAC Benchmark IT Standards of Practice: Document emerging IT Requirements, Architecture, Assessment & Acquisition standards of practices, approaches, processes, processes standards that have already been proven in the market. Reduce cost and risk of “build from scratch” or “reshaping broken processes”. Identify high risk programs where new processes can be piloted. 5. Institutionalize New IT Acquisition “Think Tank” that addresses Section 804, HR 5013 process implementation, training and Phase 3 Phase 3 piloting of the new IT Acquisition process. Mentor high profile IT programs ( who are already looking for change) through new 804 process; TMA’s EHR, DEEMs, Army FCS, DISA NECC, AF SOA, etc. 6. Work with DAU to establish IT Acquisition training curriculum and mentoring program. Build out DAU’s IT Clearinghouse to capture benchmarked industry best practices and proven innovations of the market. 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 21 703-768-0400 www.IT-AAC.org
  • 22. What Agencies Should Do to achieve Efficiencies and Cut Waste 1. Workforce Empowerment: Establish robust IT Acquisition Training and Mentoring program with the IT-AAC that builds on DAU/IT-AAC Partnership. Build out Best Practices Clearinghouse with People People reusable acquisition decision templates and solution architectures already proven in the market 2. Mentor IT Program Management: Establish mentoring agreements, Measure of Effectiveness, and Leadership Forums to align with mission objectives. (stake holder value) 3. Industry Benchmarking and Market research: Closing the knowledge gap. Baseline real world Technology Technology metrics and service levels. Leveraging ICH’s deep network of experts and expertise not available from traditional sources. (the realm of the possible). 4. Capability Gap Analysis: What IT infrastructure capabilities & services (Netcentric) exist that can be readily leveraged (shared services), via SOA, IT Infrastructure, Cloud Computing best practices 5. Embrace Open IT Acquisition Processes: Identify and eliminate legacy processes and policies that are no longer relevant to IT Acquisition outcomes. Establish streamlined set of methods & tools based on proven evidence to deliver. Leverage proven standards of practices that deliver. Process Process 6. Acquisition Transformation Roadmap: Streamline current (Sec804, CCA)) IT Acquisition Processes by focusing on outcome, metrics and proven approaches. A Grey Beard Council that exposes real world expertise and lessons learned. (close the gap). Leverage existing processes and laws. 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 22 703-768-0400 www.IT-AAC.org
  • 23. Benefits to Agency Heads and PMs institutionalize transformation and operational efficiency 1. Acquisition Ecosystem Readiness Assessment: ID specific inefficiencies and gaps in current IT acquisition policy, governance/oversight, architecture, technology assessment, and procurement. Focus on alignment with agency mission objectives and outcomes. (not compliance) 2. Transform Oversight: eliminate redundancies and increase decision transparency. Establish incentives and MOEs that encourage risk management vs risk avoidance. 3. IT Value Chain Re-alignment: Establish Measure of Effectiveness with each of the stake holder’s to optimize contribution to mission outcomes; defense users, SIs, researchers, academia, innovators. (stake holder value) 4. Enhance DAU Industry Best Practices Clearinghouse: Closing the knowledge gap. Capture and reuse real world metrics and service levels. Leveraging IT-AAC’s deep network of experts and expertise not available from traditional sources. (the realm of the possible). 5. Common IT Infrastructure Services: Reduce duplication and increase interoperability by establishing a set of common infrastructure services. First document existing infrastructure capabilities & services that can be readily leveraged (the known). Capture lessons learned from both failures and successes; CANES, NECC, AFNETOPS, DII COE. 6. Transform Acquisition Lifecycle: Institutionalize “open processes” that have proven to work; Service Oriented Enterprise, Agile Development, Technology Assessment, Component-based Architectures, Decision Analytics 7. Acquisition Management Workforce Training & Mentoring: establish a conflict free pool of expertise and expertise that can mentor less experiences PMs. (drive cultural change) 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 23 703-768-0400 www.IT-AAC.org
  • 24. IT-AAC Coalition of the Willing Industry Participants (partial) – Chairman Michael Wynne, former Secretary of USAF – Admiral Lenn Vincent (ret), Defense Acquisition University – Gen (ret) Harry Raduege, former DISA Director, Chairman Center for Cyber Innovation, Deloitte – Kevin Carroll, former Army PEO EIS, ICH Corp Relations – Gen (ret) Arnold Punaro, Sr Fellow Defense Science Board – Rahul Gupta, IT-AAC Vice Chair, PRTM Director – Will Thomas, Director IT, Center for American Progress – Honorable John Grimes, former DoD CIO and NII DepSec – John Weiler, ICH Founder & Chief Strategist, IT-AAC – ADM (ret) Edmund Giambastiani, former Vice Chair, Joint Vice Chair Chiefs of Staff – Larry Allen, Executive Director, Coalition for Government – ADM (ret) Mike Bachmann, former Navy SPAWAR CMDR Procurement – Honorable Jack Gansler, PHD, UofMD School of Public Policy – Ed Black, President, Computers & Communications Industry Consortia – Honorable Dave Oliver, former OSD ATL, EADS – Stephen Buckley, Kerberos Consortia, MIT Sloan – Honorable Sue Payton, former AF AQ Director – Dr Joe Besselman, former AF GCSS PM – Dr Susan Gragg, former NRO CIO – Edward Hammersla, EVP Trusted Computing Solutions – Randall Yim, former Deputy Director, GAO, former DepSec for – William Lucyshyn, Director of Research, School of Public Installations, first DHS FFRDC Managing Director, ICH Fellow Policy, U of MD – Lt General (ret) Jack Woodward USAF, former AF Deputy CIO – Dan Johnson, Sr. Council, Computers & and Joint Staff J6 Communications Industry Association – Susan Maybaum-Wisniewski, BENS.org – Kirk Phillips, ICH Fellow, Founder Kirk Group – Dr. Marv Langston, former OSD C3I DCIO – Frank Weber, former AF ESC 554 Wing Commander – AF General (ret) Paul Nielson, CEO, SEI CMU – Marty Evans, former AF AQI Director – Dave Patterson, former OSD Comptroller, University Of – Skip Snow, former Citigroup SVP of Architectures Tennessee 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 24 703-768-0400 www.IT-AAC.org
  • 25. IT-AAC Coalition of the Willing ™ Government Participants (partial list) – Mike Kennedy, Director Operations, INTELINK, DNI – MGen Susan Lawrence, Army NetCom Commander – Steve Cooper, Former DHS CIO, CIO FAA OTA – LtGen Mark Shackelford, Deputy SAF, Acquisition – Blaise Durante, SES, AF AQ – Frank Garcia, Professional Staff, House Permanent Select Committee on Intelligence – Dr. James McMichael, President, DAU (acting) – Dave Weddell, Deputy N6/CIO, Navy – Honorable Claude Bolton, Executive in Residence, DAU – Jake Haynes, Program Manager, Defense Contracting Management – Jan Frye, Chief Acquisition Officer, Veterans Administration Agency – Tim Harp, SES Deputy Asst Secretary Acquisition, OSD NII – Kathy Laymon, Supply Chain Risk Mgt, US Army – Mark Bogart, SES, CAO, DIA – Maureen Coyle, Deputy CIO, VA – – MaryAnne Rochy, Deputy CIO and PEO Acquisition, OSD Health Gary Winkler, SES Director Army PEO EIS Affairs – John Higbee, SES Defense Acquisition University, – David Schroeder, Director External Relations, OSD HA CIO – Ralph Roman, SES Director IT Acquisition Council, Department of – Gino Magnifico, CIO, Army Contracting Command Homeland Security – Stewart Whitehead, SES J8, Joint Forces Command – Keith Seaman, DBSAE, BTA – Dr Paul Tibbits, Deputy CIO and Director Enterprise Development, VA – James (Raleigh) Durham, DDR&E, OSD ATL – Dave Green, CTO, US Marine Corps – Chris Miller, Executive Director, PEO C4I, Navy – Brad Brown, Director of Acquisition Policy, Defense Acquisition University – Stephan Warren, Deputy CIO, VA – Barry Robella, Professor of Systems Engineering, Defense Acquisition – Rich Poff, Special Asst to Director, US TRANSCOM, former VP University FedEx – Dr. Tim Rudoph, CTO, AF ESC – Bill McKinsey, Chief IT Management, FBI – Terry Balven, CIO, AQ, Secretary of the AF – Michele Hopkins, Deputy AQI, Secretary of the AF 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 25 703-768-0400 www.IT-AAC.org
  • 26. Resources for Sustainable IT Reform ™ for when failure is not an option Interoperability Clearinghouse (ICH) • Repository of reusable Best Practices Frameworks (process and solution architectures) • Conflict Free Research Coop dedicated to operationalizing Clinger Cohen Act directives • Means of accessing wide range of SMEs and community of practices outside the Defense Industrial Complex Acquisition Assessment Method (AAM) • Decision Analytics Tool for IT centric AoA, EoA, BCA, Risk and Technical Assessments • Measurable, repeatable and sustainable method to enable cost avoidance and savings • Incorporates by reference: SOA best practices, IT Infrastructure Libraries (ITIL) and Evidenced Based Research (EBR) Solution Architecture Innovation Lab (SAIL) • Virtual Lab by which innovators can validate their solutions ™ • Solution Architecture patterns for e-Gov, IT Infrastructure, Cyber-Security & Health IT • Means of tapping existing testing and implementation resources for rapid deployment IT-Acquisition Advisory Council (IT-AAC) • A non-partisan Government and industry think tank created to drive sustainable IT Acquisition Reform • Leverages expertise from academia, standards bodies, innovators and COIs • Provide an interchange for senior level leadership interchange 501.C Non-Profit Research Institute IT-AAC Proprietary © 2008- 2010 All Rights Reserved 26 703-768-0400 www.IT-AAC.org

Editor's Notes

  1. Use brief bullets and discuss details verbally.