10 U.S.C. Chapter 144A – Major Automated Information System

(MAIS) Programs

February 27, 2012

December 11, 2013Under Secretary of Defense for Acquisition, Technology and Logistics

DASD(C3&Cyber)Bob Ramsey

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Outline

• 10 U.S.C. Chapter 144A establishes reporting regime– Enacted FY07 NDAA §816; amended FY09 NDAA §812, WSARA 2009

§101, FY10 NDAA §817 and §841, FY11 NDAA §805, FY12 NDAA §811

• §2445a – definitions

• §2445b – requires annual and quarterly reports

• §2445c – Significant & Critical variance reporting

• §2445d – if MAIS program is MDAP magnitude SecDef decides

• 5-year development clock

• Critical Change process

• Resources

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Key Requirements10 U.S.C. Chapter 144A

• Defines Major Automated Information System (MAIS) in statute• Designates USD(AT&L) and Service Acquisition Executives as

Senior Officials responsible for reporting regime • Requires a MAIS Annual Report (MAR) to congressional defense

committees (analogous to MDAP Selected Acquisition Report)– MAR establishes the Original Estimate (baseline)

• Requires Program Managers to submit MAIS Quarterly Report (MQR) to the Senior Official – any variance from the baseline

• Establishes Significant and Critical Change thresholds• Imposes a reporting penalty if program exceeds 5 years from

Milestone A (or selection of preferred alternative) to FDD• Requires communication to Congress

– Significant Change → Notification letter– Critical Change → Report w/ certifications based on program

evaluation (almost identical to Nunn-McCurdy)

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Definitions

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MAIS Definition10 U.S.C. 2445a

• Chapter 144A defines MAIS as a Department of Defense program for the acquisition of an automated information system (either as a product or a service) if—

“(1) the program is designated by the Secretary of Defense, or a designee of the Secretary, as a major automated information system program; or

“(2) the dollar value of the program is estimated to exceed—

(A) $40,000,000 in fiscal year 2014 constant dollars for all program costs in a single fiscal year;

(B) $165,000,000 in fiscal year 2014 constant dollars for all program acquisition costs for the entire program; or

(C) $520,000,000 in fiscal year 2014 constant dollars for the total life-cycle costs of the program (including operation and maintenance costs).”

*italicized numbers are published in the Interim DoDI 5000.02 dated 26 Nov 2013

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Amendment to MAIS Definition FY09 NDAA §812

• Adds “Other Major Information Technology Investment Program” to MAIS definition– (1) An investment that is designated by the Secretary of

Defense, or a designee of the Secretary, as a ‘pre-MAIS’ program

we try to avoid designating a program as “pre-MAIS” and rely instead on definition based on cost estimate

– (2) Any other investment in automated information system products or services that is expected to exceed a MAIS threshold, but is not considered to be a MAIS program because a formal acquisition decision has not yet been made

“formal acquisition decision” = Milestone B

This means “unbaselined MAIS”

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MAIS of MDAP Magnitude 10 U.S.C. 2445d

• FY10 NDAA §817 amendment makes MAIS programs and MDAP mutually exclusive

• If a MAIS program reportable under Chapter 144A is also an MDAP reportable under Chapter 144, SecDef may designate that program as either a MAIS or MDAP– If program produces custom hardware → MDAP → Ch 144

– If a program is software intensive → MAIS → Ch 144A

• MDAP definition thresholds– Estimated RDT&E more than $480M (FY14 constant dollars)– Estimated Proc more than $2.79B (FY14 constant dollars)

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MAIS Program Increments

• An “acquisition program” is used by the acquisition community to refer to the basic unit of management for an acquisition effort– A MAIS “program” is usually composed of a number of increments– A MAIS “program” is not baselined, only its increments have APBs

• Increment—the Increment is “a militarily useful and supportable operational capability that can be developed, produced, deployed, and sustained. Each Increment will have its own set of threshold and objective values set by the user.” (DODI 5000.02, Encl.2, 2.c.)

• MAIS program = ∑ Inc 1 + Inc 2 + Inc n– Regardless of cost, each increment of a MAIS program is

managed and reported as if it is a MAIS program

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MAIS ProgramAnnual and Quarterly

Reports

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MAIS Annual Report (MAR)10 U.S.C. 2445b

• MAR submissions must start when funds are requested in the President’s Budget

• Due annually to Congress 45 days after submission of the President’s Budget (PB)

• The annual report must include the following– Schedule including estimates of milestone dates, full deployment

decision, and full deployment– Estimates of total acquisition and total life-cycle costs– Summary of key performance parameters

• The initial MAR constitutes the Original Estimate for determining Significant & Critical Changes in the program; – Based on approved Acquisition Program Baseline (APB) by policy

• Original Estimate can only be changed if a Critical Change Report is sent to Congress– An updated APB is not sufficient to change an Original Estimate

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2014 MAR Preparation Events and Target Dates

Event Means Responsible Agency Target Date

Train-the-Component Trainer Attend meeting

OUSD(AT&L) & Components

18 Nov 13

Distribute updated MAR procedures Email OUSD(AT&L) 11 Dec 13

Release Draft MARs to OSD Lead DAMIR Components 10 Jan 14

Review Draft MARs; provide comments DAMIR OSD staff 13-31 Jan 14

MAR issue resolution teleconferences; assign drafts back to PMO

Telecon/DCO OSD & Components 3-7 Feb 14

Release Final MARs to OSD DAMIR Components 28 Feb 14

Hold Final Release reviews DAMIR OUSD(AT&L) 3 Mar 14

Coordinate MAR package within OSD SACCP OUSD(AT&L) 4-12 Mar 14

Staff MAR package to AT&L for signature

Paper OUSD(AT&L) 13-15 Mar 14

Sign MAR Transmittal letters Paper USD(AT&L) 19 Mar 14

Deliver MAR Transmittal letters to Congress; release DAMIR MARs

Paper/DAMIR OUSD(AT&L) 24 Mar 14

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MAIS Quarterly Report (MQR) 10 U.S.C. 2445c

• Baselined MAIS programs submit a quarterly report (MQR) to the Senior Official– MQR required even if no variance has occurred

• Also required for unbaselined MAIS programs ≥ 5 years past MS A / preferred alternative decision– Unbaselined MAIS do not have Original Estimates; no c/s/p

variances are possible– If unbaselined, only Ch 144A breach possible is 5-year

development clock– needs no status reporting via MQR; can track status via ad hoc

DAMIR report

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MAIS Quarterly Report (MQR) 10 U.S.C. 2445c

• MQR provides the PM’s Current Estimate– For schedule, PM’s best estimate of dates– For performance, PM’s best estimate of values– For cost, PB ± fact of life changes

• Submitted on same (A, B, C) cycle as Defense Acquisition Executive Summary (DAES)

• MQR is not sent to Congress

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Chapter 144A MAIS ReportingAutomation

• The APB, MAR, MAR Original Estimate, MQR, and DAES have been automated in DAMIR

Working to combine MQR into DAES—Summer 2014

APB

MAR OE

MAR

MQR DAES

data data

DAMIR

data

data

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Reporting Variances

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Senior Official10 U.S.C. 2445c(b)

• SAE: An AIS to be acquired for a military department• USD(AT&L): AIS acquired by a Component other than

military department– USD(AT&L) delegated all his Senior Official responsibilities to:

• ASD(HA)• DCMO• CAEs (DISA, DLA, NSA)

Note: the MDA is often NOT the Senior Official

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Determinations 10 U.S.C. 2445c(c) and (d)

• The Senior Official must review the Program Manager’s MQR and determine whether a Significant or Critical Change has occurred– Significant Changes: notify congressional defense committees of

the change within 45 days after the PM’s report is due– Critical Changes: within 60 days after the PM’s report is due, the

Senior Official must -• Conduct an evaluation of the program, then• Submit a report with certifications to the congressional defense

committees • Through the Secretary of Defense (USD(AT&L) transmittal ltr)

• The clock starts the date the MAIS Quarterly Report was due in the office of the Senior Official – Last business day of every third month aligning with DAES Group

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Significant and Critical Change Summary

  Significant Critical

Cost - total acquisition cost - total life-cycle cost

15 to 25% increase ≥ 25% increase

Schedule

> 6 months to <1 year delay

≥ 1 year delay

 

Failed to achieve FDD within 5 yrs after MS A, or if no MS A, the date the preferred alternative was approved by the MDA

Performance“Significant adverse change in expected performance”

“Undermine the ability of the system to perform mission as originally intended” (i.e., did not meet a KPP threshold)

Report to congressional defense committees

Notification due 45 Days after MQR was due in the office of Senior Official

Program Evaluation and Report due 60 days after MQR was due in the office of Senior Official

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Significant Change Defined10 U.S.C. 2445c(c)

• Schedule: estimate a delay of more than six months but less than a year in any program schedule milestone or significant event from the Original Estimate

• Cost: estimate of total acquisition cost or total life-cycle cost for the program has increased by at least 15 percent, but less than 25 percent, over the Original Estimate

• Performance: a significant, adverse change in the expected performance of the major automated information system to be acquired

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MAIS Significant Changes(as of December 11, 2013)

Program(in order

received)

Reason for variance Days to Prepare

Notification

SC Report Date

DIMHRS (Navy) MS C and IOC slips due to requirements definition, Army interface delays, and data conversion complexity

81 20-Oct-08

GCCS-J (DISA) FDD schedule slip due to technical challenges and need for infrastructure upgrades

56   24-Apr-09

GFEBS (Army) Delayed FDD due to Army evaluation of OT report

43 13-Apr-10

KMI Inc 2 (NSA) Technical issues led to slip in OT&E 45 14-Jun-11

Navy ERP (Navy)

Delayed FDD and IOT&E due to technical problems

35 5-Aug-11

GCSS-MC (Navy) FDD schedule slip to mature software 43 13-Feb-12

CANES (Navy) MS C schedule slip 36 6-Aug-12

GCSS-A (Army) FDD schedule slip 34 2-Nov-12

PKI Inc 2 (NSA) FDD schedule slip (later became Critical Change) 44 13-Sep-13

IPPS-A Inc 1 (Army)

MS C schedule slip pending

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Critical Change Defined10 U.S.C. 2445c(d)

• Schedule: estimate a delay of one year or more in any program schedule milestone or significant event from the Original Estimate

• Cost: estimate of total acquisition cost or total life-cycle cost for the program has increased by 25 percent or more over the Original Estimate

• Performance: a change in expected performance that will undermine the ability of the system to perform the functions anticipated in the Original Estimate– DoD has defined a failure to achieve a Threshold Key

Performance Parameter as a Critical Change • Five-year to full deployment decision threshold: failed to

achieve a full deployment decision within five years of MS A or if no MS A selection of preferred alternative– Excluding any delay as a result of bid protest– Only variance based on actual delay instead of PM’s estimate

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MAIS Critical Changes(as of December 11, 2013)

Program(in order of date MQR received) Reason for Variance

Days to Deliver

CCRReport Date

CAC2S (Marine Corps) Schedule slip due to architecture issues 237  24-Apr-09 

GCSS-MC (Marine Corps) Cost & schedule slips caused by grand design

118 16-Jan-09

TMIP-J Inc 2 (TMA) Cost & schedule slips due to Wounded Warrior rqmts

175   24-Apr-09

DIMHRS (Navy) Schedule slips caused by requirements complexity  65  7-Apr-09

ISPAN Inc 1 (Air Force) Cost increase due Original Estimate cost admin error

69   10-Apr-09

TELEPORT Gen 1&2 (DISA) Schedule slip caused by delay in satellite launch 57 27-Mar-09

Navy ERP (Navy) Performance slip caused by deletion of KPP 89 28-Sep-09

MPS Inc IV (Air Force) Development issues delayed Milestone C 448 23-Dec-10

DEAMS Inc 1 (Air Force) Failure to meet 5-year development clock 122 29-Sep-10

GFEBS (Army) Failure to meet 5-year development clock 58 28-Oct-10

ECSS (Air Force) Failure to meet 5-year development clock 111 18-Feb-11

MPS Inc IV (Air Force) Failure to meet 5-year development clock 61 1-Sep-11

KMI Inc 2 (NSA) Cost, schedule & performance slips due to new rqmts 111 22-May-12

ECSS Inc 1 (Air Force) Failure to meet CCR schedule date terminated 7-Dec-12

VIPS (DLA) Failure to meet 5-year development clock terminated 13-Mar-13

AOC WS Inc 10.2 (Air Force) Failure to meet 5-year development clock 285 12 Oct-13

GCSS-MC (Navy) Schedule slip due to technical challenges mtg reqmts 249 6-Sep-13

Teleport Gen 3 (DISA) Schedule slip due to dependency on delayed MUOS pending

PKI Inc 2 (NSA) Failure to meet 5-year development clock pending

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Starting the 5-Year Development Clock

10 U.S.C. 2445c(d)(2)(A)

• Clock starts at “… the Milestone A decision for the program or, if there was no Milestone A decision, the date when the preferred alternative is selected for the program (excluding any time during which program activity is delayed as a result of a bid protest).”– Calculate delay in months and round-up to whole month

• Previously, clock started on a “funds first obligated” date FFO is an obsolete event, but we grandfather use of the date to

start the clock

• And before that, clock started at Milestone A

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• “ … failed to achieve a full deployment decision within five years after ….”– Statutory definition of ‘full deployment decision’ – “the final

decision made by the Milestone Decision Authority authorizing an increment of the program to deploy software for operational use”

– The date the FDD ADM is signed by the MDA

• Interpretation of this definition and the FDD event is often complicated and depends on specific circumstances

Stopping the 5-Year Clock10 U.S.C. 2445c(d)(2)(A)

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Prohibition on Obligation of Funds10 U.S.C. 2445c(g)

• If the Senior Official does not submit the required report on Critical Changes within 60 days of MQR due date, appropriated funds may not be obligated for any major contract under the program– For Chapter 144A purposes, the term "major contract" means

any contract under the program that:• Is not a firm-fixed price contract and,• Has target cost exceeding $17M (FY00 constant dollars), or• If no target cost exceeds $17M, is the largest contract under

the program. recommend programs not obligate funds during Critical Change

Report (CCR) preparation (would look bad as news headline)

• The prohibition ceases to apply on the date on which Congress receives a report in compliance with the law

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Critical Change Process

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Critical Change Program Evaluation10 U.S.C. 2445c(e)

• An assessment of— (1) the projected cost and schedule for completing the program if

current requirements are not modified;

(2) the projected cost and schedule for completing the program based on reasonable modification of such requirements; and

(3) the rough order of magnitude of the cost and schedule for any reasonable alternative system or capability

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Critical Change Report 10 U.S.C. 2445c(f)

• Must include Senior Official’s written certification (with supporting explanation) that— (1) the automated information system to be acquired is essential to

the national security or to the efficient management of the Department of Defense

(2) there is no alternative to the system which will provide equal or greater capability at less cost

(3) the new estimates of the costs, schedule, and performance parameters with respect to the program and system or information technology investment, as applicable, have been determined, with the concurrence of the Director of Cost Assessment and Program Evaluation, to be reasonable; and

(4) the management structure for the program is adequate to manage and control program costs

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D,CAPE Involvement10 U.S.C. 2445c(f)(3)

• Weapon Systems Acquisition Reform Act (WSARA) 2009 changed Chapter 144A certification requirement #3 to read:

“(3) the new estimates of the costs, schedule, and performance parameters with respect to the program and system or information technology investment, as applicable, have been determined, with the concurrence of the Director of Cost Assessment and Program Evaluation, to be reasonable;”

Summary of D,CAPE Involvement with Chapter 144A Critical Change Reports

MDA ICE Required? Cost/Sch/Performance #3 Concurrence?

USD(AT&L) Yes YesAnyone else No Yes

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Critical Change Team (CCT) Organization and Reporting Path

Critical Change Team

E3 “Reasonable Alternative”

E2 “Reasonable Modification”

E1“Not Modified”

IPT Principals

Team Leader

IPT C1“Essential”

IPT C2“No Alternative”

IPT C3“New Estimate”

IPT C4“Management”

Senior Official

IPT Principals Lead

USD(AT&L) or designeeif needed for transmittal

* Lead organization for ACAT IAM programs; Services have an equivalent Lead organization

JS/J8* CAPE* CAPE* AT&L*

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Model Critical Change Process Timeline

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Senior Official (SO) Identifies CCT Lead and IPT Principals Lead

Triage Meeting; draft Determination and Tasking

Kickoff Meeting of CCT Leadership; specify detailed timeline

CCT Conducts Evaluation

IPT Meetings

Heading check w/ IPT Principals

Compile Final Report

Pre-Brief IPT Principals Lead

Brief IPT Principals

SO signs Report; sends to OSD

OSD transmits Report to Congress

Official MQR submittal; SO issues Determination &Tasking

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Chapter 144A Source and Reference documents are available at:

https://acc.dau.mil/CommunityBrowser.aspx?id=227820&lang=en-US

OUSD(AT&L), DASD(C3 & Cyber)Bob Ramsey, 571-372-4415, robert.w.ramsey2.civ@mail.mil

Everything you wanted to know about Ch 144ADAG 10.11 MAIS Statutory Reportinghttps://dag.dau.mil/Pages/Default.aspx

For Additional Chapter 144A Guidance

10 U.S.C. Ch 144A (as amended) MAR Preparation InstructionsCh 144A Overview Briefing DAMIR-MAR User’s GuideTerms of Reference and Definitions DAMIR-MQR User’s GuideSection 811, FY07 NDAA on DBS POC ListingDAG 10.11 (MSWord)