Revised acquisition policy will help space programs.

• Author: Swallow, Edward
• Position: VIEWPOINT

The Defense Department during the past four months has begun implementing a new acquisition policy for space systems, which will bring about sweeping changes in how programs are awarded and managed.

The rules now in place are contained in National Security Space Acquisition Policy 03-01. Some of the changes are of the back-to-basics variety, while many are more significant. A case in point is the emphasis on "mission success," which must take precedence over cost, schedule and performance. These criteria also must drive risk management, test planning, systems engineering and funding.

"If we are to succeed on the battlefield a decade from now, we must be successful with space acquisition today," said Maj. Gen. Craig Cooning, director of space acquisition at the office of the undersecretary of the Air Force. "Recently implemented space acquisition policies for space acquirers build a solid foundation for this success," he asserted.

According to Cooning, the most important change is that the development phase--and resulting contract--in a space program will not start until

after a successful "systems design review with clear measures of mission success."

The implications of this revised approach to contracting are readily apparent. The government will not start a development contract until there is a firm technical baseline with agreed-to requirements. This may result in more acquisition programs involving two contractor teams until the systems design review, or SDR. On the surface, this may appear to put a larger drain on industry bid and proposal resources. However, if SDR preparation is funded through initial contracts for program definition, risk reduction and concept development, the contractors' bid and proposal burden is reduced. Finally, the ultimate winner is selected based on the ability of its design to meet the mission success criteria.

The policy allows for program directors to present their case directly to the Defense Space Acquisition Board (DSAB), without external filters. An "independent program assessment" presentation to DSAB is intended to advise the milestone decision authority on the program's readiness to proceed to the next phase. There is also an independent estimate conducted by the Defense Department's cost analysis improvement group, and independent assessments by military science-and-technology officials.

The acquisition reform storm that hit in the 1990s created a "best commercial practices" approach to...