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1

What are 3 key processes in DoD that must work in concert to deliver the capabilities required by the war-fighters?

1. The Capabilities evaluation process (JCIDS)
2. Acquisition process (DAS)
3. The Planning, Programming, Budgeting, and Execution (PPBE)

2

What is Joint Capabilities Integration and Development System?

is a systematic method ESTABLISHED BY JCS for assessing gaps in military joint war-fighting capabilities and recommending solutions to resolve these gaps

3

What is the Defense Acquisition System?

2.2

is about successfully managing risk. This includes schedule risk, performance risk, and particularly cost risk.

4

What is the Defense Acquisition Management? System?

is a continuum of activities that represents or describes Defense acquisition programs.

5

What are the 3 Acquisition activities?

1. Pre-System Acquisition
2. System Acquisition
3. Sustainment

6

What is Pre-System Acquisition?

Milestone A

work efforts during this period are PRIOR to there being a formal acquisition program.

• Material Solution Analysis
• Technology Development:

7

What Pre-System Acquisition -

Material Solution Analysis
Technology Development?

Milestone A

Material Solution Analysis: Purpose of this phase is to assess potential material solutions and to satisfy the phase-specific entrance criteria for the next program ilestone designated by Milestone Decision Authority (MDA)

Technology Development: Purpose of this phase is to reduce technology risk, determine and mature the appropriate set of technologies to be integrated into a full system, and to demonstrate critical technology elements (CTEs)

8

What is System Acquisition?

Assuming work efforts accomplished in the previous phases (Pre-System) indicate the required technology is achievable to provide the capabilities desired by the user community- all other requirements are satisfied- the appropriate MDA may allow the "pre-system" to continue its progression in the acquisition process

9

What is System Acquisition -
Engineering and Manufacturing Development (EMD)
Production and Development?

Engineering and Manufacturing Development (EMD): Entry into this phase occurs with a successful Milestone B decision review. Purpose of this phase is to develop a system or an increment of capability, complete full system integration...

Production and Development: Entry into this phase occurs with a successful Milestone C decision review. Purpose of this phase is to achieve an operational capability that satisfies mission needs. (Initial Operational Capability - IOC)

10

What is Sustainment?

At this point in the life of an acquisition program, usable end-items intended to provide the capabilities desired by the user community have been produced and a significant portion of the ultimate quantity of those items have been deployed according to Service fielding plants.

11

What is Sustainment - Operations and Support?

Purpose of this phase is to execute a support program that meets material readiness and operational support performance requirements, and sustain the system in the most cost-effective manner over its total life cycle. (during this phase the program achieves Fully Operational Capability - FOC)

12

What is the relationship between Material Solution Analysis (Acquisition Phase) and the type of primary funding?

Either RDTE or OM(N).

Preparation of various analyses and studies to assess potential material solutions that could provide the capabilities required by user.

13

What is the relationship between Technology Development (Acquisition Phase) and the type of primary funding?

RDTE

Emphasis switches to reducing the technology risk, maturing the appropriate set of technologies that will ultimately be integrated into a full-up system.

14

What is the relationship between Engineer and Manufacturing Development (Acquisition Phase) and the type of primary funding?

Milestone B: RDTE and Procurement

Considered program initiation of the acquisition program, it is appropriate the new Program Management Office (PMO) prepares input for the next POM/BES cycle to ensure future year's funds are available when needed.

15

What is the relationship between Production and Development AND Operation and Support (Acquisition Phase) and the type of primary funding?

Production and Development: Procurement & MILCON

Operation and Support: OM and MILPERS
There's an overlap when the ultimate user is actually operating, maintaining and supporting that end item system

16

What is Acquisition Milestone A?

• One path into the acquisition process begins with examining alternative concepts to meet a stated mission need.
• Normally, successfully passage of Milestone A does NOT equal program initiation for a new program.

17

What is Acquisition Milestone B?

• Purpose is to authorize entry into the Engineering and Manufacturing Development phase.
• Military Department/Agency is REQUIRED to have adequate funds in the FYDP to finance the acquisition program during this period.

18

What is Acquisition Milestone C?

• Authorizes the Program manager to commence Low Rate Initial Production (LRIP) or limited deployment.

19

What are the 5 overarching policies that govern all DoD acquisition programs described by Directive 5000.01?

1. Flexibility
2. Responsiveness
3. Innovation
4. Discipline
5. Streamlined and Effective Management

20

What are the initiatives proposed by USD(ATL) to reduce acquisition costs and streamline the PROCESS in concert with the effort by the SECDEF to reduce costs in the Department?

• Target Affordability and Control Costs
• Incentivize Productivity and Innovation in Industry
• Promote Real Competition (increase quality)
• Improve Service Acquisition
• Reduce Non-Productive Processes and Bureaucracy

21

What is Evolutionary Acquisition?

is the preferred DoD strategy for rapid acquisition of mature technology for the user. It delivers capability increments, recognizing, up front, the need for future capability improvement.

22

What is the DoD Instruction 5000.02 - Operation of the Defense Acquisition System?

• Sets forth mandatory procedures for all defense technology projects and acquisition programs
• Establishes milestone and phases that constitutes the "Acquisition Management System Life Cycle"
-Identifies...

23

What is Acquisition Categories (ACAT)?

Acquisition programs are categorized by acquisition categories (ACAT).

• ACAT I is a Major Defense Acquisition Program (MDAP)
• Estimated by the USD (ATL) to require total expenditure of :
• RDTE of more than $365M or
• Procurement of more than $2.19B
• Designed by USD(ATL) because of "special interest" (e.g., Congressional interest, complex technology, or joint program)
• Dollar estimate to include cost of all known evolutionary acquisition blocks.

24

What is Acquisition Subcategories?

The USD(ATL) designates progrms as either ACAT ID or ACAT IC. The "D" and "C" indicate the level at which the Milestone Decision Authority (MDA) resides.

"D" reflects the Milestone Decision Authority (MDA) is at the DoD level. "C" reflects it is at the component level. "A" is for Automated Information systems

...

25

What is Acquisition Category IA (ACAT IA)?

• ACAT IA pprograms is a Major Automated information System program.

26

What is Acquisition Program Baseline (APB)?

(To comply with legal requirements, DoDi 5000. 02)

To document the cost, schedule, and performance objective and thresholds of the program beginning at program initiation.

27

What is the Total System Approach?

Includes all the elements of the system from cradle to grave:

• Weapon system (hardware and software
• Operators and Maintainers
• Operational Effectiveness and Suitability
• Deployment/Fielding
• Interoperability
• Training and Training Devices
• Environmental Impact

28

What Initial Capabilities Document (ICD)?

(1 of the first decisions relative to Examination of DoD Acquisition Management System Life cycle)

• identifies capability shortfalls

which sets forth the broad, time-phased, operational goals, and description of the required capabilities to address a specific gap in the military warfighting capability.

29

What is Analysis of Alternatives (AoA)?

is an analytical comparison of the operational effectiveness, suitability, and life cycle cost of alternatives that satisfy established capability needs stated in the approved Initial Capabilities Document (ICD).

(Review of all other options for getting what you want and choose least expensive.)

30

What is Cost Analysis Requirement Description (CARD)?

(Document that contains cost driving elements of Program)

The document used to capture detailed information as to what is included in the acquisition program in order to prepare a valid estimate of life cycle costs

• Required for all ACAT and ACAT IA programs
• Updated for all milestone and program reviews
• Preparation is responsibility of Program Manager
• Identifies detailed requirements of acquisition systems:
-Technical requirement
-Programmatic data
-Operational characteristics
-Assessment of risk and migration efforts
• Forms basis for preparation of cost estimates
• Living Document
2.2.20

31

What is the DOD Life Cycle Cost (LCC)?

can be defined as the total cost to the government of a program over its entire life, including costs for research and development, testing, production, facilities, operations, maintenance, personnel, environmental compliance, and disposal

3 major ways to group LCC estimates
• Work Breakdown Structure
• Appropriation Category (how much program costs)
• Cost Category
-R and D
-Investment
-Operations and support
-Disposal

32

What is Work Breakdown Structure (WBS)?

a product-oriented family tree composed of hardware, software, services data and facilities that displays and defines the product

Contains ALL recurring and Non-recurring costs which are responded to DOD in ctr cost data sheets.

33

What are the Life Cycle Cost Categories?

• R and D
• Investment: cost of the investment phase
• Operation and Support (O and S): Cost operating and supporting the fielded system, including all direct and indirect costs incurred in using the system.
• Disposal: cost to dispose of the system after its useful life.

34

What cost structure doe MIL-STD-881C represent?

Work Breakdown Structure (WBS)

35

For ACAT I programs, what are the 3 life cycle cost ESTIMATES PREPARED ?

1. Program Office Estimate (POE)
2. Component Cost Estimate (CCE)
3. Independent Cost Estimate (ICE)

For ACAT II, ACAT III, and ACAT IA programs, normally only the first 2 type cost estimates are done.

36

What is Program Office Estimate (POE)?

is the initial estimate the Program Manager is responsible for determining the life cycle cost estimate of his/her acquisition program.

[DoD 5000.2 requires that the program office prepare a life cycle cost estimate for all ACAT 1 and ACAT 1A programs, which should cover all costs from initiation through disposal]

37

What is Component Cost Estimate (CCE)?

is the second cost estimate normally done by the Services or Component Cost Analysis Agency, which is considered independent of the acquisition chain of command.

38

What is Independent Cost Estimate (ICE)?

is the 3rd cost estimate of an ACAT ID program normally done at the OSD level by the Office of the Director, Cost Assessment and Program Evaluation (D, CAPE). (this org. is not in the acquisition community and is independent of the acquisition chain of command)

39

What are the 7 Life Cycle Cost Composition?

7. Life Cycle Cost

1. Development Cost: include all RDTE (400)

4. Procurement Cost
3. Weapon System Cost
2. Flyaway Cost:
Procurement- cost of procuring Prime
Equipment (600)

5. Program Acquisition Cost: MILCON- facilities
(100)

6. Operation & Support- OM (740) MILPERS (460)

40

Average Unit Cost:

What is Program Acquisition Unit Cost (PAUC)?

is defined by 10 USC 2432 as the amount found by dividing the total cost for development and procurement of, and system-specific military construction for, the acquisition program BY THE number of fully-configured end items to be produced f or the acquisition program.

(Total cost all units / All units =PAUC)

41

Average Unit Cost:

What is Average Procurement Unit Cost (APUC)?

is the amount found by dividing the total of funds programmed to be available for obligation for procurement BY THE number of fully-configured end items to be procured.

(includes ONLY Procurement Appropriation)

42

How many Acquisition Categories (ACAT) are there?

4. ACAT I, I (subcategories), II, & III. The smaller the number the higher the category

43

What is Economic Analysis?

• is a systematic approach to choosing the BEST METHOD for allocating scarce resources.

• comparison of estimated costs against anticipated benefits. All costs and benefits are adjusted to "Present Value"

44

What is Cost As an Independent Variable (CAIV)?

• Best time to reduce cost is early in the process
• Involves the stakeholders (users, supporter, and developer) in the process
• Cost trade-offs must be addressed early in the acquisition process and embedded in the program requirement documents. Request for Proposal (RFP), contract provisions, and source selection processes

45

What are the Cost Estimating Method types?

1. Analogy: Compare one similar system
2. Parametric: Compare multiple similar systems
3. Engineering: Cost every component
4. Actuals: Own system data
5. Expert: "Quick and Dirty" by best Analyst

46

What is the Analogy Approach Cost Estimating Method?

• Based on direct comparison with historical information of similar existing activities
• Compares proposed new system with one existing similar system for which there is accurate cost and technical data.

Strengths: Quick, Inexpensive, Easy to Change
Weakness: Subjective, Imprecise

47

What is the Parametric Approach Cost Estimating Method?

• Known as "Statistical Method" or "Top Down" Method
• Based on physical attributes or performance characteristics and their relationships to highly aggregated component costs
• Uses database of elements form similar systems
• Uses multiple similar systems
• Most beneficial in earlier stages of the system or project life cycle

Strengths: Uses Cost Estimating Relationships (CERs), easy to do "what-if" drills, relatively inexpensive to prepare the estimate

Weaknesses: Moderately subjective, Precision only as good as the validity of data evaluated

48

What is the Engineering

Approach Cost Estimating Method?

• Known as "bottom up" method
• Requires extensive knowledge of system characteristics
• Very detailed and costly
• Each Work Breakdown Structure element is costed to build the cost estimate for the entire program

Strengths: Very accurate in later stages of Engineering and Manufacturing Development. For equipment or systems in current production, it can provide very accurate cost projections. Limited subjectivity

Weaknesses: Very time-consuming to prepare the estimate, difficult to do "what-if" drills, Usually performed by contractors.

49

What is the Actual Cost

Approach Cost Estimating Method?

• Actual cost data of SAME/extrapolation system during an earlier period, which are then projected to future events of a similar nature.

Strengths: Little subjectivity, Very accurate

Weaknesses: Limited applicability, Budget may already be submitted.

50

What is the Expert Opinion

Approach Cost Estimating Method?

• is another approach that usues the subjective judgement of an experienced individual or group.
• Use if time does not permit a more thorough analysis
• Document source(s) of opinion of experts
• List attributes of the source(s)
• Seek convergence with Delphi Technique

51

What are the methods/system in conducting the Delphi Technique?

• Query the expert opinions
• Seeking information and supporting rationale from each expert
• Summarizing the results
• Gathering a second opinion; and
• Continuing this iterative process until there is a consensus, or near consensus.

52

What is the Learning Curve Theory?

As the quantity of a product produced DOUBLES, the man-hours-per unit expended to produce the product DECREASES at a fixed rate or constant percentage (usually between 10% and 20%)

53

What is Federal Acquisition Regulations (FAR)?

***gives guidance in contracting,***

and requires that contracts adhere to the concept of allowable within the law, reasonable within the law, and assignment of responsibilities.

54

What is Acquisition process?

as examined within this competency, addresses the issues of requirements (i.e. the need for a specific capability) and affordability, among other issues.

55

What are Fixed Price Contracts

vice Cost Reimbursable
• Provide for firm price or, in appropriate cases, an adjustable price
• Contractor's profit built into prices

56

What are Cost Reimbursable Contracts?

vice Fixed Price
• Provide for payment of allowable incurred costs
• Contractor's profit equals fee
• Use when uncertainties in contract performance prevent sufficiently accurate estimate of costs for fixed-price contract

the Government promises to pay all allowable, allocable, and reasonable costs incurred on the contract.

57

What is Earned Value Management (EVM)?

(Statutory and Regulatory Requirement)

is the name of the integrated management tool intended to relate contractor actual PERFORMANCE on a contract to the contractor's planned COST and SCHEDULE, that measures the work progress in objective terms, and that states the value of the work completed n dollars.

58

What is Budgeted Cost of Work Scheduled (BCWS) which also called the Performance Measurement Baseline (PMB) ?

Earned Value Management is structured around multiple work packages to complete the contract. Each work package consists of a scope of work and its related budget. The results is known as a __________. PMB may also be considered the "planned value"for the work to be done.

59

What is Cost Variance (CV)? ***

is the results of comparing Acutal Cost of Work Performed (ACWP) to the Budget Cost of Work Performed (BCWP).

• If actual costs incurred are less than budgeted cost for the work completed, the cost variance is FAVORABLE because the contractor is performing the work at a cost less than planned. ACWP < BCWP = Favorable

• If actual costs incurred are greater than budgeted cost for the work completed, the cost variance is UNFAVORABLE because the contractor is performing the work at a cost greater than planned.

60

What is Schedule Variance (SV)?

is the results of comparing the Budgeted Cost of Work Schedule (BCWS) to the Budgeted Cost of Work Performed (BCWP).

• If the budget for the work performed is greater than the budget for the work scheduled, the result is FAVORABLE because the contractor has done more than planned as of this point in time (i.e. number of months the contractor has been executing the contract). BCWS < BCP = Favorable

• If the budget for the work performed is less than the budget for the work scheduled, the result is UNFAVORABLE since the contractor has done less work than planned as of this point in time.

61

Among various other tools and methods that are available to EVALUATE CONTRACT SCHEDULE and PERFORMANCE there are 2 that are of special interest.

• Program Evalution and Review Technique (PERT)
• Gantt Chart

62

What is Program Evaluation and Review Technique (PERT)?

is a method to analyze the multiple tasks or activities to complete a given project or contracted work effort. It is basically an event-oriented technique that addresses primarily the time required to complete each task and to identify the minimum time needed to complete the total project.

63

What are Economic Analysis?***

is prepared using a net present value (NPV) basis in compliance with applicable DoD or component guidance, as well as functional program guidance.

• Systematic approach to the problem of choosing the best method of allocating scarce resources to achieve a given objective
• Each alternative must be considered and its life-cycle costs and benefits evaluated
• All costs and benefits are adjusted to "present value"

64

What is Economic Analysis Process? ***

choosing the BEST METHOD for allocating scarce resources:
1. Establish objective
2. Formulation assumptions
3. Identify Constraints
4. Determine/identify alternatives
5. Estimate costs and benefits
6. Compare alternatives
7. Performer sensitive Analysis
8. Report results and recommendations

65

What are Quantifiable Benefits?

Benefits that can be assigned a numeric value (such as dollar, physical count of tangible items, or percentage of change.

66

What basic types are dollar quantifiable benefits composed of?

1. Cost Savings
2. Cost Avoidance
3. Productivity Improvement

67

What are Cost Savings?

results in the actual reduction of an approved program if the benefit occurs during the POM period.

68

What are Cost Avoidance?

is a reduction or elimination of some future resources requirement.

69

What are Productivity Improvement?

is a reduction in future personnel time and effort requirements associated with a function or assigned task that has been included in an approved program.

70

What is the Mean?

is the arithmetic AVERAGE of a distribution and is useful for tracking trends in data.

71

What is the Mean?

is the arithmetic AVERAGE of a distribution and is useful for tracking trends in data.

72

What is the Medium?

is the "MIDDLE VALUE" in a list of numbers after sorting the list in increasing order.

73

What is the Medium?

is the "MIDDLE VALUE" in a list of numbers after sorting the list in increasing order.

74

What is the Mode?

is the most FREQUENTLY OCCURRING score in a distribution of scores (provides little information by itself but is useful when there are many data points and when used in conjunction with other descriptive statistics).

75

What is Range?

is often used to describe the limits of a sample of data. To calculate the range, subtract the smallest number from the largest number.

76

What is Standard Deviation?

is a measure of how a set of values is spread around the mean. It is usually denoted the the Greek letter o. It is a measure that tells us whether values fall close to the mean value or if they are widely dispersed.

77

The ____ and _____ are measures that tell you whether the majority of values fall close or far from the mean.

Standard deviation and variance

78

What are the most common Frequency Distributions?

• Histograms (Bar graphs)
• Frequency Polygon (Line graph that is formed by connecting the frequencies of the values)

are arrangements of values that show the number of times that a given value occurs.

79

The type of distribution in which data are evenly distributed forming a "bell shaped polygon is called a _________.

Normal Curve

80

_________ enables users to draw inferences or correlations from small group called samples or larger groups called population.

Inferential statistics

81

What is a negatively skewed curve

the curve shows a majority of values on the RIGHT side

82

What is Proportion?

the number of items in a category divided by the number of items in all categories

83

What is Descriptive Statistic?

enables you to describe precisely a collection of quantitative information in a way that is easy to understand and interpret. They are the methods used to characterize and summarize sets of numeric data.

84

What is Correlation?

the degree of relationship between two or more variables

85

What is Percentage

The number of items in a category X 100 divided by the number of items in all categories is the

86

What acquisition process category(s) has an independent cost estimate performed (by CAPE, in OSD) and prepared to check the accuracy and objectivity of the estimate?

ACAT 1 and ID

ACAT ID: is at the DoD level, who's known as the "Defense Acquisition Executive"

87

How do you calculate the Learning Curve Rate?

Average Cumulative Time per item / previous average Cumulative time per item

88

What is included in Acquisition Category I?

• RDTE of more than $365M
• Procurement of more than $2.190 billion

89

What is included in Acquisition Category II?

• RDTE of $140M to $365M
• Procurement of $660M to 2.19B

90

What is the only thing you cannot obligate under the feed and forage act?

Construction

91

What are the 3 linking factors critical to the success of any Earned Value Management (EVM)?

Cost
Schedule
Performance