Acquisition Management Policy   (Revised 11/2009)

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2.5 : Solution Implementation   (Revised 11/2009)
2.5.1 : What Must Be Done   (Revised 11/2009)
2.5.2 : Outputs and Products   (Revised 11/2009)
2.5.3 : Who Does It?   (Revised 11/2009)
2.5.4 : Who Approves?   (Revised 11/2009)

2.5 : Solution Implementation (Revised 11/2009)    

Solution implementation begins at the final investment decision when the investment decision authority approves and funds an investment program or segment, establishes the acquisition program baseline for variance tracking, and authorizes the service organization to proceed with implementation. Solution implementation ends when a new service or capability is commissioned into operational use at all sites.

Detailed program planning, including the solicitation and evaluation of offers for prime contract(s), occurs during final investment analysis and before the final investment decision. This ensures accurate contract costs, risks, and schedules are reflected in the acquisition program baseline and program planning documents. These plans and baselines are revalidated, and updated if necessary, after contract award to ensure they can realistically serve as the management construct for program implementation. They are kept current throughout solution implementation.

The overarching goal of solution implementation is to satisfy user requirements and achieve the benefit targets in the business case analysis report. To achieve this, the service organization must work with users and stakeholders throughout solution implementation to resolve issues as they arise. Actions outside the direct control of the service organization (e.g., regulatory changes) are recorded in the implementation strategy and planning document and tracked at program reviews throughout solution implementation.

The activities undertaken during solution implementation vary widely and are tailored for the solution or capability being implemented. FAST contains tailored process flowcharts for representative types of investment program (systems and software, facilities, services). These flowcharts identify actions and activities the service organization may need to execute to achieve projected capability, value, and benefits. Instructions, templates, best practices, good examples, and lessons-learned are attached to many activities in the flowcharts to assist lifecycle management specialists as they plan and execute activities that make sense for their investment program.

Although service organizations are empowered to implement investment programs and manage them over their lifecycle, they must adhere to built-in checks and balances. The acquisition program baseline establishes the performance, cost, schedule boundaries within which the service organization is authorized to operate. The service organization must report all negatives variance from cost, schedule, and performance baseline measures and undertake corrective action in accordance with AMS Section 1.2.3.

The service organization monitors cost, schedule, and performance status against targets in the acquisition program baseline on a continuing basis, and takes corrective action when variances from planning objectives arise. The service organization also reports program status at service-level reviews. The focus of these reviews is to identify high-risk issues requiring resolution and to ensure all actions necessary to achieve projected value and benefits are being executed satisfactorily, particularly those outside the control of the service organization. The service organization applies the principles of earned value management to development, modernization, and enhancement investment programs, and when applicable, uses audits to ensure contract costs are proper and allowable.

The service organization captures expenditures consistent with the program baseline work breakdown structure fashioned during final investment analysis.

Solution implementation is organized into the six sets of activity shown in Figure 2.5.1-1.These activities are tailored to the special requirements of each investment program.

Figure 2.5.1-1 Primary Activities of Solution Implementation

Figure 2.5.1-1 Primary Activities of Solution Implementation

2.5.1 : What Must Be Done (Revised 11/2009)    

  • Finalize program planning. The service organization reviews and updates program planning completed during final investment analysis (i.e., implementation strategy and planning document). Key stakeholders participate in this activity to ensure planning is complete and realistic. For example, if new systems are to be installed or existing facilities modified, service organization planners work with service-area offices so people and resources will be available when needed.
  • Obtain the solution. The service organization oversees and coordinates execution of tasks and activities necessary to achieve the benefits projected for the investment program within approved cost and schedule baselines. This includes such activities as contract award, contract administration, program management, resource management, risk management, systems engineering, logistics support, test and evaluation, and site acquisition and adaptation. It may involve developing operational procedures and standards; obtaining physical, personnel, and information security; modifying the physical infrastructure; and coordinating collateral action by the aviation industry.
  • Verify Operational Readiness. The service organization manages all activities necessary to install the solution at a designated test site(s) and test it thoroughly to verify operational readiness. Operational readiness encompasses operational effectiveness and operational suitability. Operational effectiveness measures how well the solution satisfies mission need and operational requirements. Operational suitability measures how well a product can be integrated and employed for field use, considering such factors as compatibility, reliability, human performance factors, maintenance and logistics support, safety, and training. For designated programs, operational readiness is also assessed by independent operational test and evaluation. The solution may be installed, as necessary, at the FAA Academy, FAA Logistics Center, and William J. Hughes Technical Center before the in-service decision. In rare cases and with proper justification, the service organization may request authority to install at  other specific sites. This authorization does not affect the regular in-service review process culminating in a final in-service decision, which must be adhered to before a product can be placed into operational service through the declaration of operational readiness date (ORD) and commissioning.
  • Prepare for in-service decision. The service organization completes all activities necessary for the in-service decision. This includes resolution of all support issues identified by the operating service organization and integrated logistics management team; completion of management actions arising from the in-service review checklist and IOT&E report (designated programs only); resolution of stakeholder issues; development of the in-service decision briefing and action plan; and concurrence of key stakeholders.
  • Update planning for in-service management. The service organization plans how it will sustain and manage deployed assets throughout their full lifecycle. This includes in-service support, post implementation reviews and other evaluations of operational assets to measure performance, collection of performance data in support of service-level reviews, product sustainment strategy and actions, service-life extension, and eventual removal from service including site restoration.
  • Deploy the solution at all sites. The service organization manages all activities necessary to deploy the solution at each site. This includes transportation and delivery of equipment, installation and checkout, contractor acceptance and inspection, integration, field familiarization, declaration of initial operational capability, joint acceptance and inspection, dual operations, declaration of operational readiness, and removal and disposal of obsolete equipment. Post implementation reviews are conducted at deployment sites to ensure user needs are satisfied, identify systemic problems that must be corrected, and determine whether cost, schedule, and benefits objectives are being achieved. The transition from solution implementation to in-service management extends over time, occurring at each site upon declaration of operational readiness or commissioning.

Investment programs that develop, modernize, or enhance systems or software follow the knowledge-based product development process shown in Figure 2.5.1-1. Table 2.5.1-1 contains the timing, criteria, and authority for each decision point.

Figure 2.5.1-1 FAA Knowledge-Based Product Development Process

Table 2.1.5-1 Product Development Decision Points, Timing, Criteria, and Authority

Decision Point

Timing

Decision Authority

Decision Criteria

Product Demonstration Decision

After critical design review

Vice President or Director of the implementing service organization

 
  • Key product characteristics are defined
  • Stakeholders agree that product design and functionality satisfy customer requirements
  • System design reviews are complete
  • Engineering drawings are complete
  • Detailed software/firmware design is complete, including critical software processes and threads
  • RMA goals are defined and planning is complete
  • Failure modes and effects analysis is complete
  • Critical manufacturing processes are identified

Production Decision

After completion of  operational testing

Vice President or Director of the implementing service organization *
  • First-article satisfies customer requirements in an operational environment
  • Data demonstrate that critical manufacturing processes and components will achieve RMA goals
  • First-article achieves contract RMA requirements
  • Stakeholders agree design is producible

* Unless otherwise designated by the JRC at the final investment decision.

2.5.2 : Outputs and Products (Revised 11/2009)    

The primary outcome of solution implementation is a fully deployed and supported operational capability that satisfies requirements, is accepted by users, is compatible with other products and services in the field, and realizes the benefits in the final business case analysis report. The following are typical products of solution implementation that support the fielding of a satisfactory operational capability:

  • Annual updates of the OMB Exhibit 300 for designated programs;
  • Continuous evaluation of progress against targets in the acquisition program baseline;
  • Contracts that achieve investment objectives (i.e., cost, schedule, performance, and benefits);
  • Successful operational test and evaluation;
  • Successful IOT&E and IOT&E report for designated programs;
  • In-service decision, including the in-service decision (ISD) briefing and action plan;
  • Declaration of operational readiness and commissioning at each site;
  • Program reviews and reports (e.g., baseline management, variance tracking; financial, schedule, performance; earned value, logistics measures, and risk management); and 
  • Service-level review reports.

2.5.3 : Who Does It? (Revised 11/2009)    

The service organization manages all activities necessary to plan, obtain, and deploy the solution. This includes the award and management of contracts, continuing review and evaluation of progress relative to plan, and corrective action to achieve cost, schedule, and performance targets in the acquisition program baseline. Service organizations also manage all issues and actions necessary for the in-service decision, and update program planning to address how the newly fielded capability will be sustained throughout its service life. The integrated logistics management team ensures implementation of the logistics solution.

The operating service organization conducts joint acceptance and inspection at each site, declares operational readiness, and commissions the solution into operational use.

Authorized representatives of key stakeholder organizations work with the service organization throughout solution implementation to resolve all issues and enter into binding agreements to achieve the costs, schedule, performance, and benefits projected for the investment program. They provide the service organization and ISD authority with all issues and concerns identified during solution implementation up to and including the in-service decision.

For programs designated for independent operational test and evaluation, the Vice President of the service organization notifies the ATO Vice President for Safety Services when the product is ready for independent operational assessment via the IOT&E readiness declaration. The Director of IOT&E evaluates operational readiness of the product and reports findings to the in-service decision authority.

The Information Technology Executive Board annually reviews OMB Exhibit 300s for designated programs as part of the annual budget process. During this process, the AIO Value Management Office independently scores all OMB Exhibit 300s that will be submitted to the Office of Management and Budget through the Office of the Secretary of Transportation. The objective is to obtain a passing score from the Office of Management and Budget on all submitted OMB Exhibit 300s.

2.5.4 : Who Approves? (Revised 11/2009)    

The investment decision authority approves changes to the acquisition program baseline. The Chief Information Officer, Chief Financial Officer, and Acquisition Executive approve OMB Exhibit 300s for designated information technology capital investments before submission to OMB. The Acquisition Executive and Chief Financial Officer approve OMB 300 Exhibits for designated non-information technology capital investments.