Defense Acquisitions
Department of Defense Actions on Program Manager Empowerment and Accountability Gao ID: GAO-08-62R November 9, 2007In November 2005, we issued a report on the environment within which the Department of Defense (DOD) program managers perform their work. We identified areas where program managers believe they are insufficiently empowered to execute programs, and therefore, because much is beyond their control, accountability is difficult. We also compared department policies and practices to those of leading commercial companies we visited and discussed actions DOD could take to improve program manager accountability, while also providing them with timely support as they manage the development of weapon systems. We recommended that DOD take a number of actions to ensure program managers are well positioned to successfully execute acquisitions and be held accountable. The John Warner National Defense Authorization Act for Fiscal Year 2007 directed the Secretary of Defense to develop a comprehensive strategy for enhancing the role of DOD program managers in developing and carrying out defense acquisition programs and to revise guidance for major defense acquisition programs to address the qualifications, resources, responsibilities, tenure, and accountability of program managers for the program development and execution periods. In addition, GAO was directed to report on the actions taken by the Secretary of Defense to implement the requirements of the Act. To identify DOD actions to implement the Act, we met with DOD officials and reviewed documents they provided to determine what actions were planned to address and implement the congressional mandate, including DOD's required strategy. We reviewed existing DOD policies, directives, and guidance on the qualifications, resources, responsibilities, authority, tenure, and accountability of program managers. Finally, we made extensive use of our prior work in this and other related areas. We conducted our work from January to September 2007 in accordance with generally accepted government auditing standards.
As part of DOD's strategy to enhance the role of program managers in carrying out its major weapon system acquisitions, the department has established a policy that requires formal agreements among program managers, their acquisition executives, and the user community intended to set forth common program goals. In addition, as part of a new strategy for program manager empowerment and accountability, DOD plans a variety of actions to enhance development opportunities, provide more incentives, and arrange knowledge-sharing opportunities. For example, DOD intends to increase "just-in-time" training, establish a formal mentoring program, and establish program management forums. The department also acknowledges that any actions taken to improve accountability must be based on a foundation whereby program managers can launch and manage programs toward greater performance, rather than focusing on maintaining support and funding for individual programs. This foundation should include an overarching strategy and decision-making processes that prioritize programs based on a balanced match between customer needs and available department resources. Within its strategy and other reports, DOD has highlighted several initiatives that, if adopted and implemented properly, could provide such a foundation. For example, the new Concept Decision Point initiative, guidance for Time-Defined Acquisitions, and the establishment of Configuration Steering Boards are all designed to enable more informed decisions by key department leaders well ahead of a program's start, decisions that provide a closer match between each program's requirements and the department's resources. DOD acquisition leaders stated that any improvements to program managers' performance hinge on the success of these departmental initiatives.
GAO-08-62R, Defense Acquisitions: Department of Defense Actions on Program Manager Empowerment and Accountability
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November 9, 2007:
Congressional Committees:
Subject: Defense Acquisitions: Department of Defense Actions on Program
Manager Empowerment and Accountability:
In November 2005, we issued a report on the environment within which
the Department of Defense (DOD) program managers perform their
work.[Footnote 1] We identified areas where program managers believe
they are insufficiently empowered to execute programs, and therefore,
because much is beyond their control, accountability is difficult. We
also compared department policies and practices to those of leading
commercial companies we visited and discussed actions DOD could take to
improve program manager accountability, while also providing them with
timely support as they manage the development of weapon systems. We
recommended that DOD take a number of actions to ensure program
managers are well positioned to successfully execute acquisitions and
be held accountable.
The John Warner National Defense Authorization Act for Fiscal Year 2007
directed the Secretary of Defense to develop a comprehensive strategy
for enhancing the role of DOD program managers in developing and
carrying out defense acquisition programs and to revise guidance for
major defense acquisition programs to address the qualifications,
resources, responsibilities, tenure, and accountability of program
managers for the program development and execution periods.[Footnote 2]
In addition, GAO was directed to report on the actions taken by the
Secretary of Defense to implement the requirements of the Act.
To identify DOD actions to implement the Act, we met with DOD officials
and reviewed documents they provided to determine what actions were
planned to address and implement the congressional mandate, including
DOD's required strategy. We reviewed existing DOD policies, directives,
and guidance on the qualifications, resources, responsibilities,
authority, tenure, and accountability of program managers. Finally, we
made extensive use of our prior work in this and other related areas.
We conducted our work from January to September 2007 in accordance with
generally accepted government auditing standards.
Results in Brief:
As part of DOD's strategy to enhance the role of program managers in
carrying out its major weapon system acquisitions, the department has
established a policy that requires formal agreements among program
managers, their acquisition executives, and the user community intended
to set forth common program goals. In addition, as part of a new
strategy for program manager empowerment and accountability, DOD plans
a variety of actions to enhance development opportunities, provide more
incentives, and arrange knowledge-sharing opportunities. For example,
DOD intends to increase "just-in-time" training, establish a formal
mentoring program, and establish program management forums.
The department also acknowledges that any actions taken to improve
accountability must be based on a foundation whereby program managers
can launch and manage programs toward greater performance, rather than
focusing on maintaining support and funding for individual programs.
This foundation should include an overarching strategy and decision-
making processes that prioritize programs based on a balanced match
between customer needs and available department resources. Within its
strategy and other reports, DOD has highlighted several initiatives
that, if adopted and implemented properly, could provide such a
foundation. For example, the new Concept Decision Point initiative,
guidance for Time-Defined Acquisitions, and the establishment of
Configuration Steering Boards are all designed to enable more informed
decisions by key department leaders well ahead of a program's start,
decisions that provide a closer match between each program's
requirements and the department's resources. DOD acquisition leaders
stated that any improvements to program managers' performance hinge on
the success of these departmental initiatives.
Background:
In our 2005 report, we recommended that DOD take a number of actions to
ensure program managers are well positioned to successfully execute
acquisitions and be held accountable. In turn, Congress mandated that
DOD develop a comprehensive strategy for enhancing the role of DOD
program managers in developing and carrying out defense acquisition
programs. This strategy was to address, at a minimum:
* enhanced training and educational opportunities for program managers;
* increased emphasis on the mentoring of current and future program
managers by experienced senior executives and program managers within
the department;
* improved career paths and career opportunities for program managers;
* additional incentives for the recruitment and retention of highly
qualified individuals to serve as program managers;
* improved resources and support (including systems engineering
expertise, cost estimating expertise, and software development
expertise) for program managers;
* improved means of collecting and disseminating best practices and
lessons learned to enhance program management throughout the
department;
* common templates and tools to support improved data gathering and
analysis for program management and oversight purposes;
* increased accountability of program managers for the results of
defense acquisition programs; and:
* enhanced monetary and nonmonetary awards for successful
accomplishment of program objectives by program managers.
While DOD was required to report on its development of a comprehensive
strategy for improving various aspects of program manager roles and
responsibilities by July 14, 2007, we did not receive a copy of this
report until September 25, 2007.
The Act also required DOD to revise its guidance for major defense
acquisition programs to address the qualifications, resources,
responsibilities, tenure, and accountability of program managers for
the program development and program execution period. At a minimum, the
revised guidance was expected to address the:
* need for a performance agreement between a program manager and the
milestone decision authority for the program, setting forth expected
parameters for cost, schedule, and performance, and appropriate
commitments by the program manager and the milestone decision authority
to ensure that such parameters are met;
* authorities available to the program manager, including, to the
extent appropriate, the authority to object to the addition of new
program requirements that would be inconsistent with the parameters
established when the program formally began development (Milestone B
for major acquisition programs or Key Decision Point B in the case of a
space program) and reflected in the performance agreement; and:
* extent to which a program manager for such period should continue in
the position without interruption until the delivery of the first
production units of the program.
In February 2007, DOD issued a report on the department's acquisition
transformation initiatives and the goals established in order to
achieve change.[Footnote 3] Within that report, DOD noted that every
aspect of how the department does business was being assessed and
streamlined to deliver improved capabilities to the warfighter and
visibility to executive leadership. The report also noted the need for
continuous and evolutionary changes across the DOD acquisition system,
especially with regard to determining which assets and investments to
acquire in order to meet desired capabilities. Future reports on
acquisition transformation were expected to build on the outcomes of
initiatives described in that report.
New DOD Approach Includes Various Actions to Increase Accountability
and Support of Program Managers:
DOD's revised approach for program managers includes a number of
ongoing and planned actions to increase accountability and provide more
support to program managers by enhancing individual development,
providing more incentives, and arranging knowledge-sharing
opportunities. Related to findings and recommendations in our 2005
report, DOD previously initiated actions to increase program managers'
accountability. In December 2005, DOD issued new policy to provide
uniform guidance for managing positions and career development of the
acquisition workforce, a policy that included program
managers.[Footnote 4] The new policy identified career paths for
program managers in terms of education, training, experience, and
assignments. It also established requirements for program manager
agreements, including specified tenure periods, when they are assigned
to a program.
In response to congressional direction, DOD is planning to establish
other mechanisms for increasing program manager accountability. In
December 2006, DOD formed a working group led by the Office of the
Under Secretary of Defense for Acquisition, Technology, and Logistics
(OUSD/AT&L) to address the requirements of the fiscal year 2007 Defense
Authorization Act, including development of the program manager
empowerment and accountability strategy. The group was made up of
defense acquisition career managers and service acquisition executives
from all the services as well as Defense Acquisition University
representatives. The working group began by reviewing successful
practices that already exist within the Office of the Secretary of
Defense and the military services. Based on this review, the group
planned to either adopt these practices on a wider scale or develop new
practices based on past experience and new ideas.
In conjunction with the working group, DOD issued a May 2007 policy
memorandum to emphasize and amplify the 2005 program manager tenure and
accountability policy.[Footnote 5] DOD believes this will ensure that
program managers have sufficient tenure to achieve the outcomes
expected of them and to provide additional goal-oriented mechanisms
that improve both systemic and personal accountability. The new policy
maintains existing tenure agreements and qualifications for program
managers. However, it also provides for performance management
agreements, which are new.
The new agreements are designed to provide a documented basis for
ensuring that a program manager's plans are consistent with those of
the organization, that there is a common basis for understanding and
accountability, that the specified plans are fully resourced and
achievable, and that both the organization's and individual's
responsibilities are effectively communicated. The policy states that
agreements will be prepared for programs at the acquisition category I
and II levels and signed by the program manager, acquisition executive,
and the requirements or resource authorities. Further, the policy
states that the agreements will be prepared after DOD makes an
investment decision to pursue a new program and a program manager is
assigned and should consistently reflect the approved program. The
agreements are expected to establish achievable and measurable plans
that are to be updated annually, or more frequently if the conditions
that formed the basis for the agreement--such as requirements, funding,
or execution plans--have changed.
In September 2007, DOD released a new strategy expected to address
department efforts related to a holistic approach to acquisition
transformation. Specific to program manager empowerment and
accountability, this strategy notes that the department is beginning
initiatives, identifying enhancements, and developing implementation
plans associated with actions aimed at improving support to program
managers. These initiatives serve to address specific improvements in
program manager development, knowledge sharing, and stability and
support. The strategy further acknowledges that additional effort is
ongoing and required between the Office of the Secretary of Defense and
the military components to develop deliberate, enterprisewide
acquisition position and career management in order to ensure effective
and efficient implementation of the separate initiatives within the
overall strategy. See table 1 for the additional actions DOD is
currently planning to support program managers.
Table 1: DOD Actions Planned to Support Program Managers:
Mandate item: Training and education;
Actions Planned: DOD, through the Defense Acquisition University, plans
to increase "just-in-time" training for program managers. DOD also
plans to deploy a new "core-plus" concept as part of the training
curriculum for program managers.
Mandate item: Mentoring;
Actions Planned: DOD plans to establish a formal program-manager-
focused mentoring program. This would be augmented with the opportunity
for program managers to speak with former program managers and retired
flag officers and senior executives. DOD's strategy states that each
military service will develop a formalized program manager mentorship
program within 18 months.
Mandate item: Career paths & opportunities;
Actions Planned: DOD is planning to emphasize professional development
for civilian program managers and establish/expand executive
development for acquisition professionals. For example, the DOD
strategy states that the department is exploring the establishment of a
specialized "professional" acquisition program management occupational
series.
Mandate item: Recruitment & retention incentives;
Actions Planned: DOD plans to increase Senior Service School selection
rates and expand executive development participation. The DOD strategy
notes that these types of initiatives would be used to the extent
possible to encourage top military and civilian members to compete for
the most challenging assignments.
Mandate item: Resources & support;
Actions Planned: DOD plans to institute teams aligned with particular
phases of an acquisition program to assist program managers as
necessary. This would include program support and non-advocacy reviews,
acquisition centers of excellence, and program start-up workshops at
program initiation. Other plans include establishing program management
forums within the department where program managers can share
information with each other. One such forum would be through the
Program Management Industrial Committee--developed with the National
Defense Industrial Association--expected to allow discussion of program
management issues from both government and industry perspectives.
Mandate item: Best practices & lessons learned;
Actions Planned: In addition to program management forums and assist
teams discussed above, DOD plans to begin program manager "webcasts."
DOD plans to link acquisition knowledge databases together to improve
performance and maximize value.
Mandate item: Common templates & tools;
Actions Planned: DOD does not initially intend to expend effort to
develop new or additional templates and tools; rather it will focus on
increasing overall awareness of those already in place within the
department and each military department. DOD's strategy notes that
effort will be needed to improve the user interface to such tools,
including information and best practices databases. Additional effort
is also expected to be necessary to link knowledge systems, databases,
and resources together.
Mandate item: Increase accountability;
Actions Planned: In addition to actions related to a May 2007 policy
memorandum, DOD plans to encourage ACAT ID program managers to meet
with the defense acquisition executives when first assigned.
Mandate item: Monetary & non-monetary awards;
Actions Planned: DOD plans to explore the use of monetary awards.
However, the DOD strategy acknowledges that because monetary awards
involve "sensitive compensation questions," additional research and a
workforce analysis of the program manager field are currently underway.
Source: Department of Defense, Under Secretary for Acquisition,
Technology and Logistics, Report to: Congress on Program Manager
Empowerment and Accountability (Washington, D.C.: September 2007).
[End of table]
DOD Practices for Program Manager Accountability Must Match Policy
Efforts:
Since 2003, while noting some positive changes to DOD acquisition
policy, we have reported that the department's leadership needs to put
necessary controls in place to ensure decision makers could make
informed judgments.[Footnote 6] As we reported in 2005, DOD continues
to start many more programs than it can afford and rarely prioritizes
them for funding purposes.[Footnote 7] In addition, DOD allows programs
to begin without establishing a formal business case. Further,
technologies are not always mature at program start, requirements are
not always fully defined, and cost and schedule estimates are often
unrealistic--resulting in a mismatch between customer needs and
available resources. As a result, program managers are often not well-
positioned to successfully execute weapon acquisitions and are often
relegated to program advocacy in order to ensure programs continue.
DOD acknowledges, and we agree, that any initiative intended to operate
within the department's existing organizational framework must be
universally supported by OSD leadership and each service component or
the initiative will not provide sufficient authority and control over
resources to effectively influence weapon system investments.
Therefore, DOD's strategy to improve acquisition outcomes rests not
only with providing support for individual program managers, but more
importantly on creating a departmentwide environment that promotes
stability, accountability, and more informed decisionmaking. To that
end, the new DOD strategy notes that successful acquisition program
outcomes are not possible without continuous alignment of three
principal functions: requirements, funding, and acquisition execution.
In order to support improvements in these functional areas, DOD has or
plans to begin several initiatives intended to address shortfalls in
its existing approach to investment decisions, such as establishing an
early decision gate to review proposed programs at the concept stage,
testing portfolio management approaches in selected capability areas,
planning time-defined acquisitions, creating configuration steering
boards, and using capital budgeting accounts for programs in
development. See table 2 for examples of initiatives related to
requirements, funding, and acquisition execution.
Table 2: DOD Initiatives on Requirements, Funding, and Acquisition
Execution.
Initiative: Concept decision;
Description: Framework for strategic investment decisions.
Initiative: Time-defined acquisitions;
Description: Where feasible, first capability increment will be fielded
in 5 to 6 years from investment decisions.
Initiative: Human capital planning;
Description: Comprehensive enterprise and specific component human
capital plans to mitigate demographic and talent challenges, including
the AT&L Human Capital Strategic Plan.
Initiative: Requirements management certification training;
Description: Portfolio of learning assets to train military and
civilians who write and manage requirements for major defense
acquisition programs.
Initiative: Performance management;
Description: Implementation of National Security Personnel System
(NSPS) and the Executive and Senior Professional Pay and Performance
System to enable outcomes-based performance evaluations and rewards.
Initiative: Centers of excellence;
Description: Continuous review and improvement of processes and
practices to strengthen planning and execution of acquisition programs.
Initiative: Risk-based source selection;
Description: Identify and quantify risks, informing requirements
development and cost estimation, and improve the assessment of
contractor proposals.
Initiative: Acquisition of services policy;
Description: Ensure executive reviews and implementation of best
practices.
Initiative: Restructured Defense Acquisition Executive Summary (DAES);
Description: Establish an analytical foundation to ensure effective
program management with predictable acquisition outcomes consistent
with user requirements.
Source: Department of Defense, Under Secretary for Acquisition,
Technology and Logistics, Report to Congress on Program Manager
Empowerment and Accountability (Washington, D.C.: September 2007).
[End of table]
The DOD strategy emphasizes that initiatives designed to improve
program manager performance can only be successful if the strategic
objectives are accepted and implemented. This support, however, is not
a given. Policies similar to the one issued by DOD in May 2007 have
existed for some time, but according to OUSD and Air Force officials,
have not always been practiced. For example, while DOD policy provides
for program managers of major defense acquisition programs to serve as
close to 4-year tenures as practicable, many serve for only 2 years.
Such inconsistency between policy and practice could hinder DOD's
efforts to improve program manager accountability. In fact, our work
has shown that rather than lengthy assignment periods between key
milestones as suggested by best practices, many of the programs we have
reviewed had multiple program managers within the same milestone. For
example, analysis for this review showed that for 39 major acquisition
programs started since March 2001, the average time in development was
about 37 months. The average tenure for program managers on those
programs during that time was about 17.2 months--less than half of what
is prescribed by DOD policy.
According to the Director for OUSD Portfolio Systems Acquisition,
support for these accountability initiatives must come both from within
DOD and from the military departments. Further, the Director noted that
getting this support will be a major challenge in efforts to improve
empowerment and accountability for program managers and ensure
consistency between policy and practice. For example, the Director
noted that advocacy for significant and continuous leadership will be
needed to implement the tenure and accountability agreements currently
planned and, maybe more importantly, secure funding necessary to carry
out those agreements. The department's strategy further states that "if
our [DOD's] efforts to improve requirements and resource stability are
not successful, we cannot expect program manager performance to improve
nor can we justly hold our program managers accountable."
Conclusions:
DOD is planning to implement many new practices that will provide
program managers more incentives, support, and stability as well as
opportunities for sharing knowledge and lessons learned. DOD has also
established initiatives designed to change the strategic environment at
the portfolio level. We agree that these initiatives reflect sound
business practices and, if fully and correctly implemented, could lead
to better program manager performance and overall acquisition outcomes.
However, DOD also acknowledges that if efforts to improve requirements
and resource stability are not successful, there cannot be an
expectation that changes will occur at the program manager level.
Moreover, if history is any judge, the overall environment within which
program managers perform their work is very difficult to change simply
with policy initiatives. Unless all of the players involved with
acquisitions--the requirements community, the comptroller, the
Undersecretary for AT&L and perhaps most importantly, the military
services--are unified in implementing these new policies from top to
bottom, they will be for naught.
The new practices DOD is planning to implement will not be as effective
as they could be until DOD ensures that program managers are given
acquisition programs that are executable--that is, programs that are
the result of an integrated, portfolio-based approach to investments
and that have a sound business case. Only then will program managers be
placed in a better position to carry out their programs in a manner
suited for successful outcomes. DOD's actions to implement the new
strategy, to reinforce the importance of tenure agreements, and to gain
agreement and acceptance from the military services can only be
effective and implemented as intended with strong and consistent
vision, direction, and advocacy from DOD leadership. Greater department-
level support is important to ensure that DOD policy becomes practice,
especially if program managers are to be truly empowered and held
accountable for outcomes.
Agency Comments:
In commenting on a draft of this report, DOD provided technical
comments, which were incorporated as appropriate.
We will send copies of this correspondence to the Department of Defense
and interested congressional committees. We will also make copies
available to others upon request. In addition, the report will be
available at no charge on GAO's Web site at [hyperlink,
http://www.gao.gov].
Should you or your staff have any questions on matters discussed in
this correspondence, please contact me at (202) 512-4841 or
sullivanm@gao.gov. Contact points for our Offices of Congressional
Relations and Public Affairs may be found on the last page of this
correspondence. Principal contributors to this report were Brian
Mullins, Assistant Director; Sigrid McGinty; Peter Zwanzig; Marie
Ahearn; and Greg Campbell.
Signed by:
Michael J. Sullivan:
Director:
Acquisition and Sourcing Management:
List of Committees:
The Honorable Carl Levin:
Chairman:
The Honorable John McCain:
Ranking Member:
Committee on Armed Services:
United States Senate:
The Honorable Daniel K. Inouye:
Chairman:
The Honorable Ted Stevens:
Ranking Member:
Subcommittee on Defense:
Committee on Appropriations:
United States Senate:
The Honorable Ike Skelton:
Chairman:
The Honorable Duncan L. Hunter:
Ranking Member:
Committee on Armed Services:
House of Representatives:
The Honorable John P. Murtha:
Chairman:
The Honorable C.W. Bill Young:
Ranking Member:
Subcommittee on Defense:
Committee on Appropriations:
House of Representatives:
[End of section]
Footnotes:
[1] GAO, Best Practices: Better Support of Weapon System Program
Managers Needed to Improve Outcomes, GAO-06-110 (Washington, D.C.: Nov.
30, 2005).
[2] John Warner National Defense Authorization Act for Fiscal Year
2007, Pub. L. No. 109-364, §853 (2006).
[3] Department of Defense, Secretary of Defense, Defense Acquisition
Transformation: Report to Congress (Washington, D.C.: February 2007).
[4] Department of Defense Instruction No. 5000.66, Operation of the
Defense Acquisition, Technology, and Logistics Workforce Education,
Training, and Career Development Program (Dec. 21, 2005). The policy
provides that the tenure period for program managers of major defense
acquisition programs is the program milestone closest to 4 years or as
tailored by the acquisition executive based on unique program
requirements, in accordance with 10 UCS § 1734(b).
[5] Under Secretary of Defense (AT&L) Memorandum, Program Management
Tenure and Accountability, (May 25, 2007).
[6] GAO, Defense Acquisitions: DOD's Revised Policy Emphasizes Best
Practices, but More Controls Are Needed, GAO-04-53 (Washington, D.C;
Nov. 2003).
[7] GAO-06-110.
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