ACAT I programs are Milestone Decision Authority Programs (MDAPs) or programs designated ACAT I by the Milestone Decision Authority (MDA).
Dollar value: estimated by the Under Secretary of Defense (Acquisition and Technology) (USD [A&T]) to require an eventual total expenditure for research, development, test and evaluation (RDT&E) of more than $365 million in fiscal year (FY) 2000 constant dollars or, for procurement, of more than $2.190 billion in FY 2000 constant dollars. ACAT I programs have two subcategories:
1. ACAT ID, for which the MDA is USD (A&T). The “D” refers to the Defense Acquisition Board (DAB), which advises the USD (A&T) at major decision points.
2. ACAT IC, for which the MDA is the DoD Component Head or, if delegated, the DoD Component Acquisition Executive (CAE). The “C” refers to Component. The USD (A&T) designates programs as ACAT ID or ACAT IC.
ACAT IA programs are MAISs (Major Automated Information System Acquisition Programs), or programs designated by the Assistant Secretary of Defense for Command, Control, Communications, and Intelligence (ASD [C3I]) to be ACAT IA.
Estimated to exceed: $32 million in FY 2000 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, and deployment, and incurred in any single fiscal year; or $126 million in FY 2000 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, and deployment, and incurred from the beginning of the Materiel Solution Analysis Phase through deployment at all sites; or $378 million in FY 2000 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, deployment, operations and maintenance, and incurred from the beginning of the Materiel Solution Analysis Phase through sustainment for the estimated useful life of the system.
ACAT IA programs have two subcategories:
1. ACAT IAM, for which the MDA is the Chief Information Officer (CIO) of the DoD, the ASD (C3I). The “M” refers to Major Automated Information System Review Council (MAISRC). (Change 4, 5000.2-R)
2. ACAT IAC, for which the DoD CIO has delegated milestone decision authority to the CAE or Component CIO. The “C” refers to Component.
ACAT II programs are defined as those acquisition programs that do not meet the criteria for an ACAT I program, but do meet the criteria for a major system, or are programs designated ACAT II by the MDA. The dollar value is estimated to require total expenditure for RDT&E of more than $140 million in FY 2000 constant dollars, or for procurement of more than $660 million in FY 2000 constant dollars.
ACAT III programs are defined as those acquisition programs that do not meet the criteria for an ACAT I, an ACAT IA, or an ACAT II. The MDA is designated by the CAE and shall be at the lowest appropriate level. This category includes less-than-major AISs. The dollar values are under the threshold for ACAT II.
All the tasks and activities needed to bring a program to the next major milestone occur during an acquisition phase. Phases provide a logical means of progressively translating broadly stated mission needs into well-defined system-specific requirements and ultimately into operationally effective, suitable, and survivable systems. The acquisition phases for the systems described in this handbook are defined below:
Technology Development Phase
The 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 on prototypes. Technology Development is a continuous technology discovery and development process reflecting close collaboration between the Science and Technology (S&T) community, the user, and the system developer. It is an iterative process designed to assess the viability of technologies while simultaneously refining user requirements. Entrance into this phase depends on the completion of the Analysis of Alternatives (AOA), a proposed materiel solution, and full funding for planned Technology Development Phase activity.
Engineering and Manufacturing Development (EMD) Phase
The purpose of the EMD phase is to develop a system or an increment of capability; complete full system integration (technology risk reduction occurs during Technology Development); develop an affordable and executable manufacturing process; ensure operational supportability with particular attention to minimizing the logistics footprint; implement human systems integration (HSI); design for producibility; ensure affordability; protect critical program information by implementing appropriate techniques such as anti-tamper; and demonstrate system integration, interoperability, safety, and utility. The Capability Development Document, Acquisition Strategy, Systems Engineering Plan, and Test and Evaluation Master Plan (TEMP) shall guide this effort. Entrance into this phase depends on technology maturity (including software), approved requirements, and full funding. Unless some other factor is overriding in its impact, the maturity of the technology shall determine the path to be followed.
Production and Deployment Phase
The purpose of the Production and Deployment phase is to achieve an operational capability that satisfies mission needs. Operational test and evaluation shall determine the effectiveness and suitability of the system. The MDA shall make the decision to commit DoD to production at Milestone C and shall document the decision in an Acquisition Decision Memorandum. Milestone C authorizes entry into low rate initial production (for MDAPs and major systems), into production or procurement (for non-major systems that do not require LRIP) or into limited deployment in support of operational testing for MAIS programs or software-intensive systems with no production components. Entrance into this phase depends on the following criteria: acceptable performance in developmental test and evaluation and operational assessment (OSD OT&E oversight programs); mature software capability; no significant manufacturing risks; manufacturing processes under control (if Milestone C is full-rate production); an approved Initial Capabilities Document (ICD) (if Milestone C is program initiation); an approved Capability Production Document (CPD); a refined integrated architecture; acceptable interoperability; acceptable operational supportability; and demonstration that the system is affordable throughout the life cycle, fully funded, and properly phased for rapid acquisition. The CPD reflects the operational requirements, informed by EMD results, and details the performance expected of the production system. If Milestone C approves LRIP, a subsequent review and decision shall authorize full-rate production.
Operations and Support Phase
The purpose of the Operations and Support phase is to execute a support program that meets materiel readiness and operational support performance requirements, and sustains the system in the most cost-effective manner over its total life cycle. Planning for this phase shall begin prior to program initiation and shall be documented in the Life-Cycle Sustainment Plan (LLSP). Operations and Support phase has two major efforts: life-cycle sustainment and disposal. Entrance into the Operations and Support Phase depends on meeting the following criteria: an approved CPD; an approved LCSP; and a successful Full-Rate Production (FRP) Decision.
A directed, funded effort designed to provide a new, improved or continuing weapons system or AIS capability in response to a validated operational need. Acquisition programs are divided into different categories that are established to facilitate decentralized decision-making, and execution and compliance with statutory requirements.
ACTDs are a means of demonstrating the use of emerging or mature technology to address critical military needs. ACTDs themselves are not acquisition programs, although they are designed to provide a residual, usable capability upon completion. If the user determines that additional units are needed beyond the residual capability and that these units can be funded, the additional buys shall constitute an acquisition program with an acquisition category generally commensurate with the dollar value and risk of the additional buy.
A combination of computer hardware and software, data, or telecommunications, that performs functions such as collecting, processing, transmitting, and displaying information. Excluded are computer resources, both hardware and software, that are physically part of, dedicated to, or essential in real-time to the mission performance of weapon systems.
Market research and analysis shall be conducted to determine the availability and suitability of existing commercial and non-developmental items prior to the commencement of a development effort, during the development effort, and prior to the preparation of any product description. For ACAT I and IA programs, while few commercial items meet requirements at a system level, numerous commercial components, processes, and practices have application to DoD systems.
At the end of its useful life, a system must be demilitarized and disposed of. During demilitarization and disposal, the program manager shall ensure materiel determined to require demilitarization is controlled and shall ensure disposal is carried out in a way that minimizes DoD’s liability due to environmental, safety, security, and health issues.
DT&E shall identify potential operational and technological capabilities and limitations of the alternative concepts and design options being pursued; support the identification and description of design technical risks; and provide data and analysis in support of the decision to certify the system ready for operational test and evaluation.
The process that ensures all Army materiel is safe, operationally suitable, and is supportable before release of issue to users. The PM determines necessary activities to certify materiel release readiness. This decision should be accomplished prior to full-rate production.
Any acquisition system, subsystem, component or technology program that involves a strategy that includes funding by more than one DoD component during any phase of a system’s life cycle shall be defined as a Joint program. Joint programs shall be consolidated and collocated at the location of the lead component’s program office, to the maximum extent practicable.
LFT&E must be conducted on a covered system, major munition program, missile program, or product improvement to a covered system, major munition program, or missile program before it can proceed beyond low-rate initial production. A covered system is any vehicle, weapon platform, or conventional weapon system that includes features designed to provide some degree of protection to users in combat and that is an ACAT I or II program. Depending upon its intended use, a commercial or non-developmental item may be a covered system, or a part of a covered system. Systems requiring LFT&E may not proceed beyond low-rate initial production until realistic survivability or lethality testing is completed and the report required by statute is submitted to the prescribed congressional committees.
The objective of this activity is to produce the minimum quantity necessary to provide production-configured or representative articles for operational tests; establish an initial production base for the system; and permit an orderly increase in the production rate for the system, sufficient to lead to full-rate production upon successful completion of operational testing. LRIP quantity may not exceed 10 percent of the total production quantity without an approved waiver by the Acquisition Executive and documented in the Acquisition Decision Memorandum.
An AIS acquisition program that is (1) designated by ASD (C3I) as a MAIS, or (2) estimated to require program costs in any single year in excess of $32 million in FY 2000 constant dollars, total program costs in excess of $126 million in FY 2000 constant dollars, or total life cycle costs in excess of $378 million in FY 2000 constant dollars. MAISs do not include highly sensitive classified programs.
An acquisition program that is not a highly sensitive classified program (as determined by the Secretary of Defense) and that is: (1) designated by the USD (A&T) as an MDAP, or (2) estimated by the USD (A&T) to require an eventual total expenditure for research, development, test and evaluation of more than $365 million in FY 2000 constant dollars or, for procurement, of more than $2.190 billion in FY 2000 constant dollars.
A major milestone is the decision point that separates the phases of an acquisition program. MDAP milestones include, for example, the decisions to authorize entry into the engineering and manufacturing development phase or full rate production. MAIS milestones may include, for example, the decision to begin program definition and risk reduction.
Dollar value: estimated by the DoD Component Head to require an eventual total expenditure for RDT&E of more than $140 million in FY 2000 constant dollars, or for procurement of more than $660 million in FY 2000 constant dollars. (Lowest category for major system designation is ACAT II.)
The purpose of this phase is to assess potential materiel solutions and to satisfy the phase-specific entrance criteria for the next program milestone designated by the MDA. Entrance into this phase depends upon an approved ICD resulting from the analysis of current mission performance and an analysis of potential concepts across the DoD components, international systems from allies, and cooperative opportunities.
The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase.
The individual designated in accordance with criteria established by the USD (AT&L), or by the ASD (C3I) for AIS acquisition programs, to approve entry of an acquisition program into the next phase.
Any modification that is of sufficient cost and complexity that it could itself qualify as an ACAT I or ACAT IA program shall be considered for management purposes as a separate acquisition effort. Modifications that do not cross the ACAT I or IA threshold shall be considered part of the program being modified, unless the program is no longer in production. In that case, the modification shall be considered a separate acquisition effort.
The objectives of this activity are the execution of a support program that meets the threshold values of all support performance requirements and sustainment of them in the most life cycle cost effective manner. A follow-on operational testing program that assesses performance and quality, compatibility, and interoperability, and identifies deficiencies shall be conducted, as appropriate. This activity shall also include the execution of operational support plans, to include the transition from contractor to organic support, if appropriate.
OT&E shall be structured to determine the operational effectiveness and suitability of a system under realistic conditions (e.g., combat) and to determine if the operational performance requirements have been satisfied. The following procedures are mandatory: threat or threat representative forces, targets, and threat countermeasures, validated in coordination with Defense Intelligence Agency (DIA), shall be used; typical users shall operate and maintain the system or item under conditions simulating combat stress and peacetime conditions; the independent operational test activities shall use production or production representative articles for the dedicated phase of OT&E that supports the full-rate production decision, or for ACAT IA or other acquisition programs, the deployment decision; and the use of modeling and simulation shall be considered during test planning.
For additional information on acquisition terms, or terms not defined, please refer to AR 70-1, Army Acquisition Policy, available on the Internet at http://www.army.mil/usapa/epubs/pdf/r70_l.pdf; or DA PAM 70-3, Army Acquisition Procedures, available on the Internet at http://www.dtic.mil/whs/directives/corres/pdf/500002p.pdf.