THE DHS ACQUISITION LIFE CYCLE and
THE REQUIREMENTS PROCESS
The systems acquisition process exists to provide equipment, software, and services to users so
that they can keep our nation safe and secure. Requirements for capabilities arise from a variety
of sources. Within DHS, those sources include:
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Component users, who first capture capability gaps in a Preliminary Mission Needs
Statement (P-MNS)
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The Joint Requirements Council (JRC), who look for ways to leverage the benefits of
acquisition programs across multiple DHS sponsors
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The strategic planning portion of the Planning, Programming, Budgeting and Execution
(PPBE) process, in which annual Integrated Planning Guidance (IPG) identifies new
requirements as input for the programming phase of the PPBE process
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The DHS Enterprise Architecture (EA), which can identify shortfalls in capabilities for
Information Technology (IT)
In addition to internal requirements, Congress and the President can generate requirements to be
met through the acquisition process.
As a program moves through the Acquisition Life Cycle, it flows through a series of activities
and must meet certain criteria before it can proceed to the next phase. These ‘exit criteria’ can
be general accomplishments that all programs must meet as well as specific achievements
specified by the Acquisition Decision Authority (ADA). Between each phase of the life cycle,
Acquisition Decision Events (ADEs) are conducted to ensure the program is adequately planned,
the technology is sufficiently mature, and the risks are well managed. A typical program based
on a Component-generated requirement would travel the following path:
Before ADE-0, users within the Component prepare a Preliminary Mission Needs Statement
(P-MNS) to identify gaps in capability. Components should consider gaps in terms of
doctrines & plans, training, material, leadership, personnel, facilities, regulations, grants and
standards (DOTMLPF+R/G/S).
At ADE-0, the Component approves the Preliminary Mission Needs Statement (P-MNS) and
sends it to the Acquisition Program Management Division (APMD) and Joint Requirements
Council (JRC) for review at DHS Headquarters. At this point, the program has entered the
Need Phase. If the program is a new start, the Component will submit the P-MNS along
with their Resource Allocation Plan (RAP) to request funds from the Program Review Board
(PRB).
The main purpose of the Need Phase is to identify a gap in capability that can be met with a
materiel solution. Three documents are prepared during the Need Phase in preparation for ADE1:
The Mission Needs Statement (MNS) expands on the P-MNS to answer the question:
“What does the user need?” It summarizes in 4-8 pages the functional capabilities that
the Component must have in order to effectively accomplish their mission and objectives.
There are four steps to preparing and staffing the Mission Needs Statement (MNS):
1. Components identify the capabilities that their users need in order to accomplish
the mission (whether or not the current capability exists).
2. Components compare their current capabilities with existing and future mission needs
to identify and prioritize any gaps.
3. Components document the results of their analysis in a MNS, expressing the
benefits of filling the gaps and the negative impact of not filling the gaps.
4. The Joint Requirements Council (JRC) and Acquisition Program Management
Division review the MNS to determine whether the need is valid.
The Joint Requirements Council (JRC) and Acquisition Program Management Division
(APMD) review the Mission Needs Statement (MNS). They look for overlaps with other
DHS initiatives and compare the MNS to the Integrated Planning Guidance (IPG) to
determine if the need is consistent with the overall strategic direction of DHS. The MNS
is approved by the Acquisition Decision Authority (ADA) at Acquisition Decision Event
1 (ADE-1).
The Acquisition Plan (AP) indicates possible sources of goods and services required by
the user, an overview of source selection procedures, and the type of contract(s) to be
used.
The Capabilities Development Plan (CDP) is an agreement between the PM and the
Acquisition Decision Authority (ADA) about the activities, cost, schedule and
performance boundaries for the work to be done in the Analyze/Select Phase. It
identifies the possible range of alternatives to be examined and indicates whether an
Alternatives Analysis (AA) or an Analysis of Alternatives (AoA) will be used.
At ADE-1, the acquisition program can be classified into one of three levels:
Level 1 programs have life cycle costs of $1 billion or more. They are normally overseen
by the DHS Deputy Secretary or Under Secretary for Management.
Level 2 programs have life cycle costs between $300 million and $1 billion. They are
normally overseen by the Under Secretary for Management and may be delegated to the
Component Acquisition Executive (CAE).
Level 3 programs have life cycle costs under $300 million. They are normally overseen
by the Component Head.
Level 3 programs are reviewed and approved at the Component level. For Level 2 and Level 1
programs, the MNS, Acquisition Plan, and CDP are reviewed by the Acquisition Review Board
(ARB). The ARB is supported by the Acquisition Review Team (ART), who will review the
documents, screen them for completeness, and attempt to resolve issues before the senior ARB
members conduct their review at Acquisition Decision Event 1 (ADE-1). In addition,
information technology (IT) programs are reviewed by the Enterprise Architecture Board
(EAB), and vehicular and real property programs are reviewed by the DHS Asset Review Board
(DARB), before they are considered by the ARB. The ARB is chaired by the Acquisition
Decision Authority (ADA), who makes the ultimate decision to approve the program.
The purpose of ADE-1 is to ensure that the needs are aligned with DHS strategic direction,
adequate planning has been accomplished, and sufficient resources are available for upcoming
phases. After all the reviews are complete, the Acquisition Decision Authority (ADA) approves
the MNS and signs the Acquisition Decision Memorandum (ADM), which records his/her
formal approval of the acquisition program. The ADM also documents any program-specific
exit criteria that the program must accomplish in the next phase. When the ADA signs the
ADM, the acquisition program is officially initiated and the program moves into the
Analyze/Select Phase.
The purpose of the Analyze/Select Phase is to determine the most effective and affordable way
to fill the capability gap that was identified in the MNS during the Need Phase. The primary
activity of this phase is conducting an Analysis of Alternatives (AoA) to determine the optimal
way to meet the requirement. The AoA evaluates the cost, effectiveness, and risk of potential
materiel alternatives to meet a mission requirement. For example, if Customs and Border
Protection needs a better way to maintain security and reduce congestion at border crossings,
they might consider the costs and benefits of increasing manpower at checkpoints versus
developing new vehicle screening technology.
The AoA Study Plan is prepared by the sponsor, Program Manager (PM), and the organization
who will lead the analysis. However, the AoA itself is conducted by an independent Study
Team, who identify alternatives, develop the Concept of Operations (CONOPS) for employing
the solution, conduct the analysis, and report their results.
If the user already knows the best way to meet their need, they may propose an Alternatives
Analysis (AA), instead of an AoA. For example, if the Coast Guard needs a new cutter to patrol
deep waters, the AA would look at different cutter designs rather than the full range of sea-going
vehicles. The format is similar to that of an AoA, but less extensive. The PM proposes the use of
an AA to the Acquisition Decision Authority (ADA) at ADE-1.
After the Component Acquisition Executive (CAE) approves the Study Plan, the Study Team
evaluates the operational effectiveness and life cycle cost of each alternative. Effectiveness
analysis involves assessing how well each option meets the needs described in the Mission
Needs Statement (MNS), based on a hierarchy of metrics:
Mission Tasks (MTs) are expressed as general actions to be performed by the system.
(Example: detect intruders at the border)
Measures of Effectiveness (MOEs) are objective measures of system performance.
MOEs indicate the degree to which a system performs a task under certain conditions.
(Example: number of illegal crossings). MOEs may be qualitative in nature.
Measures of Performance (MOPs) are quantitative measures of a system characteristic
in support of a MOE. They indicate the lowest level of physical performance or
characteristic of a system. MOPs flow down to Key Performance Parameters (KPP) in
the Operational Requirements Document (ORD) and serve as criteria for testing the
system. (Example: probability of detection).
The AoA Study Team selects and applies the MOEs, MOPs, and up front them systematically
to each alternative. The team also selects and applies the appropriate cost estimating method(s)
to project the life cycle cost of each alternative. Finally, the respective costs, benefits, and risks
of each alternative are weighed to determine the optimal solution to carry forward into the
Obtain Phase. The results of the analysis and the Study Team’s recommendation are presented
to the Acquisition Decision Authority (ADA) for decision at Acquisition Decision Event 2A
(ADE-2A).
The following program documents are developed during the Analyze/Select Phase and approved
at the Component level:
Analysis of Alternatives (AoA) or Alternative Analysis (AA), discussed above.
The Concept of Operations (CONOPS) describes a proposed system from the point of
view of the individual(s) who will use, operate, and interact with it. The CONOPS
provides a framework for assessing alternatives in the context of real-world, scenariobased, operational environments.
The Life Cycle Cost Estimate (LCCE) projects all the resources and associated cost
elements required to develop, produce, deploy, and sustain a program. Typically, a
LCCE addresses four phases: research & development, procurement & investment,
operations & support, and disposal.
The Acquisition Plan (AP) serves as a roadmap for carrying out the entire program.
across all phases of the acquisition life cycle. It documents the strategy for managing the
separate acquisitions, or contractual actions, that make up the overall program.
The following documents are developed during the Analyze/Select Phase and approved by the
Acquisition Decision Authority (ADA):
The Operational Requirements Document (ORD) is written by the user/sponsor to
establish minimum and desirable performance characteristics of a system. It contains
Key Performance Parameters (KPPs), identified by the user, that the system must
achieve to meet accomplish its mission. KPPs are expressed in terms of thresholds and
objectives: a threshold is the minimum acceptable level of performance, while an
objective is a goal that improves system performance, safety, or supportability beyond
the threshold value. The ORD provides a bridge between the operational needs spelled
out in the MNS and the detailed technical requirements found in the system technical
specifications.
The Acquisition Program Baseline (APB) is an agreement between the Program
Manager (PM), Component Head, and Acquisition Decision Authority (ADA) on
program cost, schedule and performance goals. Like the ORD, the APB expresses these
parameters as minimally acceptable thresholds and desired objectives.
If a program fails to meet a cost, performance or schedule threshold identified in the
APB, a condition known as a “breach” occurs. The PM cannot wait until a breach has
occurred to take action. If the PM expects that the program will not meet a schedule or
performance threshold, or if the cost threshold will be exceeded by 8% or more, the PM
must formally notify the ADA and/or DHS Headquarters of the potential breach within
30 days, along with the cause and recommended corrective action. Within 90 days of the
breach, the program should either be back on track, be rebaselined, or have undergone a
program review. The Acquisition Decision Authority (ADA) must assess the breach,
direct corrective actions, and approve any revisions to the APB.
The Integrated Logistics Support Plan (ILSP) lays out the PM’s plan for ensuring the
supportability and sustainability of a system. It describes the approach, schedule, and
funding requirements for integrating supportability requirements into the systems
engineering process (“designing the system for support”) and for obtaining an integrated
systems support package, such as spares, support equipment and technical manuals
(“supporting the design).”
ADE-2A marks the end of the Analyze/Select Phase, in which DHS decides which approach will
best satisfy the requirement, and the beginning of the Obtain Phase, in which the program
management team designs and develops the selected approach into an operational solution.
The purpose of the Obtain Phase is to design, develop, test, and prepare the system for
production. Two documents are developed early in the Obtain Phase1 and approved at
Acquisition Decision Event 2B (ADE-2B):
The Test and Evaluation Master Plan (TEMP) formally identifies the tasks and activities
required to adequately test and evaluate the entire system. It defines test parameters,
identifies resources, and allocates responsibilities for testing the system to ensure that it
meets technical performance requirements and will be operationally effective and suitable
once it is deployed.
The Systems Engineering Life Cycle (SELC) Project Tailoring Plan documents the
development approach for the program and its projects. It describes how the proposed
development methodology aligns with the Systems Engineering Life Cycle and the
1
These documents may be drafted in an earlier phase of the Acquisition Life Cycle.
Acquisition Review Process, and it explains why that methodology is the best option for
successfully completing the project.
During the Obtain Phase, developmental testing and operational assessments/tests are conducted
in accordance with test plans, and the results are recorded in T&E Reports. In addition, a series
of technical reviews are held, such as the Preliminary Design Review (PDR), to control technical
risk as the system evolves.
Acquisition Decision Event 2B (ADE-2B) is the only acquisition event that occurs within a
phase of the Acquisition Life Cycle. At ADE-2B, the ADA will approve the TEMP and the
SELC Tailoring Plan, along with updated versions of the APB, ILSP, ORD and AP. Prior to
ADE-2B, the Acquisition Plan will be expanded to include acquisitions for all of the projects
within a program, as well as any service contracts required to support the program.
After ADE-2B, the Obtain Phase continues to support the design, development, integration, and
test of the system. Technical reviews are conducted as the system moves from one SELC stage to
the next. As the program approaches the end of the Obtain Phase, operational tests are conducted
to ensure the system is ready to enter full rate production. In addition, the Acquisition Program
Baseline (APB), Integrated Logistics Support Plan (ILSP), and Life Cycle Cost Estimate (LCCE)
are updated in preparation for Acquisition Decision Event 3 (ADE-3).
At the end of the Obtain Phase, based on successful testing and production and sustainment
reviews, ADE-3 is held. The ADA makes the production decision for the program to advance to
the Produce/Deploy/Support Phase, when the system will be produced in quantity, deployed to
the field or fleet, and then operated and maintained throughout its useful life.
The key program documents prepared and/or updated in each phase of the Acquisition Life cycle
are shown in the figure below.
Key Program Documents and the Acquisition Life Cycle
MNS
ORD
Update ORD
Update ORD
CDP
Acq Plan
ILSP
Update Acq Plan
APB
LCCE
CONOPS
AoA or AA
Update ILSP
Update Acq Plan
Update APB
Update LCCE
SELC Tailoring Plan
TEMP
Update ILSP
Update LCCE
AA: Alternatives Analysis
Acq Plan: Acquisition Plan
AoA: Analysis of Alternatives
APB: Acquisition Program Baseline
CDP: Capabilities Development Plan
CONOPS: Concept of Operations
ILSP: Integrated Logistics Support Plan
LCCE: Life Cycle Cost Estimate
MNS: Mission Needs Statement
SELC Tailoring Plan: Systems Engineering Life Cycle Tailoring Plan