Carol scottcowartmcphillipspm challengefinal

National Aeronautics and Space Administration

PM ChallengeCommercial Crew Program

Managing a Commercial Program

Jon Cowart

Cheryl McPhillips

Carol Scott

February 22, 2012

SAME CREW… NEW RIDE

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Commercial Program Definition Programmatic Acquisition Insight and Execution

Agenda

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Commercial Program approach is different then a traditional cost development effort• NASA takes the role of Government investor• Commercial Providers are expected to invest their funds in the

development

Government + Industry Investments

Competition through pre-negotiated, milestone-based agreements that support the development, testing, and demonstration of multiple systems

Transition to a FAR Type Contract for requirement execution and Services

Space Act Agreements first… Contracts laterFunded and Unfunded Partners

Develop CTS certification requirements and strategies ensuring safe transportation for NASA crew

Right Size Insight…. Right time Oversight

What is our Commercial Program?

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Ensure end-to-end Crew Transportation Systems (CTS) certification requirements Maximize cost effectiveness Enable cost share with fixed government investment Facilitate partner performance management Support partner retention of intellectual property rights Allocate liability between government & partner / indemnify Enable International Space Station services Encourage marketing of products to other customers Minimize administrative overhead Maximize efficiency in cost / financial reporting requirements Allow government-furnished equipment & services

Partnering Goals

CCP is utilizing Government/Industry partnerships showcasing a different way of doing business with the Industry.

CCP is utilizing Government/Industry partnerships showcasing a different way of doing business with the Industry.

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ProgrammaticProgrammatic

Continuous acquisition team Technical team delivers products to acquisition team Phase execution with feedback to the technical team

Content We Are Managing

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AcquisitionAcquisition

ExecutionExecution

TechnicalTechnical

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Schedule Cost Technical Political

Program Management

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Top-level Programmatic No multi-tier schedules Partner is managing their schedule In the Partner’s best interest to stay on their schedule to

receive the next investment installment Keep services contract in front of Partners

Schedule

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Program cost includes investing in multiple Partners• Programmatic costs are minimal: <15%

SAA with Partners includes a pre-negotiated “installment” payment plan

‘Meet or Don’t Meet’ milestone success criteria NASA can elect to discontinue SAA at anytime

Cost

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Requirements cannot be levied under an SAA

Partners have to “opt in” Program requirements are

“level 2” only Station has a set of

requirements that Partners can "opt" in as well

Certification phase will invoke the requirement set

Requirements management effects cost management

Technical

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Top level risks are larger programmatic risks, not necessarily Partners’

Crucial to have awareness of Partners’ risk

Program has separate evaluation of risk associated with the Partners

Insight priorities are built around identified risk

Risk Management

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Strategic Plan for Communication Keep your Program Sold

• Internal/external stakeholders Communicate, Communicate,

Communicate• Communicate often with the

commercial Industry • Utilize webcasts to limit travel• Open communication with Industry

as a whole, not just Partners• Demonstrate your listening• Communicate ASAP

Embrace Social Media

Stakeholders

Acquisition

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Ensures cost-effectiveness• Incentive for the companies to perform • Government not dependent on sole provider early in the DDT&E effort• Produces lower prices and mitigates the risk of failure of single

Provider Provides an incentive for the companies to share in the cost of

development Providers own financial investment into the development,

• Supplements government funds • Provides strong incentive for the companies to “stay in the game”

when encountering difficulties.

Competition is Key

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Funded SAAs are more cost effective in the current budget environment than the FAR-based fixed-price contracts.

• Allows more flexibility to fund Providers during the performance period, as funding levels become known

• Provides NASA with limited liability in case we need to terminate or renegotiate the SAA due to funding constraints

• Provider is responsible for determining the best approach to the design and development of its commercial system

SAA Advantages

7 Partners

1 NASA

…Right Size Insight

Execution

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Insight

TraditionalContracts

Most of us are used to the traditional insight model

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Insight

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Insight – under an SAA – is very different than what we have

traditionally done

Insight

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So how’s that working? How does the Government get any value?

Insight

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Eventually, once we get to the services contract, there will be requirements which must be met

The SAA is intended to be used to nurture a specific technology or technologies

‘Use Agreements’ for use of NASA facilities or equipment are strictly the responsibility of the partners

Safety

Insight

Pit Evolution through CCDev2

This is how it started… This is how it is now…

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Things started out confusing as Program and teams were storming and forming• Roles and responsibilities were not clear• No forums to pass information and communicate issues• Changes were made often leading to confusion and friction  

Consistency was found through team meetings, Milestones, Stand-up, and Program meetings• Every PIT has a standing team meeting• Stand-ups on Monday and Thursday with PI Staff meeting on

Tuesday • TRBs and PCBs• Milestones and Quarterly Reviews

Communications Lessons Learned

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We have had some growing pains and like it or not we are a multi-center, multi-organization Program• “Not being co-located with other members of the core team hinders communication

and slowed the building of trust and team relationships.”

Specify some insight presence in the AFP.  At one kick-off meeting there was much happiness and camaraderie, however the next day they were shown the door and told don’t come back until we call you.  That improved greatly over time due to charm and wit (and begging), but the fact remains that the SAA permitted it.

For milestones, there is a need to specify “business days” vs. “calendar days” in terms of review time when the review period is very short.  

Include words to allow for more insight (i.e., the SAA stated at least one NASA rep, why not be realistic about it the number. Add stipulations for insight visits and offices at partner facilities).

Insight Lessons Learned

Can’t wait to get there…

Summary

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