An Excel Tool to Assess Acquisition Program Risk

Abstract : On May 22, 2009, President Obama signed into law the Weapon Systems Acquisition Reform Act (WSARA) to improve program costs and schedules associated with the delivery of major weapon systems. Some of the oversight changes called for by WSARA depend on a program team s ability to measure and manage the various risks associated with system integration (SI). Because SI may be influenced by all elements of the acquisition process, there exists a wide range of sources for SI risk. At any point, problems with hardware or software, design maturity, timely funding, test plan execution and personnel, facilities, and supplier capabilities can negatively affect program cost, timelines, and performance goals. Historically, integration risks at various phases of the acquisition process have contributed in part to program delays and cost overruns. In response, the U.S. Department of Defense (DoD) has worked toward improving defense program management overall through program and contractor-level risk management practices (DoD, 2006). Large defense programs can have many technical, legal, and political consequences. Thus, there are many stakeholders across DoD who need to identify the risks associated with DoD s overall weapons programs, as well as the individual technology projects within a program. To date, personnel from the Office of the Secretary of Defense (OSD) who have been more generally involved with weapon systems acquisition but not necessarily involved with individual programs have had no access to an OSD-level systematic method of determining a program s ability to meet its goals, or to monitor the success of the defense sector s compliance with WSARA over the acquisition lifecycle. The methods currently available to OSD personnel are too technically focused and are relevant only to personnel who have detailed knowledge at the individual program level.