Carol scottcowartmcphillipspm challengefinal
- 1. National Aeronautics and Space Administration SAME CREW… NEW RIDE PM Challenge Commercial Crew Program Managing a Commercial Program Jon Cowart Cheryl McPhillips Carol Scott February 22, 2012
- 2. Agenda Commercial Program Definition Programmatic Acquisition Insight and Execution 2
- 3. What is our Commercial Program? 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 later Funded and Unfunded Partners Develop CTS certification requirements and strategies ensuring safe transportation for NASA crew Right Size Insight…. Right time Oversight 3
- 4. Partnering Goals CCP is utilizing Government/Industry partnerships showcasing a different way of doing business with the Industry. 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 4
- 5. Programmatic 5
- 6. Content We Are Managing Continuous acquisition team Technical team delivers products to acquisition team Phase execution with feedback to the technical team Technical Acquisition 6 Execution 6
- 7. Program Management Schedule Cost Technical Political 7
- 8. Schedule 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 8
- 9. Cost 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 9
- 10. Technical 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 10
- 11. Risk Management 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 11
- 12. Stakeholders Strategic Plan for Communication Keep your Program Sold • Internal/external stakeholders Communicate, Communicate, Co mmunicate • 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 12
- 13. Acquisition 13
- 14. Competition is Key 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. 14
- 15. SAA Advantages 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 15
- 16. Execution 7 Partners 1 NASA …Right Size Insight 16
- 17. Insight Most of us are used to the traditional insight model Traditional Contracts 17
- 18. Insight 18
- 19. Insight Insight – under an SAA – is very different than what we have traditionally done 19
- 20. Insight So how‟s that working? How does the Government get any value? 20
- 21. Insight 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 21
- 22. Pit Evolution through CCDev2 This is how it started… This is how it is now… 22
- 23. Communications Lessons Learned 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 23
- 24. Insight Lessons Learned 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). 24
- 25. Summary Can’t wait to get there… 25