ACAP Defense Acquisition and Cost Policy 1 — Questions and Answers
Question 1: Which DoD instruction establishes the primary policy framework for the defense acquisition system?
- DoDI 5000.02 (Operation of the Adaptive Acquisition Framework) (Correct answer)
- DoDI 5000.01 (The Defense Acquisition System)
- DoDD 5000.01 (The Defense Acquisition System)
- FAR Part 15 (Contracting by Negotiation)
Correct answer: DoDI 5000.02 (Operation of the Adaptive Acquisition Framework)
DoDI 5000.02 implements the Adaptive Acquisition Framework, establishing the policy, processes, and roles for managing defense acquisition programs including major systems.
Question 2: What is the 'Adaptive Acquisition Framework (AAF)' and how many acquisition pathways does it include?
- The AAF is a flexible DoD acquisition model with six pathways tailored to different product types and urgency levels (Correct answer)
- The AAF is a single streamlined acquisition process replacing all prior DoD acquisition regulations
- The AAF includes three pathways: development, production, and sustainment
- The AAF is an Army-specific acquisition model separate from the broader DoD framework
Correct answer: The AAF is a flexible DoD acquisition model with six pathways tailored to different product types and urgency levels
The AAF's six pathways (Urgent Capability Acquisition, Middle Tier of Acquisition, Major Capability Acquisition, Software Acquisition, Defense Business Systems, and Acquisition of Services) allow tailoring to program type.
Question 3: What threshold defines a Major Defense Acquisition Program (MDAP) under US law?
- RDT&E costs exceeding $525M or procurement costs exceeding $3.065B in FY2020 constant dollars (Correct answer)
- Any program requiring congressional notification of cost growth
- Programs with more than 10,000 units procured
- Any program managed at the PEO level or above
Correct answer: RDT&E costs exceeding $525M or procurement costs exceeding $3.065B in FY2020 constant dollars
10 USC 2430 (now 10 USC 4201) defines MDAPs by cost thresholds (adjusted periodically for inflation), triggering the most stringent acquisition oversight including SAR reporting and Nunn-McCurdy.
Question 4: What is the role of the 'Cost Assessment and Program Evaluation (CAPE)' office within OSD?
- CAPE provides independent cost estimates and program assessments to the Secretary of Defense to support major acquisition decisions and oversight (Correct answer)
- CAPE manages the DoD budget process and coordinates POM submissions from the military services
- CAPE approves all contractor cost proposals above the simplified acquisition threshold
- CAPE trains DoD cost analysts and certifies them under the DAWIA system
Correct answer: CAPE provides independent cost estimates and program assessments to the Secretary of Defense to support major acquisition decisions and oversight
CAPE's independent cost estimates (ICEs) provide the SecDef with an objective counterpoint to program office estimates, ensuring major decisions are based on realistic cost projections.
Question 5: What is the 'Defense Acquisition Workforce Improvement Act (DAWIA)' and how does it affect Army cost analysts?
- DAWIA established competency standards and certification requirements for the defense acquisition workforce, requiring cost analysts to achieve specific education, training, and experience credentials (Correct answer)
- DAWIA created the position of Cost Analysis Center director within each military service
- DAWIA mandates that cost analysts prepare independent estimates for all contracts over $10M
- DAWIA established the Army Cost Review Board as the primary oversight mechanism
Correct answer: DAWIA established competency standards and certification requirements for the defense acquisition workforce, requiring cost analysts to achieve specific education, training, and experience credentials
DAWIA professionalized the acquisition workforce by requiring certification in specific career fields; cost analysts must meet DAWIA requirements for their career level in the business/cost estimating functional area.
Question 6: What is the 'Technology Readiness Level (TRL)' scale and how does TRL affect cost estimating?
- TRL is a 1-9 scale measuring technology maturity; lower TRLs indicate higher technical risk and greater cost uncertainty, requiring larger risk reserves in estimates (Correct answer)
- TRL measures production readiness and is used only to estimate manufacturing costs
- TRL is a DoD contract performance metric used to evaluate contractor technical progress
- TRL 9 systems are too mature to estimate parametrically and require only engineering build-up
Correct answer: TRL is a 1-9 scale measuring technology maturity; lower TRLs indicate higher technical risk and greater cost uncertainty, requiring larger risk reserves in estimates
Immature technologies (TRL 1-5) have higher uncertainty and historical cost growth, so cost analysts apply larger risk factors; mature technologies (TRL 7-9) can be estimated with greater confidence.
ACAP Defense Acquisition and Cost Policy 1
Which DoD instruction establishes the primary policy framework for the defense acquisition system?