2. NPR 7120.5D
Background
• Developed during 2006
• Issued and effective as of 3/9/07
• Focused on institutionalizing the processes
by which NASA formulates and implements
space flight programs and projects
• Provided a standardized life cycle review
process that is built around the Key Decision
Points
• Formalized the Technical Authority,
Dissenting Opinion Resolution, and Waiver
processes
• Streamlined the document
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3. NPR 7120.5D
“A Success”
• Contained big changes
• Has been accepted as the basis for how NASA
should execute its space flight programs and
projects
– Headquarters
– Centers
– External Stakeholders
• Several NPR 7120.5D policies have been
elevated to Agency-wide policies in
NPD-1000.0A (Governance and Strategic
Management)
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4. NPR 7120.5D NID
Why a NID?
• Incorporate lessons from two years
experience implementing NPR 7120.5D
• Capture continuing NASA policy
developments that affect programs and
projects.
• Incorporate changes driven by external
stakeholders
• Make corrections of errors, omissions,
updates, inconsistencies
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5. NPR 7120.5D NID
Categories of Change
• Update to be consistent with NPD-1000.0A
(Governance and Strategic Management- August 2008)
• Update to be consistent with NPD-1000.5
(NASA Acquisition Policy – JAN. 2009)
• Capture changes in requirement relief
terminology
• Capture evolution of Technical Authority
• Respond to user feedback
• Respond to external drivers
• Correct errors, omissions, updates,
inconsistencies
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6. NPR 7120.5D NID
NPD-1000.0A Updates
• New Core Values - Safety,
Excellence, Teamwork, and Integrity
• Concept of Institutional Authority
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7. NPD-1000.0A Updates (Cont.)
• Further development of the acquisition
strategy meetings (ASP, ASM, PSM)
• Incorporate the role of the Technical
Authority role in risk
– Technical Authorities formal concurrence on
decisions related to matters involving safety and
mission success
– For human safety risk, the actual risk takers must
formally consent to taking the risk
– Responsible program, project, or operations
manager must formally accept the risk
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8. NPD-1000.5 - Background
• NPD 1000.5 provides the overall policy framework of
NASA's disciplined, comprehensive strategic
acquisition process with appropriate references to
other key processes and directives.
• This framework institutionalizes fundamental current
best practices in policy.
• It also institutionalizes important new policy
applicable to programs and projects.
– Maintain consistency of the multiyear program/project life cycle, the annual
budget process, external commitments and reporting
– Incorporate the Confidence Level policy
– Incorporate overall Agency risk management strategy
– Change to Lessons Learned process
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9. NPD-1000.5 – Background (Cont.)
Defines acquisition as the process for obtaining
the systems, research, services, construction, and
supplies that the Agency needs to fulfill its
mission.
Acquisition—which may include procurement
(contracting for products and services)—begins
with an idea or proposal that aligns with the NASA
Strategic Plan and fulfills an identified need and
ends with the completion of the program or project
or the final disposition of the product or service.
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10. NPD-1000.5 – Updates (Consistency)
• Acquisition commitments, cost estimates by fiscal
year and applicable Federal budget account
projections are to be consistent to ensure overall
alignment with expected Agency resources and to
standardize internal and external reporting.
• Cost estimates by Fiscal Year and the annual NASA
budget submission are to be consistent.
• Significant changes to funding strategy are to be
reviewed with and approved by the decision authority
of the responsible Agency-level management
council.
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11. NPD-1000.5 – Updates (Confidence Level)
Goal - Improve the Agency’s performance against
external commitments for space flight and
Information Technology programs/projects
• Programs and projects in Implementation are to be
baselined or rebaselined and budgeted based on a
joint cost and schedule probabilistic analysis.
• Programs are to have a confidence level of 70% or
the level approved by the decision authority of the
responsible Agency-level management council.
• Projects are to have a confidence level consistent
with the program.
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12. NPD-1000.5 – Updates (Confidence Level)
• As a minimum, projects are to be funded at a level
that is equivalent to a confidence level of 50% or as
approved by the decision authority of the responsible
management council.
• Current program/project baseline life-cycle cost
estimates, funding strategy and the annual NASA
budget submission are to be consistent.
• Significant changes to funding strategy are to be
reviewed with and approved by the decision authority
of the responsible Agency-level management
council.
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13. NPD-1000.5 – Risk
• Incorporate in the overall Agency risk management
strategy a risk- informed acquisition process that
includes the identification, analysis, and
management of programmatic, infrastructure,
technical, environmental, safety, cost, schedule,
management, industry, and external policy risks that
might jeopardize the success with which the Agency
executes its acquisition strategies.
(Recognizes NPR 8000.4A Agency Risk Management
Procedural Requirements - December 2008)
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14. Examples of Other NID Updates
• Changes to the Lessons Learned process to ensure
all applicable lessons learned are incorporated into
appropriate directives, standards, requirements,
design principles, or other requirements
documentation.
• Changes to terminology related to tailoring
requirements based on user input.
• Incorporation of the minimum attributes to be
included in requests for tailoring requirements based
on user input.
• Incorporation of a a solution to a governance issue
where program or project level Technical Authorities
also hold Programmatic Authority roles.
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15. Examples of Other NID Updates
• Changes to clarify conflict of interest provisions
related to Standing Review Board (SRB) membership.
• Eliminating EVM requirements for contracts already
covered in the NASA FAR
• Changes to add provisions related to certification of
Program and Project Managers
• Incorporation of corrections of errors, omissions,
updates, and inconsistencies
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16. Conclusion and the Way Forward
• This has been a preliminary preview of the
NPR 7120.5D NID that is under active development.
• The presentation which touches on some of the
major aspects of the NID. There will be changes and
additions before it is finalized.
• Finalization of the NID is being pursued as a high
priority task.
• The target is to have it out to the Centers for their
substantive comments in late March.
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18. NASA Acquisition Policy, NPD 1000.5
Confidence Level Policy
It is NASA policy to:
h. Base programs and projects involved in space flight and information technology
per NPR 7120.5, NASA Space Flight Program and Project Management
Requirements and NPR 7120.7, NASA Information Technology and Institutional
Infrastructure Program and Project Management Requirements on the following:
(1) For implementation of each major program segment (e.g., Constellation - full ISS
capability, lunar exploration, etc.), programs and projects are to be baselined or
rebaselined and budgeted based on a joint cost and schedule probabilistic
analysis developed by the program or project in accordance with the following:
(a) Programs are to be baselined or rebaselined and budgeted at a confidence
level of 70% or the level approved by the decision authority of the
responsible Agency-level management council. For a 70% confidence level,
this is the point on the joint cost and schedule probability distribution
where there is a 70% probability that the project will be completed at or
lower than the estimated amount and at or before the projected schedule.
The basis for a confidence level less than 70% is to be formally
documented.
(b) Projects are to be baselined or rebaselined and budgeted at a confidence
level consistent with the program’s confidence level.
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19. NASA Acquisition Policy, NPD 1000.5
Confidence Level Policy (Cont.)
(2) As a minimum, projects are to be funded at a level that is equivalent to a
confidence level of 50% or as approved by the decision authority of the
responsible management council.
(3) Joint cost and schedule confidence levels are to be developed and maintained
for the life cycle cost and schedule associated with the initial life cycle
baselines (e.g., for space flight programs and projects baselines established at
KDP-1 or KDP-C).
(a) The initial life cycle baselines may include development of an initial
operational capability, initial operations, and sustaining engineering
consistent with the definition of the content of the life cycle, along with the
traditional development effort.
(b) The cost estimating methodology used for operational phases may be
different than those used for other portions of the life cycle. The operations
phase methodology will be reviewed and utilized as a component of the
integrated program/project lifecycle confidence level calculations.
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20. NASA Acquisition Policy, NPD 1000.5
Confidence Level Policy (Cont.)
(4) Programs and projects that are in extended operational phases are generally
not required to develop or maintain confidence level estimates. The adequacies
of budget requests for extended operational phases are to be demonstrated and
evaluated through the annual budget cycle processes. The Agency policy on
joint cost and schedule confidence level estimating applies to significant
developments related to new or upgraded capabilities included in extended
operations.
(5) The program’s or project’s proposed cost and schedule baseline are to be
assessed by an independent review team. The program or project is to present
and justify its resulting cost and schedule to the decision authority of the
responsible Agency-level management council. The independent review team is
to discuss with the decision authority its key concerns with the plans and
baselines proposed by the program or project.
(6) Commitments made to organizations outside of NASA are to be based on the
budgeted cost and schedule associated with the confidence level approved by
the decision authority of the responsible Agency-level management council.
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21. NASA Acquisition Policy, NPD 1000.5
Confidence Level Policy (Cont.)
It is NASA policy to:
(7) Programs and projects are to be annually reviewed by the responsible Mission
Directorate or Mission Support Office to confirm to the decision authority of the
responsible Agency-level management council that their current baseline life-
cycle cost estimates and funding strategy and the annual NASA budget
submission are consistent. Significant changes to funding strategy are to be
reviewed with and approved by the decision authority of the responsible
Agency-level management council.
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22. NPR 7120.5D NID
Tailoring Requirements - Terminology
• Tailoring - The process used to adjust or seek relief from a
prescribed requirement to accommodate the needs of a specific task or
activity (e.g., program or project). The tailoring process results in the
generation of deviations and waivers depending on the timing of the
request.
• Waiver - A documented authorization releasing a program or project
from meeting a requirement after the requirement is put under
configuration control at the level the requirement will be implemented.
• Deviation - A documented authorization releasing a program or
project from meeting a requirement before the requirement is put under
configuration control at the level the requirement will be implemented.
• Non-Applicable Requirement - Not relevant, not capable of
being applied
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23. NPR 7120.5D NID
Strategic Planning Meetings
Three key decision forums are to be used as appropriate or required for the
acquisition process:
• The Acquisition Strategy Planning (ASP) meeting is held at the Agency level and
provides the strategic framework for addressing challenges associated with
fully utilizing NASA Centers' capabilities, including workforce and
infrastructure, and shaping the Agency over time. It also provides an early view
of potential major acquisitions and changes in portfolio content so that senior
Agency management can consider issues such as the appropriate application of
new Agency and Executive Branch initiatives, current portfolio risk and
implications for the future portfolio, high-level make-buy strategy, and the
placement of development or operations work in-house versus out-of-house.
• The Acquisition Strategy Meeting (ASM) is a forum where senior Agency
management reviews major acquisitions in programs and projects before
authorizing budget expenditures. The purpose of the ASM is to review the
acquisition strategy at a later and more mature stage in the planning cycle than
the ASP review. The ASM focuses on considerations such as impact on the
Agency workforce, maintaining core capabilities and make-or-buy planning, and
supporting Center assignments and potential partners.
• The Procurement Strategy Meeting (PSM) enables approval of the approach for
major procurements. The PSM is focused at the program/project level
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