Defense Procurement Goes Agile

In its September meeting, the DC chapter of Agile Project Leadership Network hosted a presentation called “IT Acquisition Centered on Agile Processes”. It’s a rather boring name for what was a really exhilerating talk about Agile momentum in the most waterfall of worlds: defense procurement.

The presenter was Don Johnson, who works for the office CIO of the U.S. Department of Defense. In his presentation, he cited a number of points that reveal a growing consensus within the military that old ways of procurement are becoming less effective. He started by noting the key regulatory standard for procurement, DODD 5000.1, was originally developed in 1977 and has remained mostly unchanged since then.

procurement-asis

But that was just the beginning:

  • In a speech last year, Defense Secretary Robert Gates called procurement processes “baroque”.
  • Army CIO LTG Jeff Sorenson has said, “how we can make it better…Policy. Acquiring IT not like tanks.”
  • In 1970, IT accounted for approx 20% of weapon system functionality, by 2000 it accounted for as much as 80%, and today it is reported IT can deliver 90% or more of functionality.
  • IT Systems are growing in complexity. The FA-18 runs on 10 million lines of code, but the more recent Joint Strike Fighter has 20 million. Also consider the handheld grenade launcher uses smart projectiles guided by 2,000 lines of code.
  • Even the Government’s oversight agency (GAO) has itself said, “As you know, the way in which DOD has historically acquired information technology (IT) systems has been cited as a root cause of these systems failing to deliver promised capabilities and benefits on time and within budget…”

Don explained that today’s procurement involves “long cycle-time driven by processes developed to counter a cold war adversary in an industrial age society”. Defense departments utilize a “big bang approach equally applied to it and major hardware acquisitions”. This becomes especially complicated when you consider that software is increasingly at the heart of the largest hard weapon systems.

Well, eventually the momentum became so great in 2008, Congress responded to these concerns by mandating a Defense Science Board (DSB) to study current policies and procedures. At the end of their analysis, they recommended a new IT iterative, incremental approach to project acquisition and execution. The DRB’s recommendations have been so compelling, they were invited this past May/June to testify to Congress about their strategy. Congress has responded and drafted an unprecedented nod. Next year’s Defense appropriations bill will authorize Gates to “designate up to 10 IT programs annually to be included in a demonstration of an alternate acquisition process for rapidly acquiring IT capabilities” (2010 NDAA, Section 804). In normal English, that means the United States is working on a law to reform procurement from the cold-war big-bang approach to an iterative incremental approach.

procurement-agile

It’s one thing to pass a law, but it’s quite another to have it mean something. How often have we heard about the laws that have no effect? To that end, the DRB has crafted an implementation strategy that consists of policy documents describing how to do it, and picking the right pilot projects to start with. Furthermore, the DSB has a relationship with the council of Federal CIOs, allowing the new procurement approach to be socialized among officials from all parts of the entire United States government.

By the end of the evening, the room was full of energy. Several of the chapter’s previous Agile Government presenters were on hand to lend their support for Don’s work. Stay tuned. There is certainly more to come.

procurement-experts

Experts Discuss Agile Government

This past Thursday, the Washington DC chapter of the Agile Project Leadership Network conducted its monthly meeting. The chapter hosted a roundtable on Agile in the Government, and featured the following panelists:

apln-dc-panel

With such a talented panel addressing a topic that resonates strongly with Agile practitioners in DC, it was a format certain to deliver good nuggets. The moderator, Bearing Point’s Matt Vandegrift opened the evening with some discussion around current momentum and opportunity. For example, the CIA’s CIO has issued an agency wide mandate to use Agile Project Management. However, some expressed skepticism over the long-term impact of an appointee who would likely be off to another assignment before real culture change can happen. Mr. Carpenter suggested the most Agile-friendly agencies are those with an existing entrepreneurial culture of value delivery, such as IARPA or DARPA. However, most of us know those kinds of government cultures are far and few between.

Eventually, the age old debate surfaced of bottom-up grassroots adoption versus a top-down Agile mandate. Interestingly, a consensus emerged that this was the wrong debate. Both the panelists and the attendees called out mid-level government bureaucracy as the key barrier to effective Agile adoption.

bottomup-v-topdown

Even if a senior sponsor wants to alter project scope to reflect emerging information, the project’s contract officers will resist it. A mid-level career staffer serving as the Contract Technical Representative (COTR) will be graded on performance-to-plan. Indeed, many situations carry more than just career consequences for adjusting scope, they may face criminal charges. Current procurement policies and statutes are designed with a plan-driven philosophy. If your project takes 2 years to get funded, it’s not the COTR’s fault the scope is no longer relevant to the mission, but he still gets stuck with it.

Mr. Carpenter further broke down the this dynamic into functional roles. In his mind, the real opportunity for breaking through this impediment is not the technical route (easier), not through the Prime/Sub teaming partnerships (harder), but from government PMOs.

functional-top-v-bottom

Claire Moore, also from Sphere of Influence, challenged the group for some value metrics to facilitate such a cultural transition. What are some examples of programs that measure “value to mission”, rather than “performance to plan”? Several examples were cited (decreased costs, customer satisfaction, or Dr. Rico’s book ROI of Software Process Improvement), but all agreed getting contracting officers to implement them was the hard part.

Dr. Rico emphasized this point several times by issuing the charge that Agilists take influential positions in these policy organizations such as the Defense Acquisition University (DAU) or Institute for Defense Acquisition(IDA). One attendee raised the possibility of launching an Agile lobby, as a means to influence contracts. Yet another suggested outreaching to MBAs, to overcome the buzzword status Agile has in the minds of the few executives who have heard of it.

Other observations included:

  • Mr. Cheng: To improve government adoption, find an upwardly mobile G-man & pitch Agile as his niche contribution to the agency.
  • Mr. Carpenter: Be pragmatic evangelists. Tailor your dogma to the native language of your government constituents.
  • Mr. Sheer: Agile is a means, not an end. If government RFPs and PMOs require Agile, they will do little to transform organizations to deliver against the mission
  • Dr. Rico: We are the software century. Government functions have evolved from paper and hardware systems (analog) to software-centric systems (blended) to all-software systems (digital). As such, Agilists are uniquely positioned to influence the deliver of those functions.
  • Mr. Carpenter: Get security scans early. If you provide Certification & Accreditation officers materials they need as early in the project as possible, you’ll get the flexibility needed to deliver incrementally.
  • Gradually decrease cycle. Move from 3 month releases to 2 months to 1 month. Measure improvements in quality and value as a way to justify tighter timeboxes.
  • Focus first on wining the Hearts & Minds of the PMO and sponsor. Use that leverage to formalize new policies around “delivering mission value” over “performance to plan”. Finally, use mission-driven policies as a foundation for instituting value-driven metrics.
  • Fear of failure motivates the government more than anything. Find ways to communicate how Agile reduces risk of failure, as defined by your stakeholders.

In all, the evening was a successful discussion. I left with a better sense of how I would tip-toe through a government environment as an Agile Project Manager.