Certified Defense Financial Manager (CDFM) Module 2.2 Defense Acquisition System

Comprehensive vocabulary flashcards for the CDFM Module 2.2 Defense Acquisition System, including key acronyms, roles, milestones, cost estimating methods, and performance metrics.

National Security Strategy (NSS)

A top-level document released in the 2nd year of a new administration; produced by the National Security Council (NSC) and led by the President, it functions as a high-level operations order.

National Defense Strategy (NDS)

Produced by the Secretary of Defense (SECDEF), this document translates the National Security Strategy (NSS) into defense-specific objectives.

Joint Capabilities Integration and Development System (JCIDS)

A system overseen by the Vice Chairman, Joint Chiefs of Staff (VCJCS) that identifies capability gaps and uses DOTMLPF analysis to represent the warfighter.

DOTMLPF

An acronym used during JCIDS analysis to assess capability gaps: Doctrine, Organization, Training, Materiel, Leadership and Education, Personnel, and Facilities.

Initial Capabilities Document (ICD)

The output document of the JCIDS process that sets forth broad, time-phased operational goals and required capabilities to address identified gaps.

Five Overarching Policies of DoDD 5000.01

The core guidelines for the Defense Acquisition System: 1. Flexibility, 2. Responsiveness, 3. Innovation, 4. Discipline, and 5. Streamlined and Effective Management.

Milestone Decision Authority (MDA)

The designated individual with the overall responsibility for a program, authorized to tailor regulatory requirements, though they cannot waive statutory (legal) requirements.

Defense Acquisition Guidebook (DAG)

An optional resource maintained by the USD(A&S) that provides non-mandatory guidance and best practices for acquisition workers; it is not a directive.

Under Secretary of Defense for Acquisition and Sustainment (USD(A&S))

Also known as the Defense Acquisition Executive (DAE); oversees all acquisition functions, chairs the Defense Acquisition Board (DAB), and serves as the DoD-level MDA.

Under Secretary of Defense for Research and Engineering (USD(R&E))

The Chief Technology Officer (CTO) of the Department of Defense who provides independent technical risk assessments and approves the Test and Evaluation Master Plan (TEMP).

Director, Cost Assessment and Program Evaluation (DCAPE)

Leads the Programming phase of PPBE, directs Analysis of Alternatives (AoA), produces Independent Cost Estimates (ICEs), and maintains the Future Years Defense Program (FYDP) database.

Acquisition Program Baseline (APB)

An agreement between the MDA and Program Manager established at Milestone B that documents three parameters: cost, schedule, and performance objectives and thresholds.

Acquisition Category I (ACAT I)

Major Defense Acquisition Programs with funding thresholds of RDT&E $> $300 million or Procurement $> $1.8 billion (in FY2020 dollars).

Acquisition Category IA (ACAT IA)

Major Automated Information Systems (MAIS) with thresholds of single-year cost $> $40 million, total acquisition $> $165 million, or total life cycle $> $520 million.

Materiel Solution Analysis (MSA)

Phase 1 of the acquisition process which includes conducting an Analysis of Alternatives (AoA) to choose a product concept.

Milestone B (MS-B)

The point in the acquisition process that formally initiates the program and where the MDA approves the Acquisition Program Baseline (APB) and finalizes LRIP quantities.

Full-Rate Production Decision Review (FRPDR)

A required critical decision point within the Production and Deployment phase (but not a milestone) that must be completed before full-rate production begins.

Analysis of Alternatives (AoA)

Required for ACAT I and IA programs; it assesses the effectiveness, suitability, life cycle cost, and risks of various proposed solutions.

Average Procurement Unit Cost (APUC)

$\text{Total Procurement Cost} \div \text{Number of Fully-Configured End Items to be Procured}$ (excludes O&M).

Program Acquisition Unit Cost (PAUC)

$(\text{Total Development Cost} + \text{Total Procurement Cost}) \div \text{Number of Fully-Configured End Items}$ (excludes O&M).

Constant Year (Base Year) Dollars

Dollars that have the effects of inflation removed; primarily used when comparing alternative solutions.

Cost Analysis Requirements Description (CARD)

The foundation of a sound cost estimate prepared by the PM and approved by the DoD Component Acquisition Executive (CAE).

Cost As An Independent Variable (CAIV)

A concept mandated by DoDD 5000.01 that treats cost as an independent factor, allowing performance and schedule to vary to meet affordability goals.

Parametric Method

A top-down cost estimating method based on physical and performance attributes using mathematically derived Cost Estimating Relationships (CERs) from multiple similar systems.

Delphi Technique

An iterative process within the Expert Opinion Method used to reach consensus by querying experts and sharing supporting rationales independently.

Contract Formation Requirements

The three elements required for a contract to legally exist: 1. Offer, 2. Acceptance, and 3. Consideration.

Budgeted Cost of Work Performed (BCWP)

Also called Earned Value (EV); the budgeted cost for the work that was actually performed.

Schedule Variance (SV)

$\text{BCWP} - \text{BCWS}$; a positive result indicates the project is ahead of schedule.

Critical Path

The longest continuous path through a PERT network with zero slack; any delay here delays the entire project.

Discount Rate Authority

The discount rate for federal economic analyses is set by the Office of Management and Budget (OMB) and published in OMB Circular A-94.

Productivity Improvement

A quantifiable benefit characterized by a reduction in future personnel time or effort requirements; it does not reduce approved funding but allows for more output with same resources.