FIGURE 1


Pinpointing and evaluating these key capabilities


in the IB will enable the


services to continue fielding the prod- ucts and services needed to succeed in current and future missions. Under- standing potential risks to the IB can help prepare the DOD for future sup- ply chain fluctuations caused by reduced operations tempo (OPTEMPO) and a tightening fiscal environment.


It also


facilitates fiscal responsibility and wiser investment decisions.


FaC DEFINED FaC is a measure of compared to


two


BOILING IT DOWN In the WIN-T FaC assessment, stakeholders and other SMEs from program offices and their sup- pliers used a structured, repeatable process to validate the FaC factors of each item under review. The group scored the items on a scale of 1 through 5 for each of the factors, then plotted those scores on a chart for further analysis. (SOURCE: OSD)


familiar


risk and can be risk


vari-


ables—probability and consequence. When assessing risk, program managers consider the probability that an event will occur, and the consequence should that event occur. Fragility characteristics address the likelihood of IB disruption. Criticality characteristics address the dif- ficulty of replacing a specific product or service if disrupted. (See Figure 1.)


Te first program FaC assessment, con- ducted on the M1 Abrams tank in FY12 as a pilot, demonstrated the importance of working with the M1 program office and outside experts to incorporate their perspectives on particular


technologies


and industry segments. Te M1 assess- ment process became the model for the follow-on FY13 FaC assessments. Simi- larly, lessons learned from the FY13 assessments will be applied to additional assessments in 2014 and beyond.


In December 2012, DOD leadership identified the Warfighter Information Network – Tactical Increment 1 (WIN-T Inc 1) program as the second program for a FaC assessment. WIN-T Inc 1 is the Army’s tactical communications net- work backbone, providing high-speed, high-capacity network communications to current and future forces. For pur- poses of the assessment, WIN-T Inc 1 is


representative of command, control, com- munications and computer (C4) systems as a whole; it provides a broad and detailed portrait of the current state of the C4 IB. In turn, that portrait has potential utility across multiple other sectors and pro- grams, aiding in portfolio analysis as a part of DOD’s budget process by provid- ing insight on how to improve investment decisions and tailor investment policies to preserve essential capabilities.


Identifying specific stressors on the defense IB caused by reductions in DOD spending


can minimize their impact


in the future, helping to preserve key industrial capabilities for future acquisi- tion. For this reason, DOD recognizes that only a few critical IB capabilities are truly fragile and are therefore in danger of disappearing without dedicated efforts to sustain them, such as program adjust- ments or investment.


Te USD(AT&L) Joint Industrial Base Working Group (JIBWG), of the Office of


the Deputy Assistant Secretary of


Defense for Manufacturing and Indus- trial Base Policy (MIBP), developed a list of factors to evaluate FaC. Te six factors for fragility include such potential risks as manufacturers’ financial outlook—one reason a company may exit a market— and DOD dependence, which considers DOD sales for a company relative to the company’s total global sales. Taken together, the fragility factors help DOD understand whether it will receive what it needs, when it needs it from the current provider(s) and the existing market.


Te nine factors for criticality include issues such as reconstitution costs, which examine the impact on DOD to restore a specific capability if lost, and the inten- sity of design, which examines the degree


ASC.ARMY.MIL 43


ACQUISITION


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