CUSTOMER, PRODUCT, MANAGEMENT 2001 by jdo18246

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									        CUSTOMER, PRODUCT,
          MANAGEMENT 2001




        FUNDAMENTALS OF THE
              DETERMINATION
                 AND MEETING
 OF THE BUNDESWEHR DEMAND
AND PRINCIPLES IN SERVICE USE
FEDERAL MINISTRY OF DEFENSE
       ORGANIZATION STAFF 1

                       2002
                                                                                       CONTENTS




                                           CONTENTS


1    Fundamentals of the Determination and Meeting of the
Bundeswehr Demand ................................................................................ 1
  1.1 Basis ............................................................................................... 1
  1.2 Objectives ....................................................................................... 1
  1.3 Prerequisites ................................................................................... 2
  1.4 Sequence of Processes................................................................. 3
     1.4.1 Analysis Phase....................................................................... 4
     1.4.2 Risk Reduction Phase............................................................ 5
     1.4.3 Introduction Phase ................................................................. 5
     1.4.4 Service use ............................................................................ 5
2    Bundeswehr Planning within the FMOD......................................... 6
3    Management ...................................................................................... 6
  3.1 Responsibilities within the FMOD ................................................... 6
  3.2 Determination of the Demand........................................................ 7
     3.2.1 Organization ........................................................................... 7
     3.2.2 Tasks of the IAGFA in the FMOD .......................................... 8
     3.2.3 Tasks of the Subordinate Agencies ....................................... 9
     3.2.4 Research and Technology (R&T)........................................... 9
  3.3 Meeting of the Demand ............................................................... 10
     3.3.1 Responsibility ....................................................................... 10
     3.3.2 Organization ......................................................................... 12
  3.4 Service use ................................................................................... 12
     3.4.1 Responsibility ....................................................................... 12
     3.4.2 Organization ......................................................................... 14
4    Analysis Phase ................................................................................ 15
  4.1 Objectives .................................................................................... 15
  4.2 Working Steps .............................................................................. 15
     4.2.1 Identification of Capability Gaps........................................... 16
     4.2.2 Analysis and Assessment of Possible Solutions.................. 16
     4.2.3 System Capability Requirement (SFF)................................. 17
     4.2.4 Analysis of Approaches........................................................ 17
     4.2.5 Final Functional Requirement (AF) ...................................... 19
5    Risk Reduction Phase .................................................................... 21
  5.1 Objectives ..................................................................................... 21
                                                                                       CONTENTS




  5.2 Working Steps .............................................................................. 21
     5.2.1 Tasks of Industry.................................................................. 21
     5.2.2 Introduction Planning............................................................ 22
     5.2.3 Assessment and Selection................................................... 22
     5.2.4 Approval for Realization (ReG) ............................................ 22
6    Introduction Phase.......................................................................... 24
  6.1 Objectives ..................................................................................... 24
  6.2 Working Steps .............................................................................. 24
     6.2.1 Conclusion of a Purchase, Construction or Production
     Contract............................................................................................. 24
     6.2.2 Introduction Measures.......................................................... 24
     6.2.3 Acceptance and Operational Test........................................ 24
     6.2.4 Approval for Service Use and Delivery................................. 25
     6.2.5 Final Report (ASB) ............................................................... 26
7    Service use ...................................................................................... 27
  7.1 Objectives ..................................................................................... 27
  7.2 Working Steps .............................................................................. 27
     7.2.1 In-service Activities .............................................................. 27
     7.2.2 Modification of Fielded Products .......................................... 27
     7.2.3 Technical-Logistic Support................................................... 29
     7.2.4 Post-Design Services (PDS) ................................................ 30
     7.2.5 Product Improvement........................................................... 30
8    Decisions and Submissions .......................................................... 31
  8.1 Signature of Phase Documents, Step and Interim Decisions ....... 31
  8.2 Submissions to the FMOD Executive Group ................................ 31
  8.3 Submissions to the German Bundestag ....................................... 32
  8.4 Responsibility for Submissions ..................................................... 33
  8.5 Involvement of the Chief of Staff Bundeswehr (GenInsp) ............ 34
Definition of Terms .................................................................................. 35
Abbreviations........................................................................................... 39
                                    1


1        Fundamentals of the Determination and Meeting
         of the Bundeswehr Demand

1.1      Basis

According to the legal provisions the outfit of the Bundeswehr (Bw) shall be
oriented to the politically required mission and the tasks derived therefrom.
The economic use of the financial resources demands the exclusive
orientation to this mission. In order to be able to accomplish its mission,
the Bundeswehr must have certain capabilities. Any existing capability
gaps shall be identified by a capability analysis which covers all
organizations and tasks. Potential solutions in all planning categories shall
be investigated in order to close such capability gaps. If this is to be
achieved by means of new equipment, a requirement for such equipment
will arise.
Due to its high innovative speed, industry more and more sets the pace in
technological development. Therefore, close cooperation between the
Bundeswehr and industry is absolutely necessary in order to be able to
maintain modern and efficient armed forces.

1.2      Objectives

The procedure for the determination and meeting of the Bundeswehr
demand, CPM 2001, aims at obtaining the required capabilities through a
timely, economic and operational supply of → products and services.
                                                           1

In this connection, performance, time and costs shall be seen as a whole.
Capabilities shall be assessed with a view to achieving an optimization
across all organizations.
The operational capability of the Bundeswehr as a system is of vital
importance. The efficiency of the system as a whole has precedence over
the efficiency of its individual elements. Solutions common to all armed
services have precedence over other solutions, the procurement of
systems is more important than the selection of components.
Equipment gaps shall be closed if the functional capability of the Bundes-
wehr as a whole so demands.
Concerted action with → partners is to be aimed at.




1
    cf. Definition of terms
                                     2


1.3   Prerequisites

Capability gaps shall be determined within the → Bundeswehr as a system
by all organizational areas concerned by comparison of the existing
capabilities with the required and technologically foreseeable capabilities.
In this connection, possible solutions shall be examined in all planning
categories (organization, staff, armament, operation and infrastructure).
Knowledge and experience obtained during service use shall be included in
this process.
The Chief of Staff Bw (GenInsp) determines the required capabilities of
the Bw in its entirety according to different weightings and priorities under
his overall planning responsibility. He coordinates his decisions with the
Director General of Armaments (HAL), the IT Director, the Chiefs of Staff
of the armed services (Insp) and the FMOD Directors (AL). The latter
include in the capability analysis process the demand they consider
necessary for the further development of their organizational areas or
areas of responsibility.
The Director General of Armaments (HAL Rue) and the IT Director both
assume the ministerial responsibility for the closing of capability gaps with
products and services within their respective areas of responsibility.
The → principles of cost effectiveness determine the entire process.
The implementation of these principles shall be ensured, in particular, by
• The final definition of indispensable requirements. Their feasibility shall
     be ensured at the time they are approved within the given
     performance, time and cost frame. Changes of the requirements
     during implementation shall be avoided.
• The minimization of the implementation risk by comprehensible market
     analyses, investigations, studies and simulation.
• The proof of productibility by means of → demonstrators, simulations
     and prototypes,
• The consolidation of decision processes and procedures. Time is a
     decisive factor within this procedural system. The administrative effort
     shall be reduced to the necessary minimum. Rules for an efficient
     government controlling as well as the Purchaser's obligation to
     participate shall be contractually agreed to this effect.
• The obtaining of support by the industry to the extent permitted by law,
     in the form of:
       - timely inclusion of industrial know-how and skills;
       - independent implementation of functional specifications;
                                     3


      - use of possibilities for permanent outsourcing (of services).
• Use of available products and services shall have precedence.
    Available components shall be used for new products in order to avoid
    costly and high-risk developments. The possibilities of the market shall
    be exploited, taking into consideration logistic supportability or the
    availability of services under competitive aspects.
• Waiving of the application of Bundeswehr construction specifications,
    standards and test instructions within the limits imposed by law.
    Exceptions require proof of their irrefutability.
• Integral planning of the activities under consideration of system
    contexts (e.g. between → projects).
• Efficiency analyses (e.g. cost-benefit analyses) in consideration of
    existing project-/product-related costs and expenses. The objective is
    the minimization of life cycle costs (LCC). The cost which can be
    allocated to the finally required individual functions shall be recorded
    and updated.
Equipment gaps shall be closed by an integral consideration of
all → project elements (technical and economic elements, staff / training,
security [military, IT], occupational safety, command and control/mission,
organization, logistics, infrastructure, human engineering, geo-information
and environmental protection).
Comprehensible evaluation procedures shall be applied for the preparation
of major decisions. Government competence shall be ensured.
For an accompanying efficiency control, in particular by means
of → reviews, a notification/reporting system shall record the current major
project data and information which shall be made available to the
participating parties. A decision documentation shall be maintained
throughout the process. This documentation contains all decisions which
are important for the implementation of the project. The possibilities
of an → integrated data environment for the support of the phases and the
documentation shall be used, if appropriate.

1.4   Sequence of Processes

The determination and the meeting of the demand is divided into phases
with each phase being completed by a phase document. These phase
documents record the results of the terminated phase and the decisions for
further proceeding. Documents with similar contents which have been
prepared by cooperation partners can be declared as phase documents
(so-called cover sheet procedure).
                                     4


The Bw demand is determined in the analysis phase and subsequently
met via projects.
Each project shall be planned so that its implementation requires as little
time as possible. Risks shall be taken into consideration. In this connection
it shall be examined, taking economic aspects into account, whether a
reduction of the implementation time can be achieved by dividing the
project into smaller, independently feasible and functional project shares.
Completed project shares shall be fielded for service use by the Armed
Forces. A → stepwise approach during the implementation process
permits the consideration of knowledge obtained from parts already in use.
If, according to the information available, the objective of a phase cannot
be reached or must be changed, the previous phase decision shall be
reviewed without delay. Any requisite interim decisions shall be brought
about like phase decisions; an interim decision may result in the project
being referred back to the previous phase or being discontinued.
The implementation risk shall determine the effort for the determination
and satisfaction of the Bw demand.


1.4.1 Analysis Phase

A capability gap identified in the analysis phase shall be documented and
declared in the step decision called System Capability Requirement
(SFF). This is done on the basis of conceptual considerations
as well as experience from everyday operations. The solution shall be
defined in one (or several) Final Functional Requirement(s) (AF).
A difference must be made between
• The introduction of → available products and services
   If functional requirements can be met by available products or services
   which may be used as they are or with minor modifications and without
   any major risk, the functional parameters shall be defined in the AF or
   AF/ReG (AF and Approval for Realization). In the follow-on phase, the
   products shall be selected and introduced.

•   The realization of new products
    If functional requirements can only be met by new products, these
    products shall be functionally defined via performance requirements,
    using fully developed components. In this connection, developments
    required for the integration are permitted only if technologies are used
    which are adopted or have proved to be feasible in similar cases.
                                       5


1.4.2 Risk Reduction Phase

For new projects, the analysis phase shall be followed by an additional risk
reduction phase. This phase shall be initiated if the risk of realization or the
efforts for its preparation preclude a direct entering into the introduction
phase. The risk reduction phase need not be initiated if a realization risk
can be contained by other means, e.g. by a stepwise approach.
Operational efficiency and suitability shall be investigated in cooperation
with the future users (e.g. in the form of demonstrators, simulations,
prototypes). Any such investigation shall be performed under realistic
conditions, if this is appropriate and feasible. All measures required to
reduce the risk in terms of performance, time and cost shall be taken.
The risk reduction phase shall be completed with the phase document
Approval for Realization (ReG).
If no risk reduction phase is initiated, any required measures shall be taken
in the analysis phase so that the ReG may become a part of the AF.


1.4.3 Introduction Phase

The introduction phase shall contain all measures required in order to
• procure available products/services at economic conditions,
• manufacture new products economically (early partial use, if possible)
and to make them available to the user in an operational condition.
If the required prerequisites for the service use or for an early
partial use have been established, the step decision Approval for Service
Use (GeNu) shall be brought about. If available products are procured in
an unmodified condition, any required measures shall be taken in the
analysis phase so that the GeNu may become a part of the AF/ReG.
The introduction phase shall end with the phase document
Final Report (ASB) following completion of all implementation activities.


1.4.4 Service use

It is the objective of all measures taken in the in-service phase to maintain
the → operational readiness and the safe operation of the
equipment at economic conditions until the time of disposal.
If →product improvement measures are necessary in the in-service phase,
a new development cycle shall be initiated IAW these provisions.
                                     6


Replacement procurements for fielded products are permissible on the
basis of existing phase and step decisions.


2     Bundeswehr Planning within the FMOD

The decree on the Bw planning within the Federal Ministry of Defense
(FMOD) (BMVg/Fue S VI 1, dated 5 February 1996) and the concomitant
implementation procedures (GenInsp – Fue S VI 1, dated 23 September
1996 – Ref. 09-01-20) shall continue to apply for the time being.

3     Management

The Chief of Staff Bw (GenInsp) shall be responsible for the analysis of the
Bw capabilities and the determination of the demand derived therefrom. He
is supported by the Chiefs of Staff of the armed services, the Directors
General (HAL), the FMOD Directors and the IT Director. The Director
General of Armaments (HAL Rue) and the IT Director shall be responsible
for the central satisfaction of the Bw demand in their respective areas of
responsibility. Implementation tasks shall be carried out by the subordinate
agencies.


3.1   Responsibilities within the FMOD

The following tasks shall be carried out in particular within the scope of
ministerial planning, supervision and control:
• the Chief of Staff Bw (GenInsp)
   - shall keep and update the capability situation;
   - shall define the system capability requirement SFF;
   - shall sign the phase documents, step decisions and interim
      decisions;
   - shall represent central user interests towards the FMODExecutive
      Group, the German Bundestag and international bodies;
   - shall assume overall planning responsibility for the further
      development of the Bw (including IT).
• the Chiefs of Staff of the Armed Services / FMOD Directors
   - shall participate in the preparation process and sign phase docu-
      ments, step/interim decisions (except SFF) in their function as users,
      single managers for materiel and supply and as principal users;
   - shall represent specific user interests of their organizational area;
                                         7


      -  shall be answerable for the operational readiness of their respective
         organizational areas of responsibility on the basis of the allocated
         manpower/funds and the approved structures.
•     Director General of Armaments (HAL Rue)
      - shall be responsible for the satisfaction of the Bw demand within his
         area of responsibility;
      - shall be responsible for research and technology (except IT);
      - shall participate in the preparation process and sign phase
         documents, step and interim decisions (except SFF).
•     IT Director
      - shall be responsible for IT matters within his area of responsibility, in
         his function as user, materiel supplier and single manager for
         materiel;
      - shall be responsible for IT research and technology within his area of
         responsibility;
      - shall participate in the preparation process and sign phase
         documents, step and interim decisions (except SFF);
      - shall represent the essential user interests in the context of IT.

3.2       Determination of the Demand

3.2.1 Organization

Under his overall planning responsibility the Chief of Staff Bw shall be
responsible for the Bundeswehr-wide capability analysis, for the
concentration of efforts on the further development of the Bw, and the
central determination of the Bw demand. To this end, he will make use of
the services of the IAGFA (Capability Analysis Integrated Working
Groups), which will cover all capability categories relevant to the Bw accor-
ding to the prerequisites defined in the document Bundeswehr Concept.
Members of the IAGFA are representatives of
•    the Armed Forces Staff (chairmanship)
•    the Directorate General of Armaments (HA Rue), Staffs of the Armed
     Services, Central Medical Service Staff, Joint Support Service Staff,
     FMOD Defense Administration Directorate, FMOD Budget Directorate
     (advisory function only), Information Technology Staff.
The members of the IAGFA are authorized representatives of the
respective organizational areas. They launch initiatives and
coordinate/arrange for orders for their areas of responsibility.
                                     8


Any required additional know-how shall be obtained, e.g. from government
agencies, research institutes and industry. The inclusion of industry (in
consideration of the awarding provisions) and the research institutes shall
be arranged for via the authorized representative of the Directorate
General of Armaments or of the IT Staff, as the case may be. Industry shall
be granted the opportunity of submitting its own ideas and concepts.
The TOR of the IAGFA shall be based on the Rules of Procedure of the
FMOD.
The IAGFA may delegate further work for the implementation of the
analysis phase to the working groups (WG) of those subordinate agencies
which are considered to be most suitable. These working groups follow the
same rules and principles as the IAGFA; they do the respective preliminary
and cooperative work.


3.2.2 Tasks of the IAGFA in the FMOD

Under the overall responsibility of the Chief of Staff Bw the IAGFA shall be
responsible for
• the continuous analytic comparison of the existing Bw capabilities with
    the required short-term, medium-term and long-term capabilities with a
    view to determining capability gaps. This shall include the technological
    options which can be expected to be feasible;
• the determination of the equipment demand on the basis of capability
    gaps;
• the call for and initiation/evaluation of studies, analyses and (technical
    and non-technical) investigations;
• the generation of requirements concerning R&T concepts, proposals
    for research and future technologies;
• the coordination of the cooperation with (national and international)
    partners under the determination of the demand;
• the preparation of the step decision System Capability Require-
    ment (SFF);
• the preparation/initiation of the phase document AF (Final Functional
    Requirement) or AF/Reg (AF and Approval for Realization);
• the review of other phase documents and step/interim decisions;
• the consideration of initiatives and suggestions to identify capability
    gaps which are brought in by the organizational areas or industry
    (via the Directorate General of Armaments or the IT Staff);
• the consideration of findings stemming from the evaluation of
    foreign defense materiel;
                                     9


•   the initiation, evaluation and selection of possible solutions (in all
    planning categories) and approaches;
• determining, submitting and supporting harmonized contributions to the
    planning proposal concerning the Bw plan and the budget estimates in
    the analysis phase;
• monitoring the performance of delegated/ordered tasks;
• the verification of compliance with the requirements (performance,
    time, cost);
• holding reviews when major project milestones are reached;
• the initiation of required measures in case of capability-related (project-
    overlapping) need for coordination and decision. The system in its
    entirety shall be considered.
The IAGFA shall document the results of their work and ensure that
participating parties are informed. After completion of the analysis phase
the project-related decision documentation shall be updated by the project
manager.

3.2.3 Tasks of the Subordinate Agencies

The WG of the subordinate agencies shall perform the tasks delegated by
the IAGFA via the authorized representatives of the organizational areas
and shall process these tasks according to principles similar to those of the
IAGFA.
Initiatives and suggestions to close capability/equipment gaps shall be
examined and evaluated by the subordinate agencies and accompanied by
a proposed decision.

3.2.4 Research and Technology (R&T)

In the defense technology sector, R&T tasks are
• providing the scientific and technological know-how and capabilities in
     all relevant fields of technology to make purposeful, intelligent and
     economical equipment decisions possible;
• recognizing the significance of new technologies for the capabilities of
     the armed forces in good time and offering new technological
     solutions;
• fostering future technologies until reaching implementation maturity /
     achieving compliance of the technological developments with the
     technical/functional requirements;
• developing and evaluating technological system concepts including the
     proof of their feasibility;
                                     10


•    contributing towards a European research and technology base as well
     as towards the ability to cooperate in this sector; and thus
• contributing towards the preservation of German competence in the
     field of defense technology.
The FMOD R&T concept comprises all activities with the aim of creating
the technological prerequisites for a capability-oriented procurement of
equipment for the armed forces in good time.
R&T activities can be long-term activities or take place during the project-
related part of the analysis phase. System-related R&T activities are
designed to support the analysis phase with regard to the technical
objective, the planned technology and, on the basis of these factors, the
determination of the cost of planned projects.
Decisions concerning the focus of efforts and the setting of priorities are
taken across organizational-area levels and with the inclusion of all
relevant armed services staffs and departments including the IT Staff.
Political, conceptual, technological and industrial directives and
prerequisites as well as the requirements resulting from the IAGFA
capability analysis shall be taken into account.
The execution of implementation-related tasks at subordinate institutions
shall follow the same pattern.
R&T tasks that are part of the analysis phase are initiated by the respective
IAGFA via the authorized representative of either the Director General of
Armaments or of the IT Staff, as the case may be. These authorized
representatives contribute the findings from current R&T projects as well
as technical-scientific information about other nations’ defense materiel
towards the work of the IAGFA.

3.3   Meeting of the Demand

In the planning and introduction phase BWB or IT Office Bw, as the case
may be, shall implement the AF (Final Functional Requirement) or AF/ReG
(AF and Approval for Realization) within the given performance, time and
cost frame.

3.3.1 Responsibility

The project manager is responsible for the implementation of the project
during the planning and introduction phases up to the Final Report within
the given performance, time and cost frame. He is thus responsible, on the
basis of the phase documents, step and interim decisions, for providing the
future users with the project in due time and in an operational condition.
                                     11


This includes any equipment, infrastructure, outfit, service and personnel
that is required for fielding and operating the project and maintaining its
operational readiness. The project manager shall consider all aspects and
experience of service use in the implementation.
When defining the requirement, the future project manager will assess the
functional requirements and their weightings for their technical, economic,
defense-economic and cooperation political implications. He will identify the
most economic solution and arrange for the adaptation of the require-
ments, if necessary and/or possible.
The project manager's responsibility comprises in particular
• the planning preparation, control and monitoring of the implementation
     of all → project elements;
• the planning, control and monitoring of the project-related cost and
     expenses with the objective of minimizing the life cycle cost;
• the conduct of a permanent risk analysis, taking into consideration
     possible interferences;
• the preparation, submission and distribution of the phase documents
     ReG, Final Report, the step decision GeNu, and interim decisions, as
     well as support in the preparation of the AF or AF/ReG;
• the control of the preparation, award and administration of contracts.
     He is thus the sole point of contact for contractors;
• the development and regular updating of an input to the planning
     proposal for the Bundeswehr Plan;
• the preparation and representation of program-related contributions;
• the control and monitoring of the project-related funds flow;
• the external representation of the project; in particular the development
     of a harmonized national position for international bodies; he is the
     German spokesperson in international bodies, unless this task is
     assigned to another person;
• cooperation in preparing reports for the bodies of the German
     Bundestag, the Federal Audit Office and other institutions;
• the provision of necessary information for a systematic comparison of
     planned and actual figures (reporting system);
• the maintenance of the decision documentation.
The project manager documents the results of realization activities and
ensures that all participants are informed. After completion of the
realization phase all project-related decision documentation shall be
updated by the in-service manager.
Within his area of responsibility the project manager takes independent
decisions. Other functional areas concerned shall be included in the
process. The single manager shall be in charge of the proper
                                      12


implementation of measures within his own field of action as well as that of
future users. His authorized representative supports the project manager in
the planning, control and tracking of all activities aimed at the
implementation of the project, including those within the field of action of
future users. This participation particularly comprises planning inputs and
other contributions from tasks of the single manager/military user
representative and activities of the future users.
The project manager represents the project during reviews.

3.3.2 Organization

BWB or the IT Office Bw nominates the future project manager during the
analysis phase to enable him to already participate in the preparation and
definition of the AF. With the issue of the AF he assumes responsibility for
the realization of the project. If practical, several projects shall be managed
by one project manager.
The project manager shall make use of the user's know-how. An autho-
rized representative of the single manager shall be nominated to him who
cooperates in the management of the project. The project manager shall
also make use of any other required know-how, depending on the situation
of the project and the individual problem encountered. The organizational
areas concerned shall provide any necessary support.

3.4   Service use

During service use the fielded product shall be kept in a state of
operational readiness at economic conditions. The following regulations
also apply to the use of services.

3.4.1 Responsibility

The in-service managers are responsible for maintaining the operational
readiness of the products. They ensure that products in service are
preserved as performance entities, and also all the material, infrastructure,
outfit, services and personnel that may be required, on the basis of the
relevant phase and step decisions as well as legal and ministerial
directives.
Within his area of responsibility the in-service manager takes independent
decisions. Other functional areas concerned shall be included in the
process.
The in-service manager's responsibility comprises in particular
                                    13


•   the coordination of all activities with the objective of ensuring the
    operational readiness of fielded products and completing all residual
    measures delegated to him according to the Final Report and aimed at
    establishing the operational readiness of products;
•   the initiation/determination of emergency measures (e.g. restrictions on
    use, suspensions) due to accidents, hazard to personnel or
    environment, or other incidents;
•   maintaining, monitoring and, if need be, updating of measures which
    constitute prerequisites for IT security;
•   the initiation and coordination of measures related to the modification
    of products, in particular
     - the adaptation of user requirements to the technological and
         economic possibilities;
     - the planning, controlling and monitoring of all relevant project
         elements;
     - the execution of product configuration control measures;
•   recording, planning and monitoring measures of → technical logistic
    support as well as →post-design services (PDS);
•   recording, planning and monitoring existing product-related costs and
    expenses during service use and updating life cycle costs;
•   determining, harmonizing and submitting statements of funds
    requirement for the operation of equipment and investment during
    service use;
•   developing an input to the planning proposal for the Bundeswehr Plan
    and participation in the planning process;
•   preparing and submitting program inputs for development and
    procurement (for →product modifications) as well as budget contri-
    butions for material maintenance;
•   monitoring budget execution during service use;
•   developing and representing a harmonized national position in matters
    of service use, acting as spokesperson in international bodies, unless
    this task is performed by the ministry or assigned to another person;
•   ensuring the availability of essential up-to-date information, recording
    and assessing any findings stemming from service use;
•   initiating the disposal of redundant products and parts thereof;
•   the maintenance of the decision documentation;
•   contributing experience and findings stemming from service use
    (including planned product modifications and product improvement
    initiatives) in order to determine and meet the Bw demand.
                                     14


3.4.2 Organization

The responsible command / the office of the single manager for materiel
nominates the in-service manager for a future product in due course before
the GeNu (Approval for Service Use) is issued. His responsibility begins
with the acceptance of the first item. An authorized representative of the
materiel supplier (BV BD) shall be nominated to him who cooperates in the
management of technical/economic in-service matters. Up to the Final
Report this task shall be performed by the project manager.
For the purposes of service use, several projects shall be managed by one
in-service manager, if it is practical to do so.
In particular, the authorized representative of the materiel supplier (BV BD)
shall be responsible for
• assessing user requirements with regard to their implications on
    technical and economic matters as well as matters of armament and
    cooperation, and pointing out cost-effective solutions; if necessary, he
    will effect an adaptation of user requirements;
• acting as a point of contact for contractors, controlling the preparation,
    award and administration of contracts;
• monitoring performance and budget execution within the limits of
    appropriated funds.
Any affected sections of the materiel supplier shall provide the necessary
support.
                                      15


4     Analysis Phase

4.1   Objectives

The aim of the analysis phase is to identify capability gaps for all
organizational areas and to point out possible solutions in the planning
categories      organization,   personnel,      armament,     operation     and
infrastructure.
If there are equipment gaps to be closed, an approach shall be selected to
solve the problem. The integral central consideration of required
capabilities permits a target-oriented prioritization. This makes it possible to
use the available financial resources more efficiently.
Proposals by users to close identified equipment gaps shall be assessed
with the objective of an optimization throughout all organizational areas and
tasks within the system context of the Bundeswehr. They shall be
implemented if this is justified from the view of a Bundeswehr-wide
capability analysis.
The approach defined at the end of the analysis phase must be feasible
within the approved performance, time and cost frame. The implementation
shall normally not take longer than five years. The introduction phase shall
not be longer than three years.
The definition of final requirements shall permit a smooth implementation
and lead to a speedy and economic meeting of the demand.

Solutions that are not realized within armament projects shall be pursued in
accordance with the general provisions of the Rules of Procedure of the
FMOD(GO-BMVg).

4.2   Working Steps

The working steps to be performed during the analysis phase represent an
ongoing and closed process which ensures the continuous further
development of the Bundeswehr in a permanently changing environment.
This includes the phasing out of capabilities which are no longer required.
The activities in the analysis phase come under the responsibility of the
Chief of Staff Bundeswehr. The implementation work is incumbent on the
subordinate agencies of the relevant organizational areas.
                                      16


4.2.1 Identification of Capability Gaps

Based on the mission and tasks of the Bundeswehr, a permanent
comprehensive analysis shall be made as follows:
• derive the required capabilities,
• identify the existing capabilities,
• search for technologically foreseeable capabilities,
• identify capability gaps.
The results of this analysis shall be documented in the capability record.
In order to promote innovative and economic solutions and avoid
restrictions at a very early stage, the organizational areas, institutes as well
as industry's knowledge and skills shall be included. The objective is not a
sub-optimum improvement of existing potentials, but better solutions in the
overall Bundeswehr context.
The consideration shall include
• results of the evaluation of exercises and operations,
• findings and results of non-technical research and study work and of
    R&T activities,
• information on foreign armed forces products which exist or which are
    under development,
• initiatives and proposals (e.g. agencies/commands, trade and
    industry).

4.2.2 Analysis and Assessment of Possible Solutions

Identified capability gaps shall be described and assessed in terms of their
conceptual significance for the accomplishment of the Bundeswehr
mission. The priority of closing the gaps must be determined. It must be
investigated whether national or international cooperation partners have a
similar capability gap/demand and, if yes, whether there are already any
approaches to the problem.
Possible solutions shall be investigated and documented in all planning
categories, in particular:
• the redistribution of tasks within the Bundeswehr,
• the reassignment of the task under a joint international cooperation
    effort,
• organizational measures (including optimization of processes, opera-
    tional improvements),
• personnel/training,
• infrastructure measures,
                                    17


• materiel solutions (armament solutions).
It must be considered whether the capability gap can be accepted. In this
case no further action is required. If the capability cannot be waived and
armament solutions are the only possibility, the capability gap shall be
specified in the step document System Capability Requirement (SFF).

4.2.3 System Capability Requirement (SFF)

The SFF contains the functional requirements which are necessary for the
analysis of alternative approaches aimed at closing a capability gap and
comprises the following information:
• designation,
• derived target capability from the reference documents,
• description of the capability gap within the system context of the
    Bundeswehr,
• non-materiel approaches analyzed,
• parameters determining the required capability,
• time and cost frame in accordance with the level of priority (as far as
    feasible),
• financial requirements for the analysis phase (as far as determinable),
• requirements for project elements (as far as determinable).
Requirements shall be described functionally and include ranges and
weightings. The depth of individual parameters determining the capability
shall not rule out comprehensive solutions and possibilities of cooperation.
The SFF shall not aim at a concrete technical solution; it must permit
innovative approaches.
The SFF is the prerequisite for the authorization of R&T funds to analyze
armament solutions.

4.2.4 Analysis of Approaches

Based on the SFF, the following approaches may be used to close a
capability gap:
• product improvement,
• introduction of available products,
• introduction of new products (realization by integration of available
   components or proven technologies),
• utilization of services.
                                     18


From these approaches, suitable technical and technological solutions
shall be selected or available products/services shall be found and all these
options shall be subjected to a comparative evaluation.
To this end, the competent IAGFA will establish requirements or assign
tasks.
The authorized representatives shall be in charge of their implementation.
Under these tasks
• a parallel review of the demand and possible approaches of potential
    partners shall be integrated,
• binding statements on the possible introduction of existing products
    and components (market analyses) and their availability shall be
    obtained,
• cost estimates shall be made by the Official Services,
• supplementary studies, analyses and investigations/simulations shall
    be considered or initiated,
• existing know-how and skills of trade and industry, research institutes
    and the Official Services shall be considered.
The approach which represents the best alternative under functional, time
and economic aspects (incl. LCC) shall be selected. A decision must be
taken whether detail requirements can be waived or a reduced
performance can be accepted. Military core capabilities and the resulting
mission and performance requirements shall be observed.
The selection of an approach shall be particularly based on the following
assessment criteria:
• degree of compliance with the requirements,
• suitability to close the capability gap in combination with other
    assets/equipment,
• the capability of countering a foreseeable risk development,
• the remaining risk for the implementation (risk analysis under
    consideration of probable interferences),
• technical feasibility within the given time frame (not only technological
    feasibility),
• logistic supportability throughout the in-service phase,
• time required for implementation,
• cost effectiveness,
• required funds,
• availability of government resources,
• availability of industry resources,
• possibility of cooperating with partners,
• environmental compatibility.
                                     19


After an approach has been selected, the following steps shall be taken in
addition:
• estimation of the consequences of the technology to ensure that no
    products are introduced in the Bundeswehr that are inadmissible
    according to existing or expected German laws or international
    agreements;
• preparation of a detailed plan of the project implementation, possibly
    with development stages; plan the project elements according to
    performance, time and cost aspects;
• preparation of a work-time-budget schedule;
• incorporation of the required implementation funds into the schedule of
    the Bundeswehr Plan and application for budget appropriations under
    the annual program “armaments” with the objective to have funds
    available in due time.

4.2.5 Final Functional Requirement (AF)

At the end of the analysis phase the selected approach – which should be
independent of any specific contractors, if possible – is determined with the
phase document AF. In case of projects without any implementation risk
and services, the AF and the Approval for Realization (ReG) are combined
to one phase document (AF/ReG). If available products shall be procured
without any modification, the AF/ReG also includes the step decision
Approval for Service Use (GeNu). The AF or AF/ReG represents the
entirety of requirements and constraints for the subsequent implementation
of the project. It shall include information on
• the project designation,
• reference documents (including allocation to an SFF),
• the project-related use (with primary and secondary tasks),
• the required functions in a weighted requirements catalog
     (including criteria for selection, assessment and termination),
• the approaches analyzed,
• the selection of the approach and the decision, i.e.
    - direct entry into the introduction phase if the demand can be met
        with available products/services (with determination of quantities
        and the possibility of proceeding step by step),
    - performance of a risk reduction phase for new products
        (with a comprehensive risk analysis),
• requirements for the time and cost frame for the entire life cycle
     (orientation to the innovation cycles and the availability of COTS
     technologies),
                                   20


•    the detailed planning of the project elements,
•    the dependence on products/projects that are planned, being
     implemented or already available,
• the defined solution architecture, taking into consideration applicable
     standards,
• possible cooperations,
• the future users, in-service managers, single managers and inventory
     managers.
The future project manager cooperates in the development of the AF or
AF/ReG. Technical solutions shall not be anticipated. However, the
documents shall be formulated concretely enough to permit the preparation
of functional statements of work.
The AF or AF/ReG is the prerequisite for the release of funds for the
subsequent phase.
With the signature or approval of the AF or AF/ReG the responsibility for
the implementation passes over to the project manager.
                                     21


5     Risk Reduction Phase

5.1   Objectives

The risk reduction phase for new products shall systematically minimize
the implementation risk in terms of performance, time and cost. This phase
shall demonstrate that products can be manufactured to comply with the
functional requirements. If possible, such demonstrations shall be
performed by the company/companies eligible for the meeting of the
demand on a cost-neutral basis; if this is not possible, pertinent orders
shall be placed. In order to minimize the risk, the effectiveness of the
proposed solutions shall be demonstrated. Some of the ways to achieve
this are the construction and testing of demonstrators (component and/or
system demonstrators, virtual prototyping, comparable prototypes etc.)
simulations and the related tests.
Planning, contracting and verification of the results shall be performed with
particular care. The investment effort and the operating cost shall be
investigated and determined for the entire life cycle.
The risk reduction phase shall cover the entire project, even if it is
anticipated to introduce the project on a step-by-step basis.

5.2   Working Steps

The working steps shall cover all project elements which are decisive for
the subsequent use.
The risk analysis shall be updated. Objectives to minimize the risk for
risk areas shall be defined.
A statement of work shall be prepared which converts the functional
requirements of the AF into technical/functional performance figures. The
statement of work constitutes the basis for the solutions to be proposed by
industry; it shall leave sufficient room for innovative solutions and contain
criteria that help evaluate the productibility and performance of the future
product.

5.2.1 Tasks of Industry

Private companies interested in obtaining a supply contract (in the
introduction phase) shall be required to provide:
• the proof of productibility (including suitability for certification) of a
     product that complies with the functional requirements under realistic
     conditions;
                                      22


•   an industrial implementation plan with planning and introduction
    milestones; the critical path shall be identified;
• a proposal for the production, including required services for their
    preparation and introduction, related to defined quantities and/or partial
    steps;
• a proposal for post-design services and/or the operation of the product
    during the in-service phase.
Further investigations into operational efficiency and suitability shall be
conducted (e.g. with the help of demonstrators), particularly where critical
key functions are concerned. If necessary, separate specifications shall be
prepared for this purpose and pertinent orders shall be placed.

5.2.2 Introduction Planning

Government activities for the introduction phase shall be planned and
prepared for all relevant project elements. In particular, funds shall be
requested early enough to have them available in time, and data from
logistic procedures (e.g. logistic support analysis [LSA] ) shall be used to
optimize the future logistic support.

5.2.3 Assessment and Selection

Government investigations, supported by the future user, shall determine
whether
• the functional requirements defined in the AF can be met,
• the risk can be minimized to the extent that the project can be
     introduced without any further measures,
• the product can be anticipated to suit its intended purpose under
     operational conditions, taking into account its environmental
     compatibility and the safety regulations.
The investigations shall cover the performance rendered, in particular
demonstrators, simulations and prototypes.
The selection of the technical solution shall be based on a comprehensive
risk analysis, taking into consideration all the individual results of the risk
reduction phase. Knowledge obtained from the evaluation of foreign
defense materiel shall be taken into account.

5.2.4 Approval for Realization (ReG)

The project manager shall develop the draft ReG. This draft shall contain
• the project designation,
                                     23


•   the implementation alternatives analyzed and their assessment,
•   the justification and description of the solution selected,
•   the quantities determined,
•   a detailed plan for the introduction phase covering all project elements;
    if necessary, a procurement in batches or step-by-step introduction
    shall be planned,
• the updated time and cost plans, optimizing the overall context
    between performance, time and cost; details on expenses during the
    risk reduction phase,
• the dependence on products/projects that are planned, being
    implemented or already available,
• a presentation of the competitive situation for the introduction; if
    necessary, the selection of a prime contractor,
• plans for the operational tests (on the first item),
• if applicable, the justification of any measures of technical-logistic
    support (type and extent).
The project manager will forward the draft ReG to the competent IAGFA
(unless delegated). This IAGFA will review the result against the
requirements of the AF and arrange for its signature. The signed ReG will
be the procurement justification document and the prerequisite for the
authorization of funds for the introduction phase.
                                       24


6     Introduction Phase

6.1   Objectives

The objective of the introduction phase is to procure available products
(with adaptations, if necessary). If a new product is required, this will be
manufactured on the basis of the selection made during the risk reduction
phase (proven technical solution).
For the acceptance of the product the contractor shall prove compliance
with the contractual performance for meeting the functional requirements.
The Official Services shall test the product for its suitability for the intended
purpose under realistic conditions (operational test). This test shall be
performed as early as possible (with the first products). The operational
readiness shall be ensured by the time the product is delivered to the user.

6.2   Working Steps

6.2.1 Conclusion of a Purchase, Construction or Production Contract

The contract which has to be awarded to implement the selection made
shall not only define the deliverables to be provided by the contractor, but
also the proof of compliance with the contractual provisions including any
legal regulations, as well as any necessary support services for the
government operational test. A milestone-based schedule shall be
incorporated which shall also be the basis for the Official Services’
controlling of performance, time and cost.
If a prime contractor has not been selected yet, contracts shall be awarded
on a competitive basis, if possible.

6.2.2 Introduction Measures

The performance to be rendered by the Official Services (developer and
user) with respect to the project elements shall be arranged for in due time.

6.2.3 Acceptance and Operational Test

As part of the acceptance procedure, the contractor shall prove his
compliance with the contract. The acceptance shall be based on the
criteria for demonstrating the contractually agreed delivery. An "integrated
verification" shall be aimed at, if possible, while maintaining the separate
responsibilities of the purchaser and the contractor. The contractor's
activities to demonstrate compliance of his performance with the
                                      25


contractual provisions and the purchaser's technical and user tests shall be
harmonized to avoid duplicating necessary tests and to ensure that they
are conducted coherently (in terms of place and time) wherever possible.
As a supplement to the results of the acceptance procedure, the
operational test, which is conducted under the responsibility of the project
manager, also comprises the determination of further technical operating
parameters and functional limits of the product as well as the operational
test conducted by the single manager. The suitability of the products is
measured against the AF or AF/ReG, the functional requirements and the
requirements of military operations in a system environment. The
operational test shall be carried out as soon as possible and under realistic
conditions, using the first items produced and accepted by the project
manager. Should the operational test yield any evidence that questions the
suitability of the product, this information shall be taken into account in the
on-going production process. In serious cases a decision shall be taken
about a possible termination of the project. The results of the operational
test shall be taken into consideration when awarding contracts for further
deliveries.
If the operational test should result in necessary modifications of the
products with implications on the implementation funding and schedule, an
interim decision shall be brought about.
If products fielded with other armed forces can be adopted in a largely
unmodified condition, own investigations shall be waived entirely or
partially, if available documents are sufficient for their assessment. No own
tests shall be performed for available products, if existing data on their
suitability are sufficient for an assessment.

6.2.4 Approval for Service Use and Delivery

Based on the investigations into operational efficiency and suitability
conducted during the analysis phase and/or the risk reduction phase as
well as the results of the operational test, the step decision GeNu (Approval
for Service Use) is taken. This decision certifies the compliance of the
product with the performance requirements as set out in the AF (final
functional requirement) and its suitability for the intended use. It is the
prerequisite for the delivery of the product to the user.
Once accepted by the user, the product is transferred to the responsibility
of the user.
For ships the GeNu is the basis for commissioning and thus the
prerequisite for performing those parts of the operational test which cannot
be conducted prior to commissioning.
                                    26


The GeNu is the prerequisite for the award of contracts for further
batches/subsequent implementation steps.

6.2.5 Final Report (ASB)

The project is completed with the delivery of the last part/partial step or
upon its termination. The project manager shall prepare the draft Final
Report by then and forward it to the competent IAGFA. The report contains
• the project designation,
• a comparison between the results achieved and the AF or AF/ReG
    (functions, time and cost),
• identified deficiencies/remaining measures to be taken,
• lessons learned,
• comments on the service use and proposals for the future
    management of similar projects.
The implementation responsibility of the project manager ends with the
issue of the Final Report.
The decision documentation shall be further updated by the in-service
manager.
                                       27


7     Service use

7.1   Objectives

Service use is the entirety of the period during which a product is used to
fulfil its intended function. It begins with the acceptance of the first item and
ends with the “condemnation instruction”. The objective during service use
is to maintain the operational readiness of a product, thus ensuring that it
can be used as intended. Reducing expenses constitutes a permanent
focus of effort.

7.2   Working Steps

7.2.1 In-service Activities

Typical activities during service use are
• recording and assessing the information obtained from exercises and
    operations,
• recording and assessing operational data and failure reports,
• adapting and defining objectives for spare parts management as well
    as maintenance and production on the basis of operational status
    decisions and depending on the current need,
• taking product maintenance measures.
When measures of fault identification and corrective action are taken, the
possibility of a warranty case shall be investigated.
When there is evidence suggesting that product modifications may be
necessary, alternative options shall be investigated in all planning
categories; an efficiency analysis shall be conducted to assess cost,
benefit and risks, even though this may entail performance degradation or
restrictions on the use of the product.

7.2.2 Modification of Fielded Products

Modifications are only permissible if they aim at maintaining or restoring
operational readiness or at rationalization of operation. At least one of the
following prerequisites must apply:
• elimination of avoidable hazards to personnel and environment,
• adaptation of the product to meet legal requirements
     (e.g. licensing regulations, environmental protection),
• compliance          with    international  or     national    commitments
     (e.g. UN, NATO, WEU),
                                     28


•    elimination of major malfunctions or weaknesses,
•    proof of considerable cost savings or significant improvements in
     operation,
• modifications implemented by partner nations or other users
     (e.g. aimed at ensuring logistic supportability or interoperability).
The in-service manager shall establish an order of priority for all planned
modifications. Maintenance float, spare parts on stock, tool sets, special
tooling, documentation, training aids etc. shall be taken into account if they
are affected by the intended measure.
The problem which led to the envisaged modification and the measures to
be taken shall be functionally described in a statement of work.
If PDS funds are required to prepare the modification activities, the
in-service manager shall document the result of these investigations,
including the technical/economic assessment of the authorized
representative of the materiel supplier, in the Modification Requirement.
This requirement constitutes the prerequisite for the authorization of
budgetary funds for the investigation into the cost, benefit and risks of
potential alternatives. The statement of work becomes part of the
Modification Requirement.
If the nature of the planned modification is clear and its implementation
uncritical and feasible with the help of existing technology, the
modification requirement can be dispensed with and the realization of the
modification can be initiated immediately with the preparation of the
Authorization of Modification.
If the modification is not clear, proposals from industry, based on the
statement of work, shall be solicited and assessed. Any potential contractor
shall demonstrate that his solutions are feasible and can be expected to
meet the functional requirements. If possible, these activities should be
free of charge. If this is not possible, pertinent orders shall be placed. The
potential contractors involved shall be invited to submit quotations for their
proposed solutions. The selection of a technical solution shall be based on
a thorough risk and efficiency analysis and shall be documented in the
Modification Requirement.
The Authorization for Modification shall be drawn up by the responsible
command or agency in cooperation with BWB or the IT Office Bw, as the
case may be.
This document summarizes all relevant data to make up a functional
specification. It constitutes the prerequisite for the authorization of the
procurement funds required to implement the modification. The users
concerned shall be involved in the preparation.
                                      29


For award of contract, contractor demonstrations and acceptance as well
as technical tests and user trials conducted by the Purchaser, the
provisions of paragraphs 6.2.1 through 6.2.3 shall apply accordingly.
These regulations also apply for the modification of products that have a
frozen design but are still in the process of realization. Where project parts
are concerned that have not yet entered the in-service phase, these
activities shall be carried out by the project manager. In projects where
some parts are in service use, whereas others at the same time are in the
realization phase, the in-service manager and the project manager shall
coordinate all measures that may affect the project parts yet in realization.
In cases of great urgency the procedure shall be accelerated as far as
possible, using any appropriate means.

7.2.3 Technical-Logistic Support

Technical-logistic support (TLB) may require the support of industry.
Measures of technical-logistic support are governed by the provisions for
the “Utilization of Support Services” (VMBl 1996 p. 47). In addition, the
following principles apply:
• The nature and, as far as possible, the extent of technical-logistic
     support services shall be justified and defined in the ReG (Approval for
     Realization). This shall then be taken into account when it comes to
     allocating tasks and assessing available capacities. If modified or
     supplementary measures of technical-logistic support, whose nature or
     extent exceed those laid down in the ReG, become necessary, they
     shall be subjected to the authorization and staffing process as
     stipulated by the ReG.
• This does not affect the regulations governing the award of contracts
     with short terms of notice. Necessity and cost effectiveness shall be
     verified on an annual basis.
• Technical-logistic support services must not be rendered by
     Bw agencies if this would necessitate employing additional staff or
     investing considerably in the material prerequisites.
• During the realization phase the responsibility for the planning and
     allocation of tasks and technical-logistic support services lies with the
     project manager, during service use with the in-service manager.
• For the purposes of the requirements outline, the authorization of
     contract placement and the utilization of technical-logistic support
     services the organizational areas shall establish levels of responsibility
     depending on the respective order value. The recipient of the
                                     30


   performance shall monitor and confirm whether it is adequately
   rendered.
Technical-logistic support services shall be funded from the maintenance
budget.

7.2.4 Post-Design Services (PDS)

Post-design services are any development-specific services which are
required for a decision on product modification and are to be rendered by
the armament sector and, if necessary, by industry with the consent or at
the request of the single manager. These services also comprise the
engineering effort required for the preparation of a modification, including
the work on software and documentation.
PDS measures shall end with the decision on the realization of the planned
modification. During the realization phase the responsibility for the planning
and rendering of PDS lies with the project manager, during service use with
the in-service manager.
PDS activities shall be funded from the development budget.

7.2.5 Product Improvement

Product improvement initiatives shall be submitted to the competent
IAGFA by the in-service manager. The pertinent procedures and
responsibilities are laid down in the regulations governing the determination
and meeting of the Bw demand. The in-service manager shall coordinate
the implications of product improvement measures with other matters of
service use.
                                    31


8     Decisions and Submissions

8.1   Signature of Phase Documents, Step and Interim Decisions

The System Capability Requirement (SFF), the Final Functional
Requirement (AF) and the Final Functional Requirement / Approval for
Realization (AF/ReG) are prepared under the competence of the IAGFA or
by those agencies to which the corresponding tasks have been delegated.
The ReG (Approval for Realization), GeNu (Approval for Service Use),
ASB (Final Report) and interim decisions during the planning and
introduction phases come under the responsibility of the project manager.
The data on deadlines, quantities and cost included in phase documents,
step and interim decisions shall be coordinated with the planning manager
and the budget manager.
The SFF is signed by the Bundeswehr Chief of Staff. The documents
AF and/or AF/ReG, ReG, GeNu and ASB as well as interim decisions are
signed by the Director General of Armaments or the IT Director,
representing the procurement side, and the Bundeswehr Chief of Staff, the
Armed Service Chief of Staff / FMOD Director and the IT Director, in their
functions as user, single manager, inventory manager and main user, as
the case may be.
The authority to sign the above documents may be delegated by mutual
consent.

8.2   Submissions to the FMOD Executive Group

During the process of determining and meeting the demand and during the
in-service phase, the FMOD Executive Group shall be consulted in matters
which
• are of political importance, or
• involve a project volume of more than 25 million €, or
• are of major defense economic significance, or
• exceed the ceiling of 5 million € (in case of product modifications).
The obligation to consult the FMOD Executive Group also applies to
projects and product improvements which do not meet the above criteria
as such, but which are functionally dependent to an extent that they will
only function in combination and meet one of the criteria together. The
FMOD Executive Group shall also be consulted if decisions have to be
taken for individual projects that have an anticipating effect on dependent
projects. These interrelations shall be specified in the phase documents
and/or step decisions.
The following applies to phase documents / step decisions:
                                     32



 to be approved prior to issue       to be submitted for information
                                     after issue
 AF and/or AF/ReG                    SFF
 ReG
 ASB (only in case of termination)   ASB

The AF/ReG and/or ReG shall include the "Cost Data Sheet" and the work-
time-budget schedule.
The selection decision for prime contractors shall be submitted for
approval, unless it is already part of the ReG. This provision applies
within the context of the responsibilities for submissions as set out in the
first paragraph above.
Major decisions during the phases (interim decisions) shall be
submitted to the FMOD Executive Group for approval. This applies if they
might have an anticipating effect on subsequent phase decisions or if they
lead to considerable deviations from (phase) decisions already approved.
Submission is required in the following cases:
•   non-compliance with functional requirements (termination criteria),
•   foreseeable delay of more than six months against the schedule
    planned in the last phase document,
• foreseeable increase against the cost ceilings specified in the last
    phase document.
Interim decisions shall contain
• the project designation,
• the last phase document (including applicable interim decisions),
• the description and justification of the deviation,
• the possibilities investigated to avoid the deviation,
• the decision on the further way ahead, including a risk estimate,
• a description of the implications on other projects and/or products.
Independent of phase documents, step and interim decisions,
the FMOD Executive Group shall always be notified without delay if it
becomes evident that the implementation of projects in accordance with
the approved decisions is no longer ensured.

8.3   Submissions to the German Bundestag

The following shall be submitted to the German Bundestag:
• procurement submissions (to the Defense Committee and the Budget
   Committee),
                                     33


•   25 million € submissions (to the Budget Committee),
•   cost increase submissions (to the Budget Committee),
•   individual reports as requested by the Defense Committee or the
    Budget Committee.
Such submissions will be finally signed as follows:
• submissions to the Defense Committee by the FMOD Executive
    Group,
• submissions to the Budget Committee by the Federal Ministry of
    Finance Executive Group.
These provisions apply accordingly to international armaments cooperation
and to purchases under Foreign Military Sales (FMS) cases.
Procurement submissions to the Defense Committee shall include, for the
Executive Group, additional summaries of previous official FMOD
comments on the respective projects (security political and military
comments, quantities and prices).

8.4   Responsibility for Submissions

The following persons are responsible for submissions:
• the Bundeswehr Chief of Staff for phase documents and step decisions
     of the analysis phase,
• the Director General of Armaments/IT Director for procurement
     submissions to the Defense Committee and all further phase
     documents, step and interim decisions, as well as the selection of the
     prime contractor,
• the Director of Budget for 25 million € submissions and cost increase
     submissions to the Budget Committee.
Coordination within the FMOD shall be in accordance with the FMOD
Rules of Procedure. The following persons shall be consulted:
• the person responsible for preparing the planning proposal to the
     Bundeswehr Plan, if the submission affects the Bundeswehr planning,
• the budget manager, if the submission affects the budget.
All submissions, including statements on their fundability, shall bear a note
indicating when the Budget Directorate has co-signed the document or has
provided a different comment.
For the time being, the form and content of the submissions shall be
analogous to the Annexes to Chapter 19 of General Handout
AllgUmdr No. 220.
                                    34


8.5   Involvement of the Chief of Staff Bundeswehr (GenInsp)

Under his overall planning responsibility the Chief of Staff Bw shall be
included in all phases of the submission process to the FMOD Executive
Group / the German Bundestag as follows:
• The Chief of Staff Bw shall receive an information copy of all
     submissions of the Directorate General of Armaments / other FMOD
     directorates / IT Staff;
• Submissions of the Staffs of the Armed Services / Joint Support
     Service Staff / Central Medical Service Staff are made via the GenInsp.
The GenInsp presents his overall assessment to the Executive Group.
In the event of procurement submissions to the Defense Committee and 25
million € submissions the Rules of Procedure of the FMOD stipulate the
early involvement of the GenInsp irrespective of the distribution of an
information copy.
                                    35


Definition of Terms

For the purpose of these provisions, the following terms shall be applied as
follows:

Available Products            Commercial, marketable or developed
                              products which can be manufactured.
Cost Effectiveness            The principle of cost effectiveness requires to
                              aim at the optimum relation between the
                              intended purpose and the funds (resources)
                              used. This comprises the principle of
                              economy and the principle of profitability. The
                              principle of economy (minimum principle)
                              requires to achieve a certain result with the
                              least possible expenditure of resources. The
                              principle of profitability (maximum principle)
                              requires to achieve the best possible result
                              with a certain expenditure of resources.
                              During the determination and meeting of the
                              demand, the factors determining the
                              expenditure shall be continuously assessed
                              in an iterative process with the aim of
                              optimizing the cost/benefit ratio.
Demonstrator                  Actual or virtual model of a future
                              product/product element designed to
                              represent mission-relevant product features
                              or to help evaluating (partial) functions that
                              are considered critical. This may include
                              simulation, virtual prototyping, brassboards,
                              models, mock-ups or combinations thereof.
                              Where available, demonstrators are also
                              used for the proof of productibility.
Integrated Data               Acquisition and provision of all product,
Environment                   management and other data of a (future)
                              project across its entire life cycle (analysis
                              phase to service use) in such a way that they
                              can be made available to all participants in
                              accordance with their tasks (including LSA).
                              36




Operational Readiness   Safe usability for the intended purpose
                        documented in the AF under realistic
                        conditions, taking into account any existing
                        legal regulations. This also includes the
                        logistic and other measures required for
                        service use. This comprises any equipment,
                        infrastructure, outfit, documentation, services
                        and personnel required for providing and
                        operating the product and maintaining its
                        operational readiness during the in-service
                        phase.
Partner                 National and international government or
                        civilian institutions / companies with whom a
                        cooperation shall be entered into for the
                        purpose of determining and meeting the
                        demand as well as for service use.
Post-Design Services    PDS include any development-specific
(PDS)                   services to be rendered by industry which are
                        required for a decision on product
                        modification.
Product                 This terms encompasses all previous terms
                        like defense materiel, equipment, outfit, DP
                        product. It does not include housekeeping
                        material, food, university-specific equipment
                        as well as site procurement, restricted areas
                        (real estate) and infrastructure.
Product Improvement     The entirety of product-related measures that
                        serve to improve existing features or aim at
                        extending service life and have considerable
                        operational, logistic, technical or economic
                        implications.
Product Modification    This term encompasses all measures that
                        are not product improvement measures but
                        have an impact on the materiel
                        documentation.
                                  37




Project                     The entirety of measures to meet the
                            material demand of the Bundeswehr with an
                            own phase document AF (up to ASB).
                            Projects shall be initiated with the AF in such
                            a way that a manageable project control is
                            possible and the requirement for coordination
                            beyond the scope of the project is minimized.
Project Elements            Technical and Economic Shares
- Personnel / Training      Availability of personnel for the introduction
                            and service use in the required numbers and
                            with the required qualification (including the
                            necessary training organization and means).
- Security                  Ensuring the military and IT security for
                            service use.
- Occupational Safety       Ensuring and implementing the statutory
                            requirements with regard to occupational
                            safety, radiological protection, technical
                            safety and maritime safety.
- Command / Operation       Command regulations, operational doctrines
                            and procedures.
- Organization              Changing the organizational structures and
                            procedures of military and civilian
                            government agencies. Development and
                            negotiation of the organizational bases. The
                            decisive organizational bases for
                            infrastructure requirements shall be
                            negotiated early enough to leave sufficient
                            time for their implementation.
- Logistics                 Planning, provision and use of necessary
                            assets and services to ensure the service
                            use of products.
- Infrastructure Measures   Infrastructure requirements and construction
                            plans for all sites where the product is to be
                            fielded (including schools and logistics
                            facilities).
                                 38




- Ergonomics               Requirements for commandability,
                           operability, usability (both by men and
                           women) and maintainability of the product
                           with the objective to achieve the highest
                           possible operational value under the given
                           operational conditions.
- Geo-information Office   Provision of required geographical
                           documentation.
- Environmental            Environmental risks during the service use
        Protection         and disposal of the products; precautions for
                           training, operation, logistics and
                           infrastructure.
Review                     Formal review of one project or several
                           independent projects as a whole. The
                           objective is to review the project status and
                           the results achieved for compliance with the
                           requirements defined in phase documents,
                           step and interim decisions.
Step-by-Step Proceeding    Also referred to as incremental proceeding,
                           in order to implement parts of a project (after
                           planning the entire project in full detail)
                           individually, time-phased or in parallel to
                           other project parts. Individual parts must
                           have operational readiness themselves.
System Context             Functional, technical, economic,
                           organizational or time-related
                           interdependence between capabilities or
                           projects/products; interoperability.
Technical-Logistic         This term encompasses the services
Support                    rendered by industry aimed at maintaining
                           and ensuring the operational capability of
                           products during service use. They can be
                           long-term activities or specific measures.
                                              39


                                        Abbreviations


                      German                            English                       French

AF         Abschließende funktionale        Final Functional              Besoin fonctionnel de référece
           Forderung                        Requirement
ÄF         Änderungsforderung               Modification request          Demande de modification
AF/ReG     Abschließende funktionale        Final Functional              Besoin fonctionnel de référence
           Forderung/Realisierungs-         Requirement / Approval for    / autorisation de réalisation
           genehmigung                      Realization
ÄG         Änderungsgenehmigung             Modification approval         Autorisation de modificaton
AG         Arbeitsgruppen                   Working Groups                Groupes de travail
AL         Abteilungsleiter                 Head of Division / Head of    Chef de division
                                            Directorate
ASB        Abschlussbericht                 Final Report                  Document de clôture
Az         Aktenzeichen                     Reference no.                 Référence / n° du dossier
AZF-Plan   Arbeits-, Zeit- und Finanzplan   Work-time-budget schedule     Planification des travaux /
                                                                          délais / finances
BD         Bedarfsdecker                    Developer                     Organisme couvrant les
                                                                          besoins exprimés
BMF        Bundesministerium für            Federal Ministry of Finance   Ministère fédéral des
           Finanzen                                                       finances
                                        40




BMVg     Bundesministerium der        Federal Ministry of Defense   Ministère fédéral de la défense
         Verteidigung
BV BD    Bevollmächtigter Vertreter   Authorized Representative of Représentant mandaté de
         Bedarfsdecker                the Developer                l’organisme couvrant les
                                                                   besoins exprimés
BV       Bevollmächtigter Vertreter   Authorized Representative    Représentant mandaté
Bw       Bundeswehr                   Bundeswehr                   La Bundeswehr
BWB      Bundesamt für Wehrtechnik    Federal Office of Defense    Office fédéral de la technique
         und Beschaffung              Technology and               militaire et des
                                      Procurement                  approvisionnements
BwPlan   Bundeswehr Plan              Bundeswehr Plan              Plan de la Bundeswehr
CPM      Management der Bedarfs-      Customer, Product,           Gestion des produits requis
         sträger Produkte             Management                   par les utilisateurs
ET       Ersatzteil                   Spare part                   Pièce de rechange
ETB      Entwicklungstechnischen      Post-design Services         Suivi technique du
         Betreuung                                                 développement
F&T      Forschung und Technologie    Research and Technology      Recherche et technologie
FMS      Regierungskäufe über die     Foreign Military Sales       Acquisitions réalisées par le
         amerikanische Regierung                                   gouvernement via le
                                                                   gouvernement des États-Unis
Fü S     Führungsstab Streitkräfte    Armed Forces Staff           Etat-major des armées
Fü San   Führungsstab Sanität         Medical Service Staff        Etat-major du service de santé
                                           41




Fü SKB    Führungsstab Streitkräfte-     Joint Support Service Staff   Etat-major du service de
          basis                                                        soutien interarmées
Fü TSK    Führungsstab Teilstreitkraft   Armed Service Staff           Etat-major de l’armée de terre,
                                                                       de l’armée de l’air ou de la
                                                                       marine
GenInsp   General Inspekteur            Chief of Staff, Bundeswehr     Chef d’état-major des armées
GeNu      Genehmigung zur Nutzung       Approval for Service Use       Autorisation de mise en service
Geo       Geografie                     Geography                      Géographie
GO        Geschäftsordnung              Rules of Procedure             Règlement intérieur
H         Heer                          Army                           Armée de terre
HA Rü     Hauptabteilung Rüstung        Directorate General of         Direction générale de
                                        Armaments                      l’armement
HAL       Hauptabteilungsleiter         Director General               Directeur général
HAL       Hauptabteilungsleiter         Director General               Directeur général
HAL Rü    Hauptabteilungsleiter Rüstung Director General of            Directeur général de
                                        Armaments                      l’armement
HHA       Haushaltsausschuss            Budgetary Committee            Commission du budget
IAGFA     Integrierte Arbeitsgruppen    Capability Analysis            Groupes de travail intégrés
          Fähigkeitsanalyse             Integrated Working Groups      d’analyse de capacités
Insp      Inspekteure                   Chiefs of Staff                Chefs d’état-major
IT        Informationstechnik           Information Technology         Les techniques de l’information
ITStab    Informationstechnik Stab      IT Staff                       Etat-major de la division des
                                                                       techniques de l’information
                                                42




Kdo           Kommando                        Command                       Commandement
LCC           Lebenswegkosten                 Life cycle cost               Coût global de possession
LSA           Logistische Unterstützung       Logistic Support Analysis     Analyse de soutien logistique
NL            Nutzungsleiter/Nutzungs-        In-service Manager            Directeur responsable de
              leiterin                                                      l’utilisation
OrgBereiche   Organisations-Bereiche          Organizations                 Domaines d’organisation
PL            Projektleiter/Projektleiterin   Project Manager               Directeur de projet
ReG           Realisierungsgenehmigung        Approval for Realization      Autorisation de réalisation
Rü            Rüstung                         Armament                      Armement
SFF           Systemfähigkeitsforderung       System Capability             Demande de capacité système
                                              Requirement
TLB           Technisch-Logistische           Engineering and Logistic      Suivi technico-logistique
              Betreuung                       Support
VA            Verteidigungsausschuss          Defense Committee             Commission de la défense
VMBl          Ministerialblatt des            Federal Ministry of Defense   Bulletin officiel du ministère
              Bundesministeriums der          Gazette                       fédéral de la défense
              Verteidigung
WV            Wehrverwaltung                  Defense Administration        Administration de la défense

								
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