The Code of Federal Regulations of the United States of America

ve Year Defense Program (DoD Direcve 7045.7, "Review and Approval of hanges to the Five Year Defense Proam,” December 22, 1967).1

(b) Work breakdown structure (WBS). product-oriented family tree, comosed of hardware, software, services and her work tasks, which results from proect engineering effort during the deelopment and production of a defense ateriel item, and which completely efines the project/program. A WBS disays and defines the product(s) to be eveloped or produced and relates the ements of work to be accomplished to ach other and to the end product.

-(1) Summary work breakdown structre (Summary WBS). The upper three vels of a WBS prescribed by this part $196.9 and having uniform element Erminology, definition, and placement in he family-tree structure. These three vels have been organized and identified accordance with the following nomenature:

Level 1. The entire defense materiel item, g., the Minuteman ICBM System, the LHA hip System, or the XM-138 Self-Propelled Howitzer System. Level 1 is usually directly dentified in the DoD programing/budget ystem either as an integral program element as a project within an aggregated program ement.

Level 2. Major elements of the defense mariel item, e.g., a ship, an air vehicle, a acked vehicle; or aggregations of services, ata and activities, e.g., systems tests and valuation.

Level 3. Elements subordinate to Level 2 ajor elements, e.g., an electric plant, an rframe, the power package/drive train; or pes of services, e.g., technical evaluation. (2) Project Summary Work Breakown Structure (Project Summary (BS). A Summary WBS tailored to a pecific defense materiel item by selectig applicable elements from one or ore Summary WBS(s) (§ 196.9) or by dding/substituting equivalent elements nique to the project.

(3) Contract Work Breakdown Strucure (Contract WBS). The complete VBS for a contract, developed and used y a contractor in accordance with MILTD-8812 and the contract work statehent. The Contract WBS comprises hose Project Summary WBS elements ncluded in the contract, as extended by he contractor to cover the lower levels f WBS.

(4) Project Work Breakdown Structure Project WBS). The complete WBS for he project, containing all WBS elements

related to the development and/or production of the defense materiel item. The Project WBS evolves from the Project Summary WBS, extended to include all Contract WBS (s) and equivalent WBS(s) resulting from DoD in-house efforts.

(c) WBS element. A discrete portion of a Work Breakdown Structure. A WBS element may be either an identifiable product, set of data, or a service.

(d) Systems engineering. The application of scientific and engineering efforts to (1) transform an operational need into a description of system performance parameters and a system configuration through the use of an iterative process of definition, synthesis, analysis, design, test, and evaluation; (2) integrate related technical parameters and assure compatibility of all physical, functional, and program interfaces in a manner which optimizes the total system definition and design; (3) integrate reliability, maintainability, safety, human and other such factors into the total engineering effort.

§ 196.4 Objective.

The overall objective of a WBS is to translate the results of the systems engineering of a defense materiel item into a structure of products and services comprising the entire work effort. As tailored to a specific project, the WBS is intended to provide a consistent, visible framework that facilitates:

(a) Planning and assigning management and technical responsibilities; and,

(b) Controlling and reporting the progress and status of engineering efforts, resource allocations, cost estimates, expenditures, and procurement actions throughout the development and production of a defense materiel item. § 196.5 Policy.

(a) Application. A Project WBS shall be prepared for each project, as follows:

(1) Mandatory. (i) All new defense materiel items (or major modifications) being established as an integral program element of the Five Year Defense Program (FYDP) (DoD Directive 7045.7 1) in Engineering Development or Operational Systems Development;

(ii) All new defense materiel items (or major modifications) being established as a project within an aggregated program element in Engineering Devel

See footnotes on page 357.

opment or Operational Systems Development, where the project is estimated to exceed $10 million in RDT&E financing;

(iii) All production follow-on of subdivisions (i) and (ii) of this subparagraph.

(2) Otherwise designated. A WBS may be employed in whole or in part for other defense materiel items entering Engineering Development or Operational Systems Development, or follow-on production, at the discretion of the DoD Component, or when directed by the Director of Defense Research and Engineering.

(b) Preparation. While the categories and elements displayed in § 196.9 normally will provide the basis for constructing Summary WBS (s), deviations are encouraged when they result from project needs determined through the systems engineering process. Proposed deviations shall be considered in accordance with the following paragraphs.

(1) The Project Summary WBS shall be prepared by the DoD Component by selecting elements applicable to the project from one or more of the category Summary WBS's shown in § 196.9. The Project Summary WBS elements shall be tailored to the project objectives and utilize uniform nomenclature, definition and structural placement in accordance with MIL-STD-881, "Military Standard Work Breakdown Structures for Defense Materiel Items" and § 196.9. However, when elements of the Summary WBS's are not applicable because of an item's unique configuration or other requirements, or when additional WBS element selection is needed below the Summary WBS level, substitute or additional elements may be used to construct the Project Summary WBS. Any such deviations or additions shall be identified in the Technical Development Plan, DoD Directive 3200.6, "Reporting Research, Development and Engineering Program Information," June 7, 1962,1 or other appropriate planning document for the project.

(i) A preliminary Project Summary WBS (the development and relationship of WBS's during acquisition is illustrated in § 196.10) is normally developed from the results of the preliminary systems engineering conducted during the Concept Formulation period or its equivalent. This systems engineering identifies the category of defense materiel item

and summary level WBS elements con sidered to be most suitable to satisfy th operational need. The Director of D fense Research and Engineering may d rect the establishment of WBS elemen at or below the Summary WBS level, specific items are considered to be crit cal to a project need.

fin

(ii) During Contract Definition (Pa 191 of this subchapter), or equivale definition efforts, changes may be pr posed to this preliminary Project Sum mary WBS. The preliminary Proje Summary WBS is not intended to be con straining. Rather, it is intended that co tractors be encouraged to propose alte natives and to exercise initiative and cre ativity to provide an improved product. Such alternatives will be evalu ated by the DoD project manager, terms of the benefits offered, in contex with the overall objectives of the proj ect/program. The changes adopted at th end of Contract Definition shall be re flected in the Project Summary WBS and the appropriate elements of the ap proved WBS will be included in the nego tiated work statement for follow-on de velopment effort.

(2) Contract WBS. Only one WB shall be used in each request for proposa and ensuing contract. After necessar adjustment based on contractor propos als and contract negotiations, the ele ments selected become the basis fo further extension during the contracte effort.

(i) The development contractor (0 equivalent in-house activity) will exten the WBS elements negotiated into th contract to evolve the Contract WBS t the levels necessary to meet his projec needs and the requirements of §§ 196. (c) through (j). The contractor has com plete flexibility in extending the WB to reflect how his work is to be accom plished.

(ii) The contract shall indicate th levels of the Contract WBS at which cos accumulations shall be made for report ing to the Government. Traceability o cost accumulations will be required t only those lower WBS levels which ar used by the contractor for his cost con trol purposes.

(iii) Changes proposed by the con tractor to the first three levels of th Contract WBS shall be specifically ap proved by the DoD project manager. In formation on WBS content, includin changes, below the first three levels used

the contractor shall be available to e DoD project manager upon his quest.

(3) The Project WBS will be prepared the DoD Component by compiling e elements of the extended Contract BS(s) with the Project Summary WBS. e Project WBS will be completed prior the initiation of production.

BS:

(1) The structure of work statements. (2) The Contract WBS (s).

(3) The contract line items and end ems.

(4) Technical and management reorts.

(5) Government Furnished Equipent (GFE).

((d) System project management. The stem/Project Master Plan required by OD Directive 5010.14, "System/Project anagement," May 4, 19651 shall include e Project Summary WBS. Progress reorting in the areas of technical perormance, schedule, and cost shall be ased on the Project WBS, and be constent with DoD Instruction 7000.2, Performance Measurement for Selected cquisitions," December 22, 1967.1

(e) Management control systems criria. The Contract WBS shall be used as he framework in the implementation of OD Instruction 7000.2.

(f) Configuration management. Items hat are designated in a contract as conguration items, Part 195 of this subhapter, shall be identified as WBS eleents in the Project and Contract BS's. However, all WBS elements will ot necessarily be subject to configuraon management.

(g) Cost information reports (CIR). IR reporting shall be in accordance ith the provisions of Part 250 of the ubchapter and the CIR Data Plan aproved for the particular project.

(h) Integrated logistic support. The lements of integrated logistic support, $ specified in DoD Directive 4100.35, Development of Integrated Logistic upport for Systems and Equipment," une 19, 1964,1 shall be accommodated s indicated in the Summary levels of VBS in § 196.9. Aggregations of WBS

1 Filed as part of original, Copies available rom Naval Supply Depot, 5801 Tabor Avenue, Philadelphia, Pa. 19120, Attention: Code 300.

elements, for logistics management and reporting, shall be relatable to elements of the Project Summary WBS.

(i) Programing and budgeting. Where a Project Summary WBS has been established, it shall be used in any necessary subdividing of a Program Element for purposes of programing and budgeting.

(j) Reporting relationship. The organization of reporting requirements shall not be construed by either the DoD Component or the contractor as determining the manner in which the defense materiel item is to be designed or built; this determination is reflected in the WBS approved for the project.

§ 196.6 Approval.

The DoD Component will prepare a preliminary Project Summary WBS in accordance with the provisions of § 196.5, and will submit this proposed WBS as part of the Technical Development Plan for the particular defense materiel item. The Director of Defense Research and Engineering, in coordination with the appropriate Assistant Secretaries of Defense, will evaluate the Project Summary WBS as part of the project approval. § 196.7 Waivers to this part.

If a DoD Component considers it to be in the best interests of the Government to waive application of any portion of this part to a specific project, the reasons for the waiver shall be submitted to the Director of Defense Research and Engineering. The Director of Defense Research and Engineering shall have authority to grant waivers for all provisions of this part, in coordination with the appropriate Assistant Secretaries of Defense.

§ 196.8 Detailed guidance.

The Director of Defense Research and Engineering, in coordination with the appropriate Assistant Secretaries of Defense, shall provide more detailed guidance on the preparation of WBS's in the form of a Military Standard, MIL-STD8812 which shall be used in new programs employing WBS as soon as it is issued. This Standard will include a Summary WBS and definitions for each of the categories listed in § 196.9.

2 When published, will be available from Naval Supply Depot, 5801 Tabor Avenue, Philadelphia, Pa. 19120, Attention: Code 300.