ing effort during Operational System Development. While this contractor-controlled technical documentation may be employed in planning for provisioning, follow-on procurement, maintenance, manual preparation, training, etc., significant logistic support inventory commitments (that depend on configuration) should not be finalized prior to establishment of the PCI. Any such prior support commitments should be limited to long lead time items, or to those cases where favorable cost effectiveness benefits can be anticipated.

§ 195a.10

Implementation of provisions.

(a) Within 90 days, DoD Components shall establish schedules and initiate actions to assure that all documents pertinent to configuration management, whether used for internal guidance or intended for contractual application, will be reviewed and made to conform with this part and with Part 195 of this subchapter, MIL-STD-490, -480, -481 and -482."

(1) This review shall include at least the documents listed in Enclosure 8 of DDR&E Memorandum for ASA (R&D), ASN (R&D), and ASAF (R&D), Configuration Management, April 13, 1967.3

(2) Nonconforming documents shall be canceled, superseded or revised, as appropriate.

(3) Nonconforming documents shall not be applied to contracts awarded subsequent to the issue date of MIL-STD490,-480, -481 and -482.2

(b) Copies of schedules, listing affected documents, kind of actions planned, and completion dates, shall be forwarded to the Director of Defense Research and Engineering and to the Assistant Secretary of Defense (Installations and Logistics).

(a) Defense materiel item. A term used within Department of Defense to identify an aggregation of hardware/software which satisfies a specific end use function. A defense materiel item usually is a system or major equipment that is established as an integral program element, or is identified as a project within an aggregated program element, of the Five Year Defense Program (DoD Directive 7045.7, "Review and Approval of Changes to the Five Year Defense Program," December 22, 1967).1

(b) Work breakdown structure (WBS). A product-oriented family tree, composed of hardware, software, services and other work tasks, which results from project engineering effort during the development and production of a defense materiel item, and which completely defines the project/program. A WBS displays and defines the product(s) to be developed or produced and relates the elements of work to be accomplished to each other and to the end product.

(1) Summary work breakdown struc

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

ture (Summary WBS). The upper three levels of a WBS prescribed by this part in § 196.9 and having uniform element terminology, definition, and placement in the family-tree structure. These three levels have been organized and identified in accordance with the following nomenclature:

(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 defini

Level 2. Major elements of the defense materiel item, e.g., a ship, an air vehicle, a tracked vehicle; or aggregations of services, data and activities, e.g., systems tests and evaluation.

Level 3. Elements subordinate to Level 2 major elements, e.g., an electric plant, an airframe, the power package/drive train; or types of services, e.g., technical evaluation.

(2) Project Summary Work Breakdown Structure (Project Summary WBS). A Summary WBS tailored to a specific defense materiel item by selecting applicable elements from one or more Summary WBS (s) (§ 196.9) or by adding/substituting equivalent elements unique to the project.

(3) Contract Work Breakdown Structure (Contract WBS). The complete WBS for a contract, developed and used by a contractor in accordance with MILSTD-881 and the contract work statement. The Contract WBS comprises those Project Summary WBS elements included in the contract, as extended by the contractor to cover the lower levels of WBS.

(4) Project Work Breakdown Structure (Project WBS). The complete WBS for the 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.

'When published, will be available from Naval Supply Depot, 5801 Tabor Avenue, Philadelphia, Pa. 19120, Attention: Code 800.

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

or

(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

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

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, or other appropriate planning document for the project.

(1) 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 identifles the category of defense materiel item and summary level WBS elements considered to be most suitable to satisfy the

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

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

operational need. The Director of Defense Research and Engineering may direct the establishment of WBS elements at or below the Summary WBS level, if specific items are considered to be critical to a project need.

(ii) During Contract Definition (Part 191 of this subchapter), or equivalent definition efforts, changes may be proposed to this preliminary Project Summary WBS. The preliminary Project Summary WBS is not intended to be constraining. Rather, it is intended that contractors be encouraged to propose alternatives and to exercise initiative and creativity to provide an improved final product. Such alternatives will be evaluated by the DoD project manager, in terms of the benefits offered, in context with the overall objectives of the project/program. The changes adopted at the end of Contract Definition shall be reflected in the Project Summary WBS, and the appropriate elements of the approved WBS will be included in the negotiated work statement for follow-on development effort.

(2) Contract WBS. Only one WBS shall be used in each request for proposal and ensuing contract. After necessary adjustment based on contractor proposals and contract negotiations, the elements selected become the basis for further extension during the contracted effort.

(1) The development contractor (or equivalent in-house activity) will extend the WBS elements negotiated into the contract to evolve the Contract WBS to the levels necessary to meet his project needs and the requirements of §§ 196.5 (c) through (j). The contractor has complete flexibility in extending the WBS to reflect how his work is to be accomplished.

(ii) The contract shall indicate the levels of the Contract WBS at which cost accumulations shall be made for reporting to the Government. Traceability of cost accumulations will be required to only those lower WBS levels which are used by the contractor for his cost control purposes.

(iii) Changes proposed by the contractor to the first three levels of the Contract WBS shall be specifically approved by the DoD project manager. Information on WBS content, including changes, below the first three levels used by the contractor shall be available to

the DoD project manager upon his request.

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

(c) Procurement. In contracts using WBS's, the following shall be relatable to elements of the Project Summary WBS:

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

(3) The contract line items and end items.

(4) Technical and management reports.

(5) Government Furnished Equipment (GFE).

(d) System project management. The System/Project Master Plan required by DoD Directive 5010.14, "System/Project Management," May 4, 1965, shall include the Project Summary WBS. Progress reporting in the areas of technical performance, schedule, and cost shall be based on the Project WBS, and be consistent with DoD Instruction 7000.2, "Performance Measurement for Selected Acquisitions," December 22, 1967.

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

(f) Configuration management. Items that are designated in a contract as configuration items, Part 195 of this subchapter, shall be identified as WBS elements in the Project and Contract WBS's. However, all WBS elements will not necessarily be subject to configuration management.

(g) Cost information reports (CIR). CIR reporting shall be in accordance with the provisions of Part 250 of the subchapter and the CIR Data Plan approved for the particular project.

(h) Integrated logistic support. The elements of integrated logistic support, as specified in DoD Directive 4100.35, "Development of Integrated Logistic Support for Systems and Equipment," June 19, 1964," shall be accommodated as indicated in the Summary levels of WBS in § 196.9. Aggregations of WBS

•Filed as part of original. Copies available from 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.

(1) 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.

(1) 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-STD881 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.

7

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

§196.9

Summary work breakdown structures (summary WBS) for categories of Defense Materiel Items.