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Department of Defense INSTRUCTION

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DoDI 5000.02, January 7,

DoDI 5000.02, January 7, 2015 ENCLOSURE 2 PROGRAM MANAGEMENT 1. PURPOSE. This enclosure describes policies applicable to Program Managers, Program Executive Officers (PEOs), and Component Acquisition Executives (CAEs) for defense acquisition programs. The enclosure also includes a range of applicable statutory and regulatory program management policies and responsibilities. 2. ACQUISITION CHAIN OF COMMAND. The chain of command for acquisition programs runs upward from the Program Manager, through the PEO to the CAE, and for Acquisition Category (ACAT) I and IA and other programs so designated, to the Defense Acquisition Executive (DAE). The responsibility and authority for program management, to include program planning and execution, is vested in these individuals. Staff and other organizations provide support to this chain of command. “Program Management” in this enclosure refers to this chain of command. 3. ASSIGNMENT OF PEOs a. CAEs will assign acquisition program responsibilities to a PEO for all ACAT I and IA and sensitive classified programs, or for any other program determined by the CAE to require dedicated executive management. b. A PEO must be experienced, qualified, and certified in program management, including having been a Program Manager for an ACAT I or IA program comparable to the programs he or she will be responsible for as PEO. c. The PEO will be dedicated to executive management of assigned programs and will not have other command responsibilities. d. The DAE may waive the provisions of paragraphs 3a, 3b, and/or 3c on a case-by-case basis. e. The CAE will make this assignment no later than program initiation, or within 3 months of program cost estimates reaching the dollar threshold for an ACAT I or IA program. CAEs may determine that a specific Program Manager will report directly, without being assigned to a PEO, whenever such direct reporting is appropriate due to program size or criticality. The CAE will notify the DAE of the decision to have a Program Manager report directly to the CAE, and request a waiver from the DAE of the requirement to appoint a PEO. f. Acquisition program responsibilities for programs not assigned to a PEO or a directreporting program manager may be assigned to a commander of a systems, logistics, or materiel command. A program may be transferred from a PEO or direct reporting program manager to a Change 2, 02/02/2017 84 ENCLOSURE 2

DoDI 5000.02, January 7, 2015 commander of a systems, logistics, or materiel command only after the program or increment of capability has passed Initial Operational Capability and has been approved for Full-Rate Production or Full Deployment. 4. ASSIGNMENT OF PROGRAM MANAGERS a. A Program Manager will be designated for each acquisition program by the appropriate CAE. This designation will be prior to Milestone A (as the Technology Maturation and Risk Reduction Phase is being planned) or the milestone associated with the entry phase specified by the Milestone Decision Authority (MDA) at the Materiel Development Decision. b. It is essential that Program Managers be defense acquisition professionals with experience managing relevant engineering development or technology efforts, and who have a deep knowledge of contracting, financial systems, industry perspectives, and user needs. Unless a waiver is granted by the DAE or CAE, a Program Manager will be experienced in similar acquisition programs and Defense Acquisition Workforce Improvement Act Level III certified in program management. Waivers should be granted rarely. c. A Program Manager of an ACAT I or IA program should be assigned to the position during the period leading up to (approximately 6 months prior to) a major milestone or decision point initiating a phase of the acquisition process. The incoming program manager should lead the effort to have that phase approved and manage the execution of that phase. One measure of a program manager’s performance should be the successful execution of a phase of the program he or she planned and the MDA has approved. Program managers will be assigned for at least 4 years or until completion of the phase of the program that occurs closest in time to the date on which the person has served in the position for 4 years. c. By law, any Program Manager for an ACAT I or IA program assigned before Milestone B will be assigned at least through Milestone B approval. Any ACAT I or IA Program Manager assigned immediately following Milestone B approval will be assigned until initial operational capability is achieved. Program Managers outside of these periods will be assigned for at least 4 years or until the completion of the phase of the program that occurs closest in time to the date on which the person has served in the position for 4 years. Waivers for these tenure requirements can be granted by the respective CAE if it is determined that either of the above described periods is so long that it would not be appropriate for a single individual to serve as Program Manager for the entire period. CAEs will assist with the collection of data on waivers granted to assist OSD in recognizing status and trends. d. The measure of a Program Manager’s performance should be the successful execution of a phase that the Program Manager has submitted for approval. DoD Components should, whenever possible, assign incoming Program Managers to programs approximately 6 months before a major milestone so that they are responsible for approval of a plan that they will execute. Early arrival will assist them in monitoring and, where applicable, influencing the plan to be approved at the upcoming milestone review. Change 2, 02/02/2017 85 ENCLOSURE 2

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