## Change Request Number: 02-09 Date Received: 1/16/02

**Title: Investment Analysis Policy**

# Name: David Woodson

Routing Symbol: ASU-120

Phone: 267 7601

Policy OR Guidance: Policy

Summary of Change: This change fleshes out the transformation to a
two-phased investment analysis process that was introduced into AMS in
late 2001. Detailed program planning is moved into final investment
analysis from solution implementation; investment programs are baselined
for variance tracking at the final investment decision after completion
of detailed planning and solicitation for prime contractual needs; the
determination of initial requirements is removed from investment
analysis; the initial requirements document is completed before the
mission need decision; and the JRC must approve planning, funding, and
resources for both initial and final investment analysis before work can
begin. This change also strengthens the requirement to develop and
approve new investment opportunities within context of all existing and
planned assets to provide a particular service or capability, and it
focuses attention on the need to plan and manage every aspect of
achieving value and benefits from investment dollars, particularly those
outside the authority of n integrated product team or management unit.

Reason for Change: Current AMS policy for investment analysis is
internally inconsistent and does not reflect current best practices now
instituted within FAA.

Development, Review, and/or Concurrence: ASD-400 (IA organization) has
reviewed and commented extensively. This draft reflects their
recommendations. This draft is also consistent with recommendations of
the IPLT Lifecycle Management Policy team sponsored by Marty Phillips
and Steve Zaidman. This team has representation from AOP, ACP, APP, AST,
ABU, ANS, AUA, ARN, AND, ACM, AIO, ASD, ATO, ABZ, ANI, and ASF.

Target Audience: Lifecycle management specialists and managers**.**

Potential Links within FAST for the Change: N/A

Attachments: Language of change

### Briefing Planned: Yes

**ASAG Responsibilities: Review and Comment**

**2.4 Investment Analysis**

Figure 2.4.1 illustrates the phases and decision points of investment
analysis, which is conducted to ensure the critical needs of the agency
are satisfied by practical and affordable solutions. Initial investment
analysis rigorously evaluates alternative solutions to mission need and
determines which offers the best value and most benefit to the agency
and its customers within acceptable cost and risk. Final investment
analysis develops detailed plans and final requirements for the proposed
investment program, including a lifecycle program baseline that
establishes cost, schedule, performance, benefits, and risk-management
boundaries for program execution.

**Figure 2.4.1 -- The Phases and Decision Points of Investment
Analysis**

![](media/image1.wmf)

Investment analysis is conducted within a strategic context of all
assets, capabilities, and resources planned or in-place to provide a
specific capability or service, as well as within context of the current
and planned architecture of the National Airspace System. Strong
stakeholder involvement is mandatory throughout investment analysis, and
all stakeholders *must* buy into and support the solution approved at
the investment decision.

Investment analysis is a flexible process that is tailored for the
specific analysis to be performed. Tailoring decisions are recorded in
the appropriate action plan for initial or final investment analysis, as
approved by the Joint Resources Council. The FAA Acquisition Executive
may also approve tailoring of the investment analysis process.

A full-up investment analysis by a dedicated team is usually appropriate
for major, complex investment opportunities. Tailoring, which infers
lesser levels of analysis, may be most practical for smaller, less
complex programs and for re-planning previously approved investment
programs as a prelude to baseline changes. In all cases, rigorous
standard processes and techniques shall be applied. These standards and
techniques are resident in and the responsibility of the investment
analysis organization.

The mission need statement establishes the mission need and its urgency
, and states when an operational capability must be in place. This, in
turn, establishes when investment analysis must be complete to allow
sufficient time to acquire and deploy a suitable solution. The key is to
balance the timeliness of the analysis with development of
comprehensive, rigorous data needed by the Joint Resources Council to
make an informed investment decision.

The following factors must be considered while conducting an investment
analysis:

-   Operationally suitable, low-risk commercial or nondevelopmental
    solutions are strongly preferred over complex developmental
    alternatives. The agency undertakes developmental programs only when
    necessary. For complex and developmental programs, the agency
    minimizes risk by applying such management techniques as
    evolutionary development, block upgrade, or pre-planned product
    improvement to satisfy requirements that cannot or need not be met
    today. If the best overall solution to mission need requires
    development, sufficient cost and schedule must be factored into the
    lifecycle program baseline of the proposed solution to accommodate
    the increased risk.

-   Should a nonmaterial solution emerge during investment analysis that
    satisfies the need, can be achieved within approved budgets, and is
    operationally acceptable to the user, it may be implemented without
    proceeding further in the lifecycle management process. Upon making
    the decision to implement a nonmaterial solution, the Associate
    Administrator of the operating organization notifies the Joint
    Resources Council, which then terminates investment analysis
    activity.

-   Affordability is a key factor in the decision to approve a new
    investment program. The Systems Engineering/Operational Analysis
    Team (SEOAT) maintains a relative priority listing of all existing
    and proposed agency investment programs, based on standard criteria
    approved by the Joint Resources Council. The SEOAT assesses the
    affordability of candidate solutions to mission need during initial
    investment analysis versus all other agency investment needs based
    on this priority listing. In the same manner, it assesses the
    affordability of a proposed new investment program during final
    investment analysis. The SEOAT is composed of representatives from
    each line of business and other appropriate functional disciplines,
    and is chaired by the Director, System Architecture and Investment
    Analysis.

-   The FAA Work Breakdown Structure shall be used when developing cost
    and schedule estimates for investment programs. Where available,
    cost estimates must be based on historical data captured by the
    agency's cost accounting system.

-   The investment analysis team must consider the general direction and
    specific objectives of FAA strategic planning when considering
    alternative solutions to mission need. The emphasis during both
    mission and investment analysis is the overall strategic benefits
    that can be obtained toward achieving agency service objectives.
    Additionally, the results of investment analysis and subsequent
    decisions from that analysis feed back into the evolution of agency
    strategic planning.

Investment analysis processes and alternatives must conform with Federal
laws, regulations, and guidelines such as those specified in OMB
directives. For example, OMB Circular A-76, Performance of Commercial
Activities, establishes government policy to rely on commercial sources
to supply the products and services the government needs and to perform
inherently governmental activities in-house. The FAA follows the
policies of Circular A-76 to the extent such policies are consistent
with FAA's statutory authority. Potential A-76 issues are addressed
during investment analysis and at other stages of lifecycle management,
as appropriate.

**2.4.1 Initial Investment Analysis - Analyze Alternatives and Determine
Preferred Solution**

The action plan for initial investment analysis specifies the resources
(people and money), schedule, activities, documentation, and
alternatives to be analyzed during initial investment analysis. The
Joint Resources Council approves the action plan at the mission need
decision and provides resources for its execution. Initial requirements
should be defined in the initial requirements document before beginning
investment analysis.

> **Figure 2.4.2 Principal activities of initial investment analysis**
>
> ![](media/image2.wmf)

**2.4.1.1 What Must Be Done**

-   **Form investment analysis team.** After approval of mission need,
    the investment analysis staff works with the sponsoring organization
    and the designated integrated product team or management unit to
    establish the investment analysis team, as specified in the action
    plan for initial investment analysis. Each team typically has
    operations analysts and requirements specialists from the
    organization with the need; acquisition, engineering, and market
    specialists from the integrated product team or management unit;
    investment analysis staff specialists with skills in such
    disciplines as risk assessment, cost and schedule estimating, and
    benefits estimation; and technical specialists from FAA staff
    elements or other sources for whatever support is needed. This team
    conducts the analysis and generates the information used by the
    Joint Resources Council at the initial investment decision. It is
    highly desirable for key members from mission analysis to
    participate on the investment analysis team, particularly the
    initial requirements team lead.

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-   **Define evaluation factors.** The investment analysis team
    determines the evaluation factors against which each alternative
    will be evaluated competitively and impartially. Evaluation factors
    address the most important issues confronting the Joint Resources
    Council as it makes decisions to allocate agency resources among
    investment opportunities***.*** Typically, evaluation factors
    embrace such considerations as operational suitability,
    compatibility with the NAS architecture, lifecycle cost and
    benefits, risk, security, safety, human capabilities and
    limitations, physical infrastructure, regulatory and procedural
    impact, and environmental impact.

-   **Conduct market survey.** The investment analysis team surveys the
    marketplace to determine the capability, state of development, risk,
    and cost of potential solutions to mission need. It uses the results
    of this survey to refine the requirements and alternatives it will
    evaluate. The preference is commercial or non-developmental items
    and services or nonmaterial solutions that are cost-effective and
    operationally suitable. Developmental alternatives are considered
    only if other choices are not cost-effective or operationally
    acceptable to users. Operational or factory capability demonstration
    of potential solutions is strongly encouraged to verify suitability
    for meeting mission need.

-   **Finalize investment analysis action plan.** Changes to the
    investment analysis action plan at this point typically result from
    the addition of newly identified alternative solutions, a change in
    team membership, or a change in member roles and responsibilities.
    The addition of new alternatives may have a collateral impact on
    estimated resources and time necessary to complete the analysis. All
    team members sign the final action plan, signifying acceptance,
    resource commitment, and support by the participants and their
    parent organizations. The JRC Secretariat notifies the Joint
    Resources Council when alternatives are added or if additional
    resources are needed beyond those approved at the mission need
    decision.

-   **Analyze alternatives.** The investment analysis team evaluates the
    alternative solutions in the final action plan by compiling and
    analyzing data against the evaluation factors. This process may
    involve multiple iterations and tradeoffs among the key evaluation
    factors to determine the most advantageous solution to core agency
    needs, not necessarily one that meets every initial requirement (See
    Figure 2.4.3). However, it is essential that user stakeholders
    support any substantive modifications to requirements. The analysis
    of alternatives must include the impact of complying with applicable
    federal regulations and requirements. Ideally, the alternatives
    should be qualitatively different from each other (e.g., different
    technologies, such as ground-based vs. airborne solutions). For
    complex and developmental alternatives, incremental delivery,
    evolutionary development, and pre-planned product improvement should
    always be evaluated as ways to reduce risk and satisfy important
    requirements at a future date that cannot or need not be met today.
    Alternatives undergo a comprehensive assessment of such risk facets
    as technical, operability, producibility, supportability, cost,
    benefit, schedule, management, funding, stakeholder, information
    security, human factors, and others as needed. The results of
    investment analysis are recorded in the investment analysis report,
    which contains comprehensive, quantitative data developed equally
    for each candidate solution.

**Figure 2-4.3: Investment analysis involves trade-off among factors
such as cost, schedule,**

**risk, and performance.**

-   ![](media/image3.png){width="4.666666666666667in"
    height="2.488888888888889in"}**Assess affordability.** Affordability
    assessments actually begin in mission analysis with the development
    of a rough estimate of likely lifecycle cost, which is recorded in
    the mission need statement and placed in long-range agency planning
    documents upon approval of mission need by the Joint Resources
    Council. The investment analysis team develops these costs in more
    detail and fidelity for each candidate solution, and forwards them
    to the Systems Engineering / Operational Analysis Team. The SEOAT
    assesses the affordability of candidate solutions against each other
    and all other investment programs in the agency\'s financial
    baseline based on relative priority. When a candidate solution
    cannot be funded within agency planning and budgeting baselines, the
    SEOAT may propose offsets from lower priority programs. Preliminary
    affordability assessments by the SEOAT shape subsequent
    deliberations of the investment analysis team. The final
    affordability assessment is included in the investment analysis
    report.

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-   **Develop initial lifecycle program baseline(s).** The investment
    analysis team develops an initial lifecycle program baseline (i.e.,
    performance, cost, schedule, benefits, and risk) for candidate
    solutions offering superior value and benefit to the agency and its
    customers. These baselines are derived from implementation
    strategies tailored to each specific alternative (e.g., COTS versus
    development, replacement versus upgrade, sole source versus
    competition), and are the primary basis for the initial investment
    decision. It is critically important for the implementation strategy
    to align with each proposed alternative, and for the initial
    baselines to be realistic and appropriately adjusted for risk.
    Integrated product team or management unit members of the investment
    analysis team lead the development of cost and schedule baselines
    using the FAA work breakdown structure and other applicable
    standards.

-   **Prepare for the initial investment decision.** The investment
    analysis team records the results of the analysis in the investment
    analysis report, prepares briefing materials and documentation, and
    coordinates its findings and recommendations with all key
    stakeholders. The investment analysis report defines each candidate
    solution, and catalogs its relative strengths and weaknesses against
    the evaluation factors established early in investment analysis. The
    investment analysis report recommends an alternative for
    implementation based on user acceptance, satisfaction of agency
    requirements, and scoring against evaluation factors. It also
    contains the affordability assessment and initial lifecycle program
    baseline for recommended alternative(s), as attachments.

-   **Prepare action plan for final investment analysis.** The
    investment analysis team prepares the action plan for final
    investment analysis. This plan defines the actions, resources,
    schedules, roles and responsibilities, documentation, exit criteria,
    and approach that will be used to mitigate risk, finalize
    requirements, and plan implementation and lifecycle support for the
    selected alternative. It includes the cost of soliciting and
    evaluating vendor offers for major contracts necessary to implement
    the proposed investment, as well as any risk-reduction effort such
    as modeling, analysis, simulation, or research.

**2.4.1.2 Who Does It?**

Investment analysis teams perform the investment analysis.

The sponsoring organization participates on the investment analysis
team. Its primary responsibility is to define agency requirements and
record them in the initial requirements document.

The investment analysis organization leads complex investment analyses,
and is responsible for the investment analysis report. It also assists
management units and integrated product teams in the conduct of less
complex investment analyses, and confirms the investment analysis report
is complete and consistent with agency standards. The investment
analysis organization develops, sustains, and improves standard
estimating tools and analytical techniques for use in all investment
analyses, based on corporate history and best practices from government
and industry.

Integrated product teams and management units conduct technology
assessments, assist in the generation of cost and schedule estimates for
alternative solutions, and work with operational team members to
determine what performance and supportability can be achieved within
these estimates. They may also conduct investment analysis for smaller
needs and baseline changes, as directed by the Acquisition Executive,
using standard agency investment analysis tools and techniques.

The SEOAT assesses affordability and identifies candidate offsets from
lower priority programs when necessary.

Customers, users, unions, and stakeholders participate as team members
throughout investment analysis, providing their perspective and
endorsing the recommended solution(s).

**2.4.1.3 Outputs / Products**

The principal output of initial investment analysis is information and
data that enables the Joint Resources Council to allocate agency
resources to those investment opportunities offering greatest value and
benefit to the agency and its customers with the least acceptable risk.
A second output is the action plan for final investment analysis. The
following are required products of initial investment analysis that
enable and record these primary outputs:

-   Initial investment analysis report, including the affordability
    assessment.

-   Initial lifecycle program baseline for the most viable
    alternative(s).

-   Updated initial requirements document.

-   Action plan for final investment analysis.

# 2.4.1.4 Who Approves?

The Director, Investment Analysis staff, approves the initial investment
analysis report and certifies that methodology and results are
consistent with agency standards. The Associate Administrator of the
sponsoring organization approves the updated initial requirements
document. The Associate Administrator of the operating organization may
implement a nonmaterial solution to mission need that emerges during
investment analysis when it can be fully funded within existing approved
resources. The Acquisition Executive and the Associate Administrator of
the sponsoring organization approve the initial lifecycle program
baseline. The Acquisition Executive approves tailoring of the investment
analysis process.

# 2.4.2 Initial Investment Decision -- JRC 2a

The Joint Resources Council selects the best overall solution for
implementation at the initial investment decision, based on information
in the investment analysis report. It makes the decision within context
of all ongoing and planned agency activities associated with the
proposed service or capability. The Joint Resources Council focuses on
affordability of the proposed investment program, value or benefit that
will accrue to the agency and its customers, risk associated with the
proposed investment, and whether it is strategically aligned with agency
goals and the NAS Architecture. The investment decision also defines
what each organization will do to support final investment analysis.
Commitments are recorded in the investment decision memorandum of record
and action plan for final investment analysis. The Acquisition Execution
is the chairperson of the Joint Resources Council at the initial
investment decision.

**2.4.2.1 Entrance Criteria**

The following are required at the initial investment decision:

-   Initial investment analysis report.

-   Updated initial requirements document for each alternative under
    serious consideration.

-   Initial lifecycle program baseline for each alternative under
    serious consideration.

-   Action plan for final investment analysis.

-   Acquisition strategy for each alternative under serious
    consideration.

**2.4.2.2 Joint Resource Council Actions**

The Joint Resources Council:

-   Selects the alternative to be implemented or rejects the
    alternatives and specifies what action is needed.

-   Approves an initial lifecycle program baseline for the alternative
    selected for implementation.

-   Approves and funds the action plan for final investment analysis.

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-   Designates the integrated product team or management unit
    responsible for solution implementation.

**2.4.3 Final Investment Analysis - Plan and Baseline the Investment**

The Joint Resources Council approves the action plan for final
investment analysis at the initial investment decision and provides
resources for its execution. This plan specifies the resources (people
and money), schedule, activities, and documentation for final investment
analysis activity. Figure 2.4.4 identifies the principal activities of
final investment analysis.

> **Figure 2.4.4 Principal activities of final investment analysis**

![](media/image4.wmf)

**2.4.3.1 What Must Be Done**

![](media/image5.wmf){width="0.32007874015748033in"
height="0.2700787401574803in"}

-   **Identify key planning elements.** The investment analysis team
    identifies all key actions and events that must be executed to
    obtain delivery within cost and schedule constraints and achieve
    projected value and benefits. Complex investment programs may
    require development of systems and equipment, modification or
    construction of facilities, additions to the physical
    infrastructure, development of regulations, purchase of real
    property, and integration with other complex activities or programs.
    They may also require planning and integration for a large number of
    functional disciplines such as systems engineering, logistics
    support, test and evaluation, risk management, system safety, human
    factors, configuration management, quality assurance, environmental
    factors, and security. If key planning elements are overlooked, the
    result will be sub-optimization of resources, cost growth, and
    schedule delay. Key stakeholders must be part of the planning
    process to ensure plans are realistic and complete. For example, if
    regional offices are to upgrade facilities or install new equipment,
    they must participate in planning so they can integrate their
    commitment to a specific program with the requirements of other
    programs and activities within their region.

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-   **Finalize investment analysis action plan.** Investment analysis
    team members resolve any remaining issues associated with the
    conduct of final investment analysis. These are recorded in the
    action plan for final investment analysis. Team members sign the
    final action plan, signifying acceptance and support by all
    participants and their parent organizations.

-   **Solicit and evaluate offers for prime contract(s)**. Requirements
    in the requirements document and work packages in the integrated
    program plan are allocated to various tasking and solicitation
    packages, as necessary to obtain the solution. Responses from
    offerors are used to finalize requirements, costs, schedules, and
    benefits in the lifecycle program baseline and tasking in the
    integrated program plan. ***Note that contract award shall not occur
    until AFTER the final investment decision even though offers are
    solicited during final investment analysis.***

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-   **Reduce risk and finalize requirements.** Working with the
    designated integrated product team or management unit, the
    investment analysis team conducts a detailed risk assessment of the
    selected alternative to identify and plan for major risks that
    threaten achievement of performance, cost, schedule, and benefit
    objectives. This includes detailed assessments of safety, security,
    and human factors. Resultant risk mitigation strategies and
    necessary resources are recorded in the final lifecycle program
    baseline and integrated program plan. Risk mitigation actions are
    monitored and updated throughout solution implementation.

-   ![](media/image5.wmf){width="0.3125984251968504in"
    height="0.2700787401574803in"}**Finalize strategy for implementation
    and lifecycle support.** The integrated product team or management
    unit conducts a strategic assessment of the proposed investment
    program to identify key assumptions, constraints,
    interrelationships, actions, and events that must occur for
    successful implementation and realization of projected value and
    benefits. It then develops a detailed implementation strategy, which
    defines how the solution will be obtained and supported over its
    lifecycle. It also identifies responsible individuals and
    organizations and defines their roles and responsibilities. The
    implementation strategy is recorded in the acquisition strategy
    paper.

-   **Develop detailed program plan.** The actions and activities
    necessary to implement the program and realize benefits are recorded
    in the integrated program plan. The integrated program plan is
    developed using the program work breakdown structure, which in turn
    is traceable to the standard FAA work breakdown structure. The
    integrated program plan must be as complete and mature as possible
    at the time of the final investment decision since the quality of
    the investment decision and the success of the program is crucially
    dependent on the adequacy of program planning. To accommodate any
    residual uncertainty, both the final lifecycle program baseline and
    integrated program plan are revalidated, and updated if necessary,
    after contract award to ensure they can continue to serve as the
    fundamental management constructs for program implementation.
    Screening information requests can and should be released and
    industry responses evaluated before final approval of the plan to
    ensure it reflects realistic program costs and schedules.

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-   **Finalize the lifecycle program baseline.** The investment analysis
    team develops the final lifecycle program baseline, which
    establishes parameters for cost, schedule, performance, and benefit
    within which the implementing organization is authorized to perform
    and against which the program is tracked. The cost baseline must
    embody *all* lifecycle costs, including resources for acquisition,
    deployment and commissioning, maintenance and repair, and lifecycle
    support. It also includes funding for removal and disposal of any
    assets being replaced by the program and restoration of vacated
    sites. The cost baseline also includes the cost of pre-planned
    product improvements, technology refreshment, telecommunications,
    buildings / power, and other costs that are part of the overall
    lifecycle management strategy. The SEOAT assesses the affordability
    of the cost baseline and reports results in the final investment
    analysis report.

-   **Prepare for the final investment decision.** The investment
    analysis team records the results of final investment analysis in
    the investment analysis report, prepares briefing materials and
    documentation, and coordinates findings and recommendations with all
    key stakeholders. The investment analysis report contains the
    affordability assessment of the SEOAT and the lifecycle program
    baseline for the selected alternative, as attachments.

**2.4.3.2 Who Does It?**

The investment analysis team plans and conducts final investment
analysis, coordinates development of planning documents and the
lifecycle program baseline, prepares the final investment analysis
report and briefing materials, and briefs key stakeholders and Joint
Resource Council members in preparation for the final investment
decision.

The integrated product team or management unit participates on the
investment analysis team, develops the acquisition strategy paper and
integrated program plan, issues solicitation packages and evaluates
responses, and conducts whatever analyses, research, modeling, or
simulation is necessary to lower risk and finalize requirements. The
sponsoring organization works with and assists the investment analysis
team in all aspects of final investment analysis. It also completes the
final requirements document and revalidates the mission need statement.

The investment analysis organization leads complex, high-value
investment analyses and supports integrated product teams and management
units in the conduct of any smaller, low-risk analyses directed by the
Joint Resources Council or Acquisition Executive. The investment
analysis organization also develops and sustains standard investment
analysis tools and techniques.

Key stakeholders work on and assist the investment analysis team in all
aspects of final investment analysis, particularly risk management and
human factors. They also commit formally in the final investment
analysis decision record and acquisition strategy paper what each will
do to support the investment program throughout solution implementation
and in-service management to achieve the value and benefits projected in
the lifecycle program baseline.

The SEOAT performs the final affordability assessment.

**2.4.3.3 Outputs / Products**

The principle output of final investment analysis is detailed program
planning for the alternative selected for implementation and a final
lifecycle program baseline for variance tracking. Also critical are the
agreements documented in the final investment analysis decision record
and acquisition strategy paper concerning what each key stakeholder
organization will do to realize value and benefits projected for the
investment program. The following required products contribute to and
record these outputs:

-   Final requirements document.

-   Revalidated mission need statement

-   Final lifecycle program baseline

-   Final acquisition strategy paper.

-   Integrated program plan (including risk management planning).

-   Screening information request(s) for prime contract(s).

-   Final investment analysis report.

-   Tailored ISR Checklist.

**2.4.3.4 Who Approves?**

The Director, Investment Analysis staff, approves the final investment
analysis report and certifies that methodology and results are
consistent with agency standards. The Associate Administrator of the
sponsoring organization approves the final requirements document and
revalidates the mission need statement. As applicable, the Strategic
Support Group, Integrated Management Team, or equivalent Directors of
the operating and performing organizations approve the acquisition
strategy paper and integrated program plan. The Acquisition Executive
and the Associate Administrator of the sponsoring organization approve
the final lifecycle program baseline.

# 2.4.4 Final Investment Decision -- JRC 2b

The final investment decision determines whether a program is approved
for implementation based on cost, risk, alignment with the NAS
Architecture, affordability, and value / benefit to the agency and
aviation community. It also defines what each organization will do to
implement the solution and achieve the value and benefits projected in
the lifecycle program baseline. Decisions are recorded in the final
investment decision of record. Organizational responsibilities are
recorded in the acquisition strategy paper and tracked at all future
program reviews. The Acquisition Execution is the chairperson of the
Joint Resources Council chairperson at the final investment decision.

# 2.4.4.1 Entrance Criteria

The following are required at the final investment decision:

-   Final requirements document.

-   Final investment analysis report.

-   Final lifecycle program baseline.

-   Final Acquisition strategy paper.

-   Integrated program plan

**2.4.4.2 Joint Resources Council Actions**

The Joint Resources Council approves, disapproves, or modifies the
recommendations in the investment analysis package. If the Joint
Resources Council disapproves the recommendations, it returns the
investment package with specific instructions for further work or
terminates the effort. If the Joint Resources Council accepts the
investment analysis recommendations, it:

-   Approves the investment program for implementation and verifies
    delegation to the appropriate integrated product team or management
    unit.

-   Approves the lifecycle program baseline for program execution and
    variance tracking.

-   Commits the agency to full lifecycle funding, as specified in the
    lifecycle program baseline.

-   Ratifies and baselines the requirements document.

-   Identifies future corporate decisions and levels of delegation.

-   Approves adjustments to agency plans and budgets to reflect the
    investment decision.

-   Designates the in-service decision authority.

-   Ratifies the acquisition strategy paper and integrated program plan.

**[(add the following definition to Appendix C)]{.mark}**

Management Units. Management units are accountable and responsible for
delivering assigned services, as specified by and within the resources
provided by the Joint Resources Council. Management units range from
business units delivering service to a physical domain such as the
terminal area, to product teams responsible for specific systems or
facilities, to organizational units providing administrative,
management, or technical support. Management units may deliver services
directly to a customer, such as flight planning for general aviation, or
to other management units that deliver end services to a customer, for
example, telecommunications or power generators. Together, management
units span the spectrum of agency activity and responsibility.