Origins of the Milestone acquisition process

One of the foundations of the defense acquisition system is the DoD Directive 5000.1, which defines how military systems progress from an idea to production. It adopts the “stage-gate” method of innovations where decisions can be delegated to program managers in chunks, but imagines a completely “linear” evolution of a program without feedback or rework.

First, a new program concept gets formulated. Then it reaches Milestone A, which initiates prototyping and risk reduction. Milestone B is often the “big” milestone which initiates Engineering and Manufacturing Design and where programs often receive their formal cost-schedule-technical baseline. When a program reaches Milestone B it its future it virtually assured, except boondoggles that result in cancellation. And finally, Milestone C initiates production.

Usually the Milestone process is attributed the reforms of Melvin Laird and David Packard in the 1969-1972 period. This came along with a retreat of OSD micromanagement of the service programs. But in fact this Milestone process largely existed in the Robert McNamara years. DoD Instruction 3200.6, the Research and Development Cycle, was released on June 7, 1962. An image of that instruction is below.

Figure depicting the DODI 3200.6 R&D cycle, dated June 7, 1962. The McNamara innovation process was largely retained by Laird and Packard. Reproduced from Martin Meyerson’s 1967 article, “Price of Admission into the Defense Business.”

Rather than “milestones” it defines three “key decision points.” Perhaps the major change in this respect is Milestone A, which converted from largely a paper exercise for contract definition into one that focused more on physical prototypes (this is when “fly-before-you-buy” became big).

OK so the Laird/Packard years after McNamara weren’t so innovative after all. The paper documentation that initiated the Milestone process was also borrowed from the previous administration. Called the Development Concept Paper, it was a 20-page-or-less document to start a program. But the DCP actually started in 1967.

What did Laird and Packard actually accomplish? First, the emphasis on prototyping rather than paper documentation after Milestone A. Second, the Defense Acquisition Board and the organizational structure of milestone decisions was created and delegated mostly to the services. And third, they delegated the formulation of the President’s Budget request to the services and JCS, the first time since PPBS was installed in 1961 (“participatory management”). I think all of these changes have been lasting.