Working with the government on any project, naturally, poses unique challenges to commercial business developers. But after closely working with the U.S. Air Force for eight months, executives at TRW Inc. [TRW] have come away with significant lessons learned while achieving project success.The Space-Based Infrared System Low (SBIRS Low) TRW team recently completed the first milestone, known as Requirements Review 1, in the $275 million program definition risk reduction contract for the low-Earth-orbiting component of the nation’s next-generation early missile warning system.Patrick Caruana, SBRIS Low vice president and program manager with TRW’s Space & Electronics Group now is moving his team forward to meet the second milestone scheduled for late summer. Caruana spoke with SPACE BUSINESS NEWS Editor Nick Mitsis and relayed the challenges and successes TRW has experienced working with the government. Here is what he had to say:

SBN: What was the most significant lesson learned in completing phase one?

Patrick Caruana: I think the biggest lesson we learned was how detailed we need to be in order to be able to cover the full spectrum of requirements that all the agencies and government services require. We learned we need to have a clear understanding not just from the contract perspective but also from the user. For example, we focused on the national missile defense as one of the many key performance parameters. Just knowing what the basic requirements are is not sufficient. You really have to understand what the implications are of fulfilling the requirement and the military utility as well as all the other specifications associated with this part of the program. It was not a surprise, but it gives us good insight into what we need to do in this next round when we go into the next phase of requirement reviews.

SBN: What specific things is your team doing to make phase two successful?

Caruana: We will do the same level of detail analysis on this phase as we did in phase one. In addition, we will use more refined processes within the prepared program. We have been in a series of engagements with the government, as has our competition, in reviewing the cleanup work from the first requirements review and also are engaging in a series of meetings to clearly understand what the new requirements are and how we can satisfy them. In the first phase, we had done preliminary assessments of what kind of requirement satisfaction we could have reached using the architecture we developed. The next phase looks at the balance of the requirements set and includes battle space characterization and technical intelligence.

SBN: Which new requirement seems to be most challenging?

Caruana: It is hard to nail down just one. We look at the requirements to determine the stress that it will put on the design of a system from either a performance or a cost perspective. And then we do a series of trades around those requirements and present them to the government with the ability for them to trade out and prioritize.

SBN: Has the relationship-building process between the commercial and military sectors gotten easier over time?

Caruana: Well, five years ago, I was on the other side of the table working for the military. I think this program has some unique challenges to it and because of this complexity, it has placed a heavy burden on the part of the government to make sure they do it right. And in that regard, we are seeing a high level of performance from our customer.

SBN: What perspective are you gaining now that you are on the commercial side when it comes to working with the military?

Caruana: There are some insights now that I wish I had when I was on the other side. You can be a far better customer when you understand what you are asking those working for you to do. In that regard, that is the greatest insight I have. Now, there is a very concerted effort on the part of the government to really try and understand things that are happening in industry. Likewise, the government now is making strides in allowing commercial latitude, where appropriate, for industry to provide the best product possible.

SBN: How much latitude is given to the commercial sector?

Caruana: I think there is a lot of flexibility on the side of the government. Within the trades of the contract, the government gave us much latitude. In the case of the architectural options, for example, we can possibly provide three. Given where we are in the program, we are still looking at a fairly wide trade space until we get to the requirements definition phase. Then once that happens, things by necessity begin to narrow. Once you go into the design phase, you can’t have the requirements phase begin to float again.

SBN: What would be the best management advise you could give to a team manager who is faced with balancing both military and commercial interests?

Caruana: There are a few things. First of all, provide good, consistent direction with as much motivation as to why you are asking people to do the things the way you are. Second, make sure adequate resources are provided so that folks don’t feel like they don’t have the what they need to get the job done. Third, give them the latitude to perform to the completeness of their capabilities.

SBN: One industry complaint is that the government and private sector work off of different clocks. Do you find that to be true?

Caruana: We are not experiencing that. As we open up options and provide feedback to the government, it gives them better insight into the process. We have daily contact with our liaison for keeping information flowing in a proprietary sense and keeping the project on track.

SBN: What are some of your significant worries as you move forward?

Caruana: This is a fixed-price contract, so I really have to make sure I can meet all my customer requirements within budget. Requirement stability as we move toward the design phase is also something that we really need to have happen. I think those are the two biggest initial concerns we have right now.

SBN: How do you modify original plans while maintaining quality within budget constraints?

Caruana: You really have to start out with a very detailed plan. You have to have a going-in detailed agenda so that when you have to make a deviation or a resource reprioritization, you look at your plan and see what element can be deferred or not be done while meeting the requirements. This is a continuous effort done on a weekly basis.