Chapter 8 - Synthetic Environments

What is this Chapter about?

This Chapter provides a brief introduction to synthetic environments (SE), and identifies the main contractual issues arising from their creation and use that must be addressed to prevent later problems, particularly where assets or output are to be re-used.

Key Points

· An SE may be a contract deliverable, or a tool used to enable the
performance of a contract. The SE might evolve or be required to evolve
within a contract use and may be archived or dismantled after use;
· SEs are generally collaborative in nature. Contributions may be physical
and/or intellectual. Contributors must understand both their rights and
obligations. Their contributions must be protected;
· The SE produced from those contributions has an identity in its own
right. The owner of the SE, its stakeholders, and its users, must
understand their rights and obligations in respect of the complete SE
and the outputs arising from its use;
· MOD policy requires economy of provision of SEs through re-use of
assets. Commercial arrangements must facilitate the re-use of extant
assets in a new SE, the re-use of new assets or the new SE in later SEs
or by other users, and the adoption of relevant standards;
· Though invariably computer/network-centric, an SE may incorporate
human and equipment components;
· Participants are contributors to the creation of the SE, and/or users of the SE. They may be drawn from MOD (including the Services), Industry (including Prime Contractors, their sub-contractors, service providers and consultants,) and Academia;
· Collaborative working or use of an SE must not prejudice MOD’s ability to conduct related competitive tendering at a later date.

The Detail

Equipment or service?

Permanent SE may be delivered as equipments within an Equipment Plan, or 'owned' by a (typically training) service provider under a PPP/PFI arrangement. Commercial arrangements need to reflect the product or service nature of the contract deliverable.

SE vs SWE

Although there is a strong synergy between SE and SWE, it is possible (currently typical) to have one without the other. Commercial arrangements for each are usually best partitioned, since the SE and SWE are likely to have their own separate evolutionary paths because of the different ways in which they support project activity. Additionally, the competencies needed to deliver an SE different from those needed to deliver an SWE, so it is improbable that one Industrial supplier could act as a prime/integrator for both the SE and SWE save where that Industrial supplier is the chosen prime contractor for the equipment project.

Component contributions

Components might physically be such as a digital data-set or executable software, physical mock-ups/prototypes, real equipments, human operators/commanders or substitutes, facilities and IT/communications infrastructure, and/or combinations thereof such as connection into existing simulators etc.

They might be from, and to, Industry, Academia, MOD, an MOD Agency, or the Army/Navy/Airforce.

They might be on loan, hired or sold, temporarily or permanently.

Background IPR

SE component integration can unavoidably expose one contributor's Intellectual Property (IP) to others. Contributors will require protection of their Intellectual Property Rights (IPR) in their contributions to an SE.

Foreground IPR

Unlike an SWE, where the “virtual filing cabinet” and its contents retain their original identities, integrating SE components creates a new single entity with its own properties. Care must be taken to establish IPR for the integrated SE, and for the data knowledge and understanding generated through its use.

Competition

It may be desirable to establish a single (or duplicated) SE as a 'level playing field' for competitors in the Concept, Assessment and Demonstration phases of an acquisition. Particular care must be taken to ensure that confidentiality and competitive positions are not compromised in any way, and that the SE is fit for use with all options under consideration.

'Tools of the trade'

A temporary SE would not normally be the main subject of a contract, but might be a required or desired feature of working within a Study or Equipment Development & Manufacture contract. An SE might need to evolve within the conduct of the parent activity.

Liability

Currently it is not possible to accredit SE components for general use within a safe operating envelope across SEs. This is because of the liability borne by an Industrial supplier (or accepted by a customer) for the fitness-for-purpose of the Industrial suppliers contribution to an SE, and the customer’s use of it, particularly where the SE evolves beyond its start condition, or where the contribution is retained for re-use in a later SE. Whilst military equipments are delivered with an accreditation for safe use within a defined operating envelope, no equivalent device currently exists for SE components. Therefore, limitations of use, and associated liability, must be determined for each component, and for each SE as a whole.

Re-use and Disposal

Attention must be given to the fate of a temporary SE and its components on completion of work, under for example a study contract. Is it to be retained or re-create-able for later re-use?

Equipment contracts

The balance of probability is that most equipments will at some time be required to be emulated in an SE or SEs. The equipment acquisition contract should address provision for delivery of emulations of the equipment into permanent or temporary SEs. This is particularly important where an operational support/training SE is to be produced by parties other than the equipment OEM.

Collaborative working

An SE affords the opportunity for customer, supplier and others such as the ultimate user to beneficially work together in open forum, to jointly/concurrently create data, knowledge and understanding. This is particularly relevant when exploring the human/system interface, methods of deployment and use, capability/cost/time-scale trade-offs, and risk mitigation.

Alternatively a single SE might be shared by more than one team where interoperability is an issue, with each taking turn to support the use by others.

Collaborative working is not necessarily SE-dependent.

Contractual Aspects

Contractual arrangements need to reflect the component contributions, IPR issues, and collaborative working associated with SEs. When working in open forum on a ‘shared data’ basis the contract may need to be supported by such as a ‘Code of Conduct’, ‘Rules of Engagement’ or similar. In addition Classified Information and Commercial Confidentiality need to be addressed during contract negotiation.

Summary

Synthetic Environments can be realised in many different forms and under various commercial arrangements. They raise issues concerning both the pooling of resources and collaborative working. Every SE should be treated as contractually unique and particular care should be taken to ensure that all the issues identified above have been addressed to prevent future problems.

Who should I contact to find out more?

Peter Farmer, Procurement Development Group, MOD
Tel: (0117) 913 4144
e-Mail: PDGPM3b@dpa.mod.uk

The joint MOD/Industry Commercial Policy Group e-Business Working Group is addressing the development of standard terms and conditions of contract for SEs. Further information is available from:
Denise Savage, Principal Directorate Commercial, DLO
Tel: (01225) 68470
e-Mail: pdc-comm@a.dii.mod.uk

Are there any background documents?

The 'Modelling, Simulation & Synthetic Environments' topic in the Acquisition Management System, on the Internet at; www.ams.mod.uk

[Interim commercial guidance on the application of SEs is due to be published in October 2002.]