######### EXECUTIVE SUMMARY {#executive-summary .unnumbered}

The Secretary of Defense introduced the concept of Electronic Business
(EB) in his Defense Reform Initiative Report (DRIR) of November 1997.
This report stated that "a full commitment to electronic business
operations will not only result in tangible savings, but will also
change the DoD's business culture, forcing managers to think differently
and act more efficiently."

This emphasis on EB permits the Department to advance the concept of
electronic commerce (EC) beyond the traditional perceptions of
purchasing and paying using standard transaction sets. The concept of
electronic business advances our thinking and opportunities to include
the relationships between a consumer and supplier and take advantage of
the significant process improvement and reengineering opportunities
available through the implementation of EB/EC concepts and technologies.
This further permits expanding functional applications beyond supply,
procurement and accounting to enabling process improvements in other
functional areas such as health, personnel, systems acquisition and
science and technology.

To provide leadership and operational direction, the Deputy Secretary of
Defense released Department of Defense Reform Initiative Directive #43 -
Defense-wide Electronic Commerce. This DRID established a DoD Joint
Electronic Commerce Program (JECP) which will further the exchange of
information critical to both the warfighter and supporting business
processes of the Department. The DoD Chief Information Officer (CIO) was
given the responsibility and authority to provide leadership, EC policy
and JECP direction to the Department. The CIO immediately formulated a
DoD team, comprised of OSD Principal Staff Assistants (PSAs) and DoD
Component representatives, which set about formulating this DoD EB/EC
Strategic Plan. The Plan sets forth the DoD EB/EC vision and establishes
goals, objectives, and associated strategies. This will permit DoD to
move out smartly and take advantage of EB/EC best practices and
initiatives occurring within and among the Federal community and its
business partners. To move this plan into operation, the DoD CIO has
established an EC Office on the CIO staff which will provide EB/EC focus
as well as provide policy, oversight, and plan tracking. Further, a
Joint Electronic Commerce Program Office (JECPO) has been established
under the direction of the CIO. The JECPO will be responsible to provide
the OSD PSAs and DoD Components with common user EB/EC services and
operations.

The DoD EB/EC Strategic Plan has been designed to track the planning
horizons of Joint Vision 2010 as well as comply with such statutory
requirements as the Government Performance and Results Act and
Clinger-Cohen Act. In addition, the national precepts of *Access
America* and the President's Management Council have been incorporated
in developing the plan structure, goals and objectives.

The plan is composed of seven sections that provide an introduction to
EB/EC; planning horizons; strategic vision; guiding principles; goals
and objectives; strategies and milestones; and lastly management
structures and processes. Appended to the plan is the DoD Purchasing and
Paying Strategic Plan required by OMB Memorandum and summaries of many
OSD PSA functional EB/EC plans.

The DoD EB/EC Strategic Plan sets forth three goals which have been
carefully crafted to meet the EB/EC Vision. That vision is "an
enterprise-wide electronic environment will exist where best business
practices and enabling technologies are used to facilitate the most
efficient exchange of the full range of business information resulting
in streamlined and rapid response to the warfighter and supporting
Defense Missions". The EB/EC goals have been strategically formulated to
enable the Department to fulfill this mission and to:

1.  Achieve global flexibility, increased productivity, and a dynamic
    working environment through the application of EB/EC.

2.  Achieve efficient and effective responses to changing environments
    by the rapid introduction of business process improvements or
    reengineering and the exploitation of EB/EC technologies.

3.  Achieve cultural changes and shifts from current business practices
    through guidance and the attainment of necessary skills for
    implementation of EB/EC.

The Plan development process revealed a high level of consensus on the
need for such a plan as well as support for the underlying goals and
objectives. During 1999 the strategies contained in the plan will be
linked to new and ongoing initiatives with associated milestones being
developed and tracked. During 1999 each of the Military Departments
intend to update their existing EB/EC Plans to reflect the basic
principles of this Plan and provide support to the overall DoD EB/EC
vision, goals, objectives and strategies.

Administrative Notes

An electronic copy of this DoD Electronic Commerce/Electronic Business
Strategic Plan may be found at the Assistant Secretary of Defense for
Command, Control, Communications, and Intelligence (ASD (C3I)) website,
documents section. The URL is: <http://www.c3i.osd.mil/doc/index.html>

Please provide comments and recommendations for future updates to this
strategic plan to:

+-----------------------------------+-----------------------------------+
| Ms Dee Ann Sullivan               | CALIBRE Systems, Inc.             |
|                                   |                                   |
| Information Policy Directorate    | Attn: Mr. Harry Pontius or Mr.    |
|                                   | Tom Russell                       |
| Office of the DoD Deputy Chief    |                                   |
| Information Officer               | 5111 Leesburg Pike, Suite 514     |
|                                   |                                   |
| 1225 Jefferson Davis Highway,     | Falls Church, VA 22041            |
| Suite 910                         |                                   |
|                                   |                                   |
| Arlington, VA 22202-4301          |                                   |
+-----------------------------------+-----------------------------------+
| Tel: (703) 604-1585               | Tel: (703) 845-1000               |
|                                   |                                   |
| E-mail:                           | E-mail: <hpontius@calibresys.com> |
| <DeeAnn.Sullivan@osd.pentagon.mi> |                                   |
|                                   | [trussell@calibresys.com          |
|                                   | ](mailto:Trussell@calibresys.com) |
+-----------------------------------+-----------------------------------+

#########  {#section .unnumbered}

######### TABLE OF CONTENTS {#table-of-contents .unnumbered}

EXECUTIVE SUMMARY [1](#__RefHeading___Toc450098999)

TABLE OF CONTENTS [v](#__RefHeading___Toc450099000)

1.0 INTRODUCTION [1](#__RefHeading___Toc450099001)

1.1. Purpose [1](#__RefHeading___Toc450099002)

1.2. EB/EC Definition, Background, and References
[1](#__RefHeading___Toc450099003)

1.2.1. Definition [1](#__RefHeading___Toc450099004)

1.2.2. Background [2](#__RefHeading___Toc450099005)

1.2.3. References [2](#__RefHeading___Toc450099006)

1.3. Scope [3](#__RefHeading___Toc450099007)

1.4. Responsibilities [4](#__RefHeading___Toc450099008)

2.0 PLANNING HORIZONS [6](#__RefHeading___Toc450099009)

2.1. Future Versions [6](#__RefHeading___Toc450099010)

2.2. Planning Guidelines [6](#__RefHeading___Toc450099011)

3.0 DoD EB/EC STRATEGIC VISION [8](#__RefHeading___Toc450099012)

4.0 DoD EB/EC GUIDING PRINCIPLES [10](#__RefHeading___Toc450099013)

5.0 GOALS AND OBJECTIVES [11](#__RefHeading___Toc450099014)

5.1. General [11](#__RefHeading___Toc450099015)

5.2. EB/EC Strategic Goals [11](#__RefHeading___Toc450099016)

5.3. EB/EC Objectives [13](#__RefHeading___Toc450099017)

6.0 STRATEGIES AND MILESTONES [15](#__RefHeading___Toc450099018)

6.1. Strategies [15](#__RefHeading___Toc450099019)

6.2. Milestones [20](#__RefHeading___Toc450099020)

7.0 MANAGEMENT STRUCTURES AND PROCESSES
[23](#__RefHeading___Toc450099021)

7.1. Integration and Coordination [23](#__RefHeading___Toc450099022)

7.2. DoD Sponsored Standards Groups [24](#__RefHeading___Toc450099023)

7.3. DoD Participation in Initiatives and Groups Outside the Department
[24](#__RefHeading___Toc450099024)

7.3.1. DoD Participation Within the Federal EB/EC Arena.
[25](#__RefHeading___Toc450099025)

7.3.2. Industry/Private Sector Groups [27](#__RefHeading___Toc450099026)

7.4. Implementation [29](#__RefHeading___Toc450099027)

7.5. Responsibility and Coordination [29](#__RefHeading___Toc450099028)

Appendix A: DoD EC Report on Federal Purchasing and Payment
[A-1](#__RefHeading___Toc450099029)

A.1. Summary [A-1](#__RefHeading___Toc450099030)

A.2. Background [A-2](#__RefHeading___Toc450099031)

A.2.1. EC Activities in FY 1998 [A-2](#__RefHeading___Toc450099032)

A.2.2. Implementation of the Federal Government's Strategic Planning for
EC Activities [A-2](#__RefHeading___Toc450099033)

A.3. DoD FY 1998 EC Activities for Purchasing and Payment
[A-2](#__RefHeading___Toc450099034)

A.3.1. Efforts Undertaken in FY 1998 to Employ EC to Improve Purchasing
and Payment Functions [A-2](#__RefHeading___Toc450099035)

A.4. DoD EC Implementation Plans for FY 1999 and FY 2000
[A-10](#__RefHeading___Toc450099036)

A.4.1. Major Initiatives [A-11](#__RefHeading___Toc450099037)

A.4.2. Milestones and measures [A-18](#__RefHeading___Toc450099038)

A.4.3. Management Structures and Processes
[A-20](#__RefHeading___Toc450099039)

Appendix B: Functional EB/EC Plans [B-1](#__RefHeading___Toc450099040)

B.1. Appendix B, TAB 1: USD (A&T) [B-2](#__RefHeading___Toc450099041)

B.1.1. Annex I: Economic Security [B-2](#__RefHeading___Toc450099042)

B.1.2. Annex II: Environmental Security
[B-2](#__RefHeading___Toc450099043)

B.1.3. Annex III: Logistics EB/EC Initiative -- Adoption of Commercial
Data Exchange Standards [B-3](#__RefHeading___Toc450099044)

B.1.4. Annex IV: Procurement/Contract Administration
[B-5](#__RefHeading___Toc450099045)

B.1.5. Annex V: Science and Technology
[B-6](#__RefHeading___Toc450099046)

B.1.6. Annex VI: Acquisition Mgmt [B-14](#__RefHeading___Toc450099047)

B.1.7. Annex VII: Digital Environment for Acquisition Programs (Systems
Acquisition) [B-14](#__RefHeading___Toc450099048)

B.2. Appendix B, TAB 2: USD (Policy)
[B-16](#__RefHeading___Toc450099049)

B.2.1. The OUSD (P) Automated Information Resource Management and
Electronic Commerce Planning Process
[B-16](#__RefHeading___Toc450099050)

B.2.2. The OUSD (P) Guidance and Environment
[B-16](#__RefHeading___Toc450099051)

B.2.3. OUSD (P) Functional Activities:
[B-19](#__RefHeading___Toc450099052)

B.2.4. OUSD (P) Networks and Facilities
[B-20](#__RefHeading___Toc450099053)

B.3. Appendix B, TAB 3: USD (Comptroller): Finance
[B-32](#__RefHeading___Toc450099054)

B.3.1. Office of the Under Secretary of Defense (Comptroller) Input to
DoD Electronic Commerce (EC) Strategic Plan
[B-32](#__RefHeading___Toc450099055)

B.4. Appendix B, TAB 4: USD (P&R) [B-36](#__RefHeading___Toc450099056)

B.4.1. Annex I: Civilian Personnel [B-36](#__RefHeading___Toc450099057)

B.4.2. Annex II: USD (P&R) Health Affairs
[B-39](#__RefHeading___Toc450099058)

B.4.3. Annex III: Military Personnel and Readiness
[B-47](#__RefHeading___Toc450099059)

B.4.4. Annex IV: Reserve Affairs [B-50](#__RefHeading___Toc450099060)

B.5. Appendix B, Tab 5: OASD (C3I): Information Management
[B-54](#__RefHeading___Toc450099061)

B.6. Appendix B, Tab 6: DOT&E, Test and Evaluation
[B-62](#__RefHeading___Toc450099062)

B.7. Appendix B, Tab 7: DoD Inspector General
[B-63](#__RefHeading___Toc450099063)

B.8. Appendix B, Tab 8: Office of the General Counsel (OGC)
[B-65](#__RefHeading___Toc450099064)

Appendix C: DoD Participation in Groups and Initiatives Outside the
Department [C-1](#__RefHeading___Toc450099065)

C.1. Agency Participation Within the Federal Arena
[C-1](#__RefHeading___Toc450099066)

C.2. Industry/Private Sector Groups. [C-3](#__RefHeading___Toc450099067)

Appendix D: EB/EC Guidance and Policy Memorandum
[D-1](#__RefHeading___Toc450099068)

Appendix E: EB/EC Strategic Planning and Performance Guidelines
[E-1](#__RefHeading___Toc450099069)

E.1. Introduction [E-1](#__RefHeading___Toc450099070)

E.2. Planning Guidelines [E-1](#__RefHeading___Toc450099071)

E.2.1. Build on Current Programs and Capabilities
[E-1](#__RefHeading___Toc450099072)

E.2.2. Maintain Current Program and Operations Assessments
[E-1](#__RefHeading___Toc450099073)

E.2.3. Move to Product/Service/Performance Based Structures
[E-1](#__RefHeading___Toc450099074)

E.2.4. Help People Adapt [E-2](#__RefHeading___Toc450099075)

E.2.5. Promote Senior Management Involvement
[E-2](#__RefHeading___Toc450099076)

E.2.6. Couple Mid-Term and Long-Term Goals with Near-Term Actions
[E-2](#__RefHeading___Toc450099077)

E.3. Performance Guidelines [E-2](#__RefHeading___Toc450099078)

E.3.1. Link to Strategic Planning [E-2](#__RefHeading___Toc450099079)

E.3.2. Engage Stakeholders [E-2](#__RefHeading___Toc450099080)

E.3.3. Empower the Field [E-3](#__RefHeading___Toc450099081)

E.3.4. Measure Outcomes Wherever Possible
[E-3](#__RefHeading___Toc450099082)

E.3.5. Focus on Achievement [E-3](#__RefHeading___Toc450099083)

E.3.6. Find Trend Indicators [E-3](#__RefHeading___Toc450099084)

E.3.7. Use widely accepted methods [E-3](#__RefHeading___Toc450099085)

E.3.8. Make the "Business Case" for Each Measure
[E-4](#__RefHeading___Toc450099086)

Appendix F: The DoD EB/EC Strategic Planning Team
[F-1](#__RefHeading___Toc450099087)

F.1. OSD and Component Representatives
[F-1](#__RefHeading___Toc450099088)

F.2. DoD and Component Participants [F-3](#__RefHeading___Toc450099089)

F.3. Previous Participants [F-5](#__RefHeading___Toc450099090)

Appendix G: References [G-1](#__RefHeading___Toc450099091)

Appendix H: Acronyms [H-1](#__RefHeading___Toc450099092)

Appendix I: JECPO Charter [I-1](#__RefHeading___Toc450099093)

# INTRODUCTION {#introduction .unnumbered}

## Purpose  {#purpose .unnumbered}

This Department of Defense (DoD) Electronic Business/Electronic Commerce
(EB/EC) Strategic Plan identifies the DoD EB/EC vision and provides
strategic guidance on how to achieve it. Through a cohesive set of
guiding principles, goals, objectives, and strategies, this plan
establishes an overall and unifying direction to the multi-faceted DoD
Joint Electronic Commerce Program (JECP) initiative. The JECP permits
the exchange of information critical to the warfighter as well as to the
business processes of the Department.

The details within this plan provide a roadmap for the JECP initiative
to help ensure process improvements across the enterprise and acquire
and transfer best business practices throughout the Department. They
also provide for the identification and efficient and effective use of
EB/EC technologies to support the warfighter. Execution of this plan
requires leadership and a commitment to achieving our common goals
throughout the DoD Components (i.e., Principal Staff Assistants (PSAs),
Military Departments, and Defense Agencies). Our warfighting and support
elements will see even greater improvements as the EB/EC strategic and
working-level partnerships and communities grow stronger. This first DoD
EB/EC Strategic Plan establishes the fundamental vision, goals,
objectives, and strategies to enable DoD to become a world-class
acquirer, user, and manager of EB/EC.

## EB/EC Definition, Background, and References  {#ebec-definition-background-and-references .unnumbered}

### Definition {#definition .unnumbered}

EB/EC is defined as:

> The interchange and processing of information via electronic
> techniques for accomplishing transactions based upon the application
> of commercial standards and practices. Further, an integral part of
> implementing EB/EC is the application of business process improvement
> or reengineering to streamline business processes prior to the
> incorporation of technologies facilitating the electronic exchange of
> business information.

This definition is not intended to limit the types of electronic
technologies deployed to enable execution of improved functional
business processes. The "commercial standards and practices" referenced
in the definition are the accepted national and international standards
for the functional process (e.g., HL7, ANSI, etc.).

Heretofore, DoD focus on EC has been limited primarily to
acquisition-centric transactions. This limited scope has precluded the
Department from taking full advantage of the significant process
improvement and reengineering opportunities available through the
implementation of EB/EC concepts and technologies. Business process
improvement or reengineering in this application does not mandate a
"clean slate" Business Process Reengineering (BPR). Rather, it advocates
the application of BPR techniques to achieve incremental positive
changes in EB/EC processes.

By this definition, EB/EC within DoD must now be thought of in a
significantly larger perspective, which will permit support of all DoD
functions, such as logistics, health affairs, and personnel. Within DoD,
this larger scope has been referred to as electronic business operations
(EBO)---a term synonymous with EB/EC.

### Background {#background .unnumbered}

The Department is undergoing a Revolution in Business Affairs, as a
result of which, emphasis is being placed on comprehensive reviews of
the DoD combat support infrastructure, streamlining business practices,
improving acquisition processes, integrating financial and accounting
information, and reaping the resulting qualitative and quantitative
benefits. These benefits include efficient and timely access to secure,
reliable data, reduced cycle time for business information, streamlined
overhead, and enhanced cross-functional integration or elimination of
legacy systems. This DoD EB/EC Strategic Plan sets forth the summary
level direction the Department must take in order to obtain a seamless
flow of electronic business-to-business transactions and achieve
increased efficiencies.

DoD continually searches for better ways to employ scarce resources in
order to meet fully its operational mission requirements. DoD business
streamlining and cost-cutting initiatives have the potential of reducing
indirect business costs, which can then be used to meet warfighter
mission requirements. However, DoD is faced with a very complex and
interdependent business environment that makes successful implementation
of streamlining and cost-cutting efforts across the enterprise
difficult. The Department fully recognizes this problem, but remains
committed to driving down support costs. To that end, DoD has been
aggressively pursuing EB/EC targets of opportunity throughout the
defense infrastructure. The Department recognizes EB/EC concepts and
technologies are the leveraging tools needed to accomplish requisite
infrastructure savings DoD-wide. EB/EC will allow for the creation of an
electronic, interoperable environment focusing on true process
improvement thereby achieving those savings.

### References {#references .unnumbered}

This strategic plan has been carefully constructed to be consistent with
Presidential and the Office of Management and Budget (OMB) direction, as
well as with DoD related Federal statutory requirements. These
requirements include the strategic plan requirement of the Government
Performance and Results Act (GPRA), the Clinger-Cohen Act (formerly
called the Information Technology Management Reform Act (ITMRA)), and
OMB implementing bulletins and memoranda. Additionally, the national
precepts of *Access America*, the National Partnership for the
Reinvention of Government, President's Management Council's (PMC)
Electronic Processes Initiatives Committee (EPIC), Global Framework of
Electronic Commerce, and the Government Paperwork Elimination Act (GPEA)
have been incorporated. DoD directives include Joint Vision 2010, the
Quadrennial Defense Review (QDR) and the Defense Reform Initiative
Report (DRIR). Many of the Federal documents may be found on the World
Wide Web at [http://ec.fed.gov](http://ec.fed.gov/).

Special attention has been given to the electronic business concepts
outlined in Chapter 1 of the DRIR that deals with the concepts of
contract administration and finance; commercial credit cards and \"Smart
Cards"; Internet-based commerce and paper-free weapons systems support;
and prime vendor contracting. Specifically, this DoD EB/EC strategy
addresses the concept of EBO, including both the elements addressed in
the DRIR and a broader view, which incorporates the exchange of
information across virtually all DoD internal and external boundaries
for the purpose of accomplishing the Department's missions. Execution of
this strategy further assists DoD in implementing selected requirements
of the Federal Acquisition Streamlining Act (FASA) and Prompt
Payment/Debt Collection Act of 1996. At the heart of all of these
initiatives are cost cutting efforts to reduce the paper dependence of
business processes through an increase in the application of EBO and
expediting the use of electronic business-to-business transactions using
commercial standards and solutions. To foster the increased application
of EB/EC across the Department, DoD senior leadership has initiated the
JECP.

The Deputy Secretary of Defense (DepSecDef) has published a series of
Defense Reform Initiative Directives (DRIDs) which support and amplify
the DRIR. On 20 May 1998, the DepSecDef signed DRID #43 -- Defense-wide
Electronic Commerce. This DRID directed the establishment of a JECP
under the policy direction of the DoD Chief Information Officer (CIO).
The assignment of EB/EC responsibilities to the DoD CIO establishes a
focal point, whose goal is to promote EB/EC to complement business
process changes throughout the functional areas of the Department. The
DRID also established an office, the Joint Electronic Commerce Program
Office (JECPO) as the DoD executive agent to assist in the execution and
implementation of the JECP in support of the DoD PSAs and Components.

This DoD EB/EC Strategic Plan supports both the SECDEF management and
Defense reform initiatives, and integrates the CIO, Corporate Financial
Officer (CFO), and Defense Acquisition Executive (DAE) initiatives.
Acquisition reform-related elements of the working strategy permit more
effective movements toward paperless acquisition and a seamless and
adequately secure electronic face to industry, as well as provide a
model for integration of financial information. The application of EB/EC
principles, discussed in more detail later, will permit concentration on
business-to-business interfaces. That concentration will, in turn,
permit the adaptation of commercial best practices, integration of
systems and databases, insertion of commercial off-the-shelf (COTS)
products, and commercial standards, and the implementation of both
information assurity and security within DoD and between its trading
partners.

## Scope  {#scope .unnumbered}

The scope of this strategic plan is very broad and provides wide-ranging
direction and guidance for all DoD EB/EC, across the entire spectrum of
EBO. That spectrum includes both relationships within the Department as
well as those relationships with the rest of the Governmental EB/EC
community and with the private sector. In this sense, EBO refer to DoD
business functions such as acquisition, budget, health affairs,
logistics, paying processes, personnel, procurement, and programming in
all functional areas. The Defense electronic business-to-business
transactions environment consists of inter- and intra-component and
agency business functions and units that together make up the DoD
enterprise, and the infrastructure and processes that connect them
internally as well as with their external trading partners. These
external trading partners include other government agencies, allies, and
commercial buyers and sellers. Most EB/EC technologies and standards are
beyond DoD\'s sphere of significant influence, but the DoD CIO has
overall responsibility for the coordination of all EB/EC initiatives
across the Department. Clearly DoD EB/EC guidance will adhere to
accepted national and international standards for applicable
technologies, and wherever possible, integrate with existing, accepted
private sector EB/EC initiatives and processes. DoD will comply with the
principle from *Access America* that (wherever practicable) \"the
private sector will lead\" in EBO efforts. The DoD CIO issued a Guidance
and Policy Memorandum (Appendix D) which set forth DoD EB/EC policies,
roles, and responsibilities. In addition, EB/EC planning by DoD
Components will follow the EB/EC Strategic Planning and Performance
Guidelines contained in Appendix E, which are extracted from the DoD
Information Technology Management (ITM) Strategic Plan of 10 March 1997.

## Responsibilities  {#responsibilities .unnumbered}

![](media/image1.wmf)EB/EC planning will be accomplished within an EB/EC
planning architecture which provides overall policy and strategy
direction under the auspices of the DoD CIO. EB/EC precepts from this
strategic plan will also be incorporated into future revisions to the
DoD Information Technology Management (ITM) Strategic Plan and the EB/EC
Functional Plans developed by the PSAs[^1]. Each PSA is responsible for
one or more EB/EC functional plans, found in Appendix B. Execution
direction under this EB/EC strategic plan will be the responsibility of
the JECPO, and the implementation of that direction will be accomplished
by the DoD Components. However, the DoD CIO remains fully accountable
for uniform implementation of approved DoD-wide EB/EC initiatives across
all organizational and functional boundaries.

# PLANNING HORIZONS {#planning-horizons .unnumbered}

## Future Versions  {#future-versions .unnumbered}

This first version of the DoD EB/EC Strategic Plan sets forth the
vision, principles, management structures, and processes to be applied
to all DoD EB/EC initiatives and programs to meet the overall
Departmental EB/EC goals and objectives outlined herein. Appendix A to
this plan specifically addresses the buying and paying processes as
directed by the strategic planning guidance found in OMB Circular A-11
and particularly the EB/EC purchasing and paying tasking in the
associated Memorandum 99-02. DoD intends to release a revised version of
this EB/EC Strategic Plan, which will include additional functional
plans (see Appendix B), expanding the scope to encompass the full range
of the Department\'s EBO and proposing associated performance measures
by the beginning of calendar year (CY) 2000.

## Planning Guidelines  {#planning-guidelines .unnumbered}

Future DoD EB/EC planning will be performed within the context of the
Federal and DoD planning hierarchy. The EB/EC goals and objectives set
forth in the PMC\'s EPIC\'s Strategic Plan for Buying and Selling and in
OMB Circular A-11 were considered in developing this overall DoD EB/EC
Strategic Plan. Similarly, the DoD EB/EC Strategic Plan was written with
consideration of the goals and objectives set forth in higher level
plans required by the GPRA and the Information Technology Management
Reform Act (Clinger-Cohen Act). Subsequent revisions to this plan and
subordinate implementing plans will similarly comply with these
governing directives.

The planning timeframe for this Strategic Plan is targeted to realize
the DoD EB/EC vision by CY 2010, a relatively long term for rapidly
changing information technology. This year was chosen to match other DoD
key planning documents that use 2010 as a planning focus. Goals and
objectives are broad-based and are intended to lay the strategic
framework of near-, mid-, and long-term initiatives, plans, and
milestones. However, within Appendix A, where key EB/EC initiatives are
introduced and discussed, this version of the plan targets select
near-term buying and paying initiatives as required by OMB Memorandum
99-02, with a few initiatives extending into the mid-term. This
Strategic Plan consists of key components carefully crafted to ensure
achievement of the DoD EB/EC vision. The guiding principles were
designed to support DoD's EB/EC implementation strategy while
maintaining each Component's perspective needed to ensure success. These
guiding principles provide a framework for implementing the DoD EB/EC
strategic goals.

The strategic goals are the centerpiece of achieving the DoD EB/EC
vision. Developed within the framework of the guiding principles, these
goals identify what is needed to realize the Department\'s EB/EC vision
and cover every facet of DoD\'s EB/EC implementation efforts. Further,
specific objectives and strategies necessary to realize these strategic
goals have been developed within this plan.

Achieving the DoD EB/EC objectives will put the necessary EB/EC
managerial, operational and technical mechanisms in place. These
objectives were designed to provide flexibility and productivity while
fostering the necessary associated cultural changes. DoD will achieve
these objectives by executing individual strategies that describe how we
intend to achieve our goals and objectives. These strategies have been
designed to weave a cohesive, strategic approach to developing and
managing the DoD EB/EC program.

# DoD EB/EC STRATEGIC VISION {#dod-ebec-strategic-vision .unnumbered}

The following strategic vision statement was formulated to assist in
achieving the desired future state of Defense EBO. Given the rapid pace
of technological change in the EB/EC environment, it is a long-term
vision, proposing a view of DoD EB/EC that aligns with *Joint Vision
2010*.

**[DoD EB/EC Strategic Vision]{.underline}**

By 2010, an enterprise-wide electronic environment will exist where best
business practices and enabling technologies are used to facilitate the
most efficient exchange of the full range of business information
resulting in streamlined and rapid response to the warfighter and
supporting Defense missions.

This vision assumes continued application and emulation of best business
practices, as well as continued employment of the best enabling
technologies across the DoD EB/EC business environment. It concludes
that such applications will streamline and increase the speed of
response in accomplishing DoD missions, foremost of which is support to
the warfighter.

Inherent in this vision is that Global, National and Defense Information
Infrastructures (GII, NII, and DII) will become integrated into a
seamless, secure, and reliable link between users and providers, which
will transcend Departmental, governmental, and National borders.
Electronic transactions, therefore, are forecasted to experience
exponential growth in the 21^st^ Century. That growth will provide an
opportunity to significantly affect the way in which the Department does
business and supports the warfighter.

Within DoD and its external supporting activities, EB/EC will be
employed within and across all command and control as well as functional
business areas, such as, logistics, procurement, health affairs,
finance, transportation, and travel and subsistence. The use of EB/EC
will cut across the entire spectrum of warfighting and functional
business areas. DoD will evolve into a posture where the Department will
function as a virtual enterprise utilizing EB/EC to support its global
mission. As the DoD Components refine their EB/EC initiatives, their
EB/EC strategic goals will be governed by performance measures as a
routine business practice. The next revision of DoD Component EB/EC
strategic implementation plans will illustrate how each Component's plan
supports and contributes to the achievement of DoD-wide goals,
objectives, and strategies.

DoD will automate the generation, processing, coordination,
distribution, and reconciliation of all appropriate business
transactions. However, the DoD EB/EC vision is far more than just
automating processes and eliminating paper transactions; it is intended
to fundamentally change the way all Department business units operate.

# DoD EB/EC GUIDING PRINCIPLES {#dod-ebec-guiding-principles .unnumbered}

The DoD EB/EC guiding principles are the tenets and beliefs central to
the long-term EB/EC needs of the Department. These principles serve as
broad, direction-setting guidelines intended to govern the
implementation of DoD EB/EC, regardless of the functional application.
This set of robust, flexible guiding principles will ensure the full
benefits of EB/EC implementation are achieved. These guiding principles
are the groundwork for DoD EB/EC goals, objectives, and strategies and
lay the framework for managing the entire JECP. The guiding principles
listed below support DoD's EB/EC vision while maintaining the
Component-unique perspective needed to ensure success.

Principal Staff Assistants (PSAs) should use these principles when
crafting the details of their respective implementation plans.
Implementing activities shall use these guiding principles as policy
criteria for making and managing EB/EC investments. Implementation plans
and individual projects shall be consistent with these principles and
they will be used by DoD Components in their development and
implementation of EB/EC initiatives:

-   EB/EC will incorporate process improvement or reengineering
    techniques and utilize "best business practices" to garner
    efficiencies

-   EB/EC will be used to facilitate global data sharing and integration
    of cross-functional business processes within DoD and between the
    Department and its business partners

-   Flexible, interoperable solutions will be implemented that do not
    prohibit or impede the use of new or competing technologies

-   Industry EB/EC standards and COTS solutions will be used to the
    maximum extent practicable

-   EB/EC solutions will afford data security based upon user
    requirements without degradation of the current processes that they
    replace

These guiding principles provide a framework for implementing DoD's
strategic EB/EC goals.

# GOALS AND OBJECTIVES {#goals-and-objectives .unnumbered}

## General {#general .unnumbered}

This section outlines broad goals and objectives necessary to continue
implementation of EB/EC across DoD to support the strategic EB/EC
vision.

## EB/EC Strategic Goals  {#ebec-strategic-goals .unnumbered}

The Department must take advantage of modern technology to more
efficiently and effectively support the warfighter. Organizational
boundaries are becoming evermore permeable, and from an EB/EC
perspective, the distinctions among the various echelons of support to
the warfighter are becoming fused. The Department must be postured to
accommodate a dynamic working environment to promote global flexibility
and information sharing, thus enabling the DoD to reap the benefits from
investing wisely. In order to guide this process of change in the EB/EC
community, a common set of goals have been developed as cornerstones in
achieving the DoD EB/EC strategic vision. These goals identify what the
DoD EB/EC community needs to accomplish in order to obtain its EB/EC
vision.

**[EB/EC STRATEGIC GOALS]{.underline}**

1.  ***Achieve global flexibility, increased productivity, and a dynamic
    working environment through the application of EB/EC.***

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2.  ***Achieve efficient and effective responses to changing
    environments by the rapid introduction of business process
    improvements or reengineering and the exploitation of EB/EC
    technologies.***

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3.  ***Achieve cultural changes and shifts from current business
    practices through guidance and the attainment of necessary skills
    for implementation of EB/EC.***

In establishing processes and procedures for achieving these goals, the
Department must ensure it complies with the Federal position to let the
private sector lead. There is much EB/EC knowledge to share among the
DoD, the rest of the Federal Government, and the private sector. By
benchmarking appropriate portions of the private sector, to identify and
apply appropriate best practices, DoD will be able to leverage EB/EC to
achieve quantum business process improvements. Achieving shifts in the
culture and processes of the Department will institutionalize these
improvements. In establishing the processes necessary to achieve these
goals it is incumbent upon the Component to maintain a dialog with OSD
and other Components with which it has an affected interface to ensure
consistent application of EB/EC principles and strategies.

Goal 1: ***Achieve global flexibility, increased productivity, and a
dynamic working environment through the application of EB/EC.***

Leveraging the application of EB/EC will afford the Department increased
productivity and a dynamic working environment by reducing cycle time
for most applications and increasing the potential for cross-functional
and multi-organizational interfaces. The application of EB/EC will also
afford DoD increased flexibility in supporting its global missions not
possible using traditional methods.

In implementing this goal, OSD will publish the necessary policy
directives, including POM and DPG, and establish an EB/EC senior
advisory group to review and advise on EB/EC efforts across the
Department. Components will incorporate strategies into their plans that
will strive for cross-functional integration and the application of
proven commercial applications and standards. These efforts will lead to
modifications to the DII that will allow improved communication between
DoD EB/EC systems and commercial systems. Finally, implementation of
this goal will include processes and procedures which instill trust and
confidence in the DoD EB/EC processes to provide adequate protection and
privacy of both business data and trading partner proprietary
information.

Goal 2: ***Achieve efficient and effective responses to changing
environments by the rapid introduction of business process improvements
or reengineering and the exploitation of EB/EC technologies.***

Without continual process improvement or the redesigning of processes,
simply attempting to move to an EB/EC environment will not bridge the
gap between available resources and public expectations or permit the
implementation of best business practices. Therefore, this must be
performed in a rapid and responsive manner, which will permit the
functional process owner to quickly reap the benefits of process change.
The insertion of appropriate, related EB/EC information technologies
will enable and enhance redesigned business processes, permit shared
information, and expedite the movement within DoD to EBO.

In achieving this goal, OSD and the Components must establish processes
that identify best practices in both the public and private sector;
establish internal processes and philosophies that are open to
evaluating, applying, and supporting streamlined processes; and be
willing to share solutions and techniques.

Goal 3: ***Achieve cultural changes and shifts from current business
practices through guidance and the attainment of necessary skills for
implementation of EB/EC.***

Cultural changes and shifts are a key element to the success of the DoD
Revolution in Business Affairs and to the successful application of
EB/EC. Successful implementation of those changes will principally be
achieved through guidance from senior DoD leadership that incorporates
EB/EC principles, and from training and education programs that provide
the Defense work force with the necessary skills to understand, plan,
and implement EB/EC.

Achievement of this goal requires both education and training programs
which are focused on both ensuring the Department remains attuned to the
advantages of successful EB/EC applications when coupled with process
improvements, and the maintenance of technical skills and technically
skilled personnel. OSD and Components share in the responsibility to
market their success stories and collaborate in training and education
offerings. Additionally, the Department must collectively identify the
best procedures for identifying best business practices and exchanging
EB/EC technical and functional advice. Finally, OSD and the Components
must identify DoD requirements for EB/EC to the private sector; this
effort will influence private sector EB/EC development without dictating
to the EB/EC community.

## EB/EC Objectives {#ebec-objectives .unnumbered}

The objectives for achieving the changes necessary to advance EB/EC in
DoD flow from the EB/EC strategic vision and are documented in this
section. These objectives are designed to advance revised business
processes, promote cost avoidance and savings, and accommodate the need
for global flexibility and information sharing,. For each of the EB/EC
goals, specific objectives have been formulated to help ensure their
attainment. DoD will achieve these objectives by executing its
individual, yet collaborative strategies.

############  {#section-1 .unnumbered}

*Goal 1: Achieve global flexibility, increased productivity, and a
dynamic working environment through the application of EB/EC.*

[Objective 1.1]{.underline}: Develop and implement collaborative EB/EC
strategies that permit all EB/EC functions to achieve electronic
interoperability within the DoD enterprise and between DoD and its
Federal agency and private sector business partners.

[Objective 1.2]{.underline}: Use commercial applications and standards
in order to maximize consistency, availability, and the exchange of
electronic data.

[Objective 1.3]{.underline}: Establish an infrastructure that allows the
EB/EC systems of DoD and its business partners to communicate,
maximizing the use of commercial communication systems and commercial
standards.

[Objective 1.4]{.underline}: Instill trust and confidence in EB/EC
processes through the establishment of privacy and security measures.

*Goal 2: Achieve efficient and effective responses to changing
environments by the rapid introduction of business process improvements
or reengineering and the exploitation of EB/EC technologies.*

[Objective 2.1]{.underline}: Identify, evaluate, and adopt best business
practices for their applicability to DoD EBO.

[Objective 2.2]{.underline}: Leverage business process reengineering
activities to achieve streamlined processes prior to implementing EB/EC
technologies.

[Objective 2.3]{.underline}: Maximize existing and emerging EB/EC
technologies to achieve interoperability across the enterprise.

*Goal 3: Achieve cultural changes and shifts from current business
practices through guidance and the attainment of necessary skills for
implementation of EB/EC.*

[Objective 3.1]{.underline}: Develop education programs that promote the
use of EB/EC.

[Objective 3.2]{.underline}: Establish a DoD-wide source for advice to
aid in the implementation of EB/EC.

[Objective 3.3]{.underline}: Establish improved communications with
industry and other Federal agencies to better define and articulate DoD
requirements.

# STRATEGIES AND MILESTONES {#strategies-and-milestones .unnumbered}

These strategies describe and set forth how the Department intends to
obtain its goals and objectives. The strategies have been designed to
provide a comprehensive approach to establishing, implementing, and
managing the JECP. The next version of this plan will contain
quantifiable performance measures for each strategy. The lead Agency for
each milestone, in partnership with the stakeholders, will be
responsible for development of implementation milestones. Implementers
will use these strategies and milestones to develop their individual
EB/EC strategic implementation plans.

## Strategies {#strategies .unnumbered}

*Goal 1: Achieve global flexibility, increased productivity, and a
dynamic working environment through the application of EB/EC.*

*[Objective 1.1]{.underline}: Develop and implement collaborative EB/EC
strategies that permit all EB/EC functions to achieve electronic
interoperability within the DoD enterprise and between DoD and its
Federal agency and private sector business partners.*

Strategies:

1.  Evaluate existing EB/EC initiatives and develop plans to achieve
    cross-functional and cross-organizational integration.

2.  Establish an EB/EC senior advisory group under the DoD CIO Council.

3.  Develop and publish a DoD directive establishing Departmental policy
    on EB/EC.

4.  Develop, publish, and integrate appropriate PSA, Service, and Agency
    EB/EC planning and implementation strategy documents.

5.  Establish EB/EC guidance in the Defense Planning Guidance, and
    Program Objectives Memorandum instructions and represent EB/EC
    resource needs in the Planning, Programming, and Budgeting Systems
    processes.

6.  Establish an efficient, cost-effective centralized oversight and
    management process for the DoD EB/EC effort that supports strategic
    implementation and maximizes the use of scarce resources.

7.  Participate in Federal and industry groups and consortia to ensure
    that DoD and its business partners are fully interoperable using
    existing and emerging commercial standards and practices.

*[Objective 1.2]{.underline}: Use commercial applications and standards
in order to maximize consistency, availability, and the exchange of
electronic data.*

Strategies:

1.  Establish a clearinghouse for tracking successful DoD and commercial
    EB/EC solutions.

2.  Establish ongoing relationships with the commercial sector to
    accurately impart DoD business requirements and concerns thereby
    permitting the commercial sector to better satisfy DoD needs.

3.  Broaden and formalize DoD participation in industry EB/EC-related
    standards efforts.

4.  Expedite implementation of commercial standards and adoption of
    commercial applications where appropriate.

*[Objective 1.3]{.underline}: Establish an infrastructure that allows
the EB/EC systems of DoD and its business partners to communicate,
maximizing the use of commercial communication systems and commercial
standards.*

Strategies:

1.  Provide an infrastructure that facilitates a seamless, secure, and
    reliable interface to the Department's business partners.

2.  Provide for data accessibility from the single, consistent, best
    source of information.

3.  Use commercial standards for the electronic exchange of all data
    within DoD and between DoD and its business partners.

4.  Foster industry partnerships to seek common approaches, to discuss
    and resolve obstacles to enabling interoperable business operations,
    and to implement solutions that are easier, simpler, and less
    costly.

5.  Provide increased use of the Internet and World Wide Web (WWW) as a
    secure, reliable EB/EC communications vehicle. Design a process for
    identifying, developing, and executing EB/EC common user services.

6.  Establish mechanisms to consolidate and aggregate DoD EB/EC
    requirements to better ensure commercial response to the collective
    DoD needs.

*[Objective 1.4]{.underline}: Instill trust and confidence in EB/EC
processes through the establishment of privacy and security measures.*

Strategies:

1.  Use a system for digital signature and Public Key Infrastructure
    (PKI) for DoD EB/EC applications to provide adequate identification,
    authentication, integrity checks commensurate with business needs
    and security requirements, and the electronic authentication aspects
    of GEPA.

2.  Provide adequate protection to ensure confidentiality commensurate
    with data content.

3.  Provide for privacy and confidentiality of trading partners\' data.

4.  Employ risk management techniques to permit balancing security costs
    with expected losses.

*Goal 2: Achieve efficient and effective responses to changing
environments by the rapid introduction of business process improvements
or reengineering and the exploitation of EB/EC technologies.*

*[Objective 2.1]{.underline}: Identify, evaluate, and adopt best
business practices for their applicability to DoD EBO.*

Strategies:

1.  Establish a process to continually identify and benchmark EB/EC
    business practices of the public and private sectors.

2.  Establish streamlined procedures for policy changes and budgetary
    reallocations to support adoption of reengineered efforts.

3.  Champion EB/EC investments that support streamlined processes, fuel
    innovation, and improve mission performance.

4.  Establish outreach mechanisms to share EB/EC solutions and
    techniques.

5.  Establish mechanisms to apply best business solutions and techniques
    when engineering programs and processes.

*[Objective 2.2]{.underline}:* Leverage business process reengineering
activities to achieve streamlined processes prior to implementing EB/EC
technologies.

Strategies:

1.  Design, develop, and promote solutions that support the objectives
    of paperless initiatives.

2.  Evaluate existing EBO for migration to commercial applications,
    standards, and practices.

3.  Provide education and training on EB/EC technologies and
    opportunities to process reengineering activities.

############  {#section-2 .unnumbered}

*[Objective 2.3]{.underline}: Maximize existing and emerging EB/EC
technologies to achieve interoperability across the enterprise.*

Strategies:

1.  Promote Internet and WWW based commerce solutions.

2.  Base new EBO on best industry practices, and commercial applications
    and standards.

3.  Seek industry partnerships in reengineering business processes using
    EB/EC technologies.

*Goal 3: Achieve cultural changes and shifts from current business
practices through guidance and the attainment of necessary skills for
implementation of EB/EC.*

*[Objective 3.1]{.underline}: Develop education programs that promote
the use of EB/EC.*

Strategies:

1.  Establish education programs that focus on best EB/EC practices,
    policies, principles, and technologies.

2.  Develop a recognition program for those DoD activities that have
    established an aggressive and effective program for implementing
    EB/EC.

3.  Evaluate and incorporate EB/EC training opportunities into Defense
    educational institutions and schools.

4.  Actively seek to market DoD success stories and best practices in
    mainstream publications. Seek to garner industry recognition and
    awards.

*[Objective 3.2]{.underline}: Establish a DoD-wide source for advice to
aid in the implementation of EB/EC.*

Strategies:

1.  Establish functional and technical consulting services for the
    application of EB/EC concepts and technologies.

2.  Develop an on-line conveyance mechanism for EB/EC technical and
    functional advice.

*[Objective 3.3]{.underline}: Establish improved communications with
industry and other Federal agencies to better define and articulate DoD
requirements.*

Strategy:

1.  Broaden and formalize DoD participation in industry EB/EC
    conferences and symposia.

2.  Establish processes and procedures to promulgate EB/EC capabilities,
    successes, and requirements across the Defense Enterprise and to the
    DoD Trading Partners.

3.  Establish an organization with the responsibility for coordinating
    public relations activities for all DoD EC activities. Specifically,
    the organization will be responsible for identifying external
    government and industry events and publications which should be
    informed of DoD efforts, coordinating speakers for these events,
    coordinating articles for the publications, informing DoD components
    of ongoing EC activities throughout the Department, and coordinating
    the over-arching themes that the Department wants to communicate
    with external organizations.

##  {#section-3 .unnumbered}

## Milestones {#milestones .unnumbered}

This section identifies key milestones of the DoD EB/EC program. The
milestones were established in the Defense Reform Initiative Report,
various DRIDs, Public Law, OMB directives, and the EC Plans found in
Appendices A and B.

+-------------+-------------------------------+------------+---------+
| **I         | **Milestone**                 | **R        | **Date  |
| nitiative** |                               | esponsible | Du      |
|             |                               | Office**   | e**[^2] |
+=============+===============================+============+=========+
| Establish   | All aspects of the            | Director,  | N       |
| paper-free  | contracting processes for     | Defense    | ovember |
| contracting | major weapons systems will be | P          | 2000,   |
| as the      | paper free. (DRIR, p1)        | rocurement | except  |
| norm.       |                               |            | DPPS.   |
|             | Eighty-five percent of        |            |         |
|             | technical manuals and eighty  |            | With    |
|             | percent of technical drawings |            | DPPS:   |
|             | will be provided              |            | FY 2003 |
|             | electronically. (DRIR, p7)    |            |         |
+-------------+-------------------------------+------------+---------+
| Re          | Streamline household goods    | DUSD (L)/  | TBD     |
| engineering | processing procedures,        | ADUSD      |         |
| service     | including increasing the      | (Tran      |         |
| member      | number of member-arranged     | sportation |         |
| household   | moves and increasing the      | Policy)    |         |
| goods       | Do-It-Your-Self reimbursement |            |         |
| processing. | from 80% to 95% of the rate   |            |         |
|             | to move the cargo             |            |         |
|             | commercially. (MRM 6)         |            |         |
+-------------+-------------------------------+------------+---------+
| Redesigning | Eliminate unnecessary         | DCMC       | TBD     |
| acceptance  | government source inspections |            |         |
| policies    | for micro-purchases of both   |            |         |
| and         | commercial and non-commercial |            |         |
| practices.  | stock items. (MRM 10)         |            |         |
+-------------+-------------------------------+------------+---------+
| Expanding   | Prime Vendor contracts for    | DLA        | TBD     |
| the Prime   | maintenance, repair, and      |            |         |
| Vendor      | operating materials will be   |            |         |
| program.    | available for every major     |            |         |
|             | installation in the United    |            |         |
|             | States. (MRM 12)              |            |         |
+-------------+-------------------------------+------------+---------+

+-------------+-------------------------------+------------+---------+
| **I         | **Milestone**                 | **R        | **Date  |
| nitiative** |                               | esponsible | Du      |
|             |                               | Office**   | e**[^3] |
+=============+===============================+============+=========+
| Reengineer  | Reengineer the Defense        | 1\) ADUSD  | TBD     |
| the         | Transportation documentation  | (Tran      |         |
| tra         | and financial processes to    | sportation |         |
| nsportation | include:                      | Policy)    |         |
| process.    |                               |            |         |
|             | -   Fix the Transportation    | 2\) OUSD   |         |
|             |     Account Code Process      | (C)        |         |
|             |                               | Director,  |         |
|             | -   Test the potential use of | Revolving  |         |
|             |     purchase cards for paying | Funds      |         |
|             |     airlift, sealift,         |            |         |
|             |     domestic freight, and     |            |         |
|             |     express package bills     |            |         |
|             |                               |            |         |
|             | Eliminate the use of          |            |         |
|             | Government Bills of Lading    |            |         |
|             | for domestic express carrier  |            |         |
|             | movements. (MRM 15)           |            |         |
+-------------+-------------------------------+------------+---------+
| Creating a  | Make the DD Form 250          | DCMC       | TBD     |
| paperless   | paperless. (DRID 33)          |            |         |
| DD Form     |                               |            |         |
| 250.        |                               |            |         |
+-------------+-------------------------------+------------+---------+
| Achieve     | Ninety percent of DoD         | OUSD (C)   | FY 2000 |
| nin         | purchases under \$2500.00     |            |         |
| ety-percent | will be made using the        |            |         |
| use of      | government-wide purchase      |            |         |
| purchase    | cards. (DRIR, p1)             |            |         |
| cards for   |                               |            |         |
| t           |                               |            |         |
| ransactions |                               |            |         |
| less than   |                               |            |         |
| \$2500.     |                               |            |         |
+-------------+-------------------------------+------------+---------+
| Expand the  | Establish broad purchasing    | DLA        | TBD     |
| DoD use of  | arrangements and favorable    |            |         |
| commercial  | contract terms and prices     |            |         |
| electronic  | with Internet vendors. (DRIR, |            |         |
| catalogs    | p5)                           |            |         |
| and         |                               |            |         |
| electronic  |                               |            |         |
| malls.      |                               |            |         |
+-------------+-------------------------------+------------+---------+
| Reengineer  | Adopt a new process for       | OUSD (C)   | October |
| the Defense | business travel that          |            | 31,     |
| Travel      | incorporates state-of-the-art |            | 2000    |
| System.     | business procedures and       |            |         |
|             | techniques. (DRIR, p11)       |            |         |
+-------------+-------------------------------+------------+---------+
| Intra-G     | With the Treasury Department  | OUSD (C)   | TBD     |
| overnmental | and GSA, reform the           |            |         |
| Transfers   | intergovernmental transfer    |            |         |
| (IGOTs)     | process. (*EC for Buyers and  |            |         |
|             | Sellers*, p24)                |            |         |
+-------------+-------------------------------+------------+---------+
| Smart Card  | Report to Congress on the     | Smart Card | M       |
| Technology. | Department\'s plans to use    | Technology | id-June |
|             | Smart Card Technology. (FY    | Office     | 1999    |
|             | 1999 Defense Authorization    |            |         |
|             | Bill) (Interim response       |            |         |
|             | provided April 2, 1999.)      |            |         |
+-------------+-------------------------------+------------+---------+
| DoD E-Mall. | JECPO shall develop a single, | JECPO      | TBD     |
|             | defense-wide E-mall system    |            |         |
|             | (FY-99 Defense Authorization  |            |         |
|             | Act[^4])                      |            |         |
+-------------+-------------------------------+------------+---------+

# MANAGEMENT STRUCTURES AND PROCESSES {#management-structures-and-processes .unnumbered}

## Integration and Coordination  {#integration-and-coordination .unnumbered}

The DepSecDef centralized policy direction and oversight of the JECP
under the DoD CIO. This alignment complements the current CIO role of
providing information technology oversight and policy direction to the
functional Office of the Secretary of Defense (OSD) PSAs and Defense
Components. This alignment also permits EB/EC planning and oversight to
become an integral part of the overall information technology plans and
programs of DoD.

The Office of the DoD CIO is responsible for promoting vertical and
horizontal EB/EC integration and coordination across DoD organizations.
This coordination and integration is accomplished using existing OSD
staffing mechanisms as well as taking advantage of other crosscutting
senior executive processes and functions.

Management processes are incorporated in the coordination and
integration processes through interaction with the Chief Financial
Officer (CFO) and the Defense Acquisition Executive (DAE) and their
support staffs. It is through this integration and coordination that
EB/EC planning and initiatives are brought into the vital financial,
acquisition, contracting, and logistics processes of the Department. The
information technology and management aspects of EB/EC are promoted and
put in place through the existing CIO structure of the Department.
Management review and oversight also benefits from the direction and
skills set forth by the DoD CIO Council.

Similarly, the EB/EC functional perspective is incorporated through the
involvement of the OSD PSAs. The OSD PSAs serve as the DoD functional
subject matter experts and owners of the business processes. As the
functional owners, the PSAs are responsible for the reengineering of
their business practices and are also responsible for the implementation
of enabling EB/EC technologies. Functional EB/EC plans are presented in
Tab B. The PSAs are represented on key DoD councils, working groups,
integrated process teams (IPTs) and EB/EC standards committees. The PSAs
participate fully in the DoD planning, programming, and budgeting
process and related decisions and, in many cases, serve as the
investment sponsor and overseer.

The Joint Chiefs of Staff (JCS), Military Departments, and Defense
Agencies fulfill a vital role in EB/EC and are also incorporated in the
CIO\'s integration and coordination effort. The JCS, Military
Departments, and Defense Agencies surface requirements, support the
modification of business processes, participate in development, and in
many cases execute and operate the resulting EB/EC-based application or
system. These DoD Components perform operational level EB/EC planning,
develop resource profiles, design EB/EC applications, transact
EB/EC-based business and operate EB/EC supporting information systems.
These Components are full partners in the DoD EB/EC planning process
management structure and, as noted in Appendix F, were principal
participants in the development of this DoD EB/EC strategic plan.

The CIO provides oversight for the JECPO, which enables a close linkage
and common vision between the CIO and JECPO staffs. The JECPO Charter,
signed by the CIO can be found in Appendix I. Additionally, the CIO is
chartering a CIO Working Council (CWC) as an EB/EC advisory group. The
CWC will have representation from key stakeholders and advise the CIO
Council on matters related to EB/EC.

The JECPO fulfills a vital integration and coordination function within
the JECP. The JECPO is responsible for issuing the DoD EB/EC Strategic
Implementation Plan (SIP), which will provide direction and guidance to
the DoD Components on common DoD services. In addition, the JECPO is
charged to design and broker common services for application across the
Components as well as provide the functional process owners with
business practice improvement support.

## DoD Sponsored Standards Groups {#dod-sponsored-standards-groups .unnumbered}

The Electronic Data Interchange Standards Management Committee (EDISMC),
chaired by DISA\'s Center for Standards, is responsible for the
coordination of EDI standards activities within DoD. New standards are
actually developed by X12 and Electronic Working Groups. The EDISMC
supports the development, distribution and configuration management of
EDI implementation conventions (ICs) for DoD. The EDISMC meets three
times a year. Representation includes DoD Services, Agencies, and PSAs.
The EDISMC develops, implements, and promulgates new and existing EDI
standards and ICs to ensure compatibility and interoperability among DoD
EDI-capable information systems, and with non-DoD information systems.
There are currently six functional working groups either chartered by
the EDISMC or by an OSD PSA, which work in coordination with the EDISMC
and equivalent Federal working groups. The functional areas represented
include finance, transportation, logistics, procurement, healthcare, and
communications/security.

## DoD Participation in Initiatives and Groups Outside the Department  {#dod-participation-in-initiatives-and-groups-outside-the-department .unnumbered}

The tables that follow provide an overview of DoD participation in
initiatives and groups outside the Department. For each group or
initiative a brief description is provided of its function and the DoD
participant or participating office is identified. The DoD CIO staff
will, whenever practicable, work to appoint a single DoD focal point
responsible to coordinate the activities of DoD representatives and
participants in extra-DoD groups. A more complete description may be
found in Appendix C.

### DoD Participation Within the Federal EB/EC Arena. {#dod-participation-within-the-federal-ebec-arena. .unnumbered}

+-------------------+-----------------------------+--------------------+
| **G               | **Description**             | **DoD              |
| roup/Initiative** |                             | Participant**      |
+===================+=============================+====================+
| [CFO              | CFO Council\'s mission is   | USD (C)            |
| Cou               | to influence the future of  |                    |
| ncil]{.underline} | the federal government      |                    |
|                   | through ethical and         |                    |
| [                 | effective leadership; serve |                    |
| Ref:]{.underline} | as a catalyst for           |                    |
| http://gophe      | constructive change to      |                    |
| r.financenet.gov/ | ensure the integrity of     |                    |
| financene         | financial information       |                    |
| t/fed/cfo/cfo.htm | needed for decision making; |                    |
|                   | and measure program and     |                    |
|                   | financial performance to    |                    |
|                   | achieve desirable results.  |                    |
+-------------------+-----------------------------+--------------------+
| [CIO              | Principal interagency forum | Senior Civilian    |
| Cou               | to improve the design,      | Official, OASD     |
| ncil]{.underline} | modernization, use,         | (C3I)              |
|                   | sharing, and performance of |                    |
| [                 | IT resources.               |                    |
| Ref:]{.underline} |                             |                    |
| ht                |                             |                    |
| tp://www.cio.gov/ |                             |                    |
+-------------------+-----------------------------+--------------------+
| [Electronic       | A subcommittee of the       | OUSD (C) supported |
| Processes         | President\'s Management     | by OASD (C3I)      |
| Initiatives       | Council (PMC), EPIC is      |                    |
| Committee         | comprised of                |                    |
| (E                | representatives from OMB,   |                    |
| PIC)]{.underline} | DoD, Treasury, and GSA. The |                    |
|                   | EPIC\'s purpose is to       |                    |
| [                 | insure a consistent vision  |                    |
| Ref:]{.underline} | for improving electronic    |                    |
| http:/            | processes support in EB/EC. |                    |
| /policyworks.gov/ |                             |                    |
| org/main/me/epic/ |                             |                    |
+-------------------+-----------------------------+--------------------+
| [Federal EC       | Coordinates, monitors, and  | OASD (C3I)         |
| Program           | reports on the development  | provides Co-chair  |
| Of                | of Electronic Commerce      |                    |
| fice]{.underline} | within the Federal          |                    |
|                   | Government.                 |                    |
| [                 |                             |                    |
| Ref:]{.underline} |                             |                    |
| http:             |                             |                    |
| //www.ec.fed.gov/ |                             |                    |
+-------------------+-----------------------------+--------------------+
| [Federal EDI      | Supports the goal of a      | DISA CFS,          |
| Standards         | single face for the Federal | supported by JECPO |
| Management        | Government to its trading   |                    |
| Coordinating      | partners in the use of EDI. |                    |
| Commi             |                             |                    |
| ttee]{.underline} |                             |                    |
+-------------------+-----------------------------+--------------------+
| [Procurement      | Principal forum for the     | DDP                |
| Executives        | exchange of information     |                    |
| Cou               | concerning procurement      |                    |
| ncil]{.underline} | among Federal agencies.     |                    |
| (formerly Federal | Comparable to the CIO       |                    |
| Procurement       | Council and CFO Council,    |                    |
| Council)          | the Procurement Executive   |                    |
|                   | Council membership is       |                    |
|                   | comprised of the senior     |                    |
|                   | acquisition official in the |                    |
|                   | agencies.                   |                    |
+-------------------+-----------------------------+--------------------+
| [Financial        | Goal: to increase the use   | OUSD (C)           |
| Implementation    | of technology to streamline |                    |
| Team for          | financial services.         |                    |
| Electronic        |                             |                    |
| Commerce          |                             |                    |
| (FI               |                             |                    |
| TEC)]{.underline} |                             |                    |
|                   |                             |                    |
| [                 |                             |                    |
| Ref:]{.underline} |                             |                    |
| http://www.gsa.go |                             |                    |
| v/fitec/index.htm |                             |                    |
+-------------------+-----------------------------+--------------------+
| [Inter-Agency     | The Interagency Council was | OASD (C3I Policy)  |
| Acquisition       | established to seek and     | and DoD Components |
| Internet Council  | promote ways to optimize    |                    |
| (I                | use of the Internet in      |                    |
| AIC)]{.underline} | streamlining the Federal    |                    |
|                   | acquisition process and     |                    |
| [                 | increasing communications   |                    |
| Ref:]{.underline} | of Federal acquisition      |                    |
| http://www.arnet  | related information to      |                    |
| .gov/References/v | private industry and        |                    |
| irtual_lib_5.html | Federal managers.           |                    |
+-------------------+-----------------------------+--------------------+
| [Inter-Agency     | Coordinates, promotes and   | Navy (ONR),        |
| Electronic Grants | facilitates the effective   | Co-Chair; DoD POC: |
| Committee         | use of EC throughout the    | DUSD (S&T)         |
| (IA               | federal grant community.    |                    |
| EGC)]{.underline} |                             |                    |
|                   |                             |                    |
| [                 |                             |                    |
| Ref:]{.underline} |                             |                    |
| h                 |                             |                    |
| ttp://www.finance |                             |                    |
| net.gov/iaegc.htm |                             |                    |
+-------------------+-----------------------------+--------------------+
| [Smart Card       | Informal group of Agency    | Smart Card         |
| Program Managers  | Smart Card Managers.        | Technology Office; |
| Users             |                             | JECPO; DoD         |
| G                 |                             | Components         |
| roup]{.underline} |                             |                    |
|                   |                             |                    |
| [                 |                             |                    |
| Ref:]{.underline} |                             |                    |
| http:/            |                             |                    |
| /policyworks.gov/ |                             |                    |
| org/main/mt/homep |                             |                    |
| age/mtc/smartgov/ |                             |                    |
| ca                |                             |                    |
| rds/managers.html |                             |                    |
+-------------------+-----------------------------+--------------------+
| [Federal PKI      | The FPKI Steering Committee | OASD               |
| Steering          | comprises representatives   | (C3I/Information   |
| Commi             | from all Federal agencies   | Policy) and        |
| ttee]{.underline} | either using or considering | others.            |
|                   | the use of public key       |                    |
| [                 | technology in support of    |                    |
| Ref:]{.underline} | electronic transactions.    |                    |
| http://gi         | The FPKI SC is responsible  |                    |
| ts-sec.treas.gov/ | for promoting the           |                    |
| f                 | development and proper use  |                    |
| pkiactionplan.htm | of a FPKI that provides an  |                    |
|                   | appropriate level of        |                    |
|                   | assurance for electronic    |                    |
|                   | transactions. In            |                    |
|                   | particular, the SC will:    |                    |
|                   |                             |                    |
|                   | -   Help Federal agencies   |                    |
|                   |     properly consider       |                    |
|                   |     public key technology   |                    |
|                   |     for their applications; |                    |
|                   |                             |                    |
|                   | ```{=html}                  |                    |
|                   | <!-- -->                    |                    |
|                   | ```                         |                    |
|                   | -   Support use of public   |                    |
|                   |     key technology where    |                    |
|                   |     such use has merit;     |                    |
|                   |                             |                    |
|                   | ```{=html}                  |                    |
|                   | <!-- -->                    |                    |
|                   | ```                         |                    |
|                   | -   Promote                 |                    |
|                   |     interoperability and    |                    |
|                   |     extensibility of        |                    |
|                   |     applications that use   |                    |
|                   |     public key technology;  |                    |
|                   |     and                     |                    |
|                   |                             |                    |
|                   | ```{=html}                  |                    |
|                   | <!-- -->                    |                    |
|                   | ```                         |                    |
|                   | -   Ensure information on   |                    |
|                   |     these matters is        |                    |
|                   |     properly disseminated   |                    |
|                   |     so that Federal         |                    |
|                   |     officials, and the      |                    |
|                   |     decisions they make,    |                    |
|                   |     are fully informed.     |                    |
+-------------------+-----------------------------+--------------------+

###  {#section-4 .unnumbered}

### Industry/Private Sector Groups {#industryprivate-sector-groups .unnumbered}

The list that follows is representative of the many industry and private
sector groups in which the DoD participates.

+-----------------------+-----------------------+-----------------------+
| **Group/Initiative**  | **Description**       | **DoD Participant**   |
+=======================+=======================+=======================+
| [American National    | Administrator and     | DISA and many others. |
| Standards             | coordinator of the    |                       |
| I                     | United States private |                       |
| nstitute]{.underline} | sector, voluntary     |                       |
|                       | standardization       |                       |
| [Ref:]{.underline}    | system. Subcommittees |                       |
| <http://web.ans       | for many technical    |                       |
| i.org/default_js.htm> | areas. ANSI X12       |                       |
|                       | Subcommittee is an    |                       |
|                       | important sub-element |                       |
|                       | of this organization. |                       |
+-----------------------+-----------------------+-----------------------+
| [Com                  | Mission: to make      | DLA and other         |
| merceNet]{.underline} | electronic commerce   | Components            |
|                       | easy, trusted, and    |                       |
| [Ref:]{.underline}    | ubiquitous.           |                       |
| http:/                |                       |                       |
| /www.commercenet.com/ |                       |                       |
+-----------------------+-----------------------+-----------------------+
| [Health Industry      | Goal: improving       | ODUSD (HA)            |
| Federal Advisory      | communications and    |                       |
| Council               | coordination between  |                       |
| (HIFAC)]{.underline}  | the Federal medical   |                       |
|                       | logistics community   |                       |
| [Ref:]{.underline}    | and civilian          |                       |
| http://www.hifac.org/ | distributors,         |                       |
|                       | manufacturers, and    |                       |
|                       | service               |                       |
|                       | organizations.        |                       |
+-----------------------+-----------------------+-----------------------+
| Internet Engineering  | A community of        | DARPA; DISA           |
| Task Force (IETF)     | network designers,    |                       |
|                       | operators, vendors,   |                       |
| Ref:                  | and researchers       |                       |
| http://www.ie         | concerned with the    |                       |
| tf.cnri.reston.va.us/ | evolution of the      |                       |
| home.html             | Internet architecture |                       |
|                       | and the smooth        |                       |
|                       | operation of the      |                       |
|                       | Internet.             |                       |
+-----------------------+-----------------------+-----------------------+
| United Nations Rules  | A set of              | DISA CFS              |
| for Electronic Data   | internationally       |                       |
| Interchange for       | agreed standards,     |                       |
| Administration,       | directories and       |                       |
| Commerce and          | guidelines for the    |                       |
| Transport             | electronic            |                       |
| [(UN/                 | interchange.          |                       |
| EDIFACT)]{.underline} |                       |                       |
|                       |                       |                       |
| [Ref:]{.underline}    |                       |                       |
| http://www.u          |                       |                       |
| nicc.org/unece/trade/ |                       |                       |
+-----------------------+-----------------------+-----------------------+
| [World Wide Web       | Goal: lead the World  | DISA, DARPA           |
| Consortium            | Wide Web to its full  |                       |
| (W3C)]{.underline}    | potential by          |                       |
|                       | developing common     |                       |
| [Ref:]{.underline}    | protocols that        |                       |
| http://www.w3.org/    | promote its evolution |                       |
|                       | and ensure its        |                       |
|                       | interoperability.     |                       |
+-----------------------+-----------------------+-----------------------+

Additionally, the Electronic Commerce Resource Centers (ECRCs), located
throughout the country, are integrated into the effort to foster private
sector participation in DoD EB/EC. The USD (A&T) is developing an
integrated plan that focuses ECRC resources and promotes effective
implementation of EB/EC. This plan includes assessment of current ECRC
performance, documentation of user requirements, and potential focussing
of ECRC mission to meet contemporary needs. This plan will be completed
by June 30, 1999.

## Implementation  {#implementation .unnumbered}

The JECPO will develop and maintain the DoD EB/EC Strategic
Implementation Plan that both supports the DoD EB/EC Strategic Plan and
promotes the required degree of uniform implementation across the
Defense Components. While the JECPO serves as the primary vehicle for
obtaining uniformity of EB/EC implementation actions, the DoD CIO and
CIO Council provide configuration control and oversight of these
efforts.

## Responsibility and Coordination {#responsibility-and-coordination .unnumbered}

The DoD CIO is responsible for the coordination of all EB/EC initiatives
across the Department. EB/EC is addressed as an integral element of the
overall CIO goals for DoD and progress against which supporting
objectives are reported and tracked. Intra-DoD coordination is obtained
through organizations represented on the DoD CIO Council.

#### DoD EC Report on Federal Purchasing and Payment

##### Summary

The purpose of this appendix to the DoD Electronic Business/Electronic
Commerce (EB/EC) Strategic Plan is to provide the DoD response to the
Office of Management and Budget (OMB) memorandum M-99-02 of 25 November
1998, subject: \"Agency Electronic Commerce Reports on Federal
Purchasing and Payment\". This appendix follows the current OMB
guidance, and is divided into two major subsections. The first
subsection identifies DoD FY 1998 EC Activities for Purchasing and
Payment and the second major subsection identifies DoD EC Implementation
Plans for FY 1999 and FY 2000.

The first major subsection, dealing with FY 1998 EC initiatives,
discusses the following topics:

-   Activities Undertaken in FY 1998 to Use EC to Improve Purchasing and
    Payment Functions

-   Efforts Undertaken in Furtherance of Specified "Agency Procedures"

-   Volume and Dollar Value of DoD EC Transactions

-   Vendor Data Collection and Management

The Subsection on DoD EC Implementation Plans for FY 1999 and FY 2000
describes the major Defense EC initiatives planned or ongoing and their
linkages to Federal policy principles and EC building blocks.

Additionally, this portion of the report identifies milestones and
measures of effectiveness being used with these initiatives and the DoD
management structures and processes being used to integrate coordinate
and implement EC. Finally, the report identifies the individual
ultimately responsible for coordination of all EC across the Department.

The Department is a large and complex organization that employs a
decentralized execution for many initiatives that would be considered
large in other agencies. The initiatives cited herein are indeed major
initiatives, many of which already have had a major positive impact on
DoD processes and have improved the support provided to the soldier,
sailor, airman and marine. The picture of EC implementation presented in
this appendix is an accurate portrayal of an agency that is rapidly
adopting EB/EC as the cornerstone of its Revolution in Business Affairs.
The Department is in compliance with the Federal Strategic Plan goal of
end-to-end electronic processes.

##### Background

###### EC Activities in FY 1998

Under the Office of Procurement Policy (OFFP) Act and the Clinger-Cohen
Act, the OMB oversees Federal agencies' implementation of EC in their
acquisition activities. Among other things, Section 30 of the OFPP Act
requires that that the OFPP Administrator submit to the Congress, by
March 1, 1990 and each year thereafter, a report on the implementation
of EC by Federal agencies. Accordingly, DoD and the other Federal
agencies are required to provide descriptions of EC activities to OMB
for FY 1998.

###### Implementation of the Federal Government's Strategic Planning for EC Activities

Section 30 of the OFPP Act also calls for the development of a
"strategic plan for the implemen­tation of a Government-wide electronic
commerce capability." The Electronic Processes Initiatives Committee
(EPIC) submitted the Federal government's strategic plan for EC to the
Congress in March 1998. That strategic plan outlined how the Federal
government can take advantage of EC to improve buying and paying
processes. The strategic plan described the actions, or "building block"
activities, that Federal agencies need to undertake in order for the
Federal government to turn the potential of EC into a reality. To
support this requirement, DoD and the other Federal agencies are
required to disclose to OMB how they are implementing the activities
called for in the Federal strategic plan.

##### DoD FY 1998 EC Activities for Purchasing and Payment

###### Efforts Undertaken in FY 1998 to Employ EC to Improve Purchasing and Payment Functions

####### Major Activities

The following were DoD's major EC buying and paying activities during FY
1998:

-   Establish paper-free contracting as the norm. This large initiative
    includes the following (section A.5.1.1):

-   Centralized Contractor Registration (CCR)

-   Standard Procurement System (SPS)

-   Defense Procurement Payment System (DPPS)

-   Electronic Funds Transfer (EFT)

-   Technical Data Package Material Information Systems (TDPMIS)

-   Reengineer service member household goods processing.

-   Redesign policies and practices for acceptance of goods and
    services.

-   Expand the Prime Vendor program.

-   Reengineer the transportation process.

-   Create a paperless DD-250, Material Inspection and Receiving Report.

-   Achieve ninety-percent use of purchase cards for transactions less
    than \$2500.

-   Expand the use of electronic catalogs and electronic malls within
    the DoD.

-   Implement the Defense Travel System.

-   Expand DoD Business Opportunities (DoD BusOpps)

####### Efforts related to Government-Wide Building Blocks

The following table highlights the DoD activities that were undertaken
in support of the Government-wide building blocks enumerated in Section
6 of *Electronic Commerce for Buyers and Sellers.*

+----------------------------+-----------------------------------------+
| **BUILDING BLOCK**         | **SUPPORTING DOD ACTIVITIES**           |
+============================+=========================================+
| 1.  Expanding and          | -   Use of Purchase Cards               |
|     enhancing Electronic   |                                         |
|     Catalogs               | -   Expanded use of E-Catalogs and      |
|                            |     E-Malls                             |
+----------------------------+-----------------------------------------+
| 2.  Increasing and         | -   Paper-free Contracting              |
|     improving payment      |                                         |
|     utilities through      | ```{=html}                              |
|     purchase card          | <!-- -->                                |
|     implemen­ta­tion,        | ```                                     |
|     invoice and remittance | -   Prime Vendor                        |
|     processing, and        |                                         |
|     Intra-governmental     | -   Reengineer Transportation Process   |
|     Payment System (IGOTS) |                                         |
|                            | ```{=html}                              |
|                            | <!-- -->                                |
|                            | ```                                     |
|                            | -   Use of Purchase Cards               |
+----------------------------+-----------------------------------------+
| 3.  Migrating to standard  | -   Paper-free Contracting              |
|     commercial services    |                                         |
|     for electronic buyer   | -   Expanded use of E-Catalogs and      |
|     and seller ID          |     E-Malls                             |
|     authentication         |                                         |
+----------------------------+-----------------------------------------+
| 4.  Making contract        | -   Paper-free Contracting              |
|     formation and          |                                         |
|     administration easier  | -   Reengineer Household Goods          |
|     and more effective     |                                         |
|                            | -   Redesign Acceptance Policies and    |
|                            |     Practices                           |
|                            |                                         |
|                            | -   Prime Vendor                        |
|                            |                                         |
|                            | -   Reengineer Transportation Process   |
|                            |                                         |
|                            | -   Paperless DD Form 250               |
|                            |                                         |
|                            | ```{=html}                              |
|                            | <!-- -->                                |
|                            | ```                                     |
|                            | -   Implement DTS                       |
|                            |                                         |
|                            | -   DoD BUSOPPS                         |
+----------------------------+-----------------------------------------+
| 5.  Use contract writing   | -   Paper-free Contracting              |
|     systems to automate    |                                         |
|     buying-related         |                                         |
|     business functions     |                                         |
+----------------------------+-----------------------------------------+
| 6.  Standard systems'      | -   Paper-free Contracting              |
|     interfaces for         |                                         |
|     accounting, reporting  | -   DoD BUSOPPS                         |
|     and increasing access  |                                         |
+----------------------------+-----------------------------------------+
| 7.  Fostering Government   | -   Paper-free Contracting              |
|     and commercial EC      |                                         |
|     partnerships           | -   DoD BUSOPPS                         |
+----------------------------+-----------------------------------------+

The Department is expanding and enhancing electronic commerce through
the expanded use of purchase cards and the expanded use of electronic
catalogs and electronic malls. The DoD purchase card program is a
component of the GSA SmartPay initiative. The DoD purchase card program
is the largest of all the SmartPay initiatives and is gaining more
participants each month. The combined travel, purchase, and fleet card
programs of the DoD comprise about fifty percent of the Federal
government's SmartPay program. The DoD also has several\
e-malls: Army, Navy, and Air Force, some of the Defense Agencies, and a
few of the combatant commands have e-malls. These e-malls, together with
the expanded use of purchase cards, have been highly successful in
capturing the high-volume, small value transactions. The Department now
is in the process of creating a common front and feel for these e-malls.

The Department has increased and improved payment utilities using
purchase card implementation, invoice and remittance processing and
Treasury's USA Card through several initiatives including the paper-free
contracting, prime vendor program, the reengineering of transportation
documentation and financial processing, and the purchase card program.
Additionally, the Prime Vendor programs, now being applied in the areas
of Defense pharmaceuticals and several clothing lines, have proved
highly successful in improving remittance processing. The reengineering
of Transportation documentation and associated financial processing is
making greater use of plastic card technology with similar success.
Finally, the implementation of Certifying Officer legislative authority
within the DoD purchase card program has essentially outsourced invoice
and remittance processing, so that the Defense Finance and Accounting
Service (DFAS) pays only one locally-certified monthly bill to a
card-issuing bank instead of hundreds of bills to individual merchants.
DoD's significant activity supporting the IGOTS portion of this building
block is its active participation in the Federal IGOTS initiative. DoD
has senior representatives both on the initiative project team and the
Interagency Advisory Board.

The DoD pilots to implement the SPS and CCR are key components of the
paper-free contracting initiative, and will implement the migration to
standard commercial services for electronic buyers and seller
identification authentication. The CCR, discussed in Section A.4.1.5,
generates the database on which other DoD contracting activities rely
for electronic authentication. Additionally, the recognition of a
contractor in an e-catalog or e-mall constitutes a certification that
the mall sponsor has identified the vendor.

A major over-arching goal of the Defense Reform Initiative has been to
make contract formation and administration easier and more effective.
The paper-free contracting initiative is the principal effort to improve
contract formulation and administration. However, several other
initiatives are directly supporting this building block, including:

-   The initiative to reengineer the processing of household goods
    processing when a service member is transferred;

-   The initiative to redesign the way in which DoD conducts acceptance
    of vendor goods and services, including the development of an
    electronic DD Form 250 which is the principal document for the
    acceptance of goods and services from a vendor;

-   The prime vendor system;

-   The Reengineering of DoD transportation documentation and financial
    processing to include the application of the SmartPay Purchase and
    travel cards;

-   The development of the Defense Travel System (DTS) and the
    application of a public key infrastructure to permit paperless
    processing of travel settlements; and

-   The development of the BUSOPPS architecture to link various business
    opportunities postings used by the Services and the Defense Agencies
    and the Commerce Business Daily or new GSA Electronic Posting
    System.

The SPS pilots have demonstrated contract-writing and contract
administration systems that automate buying related business functions.
Ultimately, SPS (a component of the paper-free contracting initiative)
will provide a single, automated contract writing system for use across
the Department.

The Department has many standard system interfaces for accounting and
reporting and increasing access. DoD BUSOPPS provides solicitation
interfaces to CBD and EPS. The DPPS, within the paper-free contracting
initiative, will provide paying transaction tracking, while DoD use of
the GSA card programs will facilitate interfaces to accounting and
reporting, and access to information.

The Department fosters government and commercial EC partnerships through
participation in numerous commercial groups, committees, and councils.
The products of these collaboration with the private sector is
manifested in the successful Defense Reform Initiatives in the areas of
paper-free contracting and DoD BUSOPPS in particular, but in all the
reform initiatives in general. The Department recognizes that these
initiatives will not be fully successful without the involvement of our
current and future vendors.

####### Additional Efforts 

######## Additional efforts not discussed in section A.4.1.2

Section 30 (c) of the OFPP Act, 41 U.S.C. 426(c), specifies four
specific requirements for systems, technologies, procedures, and
processes established pursuant to this section. They are: (1) uniform
implementation; (2) consideration of existing EC/EDI systems and the
Federal Acquisition Computer Network (FACNET); (3) facilitates access to
Federal procurement opportunities; and (4) agency requirements and
solicitations notices made through single, Government-wide point of
entry. The Department is complying with these requirements through its
participation in numerous federal and private sector organizations.

In furtherance of the first requirement, the Department is an active
participant in the Federal EDI Standards Management Coordinating
Committee (FESMCC), the American National Standards Institute (ANSI) and
its several area-specific committees, and the United Nations Electronic
Data Interchange for Administration, Commerce, and Transportation
(UN/EDIFACT).

With respect to requirements two and three, the Civilian Agency
Acquisition Council and the Defense Acquisition Regulations Council have
mutually agreed upon an interim rule amending the Federal Acquisition
Regulation (FAR). This amendment will implement Section 850 of the
National Defense Authorization Act for Fiscal Year 1998 (PL 105-85) by
removing FACNET specific terms and policies and replacing them with more
flexible EC policies[^5].

Supporting the fourth requirement, the Department is both supporting the
electronic Commerce Business Daily (CBD) and, through the BUSOPPS
initiative, is supporting development of the Federal Electronic Posting
System (EPS). The CBD is serving as a single, Government-wide point of
entry for requirements and solicitations. Should it be adopted, the EPS
will provide that same capability plus many others.

######## Volume and Dollar Value of DoD EC Transactions

Section 30 (e) (4) of the OFPP Act requires "an agency-by-agency summary
of the volume and dollar value of transactions that were conducted using
electronic commerce methods during the previous calendar year." The
following table provides a summary of the Department's EC statistics in
1998[^6].

####### Participation in interagency groups

The Department participated in a very large number of interagency groups
in FY 1998. The activities are shown in the following table:

INTERAGENCY EC GROUPS

+---------------------+-----------------------+------------------------+
| **GROUP**           | **DESCRIPTION**       | **SPONSOR/CONTACT**    |
+=====================+=======================+========================+
| **Electronic        | President's           | President's Management |
| Processes           | Management Council    | Council                |
| Initiatives         | Committee that meets  |                        |
| Committee (EPIC)**  | periodically to deal  | Andrew Gillen          |
|                     | with high-level EC    | 202-395-5835           |
|                     | issues. Chaired by    |                        |
|                     | OMB. Representatives  |                        |
|                     | from DoD, Education   |                        |
|                     | GSA, and Treasury.    |                        |
+---------------------+-----------------------+------------------------+
| -   EPIC Support    | Ad hoc EPIC staff     | EPIC                   |
|     Group           | support group that    |                        |
|                     | meets monthly to      | Andrew Gillen          |
|                     | coordinate EPIC       | 202-395-5835           |
|                     | issues.               |                        |
+---------------------+-----------------------+------------------------+
| -   Buying and      | Created by EPIC and   | EPIC                   |
|     Paying Task     | chaired by DoD.       |                        |
|     Force (Recently | Promulgated           | Jerry Williams         |
|     Con­cluded)      | strategies for        | 703-602-0369           |
|                     | implementing          |                        |
|                     | end-to-end EC for     |                        |
|                     | high-volume low       |                        |
|                     | dollar transactions.  |                        |
+---------------------+-----------------------+------------------------+
| -   Card Technology | Produced an           | EPIC                   |
|     Task Force      | implementation plan   |                        |
|     (Inactive)      | for Federal use of    | David Temoshok         |
|                     | smart cards.          | 202-208-7655           |
+---------------------+-----------------------+------------------------+
| -                   | Advisory group to     | EPIC                   |
|   Intergovernmental | help plan the         |                        |
|     Transfer System | implementation of     | Ken Carfine            |
|     (IGOTS)         | IGOTS using card      | 202-874-9248           |
|                     | technology.           |                        |
+---------------------+-----------------------+------------------------+
| **EC Customer       | Cross-functional      | GSA                    |
| Advisory Board      | group (CIO, CFO,      |                        |
| (ECCAB)             | Procurement Council)  | John Thomas            |
| (Inactive**)        | that meets            | 202-208-4552           |
|                     | periodically to       |                        |
|                     | discuss EC policy and |                        |
|                     | programmatic issues.  |                        |
+---------------------+-----------------------+------------------------+
| **Electronic        | Organization funded   | GSA/DoD                |
| Commerce Program    | by GSA to monitor,    |                        |
| Office (ECPO)**     | coordinate, and       | Tony Trenkle           |
|                     | implement Federal EC. | 202-501-1667           |
|                     | Originally the        |                        |
|                     | Electronic Commerce   | Paul Grant             |
|                     | Acquisition Program   | 703-604-1477           |
|                     | Management Office     |                        |
|                     | created in response   |                        |
|                     | to FASA.              |                        |
+---------------------+-----------------------+------------------------+
| -   EC Coordinators | Group of              | ECPO                   |
|     Group           | agency-designated EC  |                        |
|                     | reps that meets       | Jim Hunt 202-501-6901  |
|                     | bi-monthly to discuss |                        |
|                     | EC policies and       |                        |
|                     | projects.             |                        |
+---------------------+-----------------------+------------------------+
| -   Federal EDI     | Committee helping to  | ECPO                   |
|     Standard        | coordinate federal    |                        |
|     Management      | adoption of national  | Teresa Sorrenti        |
|     Coordinating    | and international EDI | 703-305-6514           |
|     Committee       | standards.            |                        |
+---------------------+-----------------------+------------------------+
| -   Interagency     | Group created by ECPO | ECPO                   |
|     Electronic      | to coordinate the     |                        |
|     Grants          | implementa­tion of     | Ann Fisher             |
|     Committee       | common electronic     | 202-366-4288           |
|     (IAEGC)         | grants systems per    |                        |
|                     | Access America        | Brad Stanford          |
|                     |                       | 703-696-5420           |
+---------------------+-----------------------+------------------------+
| **Interagency       | Working-level group   | Ken Stepka             |
| Acquisition         | that meets monthly to | 202-358-0492           |
| Internet Council    | exchange ideas, work  |                        |
| (IAIC)**            | initiatives related   |                        |
|                     | to the use of         |                        |
|                     | Internet technology   |                        |
|                     | for procurement       |                        |
|                     | transactions.         |                        |
+---------------------+-----------------------+------------------------+
| **Federal PKI       | Provides a forum for  | GITSB                  |
| Steering            | Federal agencies to   |                        |
| Committee**         | share information and | Richard Guida          |
|                     | work collaboratively  |                        |
|                     | on PKI matters.       | 202-622-1552           |
+---------------------+-----------------------+------------------------+
| **Electronic        | CFO Council committee | CFO Council            |
| Commerce            | that serves as a      |                        |
| Committee**         | board of directors    | Sky Lesher             |
|                     | for FITEC             | 202-208-4701           |
+---------------------+-----------------------+------------------------+
| -   Financial       | Interagency team of   | CFO Council EC         |
|     Implemen­tation  | part and full-time    | Committee              |
|     Team for        | employees working on  |                        |
|     Electronic      | a number of finance   | Dan McGrath            |
|     Commerce        | EC projects.          | 202-218-8474           |
|     (FITEC)         |                       |                        |
+---------------------+-----------------------+------------------------+
| **White House       | Coordinate the        | White House            |
| Interagency Task    | implementation of the |                        |
| Force on EC**       | President's           | Elliot Maxwell (202)   |
|                     | Memorandum of 7/1/97  | 456-1414               |
|                     | dealing with national |                        |
|                     | EC Policy.            |                        |
+---------------------+-----------------------+------------------------+

**[Legend]{.underline}**

> **Bold** = Main Group, Subgroups below
>
> **Note:** There are other groups that deal with EC issues but are not
> strictly related to EC.

####### Vendor Data Collection and Management

The Department collects vendor data under the CCR concept[^7]. The CCR
is the primary repository for trading partner information required in
order for vendors to conduct business with the Department. The CCR is a
database consisting of information pertaining to procurement and
financial business transactions. The CCR was created to comply with the
Debt Collection Improvement Act of 1996, simplify and streamline
procurement, and increase visibility of vendor sources for specific
goods and services.

######## Vendor data being collected

The Department is collecting the following vendor data as part of CCR
registration. Complete registration processes may be found at
http://www.fecrc.com/whatsnew/ccrregist.html.

-   General Information

+-----------------------------------+----------------------------------+
| -   Legal Business Name           | -   Date Business Started        |
+-----------------------------------+----------------------------------+
| -   Company Address and Contact   | -   Date Accounting Period       |
|     information                   |     Closes                       |
+-----------------------------------+----------------------------------+
| -   DUNS Number                   | -   Average Number of Employees  |
+-----------------------------------+----------------------------------+
| -   CAGE Code (if the company has | -   Average Annual Revenue       |
|     one)                          |                                  |
+-----------------------------------+----------------------------------+

-   Type of Business

+-----------------------------------+----------------------------------+
| -   Corporate Status Code         | -   Classifications of business  |
+-----------------------------------+----------------------------------+
| -   Where incorporated            |                                  |
+-----------------------------------+----------------------------------+

-   Goods and Services

-   SIC Codes

+-----------------------------------+----------------------------------+
| -   PSC Codes (optional)          | -   FIC Codes (optional)         |
+-----------------------------------+----------------------------------+

-   Financial Information for Contract Payment

+-----------------------------------+----------------------------------+
| -   Financial Institution         | -   Authorization Date           |
+-----------------------------------+----------------------------------+
| -   ABA Routing Trans ID No.      | -   ACH Coordinator for          |
|                                   |     Financial Institution        |
+-----------------------------------+----------------------------------+
| -   Remittance Address for        | -   Registrant's Accounts        |
|     payment statement             |     Receivable Contact           |
+-----------------------------------+----------------------------------+
| -   Account Number                | -   Taxpayer Identification      |
|                                   |     Number (TIN)                 |
+-----------------------------------+----------------------------------+

(The following optional information is maintained if submitted)

-   EDI Parameters

+-----------------------------------+----------------------------------+
| -   Financial Service Provider    | -   EDI Translation Code         |
+-----------------------------------+----------------------------------+
| -   EDI Systems Media Capability  | -   EDI Software ID and Version  |
+-----------------------------------+----------------------------------+
| -   EDI Translation Type          | -   E-mail address or VAN/VAS    |
|                                   |     Information                  |
| -   EDI Capabilities              |                                  |
+-----------------------------------+----------------------------------+

-   Registration Acknowledgement

+-----------------------------------+----------------------------------+
| -   Name                          | -   Phone                        |
+-----------------------------------+----------------------------------+
| -   Acknowledgement Date          | -   CCR Correspondence           |
|                                   |     preferences                  |
+-----------------------------------+----------------------------------+

######## How vendor data is collected

Vendor data is collected as a part of CCR registration. It is
additionally validated with the Dun & Bradstreet "DUNS" database and the
Defense Logistics Information Service administered Commercial and
Government Entity (CAGE) database.

######## How vendor data is used

Vendor data is used today to validate vendor identification, to assure
vendor identity in past performance databases, and to permit payment by
EFT in support of the Prompt Payment Act and the Debt Collection
Improvement Act.

##### DoD EC Implementation Plans for FY 1999 and FY 2000

This subsection identifies how the Department is implementing the
government-wide strategic plan, *Electronic Commerce for Buyers and
Sellers*. In developing this plan, the Department worked collaboratively
across procurement, financial, information technology (IT), and program
functions. These plans are consistent with DoD budget submissions,
5-year financial management plans, DoD IT planning under the
Clinger-Cohen Act, and strategic and performance plans submitted under
the Government Performance and Results Act (GPRA).

This plan identifies the major initiatives that are being undertaken in
FY 1999 and will be undertaken in FY 2000 to implement the building
block activity discussed in the government-wide strategic plan.
Secondly, this plan establishes estimated completion dates for major
initiatives, and finally it identifies the management structures and/or
processes that will be employed to achieve these initiatives.

###### Major Initiatives

The following major initiatives are being undertaken in FY 1999 and will
be undertaken in\
FY 2000 to implement the building block activity discussed in the
government-wide strategic plan.

The following DoD major EC buying and paying initiatives are planned or
are ongoing:

  -------------------------------------------------------------------------------
  **Initiative Name**                               **FY 1999      **FY 2000
                                                    Initiative**   Initiative**
  ------------------------------------------------- -------------- --------------
  Establish paper-free contracting as the norm      Yes            Yes

  Reengineer service member household goods         Yes            Yes
  processing                                                       

  Redesign policies and practices for acceptance of Yes            Yes
  goods and services                                               

  Expand the Prime Vendor program                   Yes            Yes

  Reengineer the service member Permanent Change of Yes            Yes
  Station process                                                  

  Reengineer the transportation process             Yes            Yes

  Create a paperless DD Form 250                    Yes            Yes

  Achieve ninety-percent use of purchase cards for  Yes            Yes
  transactions less than \$2500                                    

  Expand the use of electronic catalogs and         Yes            Yes
  electronic malls within the DoD                                  

  Deploy the Defense Travel System                  Yes            Yes

  Implement Standard Procurement System             Yes            Yes
  -------------------------------------------------------------------------------

####### How DoD Initiatives support Government-wide policy principles

The following table describes how each major initiative supports
government-wide and DoD policy principles:

+----------------+-----------------------------------------------------+
| **FEDERAL      | **APPLICABLE DOD INITIATIVES**                      |
| POLICY         |                                                     |
| PRINCIPLES**   |                                                     |
+================+=====================================================+
| Use EC to make | -   Establish paper-free contracting as the norm    |
| the buying and |                                                     |
| payment        | -   Reengineer Household Goods processing           |
| process easier |                                                     |
| and more       | -   Redesign Acceptance Policies and Practices      |
| efficient for  |                                                     |
| both buyers    | -   Expand Prime Vendor                             |
| and sellers.   |                                                     |
|                | -   Reengineer Transportation Processes             |
|                |                                                     |
|                | -   Implement paperless DD Form 250, Material       |
|                |     Inspection and Receiving Report                 |
|                |                                                     |
|                | -   Maintain 90% Use of Purchase Cards for          |
|                |     Purchases Less Than \$2500                      |
|                |                                                     |
|                | -   Expand use of E-Catalogs and E-Malls            |
|                |                                                     |
|                | -   Deploy Defense Travel System                    |
+----------------+-----------------------------------------------------+
| Use EC to      | -   Establish paper-free contracting as the norm    |
| facilitate     |                                                     |
| best value     | -   Expand use of E-Catalogs and E-Malls            |
| buying and     |                                                     |
| paying.        | -   Expand use of Purchase Cards                    |
+----------------+-----------------------------------------------------+
| Take advantage | -   Establish paper-free contracting as the norm    |
| of proven      |                                                     |
| commercial     | -   Reengineer Household Goods processing           |
| applications   |                                                     |
| of electronic  | -   Redesign Acceptance Policies and Practices      |
| commerce.      |                                                     |
|                | -   Expand Prime Vendor                             |
|                |                                                     |
|                | -   Reengineer Transportation Processes             |
|                |                                                     |
|                | -   Implement paperless DD Form 250, Material       |
|                |     Inspection and Receiving Report                 |
|                |                                                     |
|                | -   Maintain 90% Use of Purchase Cards for          |
|                |     Purchases Less Than \$2500                      |
|                |                                                     |
|                | -   Expand use of E-Catalogs and E-Malls            |
|                |                                                     |
|                | -   Deploy Defense Travel System                    |
+----------------+-----------------------------------------------------+
| Outsourcing    | -   Reengineer Household Goods processing           |
| transaction    |                                                     |
| processing.    | -   Maintain 90% Use of Purchase Cards for          |
|                |     Purchases Less Than \$2500                      |
|                |                                                     |
|                | ```{=html}                                          |
|                | <!-- -->                                            |
|                | ```                                                 |
|                | -   Deploy Defense Travel System                    |
+----------------+-----------------------------------------------------+
| Assign         | -   Establish paper-free contracting as the norm    |
| financial      |                                                     |
| liability for  | -   Expand Prime Vendor                             |
| losses         |                                                     |
| commensurate   | -   Implement paperless DD Form 250, Material       |
| with ability   |     Inspection and Receiving Report                 |
| to manage and  |                                                     |
| mitigate       | -   Maintain 90% Use of Purchase Cards for          |
| related risks. |     Purchases Less Than \$2500                      |
|                |                                                     |
|                | -   Expand use of E-Catalogs and E-Malls            |
+----------------+-----------------------------------------------------+

[Paper-free Contracting]{.underline}. The DoD paper-free contracting
initiative supports all DoD policy principles and four of five
government-wide policy principles. It was first introduced in the
Defense Reform Initiative Report (DRIR) and followed-up in Management
Reform Memorandum (MRM) #2 and Defense Reform Initiative Directive
(DRID) #32. This initiative endeavors to apply the best practices and
proven applications from the private sector to eliminate paper from the
contracting process. As an element of this initiative, the Department is
adopting commercial identifiers that will ease the item identification
process in both the public and private sectors. Among the technical
tools that support this initiative are the CCR, the SPS, the DPPS,
Electronic Funds Transfer (EFT), and the TDPMIS. The adoption of EFT to
pay vendors is an example of a proven commercial application that make
the process more efficient for both buyers and sellers. The adoption of
EC standards and appropriate security are prerequisites to make EFT work
and fosters trust and confidence in conducting paper-free contracting
with the Department. As each of the paper-free system components are
built, DoD ensures that, where feasible, they incorporate Commercial
Off-the-Shelf (COTS) solutions and do not prohibit or impede the use of
new or competing technologies.

[Reengineer Household Goods]{.underline}. The initiative to reengineer
and streamline the process which contracts to move service member\'s
household goods between duty stations was first advanced in the DRIR and
subsequently detailed in MRM #6. It supports three DoD policy principles
and two Federal policy principles. The shipment of household goods is a
buying and payment process between moving and shipping companies that
provide this service and the Department, which acts as contracting agent
on behalf of the Service member. The reengineering of this process
includes the adoption of the DoD policy principles of best business
practices, EC standards, and COTS solutions while ensuring sufficient
flexibility is retained to permit future adoption of new technologies.
Similarly, this reengineering process takes advantage of commercial
applications of EC to make the buying and payment process easier and
more efficient for both the buyers and sellers.

[Redesigning Acceptance Policies and Practices]{.underline}. The
redesign of acceptance policies and practices of the Department is a
streamlining initiative advanced in MRM #10. It supports three DoD
policy principles and two government-wide policy principles. The
initiative is to review the DoD source-acceptance procedures with the
view of adopting commercial source-acceptance business procedures, which
are significantly less expensive with no apparent loss in effec­tive­ness.
While the principal thrust of the initiative is to eliminate the
requirement for source-acceptance, it charges the participants to
consider \"alternative methods\", which permits application of EC to the
solution set. Where complete elimination is not appropriate, such EC
solutions may replace paper acceptance with EC-based technologies. At a
minimum the review of the acceptance polices will result in a
streamlined buying process.

[Prime Vendor]{.underline}. The prime vendor initiative was first
outlined in the DRIR and followed-up in MRM #12 and DRID 45. The
initiative supports all five DoD policy principles and four
government-wide policy principles. The prime vendor concept identifies,
through a competitive process, a single source for a category of
supplies. Through the identification of high and low stock limits and
either access to actual inventory data or the establishment of routine
restocking periods, the single source is named to maintain the
inventory. This eliminates the requirement for the government buyer or
user to maintain large inventories of stock on hand. The initial
large-scale application of this concept was for DoD pharmacies and
dining facilities, and the initiative is to expand it to many other
areas. The prime vendor concept requires the best commercial business
practices, EC standards, and COTS solutions are applied to permit global
data sharing with the prime vendor. It also requires appropriate
security be maintained, for example when dealing with narcotic
quantities and deliveries. The prime vendor initiative takes advantage
of proven commercial applications to communicate the inventory
quantities, which in turn eases and makes more efficient the associated
buying and payment.

[Reengineer Transportation Documentation and Financial
Processes]{.underline}. The initiative to reengineer and streamline
Defense Transportation Documentation and Financial Processes was first
advanced in MRM #15. This reengineering initiative supports three DoD
policy principles and two government-wide policy principles. The
initiative involves the reengineering of the transportation
documentation, billing, collection, and payment process. Three areas of
immediate focus for this initiative are the Transportation Account Code
Process; the use of purchase cards for paying airlift, sealift, domestic
freight, and express package bills; and the elimination of Government
Bills of Lading (GBLs) for domestic express carrier movements. The
reengineering of this process includes the adoption of the DoD policy
principles of best business practices, EC standards, and COTS solutions
while ensuring sufficient flexibility is retained to permit future
adoption of new technologies. Similarly, this reengineering process
takes advantage of commercial applications of EC to make the buying and
payment process easier and more efficient for both the buyers and
sellers.

[Paperless DD Form 250, Material Inspection and Receiving
Report]{.underline}. The initiative to reengineer the DD Form 250 was
introduced by DRID #33. This initiative supports all five DoD and three
government-wide policy principles. The DD Form 250 is fundamental to
most DoD material receipt actions, and therefore is pervasive throughout
the Department. Reengineering the material inspection and receiving
process into an EC process will have a significant impact across the
Department. The reengineering will take advantage of best business
practices, industry EC standards and COTS solutions and be sufficiently
flexible so as not to impede the future use of new technologies.
Application of proven commercial applications will ensure the new
\"electronic DD 250\" makes the process of material inspection and
receipt, and thus buying and payment, easier and more efficient for both
buyers and sellers. Finally, a key trait of this reengineered product
must be that it fosters trust and confidence in the process, i.e., the
paying entity must be assured that the electronic receipt document is
valid. The reengineered process must assign the risks across the
stakeholders in the process.

[Ninety-Percent Use of Purchase Cards for Purchases Less Than
\$2500]{.underline}. The initiative to induce a broad application of
purchase cards (formerly known as IMPAC purchase cards) for high volume,
low cost Defense purchases by FY 2000 was advanced in Chapter 1 of the
DRIR. This initiative supports four DoD and three government-wide policy
principles. This reengineering effort has applied best business
practices, industry EC standards, and COTS solutions.

[Expanded use of E-Catalogs and E-Malls]{.underline}. The initiative to
increase the use of electronic cata­logs and electronic malls was
advanced in Chapter 1 of the DRIR. This initiative supports four DoD and
three government-wide policy principles. The expansion of E-Catalogs and
E-Malls, coupled with the widespread use of purchase cards,
significantly increases the volume of goods and services available to
DoD activities, worldwide. To ensure the efficiency and competitive­ness
of these catalogs and malls they must apply best business practices,
industry EC standards, and COTS solutions, as well as instill a
confidence in the security of the transaction from both the buying and
paying standpoint. The E-catalogs and E-malls must take advantage of
proven commercial applications, use EC to make the buying and paying
processes easier and more efficient for both parties and must assign
financial liability for losses commensurate with ability to manage
risks. Additionally, the application of E-catalogs and E-malls permit
comparison-shopping which should lead to best value purchases by DoD
buyers. The DoD e-malls must emulate Internet success stories like
http://www.amazon.com, http://www.borders.com, and
http://www.landsend.com, etc. Most recently, the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 (H.R. 3616), section.
332, "Defense -Wide Electronic Mall System for Supply Purchases"
requires elimination of duplication and overlap among DoD electronic
catalogs; and ensuring that such catalogs utilize common technologies
and formats.

[Deploy Defense Travel System (DTS)]{.underline}. The initiative to
reengineer DoD administrative travel process was first advanced in
Chapter 1 of the DRIR. The development of the DTS supports three DoD
policy principles and two government-wide policy principles. DTS is an
end-to-end system that authorizes travel, identifies travel needs and
acquires travel services, approves travel settlements, and reimburses
travelers via EFT. The DTS was reengineered applying the DoD policy
principles of best business practices, EC standards, and COTS solutions
while ensuring sufficient flexibility is retained to permit future
adoption of new technologies. Similarly, this reengineering process
takes advantage of commercial applications of EC to make the buying and
payment process easier and more efficient for both the buyers and
sellers.

####### How the DoD Purchasing and Payment initiatives support the building blocks in the Federal strategic plan

The following table aligns the DoD Initiatives with the Government-wide
building blocks enumerated in section 6 of *Electronic Commerce for
Buyers and Sellers.*

+----------------+-----------------------------------------------------+
| **BUILDING     | **APPLICABLE DOD INITIATIVES**                      |
| BLOCK**        |                                                     |
+================+=====================================================+
| Electronic     | -   Expand use of Purchase Cards                    |
| Catalogs       |                                                     |
|                | -   Expand use of E-Catalogs and E-Malls            |
+----------------+-----------------------------------------------------+
| Payment        | -   Expand paper-free contracting                   |
| Utilities      |                                                     |
|                | ```{=html}                                          |
|                | <!-- -->                                            |
|                | ```                                                 |
|                | -   Expand Prime Vendor                             |
|                |                                                     |
|                | -   Reengineer Transportation processes             |
|                |                                                     |
|                | ```{=html}                                          |
|                | <!-- -->                                            |
|                | ```                                                 |
|                | -   Expand use of Purchase Cards                    |
+----------------+-----------------------------------------------------+
| Buyer and      | -   Expand paper-free contracting                   |
| Seller ID and  |                                                     |
| Authentication | -   Expand use of E-Catalogs and E-Malls            |
+----------------+-----------------------------------------------------+
| Contract       | -   Expand Paper-free contracting                   |
| Formation and  |                                                     |
| Administration | -   Reengineer Household Goods                      |
|                |                                                     |
|                | -   Redesign Acceptance Policies & Practices        |
|                |                                                     |
|                | -   Expand Prime Vendor                             |
|                |                                                     |
|                | -   Reengineer Transportation processes             |
|                |                                                     |
|                | -   Expand paperless DD Form 250                    |
|                |                                                     |
|                | ```{=html}                                          |
|                | <!-- -->                                            |
|                | ```                                                 |
|                | -   Deploy DTS                                      |
+----------------+-----------------------------------------------------+
| Automated      | -   Expand paper-free contracting (primarily SPS)   |
| Contract       |                                                     |
| Writing        |                                                     |
| Systems        |                                                     |
+----------------+-----------------------------------------------------+
| Finance        | -   Expand paper-free contracting (primarily DPPS)  |
| Systems        |                                                     |
| Interfaces     |                                                     |
+----------------+-----------------------------------------------------+
| Change         | -   Expand paper-free contracting                   |
| Management     |                                                     |
+----------------+-----------------------------------------------------+

[Paper-free Contracting]{.underline}. The broad reaching paper-free
contracting initiative supports all but one of the building blocks in
the Federal buying and paying model. Components of the initiative
provide specific support of the various building blocks. The DPPS is a
DFAS principal initiative to upgrade payment utilities using data
warehousing and EC techniques. Similarly, both Contract Formulation and
Administration and Automated Contract Writing Systems are functions
under development in the SPS. The Depart­ment\'s adoption of DPPS and its
use of EFT satisfy Finance Systems Interfaces building block.

[Use of Purchase Cards]{.underline}. Purchase Cards support the
E-catalogs building blocks by providing an easy, widely accepted payment
procedure. Purchase cards are a payment utility and thus, support that
building block.

[Expanded use of E-Catalogs and E-Malls]{.underline}. Clearly, expanded
DoD use of E-catalogs and E-malls supports the E-catalog building block
but, additionally, it provides a form of seller authentica­tion: the
vendors offering goods and services in the DoD Malls have received some
degree of screening to satisfy basic Federal Acquisition Regulation
requirements.

####### Financial management impact of Initiatives Material to DoD Financial Operations

While no single initiative qualifies as being uniquely material to DoD's
financial operations, several parts of the paper-free contracting
initiative have a huge positive impact on the financial management of
the Department. This is especially true of the expansion of EFT as it is
fully integrated across the Department. EFT in itself is not uniquely
identifiable in the DoD budget as to be singled out in this section.

####### Initiatives which Include a Major Acquisition

None.

####### Initiatives Not Addressed in Building Blocks, Financial Operations, nor Acquisition Sections

None.

###### Milestones and measures

This section identifies the anticipated completion dates (by fiscal
quarter) for all major initiatives that will be completed in FY 1999 and
FY 2000 and how the Department anticipates gauging the effectiveness of
major initiatives.

+-------------------------+-------------+------------------------------+
| **Initiative Name and   | **Milestone | **Measures of                |
| Milestone**             | Completion  | Effectiveness**              |
|                         | Quarter**   |                              |
+=========================+=============+==============================+
| Paper-free Processing   | -   Q2 FY00 | -   All weapons systems      |
| of Weapons Systems      |             |     contracting is           |
| Contracting             | -   Q2 FY99 |     paper-free               |
|                         |             |                              |
|                         | -   Q3 FY99 | -   WAWF Operational         |
|                         |             |                              |
|                         | -   Q4 FY99 | -   EDA Extranet Operational |
|                         |             |                              |
|                         |             | -   EDA Operational          |
+-------------------------+-------------+------------------------------+
| Reengineering service   | -   Q4 FY99 | -   Assessment of Prototypes |
| member household goods  |             |     and movement into phased |
| processing              |             |     implementation           |
+-------------------------+-------------+------------------------------+
| Redesigning acceptance  | -   Q3 FY99 | -   National Stock Number    |
| policies and practices  |             |     Review complete          |
+-------------------------+-------------+------------------------------+
| Reengineer the          | -   Q2 FY99 | -   Assessment of Prototypes |
| transportation process  |             |     and movement into phased |
|                         |             |     implementation           |
+-------------------------+-------------+------------------------------+
| Creating a paperless DD | -   Q3 FY99 | -   Deploy Wide area         |
| 250                     |             |     Workflow                 |
|                         | -   Q4 FY00 |                              |
|                         |             | -   25% DD 250 processed     |
|                         |             |     electronically           |
+-------------------------+-------------+------------------------------+
| Purchase Card Program   | -   Q1 FY00 | -   Achieve ninety-percent   |
| Expansion               |             |     use of purchase cards    |
|                         |             |     for transactions less    |
|                         |             |     than \$2500              |
+-------------------------+-------------+------------------------------+
| Implement               | -   Q2 FY99 | -   Complete Inventory of    |
| Enterprise-wide Supply  |             |     DoD\                     |
| E-mall                  | -   Q2 FY99 |     E-catalogs               |
|                         |             |                              |
|                         | -   Q3 FY99 | -   Formalize and distribute |
|                         |             |     technical and            |
|                         | -   Q3      |     acquisition guidelines   |
|                         |     FY99/   |     for integrating DoD      |
|                         |             |     catalogs into the E-mall |
|                         |  continuous |                              |
|                         |             | -   Establish comprehensive  |
|                         | -   Q3 FY99 |     implementation schedule  |
|                         |             |     for integration of       |
|                         |             |     existing and planned     |
|                         |             |     E-catalogs into the\     |
|                         |             |     E-mall                   |
|                         |             |                              |
|                         |             | -   Establish/Monitor        |
|                         |             |     metrics on DoD E-mall    |
|                         |             |     progress                 |
|                         |             |                              |
|                         |             | -   Initiate Robust          |
|                         |             |     Marketing Plan for DoD   |
|                         |             |     E-mall                   |
+-------------------------+-------------+------------------------------+
| Deploy the Defense      | -   Q3 FY99 | -   IOC                      |
| Travel System           |             |                              |
|                         | -   Q3 FY01 | -   CONUS Implementation     |
|                         |             |                              |
|                         | -   Q3 FY01 | -   OUTCONUS Implementation  |
+-------------------------+-------------+------------------------------+

###### Management Structures and Processes

This section describes how DoD EC planning, investment, implementation,
and integration is coordinated across components and functional areas.

####### Management structures and/or processes 

The management structures and/or processes being used to integrate
and/or coordinate EC planning, investment, implementation and evaluation
across procurement, financial, IT, and program offices are shown below.

The Deputy Secretary of Defense provides centralized policy direction
and oversight of the Joint Electronic Commerce Program (JECP) under the
DoD CIO. This alignment complements the current CIO role of providing
information technology oversight and policy direction to the functional
Office of the Secretary of Defense (OSD) Principal Staff Assistants
(PSAs) and DoD Components. This alignment also permits EB/EC planning
and oversight to become an integral part of the overall information
technology plans and programs of the Department.

The Office of the DoD CIO is responsible for promoting vertical and
horizontal EB/EC integration and coordination across DoD organizations.
This coordination and integration is accomplished using existing OSD
staffing mechanisms as well as taking advantage of other crosscutting
senior executive processes and functions. The DoD CIO is expected to
release the DoD EB/EC Strategic Plan during the second quarter of 1999.

Management processes are incorporated in the coordination and
integration processes through interaction with the Department's Chief
Financial Officer (CFO) and the Defense Acquisition Executive (DAE) and
their support staffs. It is through this integration and coordination
that EB/EC planning and initiatives are brought into the vital
financial, acquisition, contracting, and logistics processes of the
Department. The information technology and management aspects of EB/EC
are promoted and put in place through the existing CIO structure of the
Department. Management review and oversight also benefits from the
direction and skills set forth by the DoD CIO Council.

Similarly, the EB/EC functional perspective is incorporated through the
involvement of the OSD PSAs. The OSD PSAs serve as the DoD functional
subject matter experts and owners of the business processes. As the
functional owners, the PSAs are responsible for reengineering of their
business practices and implementing enabling EB/EC technologies.
Functional EB/EC plans will be presented in the DoD EB/EC Strategic
Plan. The PSAs are represented on key DoD councils, working groups,
integrated process teams (IPTs), and EB/EC standards committees. The
PSAs participate fully in the DoD planning, programming, and budgeting
process and related decisions and, in many cases, serve as the
investment sponsor and overseer.

The Joint Chiefs of Staff (JCS), Military Departments, and Defense
Agencies fulfill a vital role in EB/EC and also are incorporated in the
CIO\'s integration and coordination effort. The JCS, Military
Departments, and Defense Agencies identify requirements, support the
modification of business processes, participate in system development
and, in many cases, execute and operate the resulting EB/EC-based
application or system. These DoD Components perform operational level
EB/EC planning, develop resource profiles, design EB/EC applications,
transact EB/EC-based business and operate EB/EC supporting information
systems. These DoD Components are full partners in the DoD EB/EC
planning process management structure and were principal participants in
the development of this DoD EB/EC strategic plan.

The CIO provides oversight for the Joint Electronic Commerce Project
Office (JECPO), which enables a close linkage and common vision between
the CIO and JECPO staffs. Additionally, the CIO is sponsoring an EB/EC
Advisory Council under the CIO Working Council (CWC). The EB/EC Advisory
Council will have representation from key stakeholders and advise the
CIO Council on matters related to EB/EC.

The JECPO fulfills a vital integration and coordination function within
the JECP. The JECPO is responsible for issuing EB/EC strategic
implementation direction and guidance to the DoD Components. In
addition, the JECPO is charged to design and broker common services for
application across the Components as well as provide the functional
process owners with business practice improvement support.

####### Interagency groups in which the agency participates.

The interagency EC groups in which the DoD participates, the DoD
initiatives that are supported through participation in each group, and
the steps taken to ensure representation is cross-functional and
consistent with the coordinated internal agency management structures
and processes described in the previous section are enumerated below.

[Electronic Processes Initiatives Committee (EPIC)]{.underline}. The
EPIC is a committee of the President\'s Management Council (PMC). The
EPIC is comprised of PMC representatives from OMB, DoD, Treasury,
Education, and GSA. The EPIC\'s purpose is to harness interest and
latent energy to insure a consistent vision for improving electronic
processes support in Electronic Commerce.  The EPIC utilizes temporary
task forces to address high interest, high return areas:  Two of these
are the Card Services Task Force and the Buying and Paying Task
Force[^8].

A notable initiative from EPIC is the Intra-Governmental Transfer System
(IGOTS), which is developing a methodology to integrate Treasury\'s
[Plastic Card
Network[^9]](http://www.fms.treas.gov/press/../cardtech/pcn.html) (PCN)
agreement and GSA\'s SmartPay contract to create an electronic mechanism
to process intra-governmental payments. The PCN enables government
selling activities to accept purchase cards, and SmartPay enables the
government to acquire purchase cards to procure goods and services. The
DoD initiatives supported through membership in the EPIC are the
purchase card, the electronic catalogs, and electronic malls.

The DoD representative to the EPIC is the DoD representative to the
President's Management Council (PMC), currently the Chief Financial
Officer (CFO). Additionally, a DoD representative serves as chairperson
of -the Buying and Paying Task Force.

[CIO Council]{.underline}. The Federal Chief Information Officers
Council is the principal interagency forum to improve the design,
modernization, use, sharing, and performance of resources. The
Council\'s role includes: developing recommendations for IT management
policy, procedures, and standards; identifying opportunities to share
information resources; and assessing and addressing the needs of the
Federal Government for an information technology workforce. The standing
CIO Council committees are Capital Planning, Education and Training,
Interoperability, Outreach, Security, and Year 2000.[^10] Additionally
the DoD CIO recently formed the Defense CIO Working Council (CWC) to
assist with the management and administration of pending CIO issues.

All DoD initiatives are supported through membership in the CIO Council
by virtue of the Information Technology Management Reform Act.

The DoD representative to the Federal CIO Council is the DoD CIO, who,
through the DoD CIO Council achieves the cross-functional representation
and integration desired as well as the Defense Information
Infrastructure (DII) for all initiatives.

[CFO Council]{.underline}. The statutory Chief Financial Officers
Council is an organization of the CFOs and Deputy CFOs of the 23 major
federal agencies and senior officials of the Office of Management and
Budget who work collaboratively to improve financial management in the
U.S. Government. The CFO Council\'s mission is to influence the future
of the federal government through ethical and effective leadership;
serve as a catalyst for constructive change to ensure the integrity\' of
financial information needed for decision making; and measure program
and financial performance to achieve desirable results[^11]. The DoD
representative to the CFO Council is the DoD CFO.

The DoD initiatives supported through membership in the CFO Council are
the purchase card, electronic catalogs and malls, and paperless
contracting, especially its EFT component.

[Procurement Executive Council (PEC).]{.underline} The PEC is the
principal forum for the exchange of information concerning procurement
among federal agencies. Comparable to the CIO Council and CFO Council,
the PEC membership is comprised of the senior acquisition official in
the agencies. The DoD representative to the Federal Procurement Council
is the Director of Defense Procurement (DDP).

The DoD initiatives supported through membership in the Federal
Procurement Council are paperless contracting, the purchase card, and
electronic catalogs and malls.

[Federal EC Program Office]{.underline}. The Electronic Commerce Program
Office (ECPO) coordinates, monitors, and reports on the development and
implementation of EC within the Federal Government.[^12] 

The DoD initiatives supported through membership in the ECPO are card
technologies (smart card, purchase card, and others), electronic
catalogs and malls, and paper-free contracting (especially EFT).

The DoD representative to and co-chairman of the ECPO is the OASD (C3I)
EB/EC Executive.

[Financial Implementation Team for Electronic Commerce
(FITEC)]{.underline}. The CFO Council\'s Financial Systems Committee
chartered the Financial Implementation Team for Electronic Commerce in
August 1995. The CFO Council's Electronic Commerce Committee now
oversees FITEC operations. The objective of FITEC is to increase the use
of technology to streamline financial services[^13]. The FITEC provides
the CFO Council with the means to: directly and effectively support the
President\'s EC initiative; establish common goals for financial EC;
provide central leadership and direction for financial EC; address and
resolve common financial concerns, problems, and issues relating to EC;
and stay informed about and be fully involved with concurrent EC
activities.

The DoD initiatives supported through membership in the FITEC are the
purchase card, electronic catalogs and malls, and paperless contracting,
especially its EFT component.

The DoD CFO has designated a senior level financial electronic commerce
official (FECO) to work with FITEC and to coordinate Department/Agency
level financial electronic commerce implementation planning and
execution.

[Inter-Agency Acquisition Internet Council
(IAIC)]{.underline}[^14][.]{.underline}

The DoD initiatives supported through membership in the IAIC are
electronic catalogs and malls and purchase cards.

There are several DoD Components represented on the IAIC. This affords a
cross-functional representation and integration.

[Smart Card Program Managers Users Group]{.underline}. This is an
informal group of Agency Smart Card Mangers hosted by GSA\'s Office of
Smart Card Initiative[^15].

The DoD initiative supported through membership in the Smart Card
Program Managers Users Group is the smart card.

Although the locus of internal DoD smart card activities is with its
Smart Card Technology Office, there are several DoD Components
represented on the Smart Card Program Managers\' Users\' Group. This
affords a broad cross-functional representation and integration.

####### Steps Being Taken to Achieve Uniform Implementation

The Department has established a set of steps to achieve uniform
implementation throughout the Department of these EC initiatives. The
Department has used existing EC and EDI systems and infrastructures to
implement these steps. The Department-level CIO, financial management,
and acquisition councils are examples of these instruments. These
Councils each have representation from the Services, key Defense
Agencies, and DoD Principal Staff Assistants to ensure that subordinate
concerns are voiced and that decisions are promulgated evenly across the
Department.

The series of instruments associated with managing the Defense
Revolution in Business Affairs and Defense Reform Initiatives also
contribute to the uniform implementation of EC initiatives. These
instruments include the Quadrennial Defense Review (QDR), the DRIR, the
MRMs, the DRIDs, and various *ad hoc,* cross-functional integrated
product teams (IPTs). Additionally, JECPO was established from Defense
Logistics Agency, Defense Information Service Agency, and Service assets
to implement EC initiatives.

The QDR has been adopted as the Defense Strategic Plan required under
the GPRA and, therefore, has the force of a Department-wide directive
that sets the direction for the entire Department. The DRIR applied the
strategy of the QDR in more application-oriented terms. The first
chapter of the DRIR is devoted exclusively to Electronic Business
Operations. The MRM were OUSD (Comptroller) directed reform initiatives
that applied EC solutions to improve the business processes of the
entire Department. Many of these initiatives are EC in nature.
Similarly, the DRIDs are a series of initiatives from the Deputy
Secretary of Defense, many of which apply EC to the operations of the
Department.

The IPTs are cross-functional groups, frequently chartered by the Deputy
Secretary of Defense, which examine specific areas, many of which
embrace EC. As an example, one IPT developed proposals to implement
paperless contracting across the Department.

####### Responsible Individual

The Deputy Secretary of Defense has established the DoD Chief
Information Officer (CIO) as the responsible official for the
coordination of all EC initiatives across the Department of Defense.

#### Functional EB/EC Plans

The Tabs and Annexes in this Appendix are EB/EC Plans provided by the
OSD PSAs. These plans describe how the PSAs are incorporating EB/EC into
their respective functional areas. These functional plans contribute to
the resource base for the EB/EC implementation plans developed/being
developed by the JECPO, Military Departments, and Defense Agencies.

##### Appendix B, TAB 1: USD (A&T) 

###### Annex I: Economic Security

The Economic Security EB/EC functional plan was not available at
publication. It will appear in future editions of this Strategic Plan.

###### Annex II: Environmental Security

The Environmental Security EB/EC functional plan was not available at
publication. It will appear in future editions of this Strategic Plan.

######   {#section-5 .unnumbered}

###### Annex III: Logistics EB/EC Initiative -- Adoption of Commercial Data Exchange Standards[^16]

On December 9, 1998, the Deputy Secretary of Defense signed Department
of Defense Reform Initiative Directive (DRID) #48 - Adoption of
Commercial EDI Standards for DoD Logistics Business Transactions. The
DRID directs that the Joint Electronic Commerce Program Office (JECPO)
form an Integrated Product Team (IPT) to develop a comprehensive
implementation plan in conjunction with the Military Services and
Defense Agencies. The plan shall identify a phased implementation
approach to migrate the Department's logistics transactions to the use
of American National Standard Institute (ANSI) Accredited Standards
Committee (ASC) X12 Electronic Data Interchange (EDI) standards, or
other commercial EDI standards identified in Federal Information
Processing Standard (FIPS) 161-2 as appropriate, to simplify DoD
interfaces with the private and federal civilian sectors, and to enable
the required changes to the Department's logistics business processes.
The DRID also directs that the Under Secretary of Defense (Acquisition
and Technology), in coordination with the DoD Chief Information Officer,
issue policy and procedures to effect use of FIPS 161-2 approved
commercial EDI standards for transaction exchanges for all new and
planned business systems.

In support of DRID #48, the Deputy Under Secretary of Defense for
Logistics (DUSD (L)), in partnership with the DoD Chief Information
Officer (CIO), is replacing the DoD proprietary Defense Logistics
Standard Systems (DLSS) data exchange formats with commercial ANSI ASC
X12 data exchange formats. This change is seen as a precursor to related
DUSD (L) Electronic Commerce (EC) efforts and will create new levels of
interoperability across the full range of logistics business processes
within DoD and between DoD and the civil sector.

As background, DoD established the Military Standard Requisitioning and
Issue Procedures (MILSTRIP) in July 1962. Twelve additional DLSS were
developed between 1962 and 1984. These early forerunners of EC enabled
the Department's diverse information systems to exchange
logistics-related data electronically. These electronic exchanges,
currently estimated in excess of two billion transactions annually, were
based on, then existing, 80-column card format technology. Despite that
limitation, introduction of the DLSS dramatically streamlined paper
processing and standardized individual service unique procedures to
create a rudimentary interoperable logistics environment that, at the
time, was both state of the art and an example for industry.

However, in the intervening years since development of the DLSS,
technology enhancements have introduced new and better methods of
exchanging data. More importantly, as DoD moves into developing EC
relationships with the civil sector, migration from proprietary
standards to commercial standards, used throughout the commercial
logistics community, is critical to enable creative logistics solutions
and achieve the desired level of interoperability. Further, migration to
these commercial standards lays the framework for compliance with the
Defense Information Infrastructure (DII) Common Operating Environment
(COE), achieving the objective of Joint Vision 2010, and is a necessary
precursor to eventual adoption of new data exchange concepts such as
object-oriented EDI and Internet/World Wide Web based EDI.

To date, significant work has been completed to enable this migration.
All common DLSS transactions have been restructured into ASC X12
formats. New procedural manuals have been developed and published.[^17]
An independent report, *A Business Case and Strategy for Defense
Logistics Electronic Data Interchange*[^18]*,* supports continued
adoption of the ASC X12 standards and contains a suggested concept of
operations and presents recommendations for developing an implementation
approach. The JECPO, in conjunction with DUSD (L), has established a
joint Service/Agency IPT to develop a comprehensive implementation plan
that employs a phased migration approach, simplifies DoD interface with
the civil sector, and enhances the DoD logistics business change
process. The IPT will begin its work January 20, 1999 and will complete
the fully coordinated plan by September 30, 1999. In addition to leading
the planning effort, JECPO will assist DUSD (L) in the development of
implementation policy, procedures, and management oversight through the
migration period.

+--------------+-------------------------+------------+---------------+
| Initiative   | Milestone               | R          | Date Due      |
|              |                         | esponsible |               |
|              |                         |            |               |
|              |                         | Office     |               |
+--------------+-------------------------+------------+---------------+
| Adopt        | 1)  Issue policy and    | 1)  DUSD   | March 31,     |
| commercial   |     procedures to       |     (L)/   | 1999          |
| EDI          |     effect use of FIPS  |     DoD    |               |
| standards    |     161-2 standards.    |     CIO    | September 30, |
| for DoD      |                         |            | 1999          |
| logistics    | 2)  Develop             | 2)  DUSD   |               |
| business     |     implementation plan |     (L)/   |               |
| transactions |     to migrate DoD's    |     JECPO/ |               |
|              |     logistics processes |     DLMSO  |               |
|              |     to the use of ANSI  |            |               |
|              |     ASC X12 standards.  |            |               |
+--------------+-------------------------+------------+---------------+

###### Annex IV: Procurement/Contract Administration

The Procurement/Contract Administration EB/EC functional plan was not
available at publication. It will appear in future editions of this
Strategic Plan.

###### Annex V: Science and Technology

####### Science and Technology Business Process Reengineering (BPR) Program

The Deputy Under Secretary of Defense (Science and Technology) (DUSD
(S&T)) is the Principal Staff Assistant for the S&T functional area
within Acquisition and Technology (A&T). The DUSD (S&T) recognized the
need to improve information management mechanisms across the DoD S&T
enterprise in order to manage more effectively the S&T Program.
Traditional methods of gathering management information within the S&T
enterprise was labor and paper intensive, error-prone, and not timely.
To remedy these deficiencies, the DUSD (S&T) established the S&T
Business Process Reengineering (BPR) Program Office and the Science and
Technology Executive Working Group (EWG). The S&T BPR Program Office
conducted process and data analyses of the S&T enterprise to identify
high payoff information management reengineering opportunities. The
community has realized significant benefits through process improvement,
data standardization, and the application of new technology.

The S&T BPR Team has successfully implemented three information
management initiatives for meeting the DUSD (S&T)'s stated goals. These
initiatives were: automating the preparation of the DoD in-house
Research and Development Test and Evaluation (RDT&E) Activities Report,
automating the annual preparation of S&T planning documents, and
creating a S&T data warehouse.

In the past, the annual DoD in-house RDT&E Activities Report and S&T
planning documents were generated in hard copy and involved scores of
personnel including authors, reviewers, and document production staff.
The overall process required much effort and often resulted in
inconsistent data. The tools (word processors, spreadsheets, etc.) used
to prepare text and numerical submissions were not consistent throughout
the enterprise. In addition, exchanging files through e-mail resulted in
version control problems. Frequently, information provided within S&T
was not comparable between sources and inaccurate for the intended
purpose. Producing the final planning documents was a time consuming and
error-prone process.

Similarly, the S&T BPR Program Office found that responding to DUSD
(S&T) requests for information involved numerous manual steps on the
part of Services and Agencies and resulted in inconsistent data. Again,
information provided within S&T was not comparable between sources and
inaccurate for the intended purpose. Producing reports with such data
for data calls required a great deal of intellectual capital and
diverted involved personnel from their primary functions.

Based on these findings, the EWG approved development of Internet-based
applications for improving these management processes. The S&T BPR
Program Office developed the DoD in-house RDT&E Activities Report system
that integrated a web front-end with a relational database that allowed
users to create, review, and approve in-house data on-line. This system
significantly reduced the effort, cost, and time for producing this
report while resulting in more accurate data. The DoD in-house RDT&E
Activities Report now supports a variety of ad hoc information data
calls and has replaced Service specific reports.

The S&T BPR Program Team also developed the Web-based S&T Collaboration
Tool to provide a streamlined method for revising S&T planning documents
and to provide greater control and consistency of document format and
content. The tool uses a relational database to store textual and
numeric data that users can easily query within and across technology
areas and Services to identify trends and ensure data quality and
consistency. The tool has increased information content accuracy while
reducing the effort to produce these annual plans.

The S&T BPR Team developed the S&T InfoWeb Web-enabled data warehouse to
serve as the central authoritative source of S&T management information.
The S&T InfoWeb takes data from the RDT&E in-house Activities Report
system, S&T Collaboration Tool, and other validated sources and stores
this information in a relational database management system. The S&T
InfoWeb allows decision-makers to search text and perform financial
trend and comparison analyses against approved S&T data. The S&T InfoWeb
has significantly changed the way the organization does business. In
particular, the S&T InfoWeb reduced the need for data calls, decreased
the time and effort for responding to internal and external information
requests, and made data available across Services and Agencies for
analytical purposes.

Milestones

![](media/image2.wmf){width="6.477083333333334in"
height="5.072222222222222in"}

The S&T BPR Team has shared lessons learned from this effort with other
members of the DoD community. The team has briefed the Defense Technical
Information Center (DTIC), Services, and Agency managers on these tools
and has shown that the tool and approach can be easily adapted to
similar management processes within the A&T community.

######## Grants

The Deputy Under Secretary of Defense (Science and Technology) is
responsible for providing oversight and issuing guidance for the DoD
Components' use of grants, cooperative agreements, and other assistance
transactions. The DUSD (S&T) has been and continues to be a strong
advocate for increasing the use of electronic commerce (EC) in DoD
assistance processes. Taking full advantage of the considerable
opportunities for using electronic commerce in assistance processes is
not only desirable; it is an imperative.

####### EC Strategic Objectives for the DoD Assistance Process

######## Background

The DoD Components obligate about \$2 billion each year through 7,000
assistance awards. Research and development is the predominant purpose,
with ninety percent of the awards and seventy percent of the dollars;
most of the awards are for basic, applied, and advanced research efforts
within the DoD Science and Technology Program. Cooperative arrangements
with the States for the National Guard are most of the rest of the
activity, with additional actions for local and regional economic and
technical assistance. About 100 purchasing offices of the Military
Departments and Defense Agencies make the awards; most of the offices
conduct parallel activities in procurement, although the assistance and
procurement processes and personnel differ somewhat.

######## Where We Are Today

Some DoD Components and recipients of DoD assistance awards benefit
today from the use of electronic commerce in some stages of the
assistance process. In other stages, progress has been made toward
future use of electronic methods. Examples in various stages of the
process are:

> **Program announcements*.*** Some programs that use assistance
> instruments issue announcements of opportunities to apply or submit
> proposals. Basic Research program offices in the Military Departments,
> which collectively make about two-thirds of DoD's assistance awards,
> now post those announcements electronically on the World Wide Web.
> Potential proposers receive the announcements more quickly and the DoD
> offices save the time and money that used to be spent to print and
> mail thousands of hard copies of an announcement for each competition
> that was announced.
>
> **Submission and receipt of proposals**. The Electronic Commerce
> Committee (ECC), which grew out of a collaboration of DoD research
> program offices and now includes several civilian agencies,
> spearheaded an effort to develop a transaction set that the American
> National Standards Institute (ANSI) endorsed as the electronic data
> interchange (EDI) standard for applications or proposals for
> assistance awards. The Office of Naval Research and Air Force Office
> of Scientific Research conducted a successful, proof-of-concept test
> and electronically received research grant proposal data from two
> universities in the format of the ANSI EDI transaction set.
>
> **Pre‑award processing.** Lead times for making assistance awards,
> once the program officials have decided which applications or
> proposals are to be supported, are lengthened by the movement of paper
> that accompanies the thorough review and approval processes that
> necessarily are part of the obligation of appropriated funds. The
> Office of Naval Research developed the Integrated Navy Research
> Information System (INRIS) to handle electronically the process from
> the program officer's creation of the request to place an award
> through the final approval by the grants officer. The system
> interfaces directly with the Navy's Standard Accounting and Reporting
> System (STARS) for committing and obligating the funds. Lead times for
> placing awards have been reduced from 45 days in FY 95 to 15 days in
> FY 98.
>
> **Awards.** Electronic award documents relieve what otherwise is a
> paper‑intensive part of the process, because copies of the awards
> necessarily reside in the placement office, in the DoD office
> designated to handle the post‑award administration, in the payment
> office of the Defense Finance and Accounting Service, and in one or
> more offices of the recipient organization. The Office of Naval
> Research in 1998 began a pilot program with five universities, under
> the auspices of the Federal Demonstration Partnership (FDP), to
> electronically generate, transmit, and receive award documents in
> portable document format (PDF) or in the ANSI's EDI 850 transaction
> set for that purpose. The first successful test was completed with one
> university in October 1998; successful completion of the rest of the
> pilot program will lead to expansion to other universities and Federal
> agencies in 1999. The Army Research Office is also working on the 850
> transaction set with the Navy.
>
> **Payments.** The Army Research Office, Air Force Office of Scientific
> Research, the Office of Naval Research, Defense Advanced Research
> Projects Agency, and the Defense Finance and Accounting System are
> participating in an electronic grants payment project. The project
> uses EDI and electronic funds transfer to automate payments to
> recipients. Through the use of value added networks (VANs), electronic
> vouchers are received from grant recipients and distributed to ONR and
> DFAS for review. After review, the data is passed electronically to
> the accounting system for processing. The accounting system creates an
> electronic payment notice and sends it to the Federal Reserve Banking
> System, which, in turn, sends it through the National Automated
> Clearinghouse Network for clearance. The funds are then electronically
> transferred to the recipient's bank account, and an EDI payment notice
> is sent to the recipient to complete the process. This process reduces
> voucher payment times from two months to five days or less.

######## Where We Want to Be {#where-we-want-to-be .unnumbered}

Our goal is to build upon the above experiences and expand the use of
electronic commerce to all DoD Components that make assistance awards,
encompassing all phases of the process, and involving all types of
recipients.

The overarching strategic objectives for the use of electronic commerce
in the DoD assistance process are to:

-   Achieve a paperless DoD assistance process to the greatest extent
    practicable.

-   Provide a "single face" to private-sector recipients under the DoD
    assistance process.

-   Integrate to the extent possible the software for assistance
    processes with the software for acquisition processes, where the two
    sets of processes are parallel.

-   Provide the same software to users performing similar assistance
    processes in different DoD Components to the maximum extent
    practicable.

The vision of how these strategic objectives will be incorporated
throughout the steps of the assistance process is described below. These
objectives may be reached by various combinations of DoD-only
initiatives and interagency efforts.

> **Program announcements.** All program announcements will be prepared
> electronically and posted to Web sites.
>
> **Submission and receipt of proposals.** Recipients will be able to
> submit proposals electronically through a single entry point.
> Electronic transmission will support various industry-standard
> methods, such as EDI, Web forms, and e-mail. The transmission media
> will be flexible enough to accommodate the needs of prospective
> recipients. Electronic submission of proposals will be the preferred
> method. Program offices will have the necessary computer hardware and
> software in place to accept, track, and store proposals
> electronically.
>
> **Pre‑award processing.** DoD assistance program offices will have
> electronic access to proposals. Collaborative software will support
> electronic review and evaluation of proposals. Decision support
> software tools will be employed to assist in the evaluation of complex
> proposals. Program offices will have interfaces with a DoD standard
> financial and accounting system, as well as a DoD standard procurement
> system, which will support the assistance award process in addition to
> the contracting process. Program office personnel will use the Defense
> Message System to send and receive business-quality electronic mail
> to/from internal and external personnel.
>
> **Awards.** After selection of a recipient, the program office will
> electronically forward the request for award to the grants officer. A
> DoD standard procurement system will have the capability to prepare
> assistance awards in addition to contract awards. Electronic
> distribution of awards via EDI or the Web will be the preferred
> method. The award process will pass the appropriate data
> electronically\
> to a DoD standard financial and accounting system. The system will
> electronically prepare and submit assistance award action reports.
>
> **Payments*.*** All DoD assistance award payments to recipients will
> be made through electronic funds transfer.
>
> **Technical Reporting.** Recipients will be able to submit all
> required technical reports to the program office via EDI, the Web, or
> other electronic means.
>
> **Financial Reporting.** Recipients will be able to submit all
> required financial reports to the program office via EDI, the Web, or
> other electronic means.
>
> **Closeout.** A DoD standard procurement system will support the
> electronic closeout of assistance awards. Recipients will be able to
> submit all final technical, property, and financial reports in an
> electronic format.

Some initiatives will cut across the above process steps (pre-award,
award, post-award). Examples include interfaces with the financial and
accounting system, and shared data warehouses to store institutional
profiles, assurances, and audits

######## How We Plan to Get There

Two DoD-wide standard systems will play an important role in achieving a
paperless assistance process. The systems are the DoD Standard
Procurement System (SPS), and the Defense Procurement Payment System
(DPPS).

The SPS is being deployed as DoD's standard system for the procurement
process. Because the assistance process has similar features, and is
usually accomplished at the same offices where procurement is done, DUSD
(S&T) is currently developing the functional requirements of the
assistance process so that the SPS can be modified to include assistance
capability. The SPS will be able to manage the assistance process from
receipt of the "purchase request" from the program office through award
and closeout of the assistance instrument. A high-level assistance
functionality description will be prepared and submitted to the SPS
configuration control board. This document will describe how the
assistance process differs from the procurement process, and will
provide a basis for having the SPS modified to accomplish assistance
actions when the next version is released. Benefits include savings from
modifying an existing system instead of developing a separate
assistance-only tool. Using the SPS for assistance will also reduce
redundant updating costs (clauses, formats, etc.) which must now be
accomplished locally at each Component when there are changes to
assistance policies and regulations. The SPS will provide for a
standardized process and can be centrally updated with changes, yet is
flexible enough to provide for local control where necessary.

The DPPS is a standard payment system that will eventually replace the
multitude of DoD payment systems in existence today. The DPPS will share
information with the SPS, and will therefore support the payment of
assistance instruments.

A number of interagency initiatives are also underway to examine and
test electronic assistance processes. The DUSD (S&T) is committed to
participating with other government agencies in developing EC
initiatives. By working with other Federal agencies that do business
with recipients of DoD assistance awards; DoD's objective is to ensure
that recipients are not forced to deal with a multitude of agency-unique
systems for administering awards. Interagency efforts include
initiatives underway by the Electronic Commerce Committee, the
Inter-Agency Electronic Grants Committee, and the Federal Demonstration
Partnership.

The Electronic Commerce Committee, which consists of DoD assistance
offices and other civilian agencies such as the National Institutes of
Health and the Department of Energy, has been instrumental in developing
EDI standards and the 194 Transaction Set for grants proposals.

A key initiative to provide a common face to recipients is the *Federal
Commons* project of the Inter-Agency Electronic Grants Committee
(IAEGC). The IAEGC is composed of over thirty federal agencies,
including DoD, involved in awarding grants. The IAEGC's goal is to
improve the standardization of the federal grants process and to apply
appropriate technologies to the various parts of the grants process.
*Federal Commons* is a proposed federally sponsored Web site that would
serve as a clearinghouse for all phases of the federal grants process.
Grant recipients will be able to obtain and submit grants information
through the Web site. The Web site would support various technologies
such as EDI, HTML, interactive forms, and Java Applets. Milestones for
initial testing are under development, and it is anticipated that
initial test results would be available by the second quarter of
calendar year 1999.

The Internet and World Wide Web offer additional means of communicating
electronically with recipients. Agency research announcements can be
posted on the Web, and interested organizations can submit proposals via
the Web. The Web offers an attractive alternative to EDI for those
recipients who do not have the volume of transactions to justify an
investment in traditional EDI. A number of Web-based assistance projects
are underway in both DoD and civilian agencies. A Federal Demonstration
Partnership (FDP) consisting of DoD offices and federal agencies
involved in the assistance process, as well as university and non-profit
members, has been testing and evaluating electronic grants awards.
Initial testing should be completed by the end of calendar year 1998.
New grant awards will be tested by the end of the first quarter of
calendar year 1999, and incremental grant awards will be tested by the
end of the third quarter.

######## Challenges

DUSD (S&T) leadership will be needed to address several challenges that
the DoD assistance community faces as it moves toward the strategic
objectives:

> **Continuing to encourage local initiatives while achieving needed
> harmony among DoD Components.** It is critical to encourage and
> support the pioneering spirit of innovators, as they are often in the
> best position to see where problems exist and where opportunities
> should be pursued. At the same time, it is necessary to balance these
> individual efforts against other ongoing initiatives to ensure that
> redundancy is minimized.
>
> **Maintaining the substantive distinctness of the assistance
> relationship with recipients, while integrating portions of the
> electronic process with procurement.** There are fundamental
> differences in substance between the assistance and procurement
> functions, but there are significant process similarities. For this
> reason, the DUSD (S&T) has been working with the Office of the
> Director of Defense Procurement to have the Standard Procurement
> System adapted to handle assistance instruments. It is important that
> this process not dilute or homogenize the critical and substantive
> distinctions between assistance and procurement.
>
> **Respecting the uniqueness of many DoD programs while working with
> Federal agencies to build a single Federal face recipients.** The
> benefits of providing a single Federal face to recipients must be
> carefully weighed against any unique DoD program requirements.
>
> **Taking advantage of the opportunities that electronic commerce
> provides for redesigning processes and doing business in fundamentally
> different ways.** The challenge for managers is to find process
> redesign opportunities instead of simply automating the existing
> processes, for example, creating central repositories of recipient
> assurances that replace award-by-award assurances.

Points of Contacts

Mr. Robert Tuohy, DUSD (S&T)/PA (703) 693-2978

S&T BPR: Ms. Katherine Fox, DTIC (703) 767-9123

Grants: Ms. Evelyn Kent, DUSD (S&T)(R) (703)-696-0368

###### Annex VI: Acquisition Mgmt

The Deputy Under Secretary of Defense for Acquisition Reform \[DUSD
(AR)\] is the Principal Staff Assistant in the functional area of
acquisition reform within Acquisition and Technology. As such, the
office is responsible for leading the Department of Defense's (DoD)
effort to streamline and reinvent defense acquisition processes and
practices.

The Office of the Deputy Under Secretary of Defense for Acquisition
Reform \[ODUSD (AR)\] originated the Electronic Commerce (EC) and
Electronic Data Interchange (EDI) tenets in the Department and has
supported the Joint Electronic Commerce Program Office (JECPO) from its
inception. EC and EDI allow DoD to leverage emerging commercial
technologies and their applications in order to reduce acquisition cycle
times, cut the cost of weapon systems development and maintenance, while
reinventing defense acquisition processes and practices thus allowing
the government and commercial sector to work more closely together.

ODUSD (AR) does not "own" any specific EC/EDI systems. However, as a
policy organization, it has championed the cause of several systems.
ODUSD (AR) led the creation and is maintaining the Commercial Advocates
Forum and the Acquisition Deskbook. The Forum serves as a central,
on-line repository of commercial initiatives within the Department as
well as providing internet-based tools for conducting market research
and analysis. The Deskbook allows acquisition professionals around the
world to access millions of pages of acquisition-related material
currently from a CD-ROM and soon over the World Wide Web (WWW). ODUSD
(AR) is also pushing the envelope on training in the commercial business
environment through Distance Learning for its acquisition corp.

EC/EDI will be paramount to the success of DoD's ability to achieve its
Revolution in Business Affairs as we enter the twenty-first century. As
DoD and the commercial sector become more integrated, including the
contribution from the coordinated efforts of the EC community, pursuit
of "better, cheaper, faster" in defense acquisition will ensure success
for the nation.

###### Annex VII: Digital Environment for Acquisition Programs (Systems Acquisition)

The Director, Systems Acquisition (SA) is responsible for implementing
the DepSecDef\'s \"Policy for the Transition to a Digital Environment
for Acquisition Programs,\" dated July 2, 1997. The policy memorandum
set a corporate goal of digital operations being the method of choice
for all acquisition management and life cycle support information. It
instructed that the overwhelming majority of acquisition and logistics
operations would be based on digital methodologies and products by the
end of 2002. Perhaps most importantly, it centered the initiative around
the acquisition program offices and made Program Managers responsible
for their data management systems and appropriate digital environments.

On July 15, 1997, the Under Secretary of Defense for Acquisition and
Technology issued additional guidance for the initiative focusing its
implementation on ACAT I programs. The memorandum also assigned
responsibility for the initiative to the Integrated Program Management
Initiative (IPMI) Executive Steering Group (ESG) (currently comprised of
representatives from OUSD(A&T)SA, the SAEs, DCMC, DARPA, DUSD(L), DISA,
TSE&E, C3I, DUSD(AR), NRO and JECPO) and charged the group with
coordinating cross Component activities and developing any additional
guidance deemed necessary. Additionally, the Defense Contract Management
Command (DCMC) was tasked with encouraging contractors to submit digital
environment concept papers under the single process initiative (SPI).
The Defense Acquisition University (DAU) was tasked with adding digital
environment implementation guidance to their program management training
courses. All new-start programs were tasked with including digital
operations in their strategic planning and Milestone Decision
Authorities were tasked with assessing the digital environments
developed for each acquisition program at each new milestone review.
Lastly, the ESG was charged with reporting the initiative's progress to
the Under Secretary of Defense for Acquisition and Technology every six
months.

##### Appendix B, TAB 2: USD (Policy)

###### The OUSD (P) Automated Information Resource Management and Electronic Commerce Planning Process

An information technology (IT) infrastructure is critical to the conduct
of business within the Office of the Under Secretary of Defense for
Policy in order to maximize access to internal and external automated
resources that serve to streamline business processes for managers,
action officers, and administrators. This plan addresses both
information technology management and electronic commerce.

Electronic commerce refers to the execution of information-laden
transactions between two or more parties using inter-connected networks.
The parties may include a government organization and its civilian
customers; two or more members of the same governmental organization; or
members of two or more different governmental organizations. The
"inter-connected networks" may be Internet, Intranet, or any combination
of telephone system, cable TV, leased lines, and wireless.

The federal government is promoting the creation of an advanced Internet
backbone via the Next Generation Internet (NGI). Designed as a
high-speed link to replace the original National Science Foundation
(NSF) Internet backbone, the NGI will create standards for the wide
bandwidth Internets of the future. DoD is also investing heavily in
expanding it's telecommunications infrastructure to support the larger
bandwidth required by the ever increasing role of electronic commerce.

The ultimate objective of the ITM and EC Strategic Plan is to ensure
enhancement of the business processes for all personnel by providing
state-of-the-art automation tools, electronic commerce mechanisms,
automated research materials, and decision support systems that provide
a better product, using fewer resources.

###### The OUSD (P) Guidance and Environment

The guidance expressed herein was derived from interactive sessions and
interviews with Policy's senior leadership. Critical elements of the
guidance were then documented in the *OUSD (P) Business Plan, Version 3,
September 1996* to serve as a cornerstone for subsequent plans and
programs that govern daily operations. Automation, from both a strategic
and operational perspective, will be designed to focus support toward
the missions, vision, goals, strategies, and functional activities of
the Office of the Under Secretary of Defense for Policy.

####### Mission: 

"Provide the Secretary and Deputy Secretary of Defense timely and
effective advice for all matters concerning the formulation of national
security and defense policies and strategies, and the integration and
oversight of DoD policy and plans to achieve national security
objectives."

####### Vision: 

"We use the best available talent to create innovative and responsible
Defense Department positions on national security and defense policy."

####### Goals: 

-   Goal 1. Improve the OUSD (P)'s ability to develop defense policy and
    strategy alternatives rapidly and effectively in support of national
    security objectives.

-   Goal 2. Improve and maintain the USD (P) internal capabilities to
    provide timely, appropriate, and effective support to the SECDEF and
    DepSecDef.

-   Goal 3. Increase the effectiveness of internal and external
    coordination of defense policy and strategies.

-   Goal 4. Enhance the quality of people in the OUSD (P) and their
    quality of life.

-   Goal 5. Improve oversight of the implementation and conduct of
    defense policies and strategies.

####### Strategies: 

The strategies listed below are not found in the Policy Business Plan,
but rather incorporate the strategies from the *DoD ITM Strategic Plan*
and the evolving strategies identified by the Director, Policy
Automation, based upon experience, user/customer inputs, and information
gathered from Integrated Product Team meetings. Whereas the mission,
vision, and goals listed above reflect an overall OUSD (P) focus, the
strategies and guiding principles center on automation initiatives that
support OUSD (P) operations. They complement the DoD ITM strategies
enumerated in paragraph 5. Through this approach, the Policy Strategic
Plan is governed by top-down guidance, as well as bottom-up inputs,
thereby including the concerns of all Policy personnel.

######## Management:

> • Build a framework to determine the value of information to OUSD (P)
> end-users.
>
> • Continue the integration of SIPRNET, SPAN, and POLYNET.
>
> • Continue Policy Intranet.
>
> • Evaluate outsourcing alternatives.
>
> • More effectively use current personnel resources.
>
> • Continue COTS products integration.
>
> • Keep renovation distractions to a minimum.
>
> • Reduce automation personnel overhead by consolidating, collocating,
> and using hands-off techniques including "dark room" operations.
>
> • Continue the Overarching Integrated Product Team (OIPT) and a
> Working-Level Integrated Product Team (WIPT) structure to identify and
> consolidate user requirements.
>
> • Continue on-line security assessments.

-   Reduce paper

######## Training:

> **•** Improve training and educational opportunities.

-   Keep technical personnel current.

######## User Support: 

> • Improve the customer/user focus.
>
> • Enhance user services, including Intranet access, workflow, and
> information access.

######## Technical:

> • Improve security infrastructure services.
>
> • Enhance configuration management.
>
> • Implement enterprise-wide system fault tolerance via duplication &
> redundancy of both data and systems.
>
> • Expand unclassified connectivity economically, including diskless
> workstations.
>
> • Incorporate electronic trouble shooting and assistance requests in
> network services.

-   Continue to incorporate standard data into SPAN and POLYNET.

-   Establish electronic data banks of specialized office data files.

-   Deploy software upgrades via network.

###### OUSD (P) Functional Activities: 

The scope of responsibilities within OUSD (P) is quite varied. Since
each of the functional areas involves agendas and issues that affect the
national security of the United States, automation tools must be
tailored to customers' needs. Further, automation must streamline
operations, reduce resources required, and provide a better product more
quickly. OUSD (P) functional activities that require consideration in
the development of automation requirements are listed below:
Politico-Military Expertise regarding Regions/Countries General NATO
Matters

Prisoners of War/Missing in Action Threat Reduction

Foreign Military Rights Affairs Counterproliferation Policy

Counterproliferation Analysis and Response Forces Policy

Strategy, Forces, and Operations Non-Nuclear Arms Control

Negotiations and Implementations Nuclear Safety and Security

Technology Transfer/Export Licensing Security Assistance

Drug Enforcement Policy and Support Special Operations

Psychological Operations and Civil Affairs Combating Terrorism

Requirements and Plans Strategy

National Security Education Program Defense Policy Board

Peacekeeping and Humanitarian Assistance Management and Support

International and NATO Security Programs Emergency Preparedness

Special Advisory Staff Special Programs

President's Commission/Critical Infrastructure Policy Personnel and
Security

Career Development Research

Executive Support Center Operations Net Assessment

Correspondence Management Strategic Studies

###### OUSD (P) Networks and Facilities

There are two primary Wide Area Networks (WANs) and one operations
center in OUSD (P). They are described below:

**[*Policy Network (POLYNET)*:]{.underline}** The Secret POLYNET system
is the primary Wide Area Network (WAN) used to provide file sharing and
e-mail services for approximately 1800 OUSD (P) end-users. It is
connected directly through hubs and routers or via encryption devices.
These end-users include remote users located in other government
agencies, and end-users either located or traveling overseas. The Secret
POLYNET backbone is located in the OUSD (P) Operations Control Center
(OCC), Room 4B725. Connections to the POLYNET are either made directly
to the OCC or through a Cisco 7000 router in 1D1070 and then to the OCC.
All POLYNET connections among Pentagon rooms are made via unencrypted
fiber-optic cable to the office suites and plenum-rated Unshielded
Twisted Pair Category 5 (UTP CAT 5) cables within the office suites.
Those agencies or remote OUSD (P) offices located outside the Pentagon
use encryption devices (e.g., KGs, NESs or STU-IIIs) over leased T1 or
commercial telephone lines to access POLYNET. The POLYNET processes
information up to and including Secret collateral in System-High mode.
Personnel must have a minimum clearance of Secret to access the POLYNET.
After an appropriate firewall is installed, POLYNET will provide access
to the Secure Internet Protocol Router Network (SIPRNET).

***[Security Policy Automation Network (SPAN)]{.underline}: The***
Security Policy Automation Network consists of both DoD-wide SECRET-high
communications and separately supported unclassified communications that
enable user organizations to coordinate on matters regarding foreign
disclosure, export control, international arms control, and cooperation
subjects. The classified segment of the network supports approximately
350 microcomputer workstations at more than 120 organizational locations
throughout OSD, the Joint Staff, the military departments, Defense
Agencies, and selected organizations external to OSD. The unclassified
segment supports approximately 130 sites at foreign embassies in
Washington, D.C., defense industrial sites, and U.S. embassies abroad.
Significant growth is expected for the SPAN in the near term. The SPAN
employs a variety of approved encryption techniques to provide security
of information communicated. The network also provides users with access
to AUTODIN, the Defense RDT&E On-line System (DROLS) operated by the
Defense Technical Information Center (DTIC); in the near term, access
will be provided to the Secure Internet Protocol Router Network
(SIPRNET) segment of the Defense Data Network (DDN).

***[Executive Support Center (ESC):]{.underline}*** The Executive
Support Center is a Sensitive Compartmented Information Facility (SCIF)
providing the OSD staff access to normal classified, sensitive and
executive inter- and intra-agency coordination processes, DoD
operational and intelligence products, and decision support IT for
facilitating staff coordination and policy recommendations to the
SECDEF. The ESC supports the Crisis Management System also, and
possesses, in part, the following capabilities: secure point-to-point
facsimile capability to the National Command Authorities (NCA)
community, secure home and office communications, TS codeword message
traffic, a desktop computer system, and multimedia conferencing support
resources. The ESC interfaces with the Policy Network at the SECRET-high
level.

***[Applications, Databases, and Systems: The]{.underline}***
applications databases and systems listed below have been developed over
a period of years and have been modified based upon user needs and
requirements. These research and support tools are dynamic and will
remain so to accommodate changes in both national and defense policies
and to accommodate future alterations requested by customers. With the
standardization of data, migration of the legacy systems, and the
integration of systems, these tools will become even more functional to
the user, as well as more user friendly.

####### POLYNET

The chart at Figure B-2-1 describes the composition of POLYNET. It has
four principal components: Notes, External Connectivity, PolyNews, and
E-Mail.

![](media/image3.wmf)

Figure B.2‑1: Policy Network (PolyNet)

######## Policy Intranet Management System (PIMS) 

PIMS consists of multiple Lotus Notes Database Applications that assist
personnel within the Office of the Under Secretary of Defense for Policy
\[OUSD (P)\] during the conduct of day-to-day operations. PIMS maintains
an address book containing pertinent information on all individuals
within Policy to assist with tracking of software and hardware
deployment, as well as training issues. It also contains information
regarding individual training received on POLYNET tools and software
outside of Lotus Notes. PIMS automates Policy\'s business processes as
they pertain to suspenses. It also contains records of all documents
associated with suspenses that are being tracked. PIMS, via workflow
implementation, helps Policy approach the \"paperless environment\" by
fully automating the process of circulating documents for signature and
tracking suspenses to completion.

######## Suspense Tracking System (STS): 

The STS allows for suspense correspondence and information tracking
within OUSD (P). Items of correspondence, which receive a Policy control
number, are entered by either a member of the Communications Management
Division (CMD) or a member of an individual office within Policy. Action
items (i.e., suspenses) may be viewed by staff within the Action Office,
by staff in any coordinating office(s), or by the Front Office Staff.
Additionally, any member of Policy may view information items. Within
subordinate offices, staff members may track their own correspondence
that cannot be viewed by other offices. These "internal" items may only
be edited and/or viewed by staff from within that office or within the
document's "assigned chain."

######## OUSD (P) Documents Database (ODD) 

The ODD application is an electronic "filing cabinet" that stores
reference documents for access by the entire Policy workgroup. The
database is designed to be used by all Policy personnel who may be
assigned to generate an official OUSD (P) document in response to a task
or suspense. Additionally, the ODD can be used for collaborative
workflow.

######## Notes Deployment Database

The Notes Deployment Database, also known as the Training Database, is
an application designed to track the deployment of Notes clients in
order to manage training and technical issues as they pertain to users.
The system administration team or the Notes Help Desk staff can edit the
database. It stores information on each member of the organization by
office symbol, location, phone number, PC information, and status of the
individual's training on the Lotus Notes tool suite.

######## OUSD (P) Administrative Database 

The OUSD (P) Administrative Database (OAD) acts as a central repository
for all the databases present in the Lotus Notes tool suite. This
database contains data used on all pick lists found in the Notes
databases, thereby permitting single-point data entry for updates to any
pick list. The OAD also tracks the assignment of Policy Correspondence
Item Numbers (I-numbers).

######## Special Operations/Low Intensity Conflict (SO/LIC) Issues Tracking Database

The SO/LIC Issues Tracking Database (SITD) is an organizational specific
Notes application designed for the OASD (SO/ LIC). The application
tracks technical issues relating to hardware, software, communications,
and training. The database captures such information as the person
originating an issue, actions taken to resolve the issue, and follow-up
actions in response to the original issue.

######## Policy Career Development Planning Database (PCDP): 

The PCDP helps manage rotation and centralized hiring, career
advancement, and human resource management of selected personnel within
Policy. To support these three responsibilities are electronic forms and
templates, specific query and search capabilities, reports, pick lists,
and Rotation Management Decision Support Matrices. Establishing an
interface with the PTS, which contains standard administrative
information on all personnel, will be critical to the accuracy of the
data in the PCDP.

######## Jane's on Intelink-S 

The Jane's Information Group Databases on Intelink-S are found on the
OUSD (P) Intranet under "Resource Links". This resource provides Current
Yearbooks, Archived Yearbooks, Jane's SENTINEL Series, and Jane's
Periodicals. For ease of use, there is also a "Jane's Directories"
listing and search capability entitled "Search of All Jane's".

######## Peacekeeping Mission Support Database 

The Peacekeeping Mission Support Database is an automated system and
database that processes, coordinates, tracks, and records United
Nations' requests for assistance. These requests are made to the Office
of the Deputy Assistant Secretary of Defense (Peacekeeping &
Humanitarian Assistance) in response to immediate support requirements
from ongoing peace operations in the field, to strengthen the UN's
management and administrative capabilities in New York, or for new UN
Security Council (UNSC) sanctioned operations.

In addition to tracking and recording requests, the database also
records goods and services provide financial data, and U.S. legal
guidance, agreements, and authorities that permit UN assistance.
Functional objectives include query-and-search capabilities, reports,
electronic forms and templates, derivative data fields, and suspense
tracking.

######## The CNS Newly Independent States Nuclear Profiles Database: 

The Center for Nonproliferation Studies (CNS), Monterey Institute of
International Studies (MIIS), Newly Independent States (NIS) Nuclear
Profiles Database resides on the OUSD (P) Intranet under \"Reference
Desk\", \"General Reference\". The database consists of textual,
unclassified, open-source information regarding nuclear subjects
relating to fifteen former Soviet Union states. The database, which is
updated monthly, focuses on Armenia, Azerbaijan, Belarus, Estonia,
Georgia, Kazakstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia,
Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

######## The CNS China Nuclear Profiles Database

The CNS China Nuclear Profiles Database resides on the OUSDP Intranet
under \"Reference Desk\", \"General Reference\". The database consists
of textual, unclassified, open-source information regarding the People's
Republic of China and arms control, nonproliferation, and disarmament
issues.

######## The CNS Proliferation of Nuclear Materials Database

The CNS Proliferation of Nuclear Materials Database; which is textual,
unclassified, open-source information regarding the proliferation of
nuclear materials; resides on the \"R\" drive of the Policy Network.
Users must have their respective desktops mapped to the \"R\" drive by
the Operations Control Center. Once mapped to the appropriate drive, PC
users access the database via the \"Windows NT Explorer\", and Macintosh
user access the database via \"Soft Windows\" and \"File Manager\".

######## The CNS Proliferation of Nuclear Missiles Database 

The CNS Proliferation of Nuclear Missiles Database is textual,
unclassified, open-source information regarding the proliferation of
nuclear missiles; which resides on the \"R\" drive of the Policy
Network. Users desiring access to this database must follow the same
procedures as described above for the CNS Proliferation of Nuclear
Materials Database.

####### Security Policy Automation Network (SPAN) 

The chart in figure 2 illustrates the composition of the SPAN Network.
The following sections describe the components.

![](media/image4.wmf){width="5.761805555555555in"
height="4.247916666666667in"}

Figure B.2‑2: Security Policy Automation Network

######## Technology Protection System (TPS) 

The TPS supports the transfer of munitions and dual-use technology to
other nations and international organizations through the export
licensing procedure. The system is used for review, coordination,
analysis and decision-making, and provides commercial tracking and
historical records of export license applications. The system operates
at the SECRET level and supports approximately 500 users at 120 remote
sites throughout OSD, the military departments, defense agencies, and
selected non-DoD activities. The Technology Protection System consists
of two databases: Munitions and the Commodity Control List.

######## Munitions (MUN)

The MUN Database contains information involving the transfer of
munitions via the export licensing procedure and supports the DoD
staffing process regarding requests for export of munitions in
accordance with the International Traffic in Arms Regulation. TPS has
classified and unclassified automated links with the Department of State
to support this function.

######## Commodity Control List (CCL)

The CCL Database contains information involving the transfer of dual-use
items via the export licensing procedure and supports the DoD staffing
process regarding requests for export of dual-use items in accordance
with Export Administration Regulations. An unclassified automated link
with the Department of Commerce supports this function.

######## The Foreign Visits System (FVS) 

The FVS provides for review, coordination, and decisions regarding
requests by foreign governments and international organizations to visit
DoD activities, installations, and contractors. The FVS interfaces with
49 separate locations, 30 of which are foreign embassies in the
Washington, D.C. area. The system processes approximately 50,000 visit
requests per year for 300,000 visitors.

######## The US Visitor International Technology System (USVISITS) 

The US Visits System provides for review, coordination, and decisions
regarding requests by U.S. contractors to visit foreign governments and
international organizations on Defense matters. The system processes
approximately 12,000 visit requests per year.

########  The Foreign Disclosure System (FDS)

The FDS supports the transfer of Classified Military Information and
sensitive unclassified data through the direct release of documents. The
system is used for the coordination, tracking, and maintenance of
historical records regarding the release of Classified Military
Information to foreign countries and international organizations. The
system is also used to carry out responsibilities assigned by the NDP-1,
"National Policy for the Disclosure of Classified Military Information
to Foreign Governments and International Organizations." The system
operates at the SECRET level and supports approximately 500 users at 120
remote locations throughout the OSD, the military departments, defense
agencies, and non-DoD activities. The FDS consists of two databases:
Classified Military Information (CMI) and the National Disclosure Policy
Exceptions (NDPE).

-   [*Classified Military Information (CMI)*:]{.underline} The CMI
    Database contains information on the release or disclosure of
    Classified Military Information to foreign governments or
    international organizations. Requests for classified documents are
    received via unclassified links with embassies that participate in
    the Foreign Visits System.

-   *[National Disclosure Policy Exceptions (NDPE):]{.underline}
    **The*** NDPE contains summaries of completed exceptions to National
    Disclosure Policy.

######## National Disclosure Policy System (NDPS)

The NDPS supports to the National Disclosure Policy Committee, an
interdepartmental group chaired by the DoD. The system provides the
committee membership and the Executive Secretariat the ability to work
actions interactively that otherwise would be processed by the physical
passing of classified papers. The committee membership, in addition to
OSD, includes the Joint Staff, the Department of State, the Arms Control
and Disarmament Agency, the CIA, the Department of Energy, and selected
Defense Agencies.

######## The SPAN Decision Support System (SDSS): 

The SDSS provides a wide range of information, research, and decision-
support functions to the SPAN user community. The system consists of
seven databases that provide the following support:

-   *[Foreign Military Sales (FMS):]{.underline} The* FMS Database
    provides information on significant government-to-government sales
    of U.S. military equipment. The database is updated monthly by the
    Defense Security Assistance Agency.

-   *[Cleared Facilities List (CFL):]{.underline} The* CFL Database
    contains information regarding U.S. companies and/or commercial
    facilities that are authorized to handle classified information and
    materials. The database is updated monthly by the Defense
    Investigative Service Computer Center.

-   *[Foreign Ownership, Control or influence (FOCI):]{.underline} The*
    FOCI Database contains information regarding U.S. cleared facilities
    that have significant foreign involvement within their respective
    corporate structure, up to full foreign ownership. The database is
    updated at periodic intervals using information from the
    special-purpose computer of the Defense Industrial Security
    Clearance Office in Columbus, Ohio.

-   *[Coordinating Committee for Multilateral Exports Controls
    (COCOM):]{.underline}* The COCOM Database contains historical
    records of export license applications reviewed by the committee
    prior to its disestablishment in March 1994. COCOM consisted of
    representatives from NATO member states, plus Japan and Australia.
    They reviewed all export requests from communist countries.

-   *[Committee on Foreign Investment in the US (CFIUS):]{.underline}*
    The CFIUS Database contains information that assesses the potential
    damage to DoD from foreign investment in high-profile U.S.
    companies.

-   *[Memorandum of Understanding/Data Exchange Agreement
    (MoU/DEA):]{.underline}* The MOU/DEA Database contains proposed and
    existing Memorandums of Understanding and Data Exchange Agreements
    between the military departments and foreign governments.

-   *[National Disclosure Policy Annex A (NDPA):]{.underline} **The***
    National Disclosure Policy Annex A database contains policy
    information concerning the levels and categories of classified
    information that can be released by cognizant departments to foreign
    governments and international organizations without reference to the
    National Disclosure Policy Committee. This database is updated as
    required by the Office of the Secretary of Defense (OSD).

####### SPAN Communication Interfaces

######## Automatic Digital Network (AUTODIN)

The Security Policy Automation Network (SPAN) Automatic Digital Network
(AUTODIN) Interface System provides a turnkey system that allows for the
transmission and receipt of messages through the AUTODIN system. The
AUTODIN Interface System resides on a VAX mainframe cluster, and
directly connects to AUTODIN via the Pentagon Telecommunication Center
using Simpact ICP1632 communications hardware/firmware package.

######## Defense RDT&E On-Line System (DROLS)

The DROLS is an on-line system to the Defense Technical Information
Center (DTIC), which is a repository for all DoD reports. The system
provides the capability to order reports from DTIC.

####### Hardware and Software Considerations

The Office of the Under Secretary of Defense for Policy will consider
the capabilities and products listed below and procure, upgrade, and
integrate requirements in such a manner as to be cost-effective, user
friendly, and necessary for Policy-wide use.

+-----------------------------------+-----------------------------------+
| -   Word Processing               | -   Commercial Off-the-Shelf      |
|                                   |     (COTS) Products               |
| -   Graphics                      |                                   |
|                                   | -   Government Off-the-Shelf      |
| -   Spreadsheets                  |     (GOTS) Products               |
|                                   |                                   |
| -   Document Scanning & OCR text  | -   Decision Support Systems      |
|     retrieval                     |                                   |
|                                   | -   Configuration Management      |
| -   Document Management           |                                   |
|                                   | -   Desktop Publishing            |
| -   Multimedia                    |                                   |
|                                   | -   Web Browsers & Servers        |
| -   Communications                |                                   |
|                                   | -   Quality Assurance and Testing |
| -   Video Conferencing            |                                   |
|                                   | -   Computer Based Training       |
| -   Data Warehousing              |                                   |
|                                   | -   Security Enhancements (i.e.   |
| -   Data Mining                   |     firewalls, encryption         |
|                                   |     software, etc)                |
| -   Presentation Software         |                                   |
|                                   | -   Network Management Tools      |
| -   Data Base Management Systems  |                                   |
|     (DBMS)                        | -   Tools for Tuning & Optimizing |
|                                   |     Performance of Hardware and   |
| -   External and Internal E-mail  |     DBMS                          |
|     (MS Mail, Notes Mail, POP     |                                   |
|     3/MIME SMTP, DMS)             | -   Archiving                     |
|                                   |                                   |
| -   Groupware                     | -   Redundancy                    |
+-----------------------------------+-----------------------------------+

####### Security

Consistent with the Department of Defense Information Technology
Management Strategic Plan's fourth major goal, ensuring that DoD's vital
information resources are secure and protected, OUSD (P) must
incorporate appropriate security features into its automated information
systems.

In common with other DoD systems, the Policy Intranet (POLYNET and SPAN)
is potentially vulnerable to a variety of threats that could lead to
denial of service, loss or corruption of data, or destruction or
degradation of system integrity. Threats can come from inside the system
by authorized users, or from outside the network from hackers,
terrorists, representatives of foreign nations, or criminals. OUSD (P)
requires risk-based, cost-effective security protection of Policy
systems with minimum degradation of system performance. Implementation
of security requirements should be consistent with the principles of
simplicity and flexibility. Security features should ensure
confidentiality, control of access, integrity of the data and of the
system, appropriate authentication procedures, maximum system
availability, and non-repudiation capabilities.

Appropriate security capabilities for OUSD (P) systems should be
consistent with the security architecture objectives of the Defense
Information Infrastructure (DII) Master Plan. Products selected to meet
those objectives should meet the standards of the National Security
Agency (NSA) Multilevel Information Systems Security Initiative (MISSI).
Security planning should also reflect the requirements of the Defense
Messaging System (DMS) as it moves toward full implementation. The DII
Master Plan security architecture objectives, NSA's MISSI, and DMS
security ramifications are discussed briefly below.

####### DII Master Plan Security Architecture Objectives: 

Policy security objectives are based upon the security policy statements
from the Department of Defense Goal Security Architecture (DGSA), which
mandate that DoD information systems must do the following:

-   Be sufficiently protected to allow connectivity via "common carrier"
    (public communication systems).

-   Be sufficiently protected to allow distributed information
    processing among multiple hosts on multiple networks in accordance
    with open- systems architecture.

-   Support information processing under multiple security policies of
    arbitrary complexity, including those for sensitive but unclassified
    (SBU) information and multiple categories of classified information.
    This can be accomplished by using multilevel security (MLS)
    technology.

-   Support distributed information processing among users employing
    resources with varying degrees of security protection, including
    users of non-secure resources if a particular mission so dictates.

######## NSA's MISSI 

MISSI is an effort to develop and field standard security products.
Using an evolutionary, building-block approach, MISSI will move through
several phases, beginning with the use of the FORTEZZA encryption card
for Sensitive But Unclassified systems, moving to a FORTEZZA card for up
to SECRET systems, and deploying, for example, business-grade firewalls
and high-assurance automated guards such as Secure Network Servers
(SNS). The ultimate MISSI objective is the deployment of a
high-assurance operating system and a communications software security
package to support the complete range of DoD and Intelligence Community
information exchanges from SBU through TS/SCI.

######## DMS

The Defense Messaging System currently under development will provide
messaging and directory services that will facilitate integration among
DoD functions and services within the DII. The DMS is a DII migration
system that meets DoD requirements for secure, accountable, and reliable
writer-to-reader messaging and directory services. The DMS will
implement state-of-the-art security for messaging at all classification
levels, compartments, and handling instructions. All future automated
information system procurements must be DMS-compliant. The backbone
infrastructure for DMS classified messaging and directory services is
the Secret Internet Protocol Router Network (SIPRNET).

####### Other Considerations: 

######## Electronic Commerce/Electronic Data Interchange (EC/EDI)

Electronic Commerce is the paperless exchange of business information
using Electronic Data Interchange, Electronic mail (E-mail), electronic
bulletin boards, Electronic Funds Transfer (EFT), and other similar
technologies. Electronic Data Interchange is the computer-to- computer
exchange of business transaction information in a public standard
format. The federal vision of EC and EDI is a result of the President's
direction that the implementation of electronic commerce be accelerated
across the Executive Branch and that a standard architecture for
electronic commerce be defined for the acquisition function. The goal is
to develop an electronic environment that enables execution of the
national military strategy during peacetime, through mobilization, and
war fighting sustainment. This occurs by implementing and integrating EC
and EDI throughout the business processes of the Federal Government.

######## Interoperability

Systems and databases that stand-alone or do not interface with other
systems and databases are of little value to the office or the users.
OUSD (P) will procure hardware and software that are compatible across
platforms and systems. Additionally, current operations have been
initiated to integrate SPAN, POLYNET, the ESC, and SIPRNET, and to
establish interfaces with as many systems as possible that contain data
that is required by the Policy user community. The continued effort to
standardize data within Policy will further enhance the interoperability
of Policy's automated programs.

##### Appendix B, TAB 3: USD (Comptroller): Finance

The following letter and input to the EB/EC Strategic Plan was received
from the OASD (C).

![](media/image5.png)

###### Office of the Under Secretary of Defense (Comptroller) Input to DoD Electronic Commerce (EC) Strategic Plan

####### Description

The Defense Finance and Accounting Service (DFAS has initiated -- as the
financial proponent for the Under Secretary of Defense (Comptroller) --
several large-scale efforts as part of its electronic commerce (EC)
goals and objectives. These efforts include electronic document access
(EDA), electronic document management (EDM), and electronic data
interchange (EDI). Currently, DFAS Centers mostly depend on paper-based
financial information to receive or produce payments, accounting
transactions, and financial reports. A principal need is to eliminate
manual, human interfaces between DoD financial systems and reduce the
amount of paper handled today at the DFAS Centers. By capturing critical
data at the beginning of its processes -- and utilizing electronic
transactions from end-to-end---the DFAS will eliminate data
transcription errors and reduce the number of personnel required
throughout the process. By implementing its electronic commerce
initiatives -- in a timely and efficient manner, the DFAS will increase
the level of service to its customers and achieve savings for the
nation.

####### Actions/Planning Relationship

The DFAS has pursued aggressively the implementation of electronic
commerce/electronic data interchange (EC/EDI) tools in its finance and
accounting business areas. Some major accomplishments and future
opportunities are identified in the following sections.

######## EDI

Working with the contracting community, the DFAS has implemented EDI
transactions to support contracting and accounting processes. These EDI
transaction sets (850/860) eliminate the need to re-enter critical
contract data in the contract pay system Mechanization of Contract
Administration Services (MOCAS) and financial data in DFAS administered
accounting systems. Data captured at the source is perpetuated
throughout the process to eliminate manual intervention.

The implementation of an EDI invoicing capability, coupled with
increased use of electronic funds transfer (EFT), has been a major
factor in decreasing errors and improving payment processing. The DFAS
currently has the capability to receive EDI commercial invoices in three
payment systems (i.e., MOCAS, the Standard Automated Material Management
System (SAMMS), and the Standard Accounting and Reporting System
(STARS)-One Pay). Progress payment invoices are input into MOCAS and
STARS-One Pay via EDI and public vouchers can be sent via EDI to MOCAS.
Airfreight EDI invoicing is accomplished in STARS-One Pay and the DFAS
implemented a World Wide Web Invoicing System (WinS) on May 15, 1998.

All of the DFAS Centers and Operating Locations continue their efforts
to increase vendor participation in EFT. These efforts have proved
successful as evidenced by increased EFT participation over the last
year. In addition, the DFAS will expand payment system processing
options this year with the addition of corporate trade exchange (CTX)
format and the EDI 820 (Remittance Record). The EDI 820 allows vendors
to receive payment information to feed their accounts receivables
systems concurrent with funds transfers -- thereby achieving automated
processing of vendor transactions.

Additional applications where EDI development is underway are in
garnishments, grants, purchase card, travel, and medical logistics.
EDI-formatted garnishments will be used to ender incoming court orders
into the garnishment system. An interface between the garnishment system
and the payroll systems will supply data needed for the EFT payment and
EDI 820 remittance information. The grants process will include those
universities and nonprofit organizations that submit EDI invoices and
will facilitate accounting queries for funds availability and EFT. The
purchase card program will utilize EDI in two areas. First, the card
issuing banks will send invoices for the card purchases via EDI. Next,
interfaces from the purchase card system to the vendor pay systems will
be accomplished via EDI. In the travel area, EDI will be used to (1)
transfer payment information to the customer (user) database, thus
eliminating the need to mail paper vouchers to the traveler, and (2)
establish accounting obligations and adjustments. EDI transactions also
will be used to forward traveler claim information required by the
disbursing and EFT systems. The CTX and the EDI 820 format will be used
in the payment process. The medical logistics community will use EDI to
pass data from the medical material management systems to the DFAS
accounting and bill paying systems. EDI transactions will create
commitments, post obligations, and move cost data between expense
centers. Receiving information will be passed vial EDI to assist in the
payment process.

######## EDM

The EDM program gives users on-line access to financial documents and
information, advances the application of new methods and technologies,
resolves the management of large volumes of hard copy documents, ensures
the consistent implementation of business practices throughout DFAS,
improves customer service, and reduces operating costs. EDM technology
involves the collective application of three tools: imaging, electronic
foldering, and workflow. Together, these tools automate the presentation
of material, in the integration of business applications and the
standardization of business processes. The EDM has been deployed
successfully in the vendor pay area at DFAS sites in Omaha,
Indianapolis, and Charleston -- with expected deployment to Columbus and
a yet unnamed fifth site in fiscal (FY) 1999. Further, the DFAS is
developing \-- and has begun implementing -- this technology for the
contract pay and payroll services areas at its Columbus Center. The DFAS
EDM Program Manager also is evaluating other business operations that
can benefit from the use of this technology.

EDM technology has the capability virtually to eliminate storage,
routing, and retrieval of millions of paper documents associated with
commercial activities. This especially is critical in the MOCAS contract
pay environment that currently utilizes some 15 miles of paper
contracts. EDM technology reduces operating costs while maintaining or
improving customer service. Eventually, imaging technology will be
deployed throughout all DFAS Centers in support of contract
entitlements, commercial services, and accounting operations. In
addition, EDM can use the World Wide Web with the implementation of Wide
Area Workflow (WAWF). The WAWF integrates EC tools into a comprehensive
toolkit that includes EDM, EDW, EDA and EDI with Web interactive forms
and interfaces.

######## EDA

The use of EDA technology is another major initiative in support of EC
expansion. EDA technology uses the Internet and World Wide Web to share
documents across the Department. The DFAS has partnered with the
Military Service acquisition communities, the Defense Investigative
Service, and the Defense Automated Printing Service to field an Intranet
application that assures DoD-wide, on-line access to contracts and other
documents stored at remote locations. EDA technology offers read-only
access to official contracts and modifications, vouchers, Government
Bills of Lading, and other documents in a common file format that
eliminates the need for DoD users to maintain hard copy files. The
Military Services presently are at various stages in their
implementation of EDA with the DFAS. Paper has been turned-off for Navy
Systems, Defense Logistics Agency systems and Army systems. Other
systems either are in partial production or have implementation dates
before the end of the year.

In 1993, President Clinton stated a commitment to alter and improve
fundamentally the way the Federal Government buys goods and services by
ensuring the EC is implemented for appropriate Federal purchases as
quickly as possible. In concert with the precepts enunciated in
President's EC initiative and the Department's Management Reform
Memoranda (moving to a paper-free contracting process), the DFAS is
doing its part to adopt and implement EC concepts for financial
operations across the Department. In addition to regular liaison with
DoD activities such as the Joint EC Program Office and the Purchase Card
Program Management Office, the DFAS is cooperating with the Electronic
Commerce Committee of the Chief Financial Officers Council and its
Financial Implementation Team for Electronic Commerce on interagency
applications.

####### Milestones

EC/EDI Complete by Year 2002

EDA Complete Integration of Contracts by December 1998

EDM Complete Vendor Pay Implementation by May 1999

Complete Payroll Services Implementation

Complete Contract Pay Implementation by 4^th^ Quarter FY 2000

####### Contact Point

Mr. Jerry Hinton, DFAS-HQ/IE

Deputy Director for Electronic Commerce and Program Support

\(703\) 607-0328

jhinton@cleveland.dfas.mil

##### Appendix B, TAB 4: USD (P&R)

###### Annex I: Civilian Personnel

####### DESCRIPTION:

Prior to regionalizing civilian personnel services and modernizing the
civilian personnel data system, DoD operated over 450 personnel offices
providing service to approximately 875,000 employees. These offices
operated using one of two legacy, mainframe-based personnel data
systems. Most agencies used the legacy Defense Civilian Personnel Data
System (DCPDS), but required a tailored version when they purchased the
system that began as an Air Force system. Each of the Military
Departments operates a headquarters system to support executive
information systems at top and intermediate headquarters levels and to
respond to official inquiries from other government activities.

Review of these systems indicated a number of shortfalls that, if
corrected, should improve performance and effectiveness in personnel
operations. These included such issues as repetitive databases,
duplicate entry, limited access for managers, unique software support
applications, and costly system architecture. Therefore, the civilian
personnel community decided to develop a standard, relational database
application, and migrate all of DoD's civilian personnel legacy systems
to the single system.

The Modern DCPDS is an aggressive, multi-year, incremental program to
establish a single DoD civilian personnel data system. It will support
DoD Components (Military Departments and Defense Agencies), as well as
other Federal agencies, through open systems-compliant hardware and
software platforms and standard communications protocols over the
Defense Information System Network (DISN). The modern DCPDS will operate
through a standard operating environment of servers, workstations,
peripherals, and communications networks for civilian personnel
operations throughout DoD. The modern DCPDS will replace the current
mainframe-based civilian personnel system with a single system supported
by a multi-tiered database structure. A relational database will link
client-server networks located at regional service centers (RSCs) and
customer support units (CSUs). The relational database will be fully
integrated and maintain currency and consistency between application
tools to perform many tasks formerly accomplished manually or with
obsolete system procedures. Standardized query tools, graphical user
interfaces, and relational database management characteristics will
contribute to a more efficient system capability for the civilian
personnel specialists and their customers. The Department selected a
commercial off-the-shelf product, as the baseline software suite for the
modern DCPDS. Another COTS product, was chosen to support the
Department\'s staffing processes. The modern DCPDS will incorporate many
of the personnel process improvement (PPI) requirements developed
through the Corporate Information Management business process
reengineering.

####### ACTIONS:

The civilian personnel community evaluated several commercial
off-the-shelf (COTS) packages, and selected the a new system. The Air
Force Personnel Center, serving as the Central Design Activity (CDA),
has worked with the contractor to federalize the product, and has
customized the code to support DoD-unique operations. When complete, the
software will be deployed to 22 regional personnel offices located
around the world.

####### Electronic Commerce:

Initially, the modern DCPDS will provide personnel services to regional
offices in the department, offer connectivity to managers, and interface
with external systems such as payroll, manpower, and security. The
civilian personnel community will deploy the modern DCPDS in phases over
the next two years.

A baseline was established for the software prior to development.
Additional updates are planned once the software is installed at all
sites. One future addition is the use of web-enabled applications,
providing employees access to their own records and allowing them to
change their health plans, life insurance options, or thrift savings
plan deductions without processing paper forms. In addition, the system
will send data to carriers as changes are made. This is an improvement
over the existing system, where paper forms are mailed from the
personnel office to the payroll office and then to the carriers,
creating an administrative workload for all. The system may also
interface with training source vendors to electronically flow course
confirmation and process payment. This is an improvement over the
existing system where paper purchase orders are processed and checks are
issued to vendors.

The planned enhancements mentioned above will not commence until after
the system is fully deployed to all DoD regional offices.

####### MILESTONES:

  -----------------------------------------------------------------------
  **Year/Quarter**            **Event**
  --------------------------- -------------------------------------------
  99/1                        Complete Systems Qualification Testing

  99/2                        Deploy Software to Four Initial Operational
                              Capability Sites

  99/3                        Complete Operational Test and Evaluation

  99/3                        Update Software with Pre-planned
                              Improvements

  99/4                        Secure Milestone III Approval for full
                              deployment

  99/4-00/3                   Install Software at all Regional Sites

  00/3-01/1                   Retrofit Application with Next Iteration of
                              COTS Software
  -----------------------------------------------------------------------

####### CONTACT POINT:

Dr. Linda McCullar, CPMS-AM, Chief, Regionalization and Systems
Modernization

Phone: (703) 696-2540

E-mail: linda.mccullar@cpms.osd.mil

###### Annex II: USD (P&R) Health Affairs

The Assistant Secretary of Defense, Health Affairs \[ASD (HA)\] EC/EDI
goals are initially focused on a set of high payback initiatives to
avoid significant costs and improve operations. These initiatives are in
the medical logistics area, within the Defense Medical Logistics
Standard Support (DMLSS) program. DMLSS is one of eight Federal
Government programs and the only program in the Department to be awarded
the 1997 Government Information Technology Services Award. This award
recognizes the achievements of the DMLSS Program, made possible through
its innovative application of EC/EDI. In 1998 the DMLSS Program's EC/EDI
efforts were recognized with a National Performance Review "Hammer
Award", the Federal Computer Week Federal 100 Award, and the
*ComputerWorld* Smithsonian Award for Innovative Technology. The DMLSS
Program has forged strong links with DoD's Joint Electronic Commerce
Program Office (JECPO), and is representing OASD (HA) in the development
of the DoD Electronic Commerce Strategic Plan. The DMLSS Program Manager
is a member of the JECPO's Electronic Commerce Advisory Council. DMLSS
is actively involved in several EC/EDI initiatives including prime
vendor, a streamlined financial interface, a web-based medical-surgical
electronic catalog/ordering system, a repository for universal product
numbers, and the use of EC/EDI to reengineer medical logistics support
to deploying forces. Future EC/EDI healthcare reengineering initiatives
will address areas such as electronic business operations between
medical treatment facilities and Tricare managed care support
contractors; in support of Medicare subvention; communicating with third
party insurers to facilitate collections; and meeting the requirements
of the Health Insurance Portability and Accountability Act (HIPPA).

The following are the initial OASD (HA) major electronic commerce
projects:

####### DMLSS (Defense Medical Logistics Standard Support) -- Prime Vendor EC/EDI

######## Description

This EC/EDI initiative completes a three-year project to convert over
300 DoD medical prime vendor program ordering points from a myriad of
proprietary vendor order-entry systems to an EC/EDI environment. With
the fielding of DMLSS Version 2.0, beginning 3^rd^ quarter FY99, all DoD
Medical Treatment Facilities (MTFs) will communicate with their
commercial trading partner using a single standard tri-service ANSI X12
medical purchase order.

This EC/EDI initiative also includes converting MTF ordering points from
the prime vendor's proprietary communication system to a DMLSS standard
server-based communication manager routing EDI traffic to the Defense
Automatic Addressing System Center (DAASC). The communication
interchange loop is being analyzed to determine chokepoints and decrease
throughput intervals to meet a DMLSS 60-minute confirmation turnaround
standard of 95%. In addition, DMLSS is partnering with one vendor to
prototype a direct connect communication option.

This initiative totally reengineers and standardizes the paperless
computer-to-computer exchange of purchase orders across all DoD MTFs.

######## Actions. 

Implementation of DMLSS standard EDI 850/855 and standard communication
protocols requires standard data elements and business rules
incorporated in the DoD Medical Prime Vendor EDI Implementation
Guidelines and Defense Supply Center Philadelphia (DSCP) prime vendor
contracts. The DMLSS EC/EDI project will serve as a prototype for
developing standard EDI 850 purchase orders and standard communication
protocols to pass purchase orders to a myriad of commercial trading
partners. Benefits include:

-   Eliminating errors involved in re-keying information between
    systems.

-   Eliminating labor-intensive manual efforts involved in manually
    updating status on existing inventory management systems with order
    confirmations.

-   Reduced helpdesk support costs.

-   Reduced implementation time for new vendors.

-   Capability to validate government contract pricing.

Standard medical logistics purchase order/acknowledgement core
competency means reduced training costs and increased readiness. All DoD
Army, Navy, and Air Force medical treatment facility logistics functions
will benefit from this effort.

######## Planning Relationship. 

This project significantly reduces the volume of paper based procurement
for pharmaceutical and medical-surgical products by producing summary
level electronic purchase orders and processing electronic purchase
order acknowledgements.

######## Milestones. 

The transition from vendor proprietary communication system to DAASC is
ongoing and should conclude during second quarter FY-99. The standard
DMLSS Release 2.0 EDI 850/855 should begin fielding during second
quarter FY-99.

######## Contact Point. 

COL John Clarke, DMLSS Program Manager, (703) 575-2392.

Email: john.clarke@tma.osd.mil

####### DMLSS (Defense Medical Logistics Standard Support) -- DFAS (Defense Finance and Accounting Service) Streamlined Financial Interface Project.

######## Description. 

This continuing project reengineers the financial transaction business
practices and processes between the medical logistics system (DMLSS) and
the finance system(s) (DFAS) using standard ANSI X12 transaction formats
for Electronic Data Interchange. The project has potential application
across the DoD. The project has three objectives: (1) Identify the
minimum number of inter-system transactions needed to pay vendors and
manage DoD accounts; (2) Reduce the number of data elements exchanged
between finance and medical logistics systems, and; (3) Create a common
format for the computer-to-computer exchange of information. FY 98 DoD
EC/EDI funding accomplished the following for Army and Navy medical
logistics activities:

-   The complexity of the logistics-finance interface has been reduced
    by 98%.

-   EC/EDI transactions for the following DFAS transactions:
    Obligations, Receipts, Cost Allocations created and approved by
    EDISMC. Each EC/EDI transaction carries all data necessary to create
    its Army or Navy counterpart financial transaction.

```{=html}
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```
-   Translation map for each EC/EDI transaction completed and prototyped
    successfully. Logic now being coded by DAASC, who will provide
    routing and translation services.

Mr. Hamre and the Assistant Secretary of Defense, Health Affairs jointly
sponsor this project. The project has the support of DFAS leadership,
most recently confirmed at a 3 March 98 IPR attended by the Director for
Accounting and the Acting Director for Systems Integration, DFAS-HQ.

######## Actions. 

The project has three objectives: (1) Identify the minimum number of
inter-system transaction needed to pay vendors and manage DoD accounts;
(2) Reduce the number of data elements exchanged between finance and
medical logistics systems, and; (3) Create a common format for the
computer-to-computer exchange of information.

[By successfully reducing the complexity of the logistics-finance
interface, and the development of a standardized EC/EDI interface with
standard data elements, this project will:]{.underline}

-   Dramatically reduce the need and cost of processing paper forms,

-   Reduce errors and imbalances between DoD logistics and financial
    systems, and

-   Provide enormous savings as these procedures are implemented in
    other logistics commodities across DoD. (JECPO is developing a
    proliferation plan to export the results of this project to other
    commodities.)

######## Planning Relationship. 

By identifying the minimum number of inter-system transactions needed to
pay vendors and manage DoD accounts, and by providing standard EDI
transaction sets to replace the paper forms currently in use, this
project makes a significant contribution to the paperless logistics
process.

######## Milestones. 

The DMLSS Customer Area Inventory Management (CAIM) module, which will
be deployed for testing in Jan 99 is the target module to prototype this
new interface to DFAS for Army and Navy medical logistics activities.
DMLSS' Stock Room Inventory Management (SRIM) module, scheduled to be
deployed for testing in Jan 00 is the target module for Air Force
medical logistics activities.

######## Contact Point. 

COL John H. Clarke, DMLSS Program Manager, (703) 575-2392

Email: john.clarke@tma.osd.mil

####### DMLSS (Defense Medical Logistics Standard Support) -- ECAT (Electronic Catalog) -- Web Based Ordering with MILSBILLS Payment. 

######## Description. 

This project will expand the medical logistics just-in-time inventory
management program to allow customers to place orders via the web using
medical logistics inventory management systems and MILLSBILLS summary
billing. Customers will be able to place orders to myriad manufacturers
and distributors using a combination of Military and ANSI X12 standards.
This project has potential application across DoD's logistics function.

The ECAT project has two objectives: (1) Develop an automated interface
between retail medical logistics systems and ECAT, which is a commercial
web-based catalog and order-entry system. (2) Develop a fully automated
bill payment process using modified MILSBILLS formats. These objectives
require the creation of common data elements and formats using existing
standards for the computer-to-computer exchange of information.

######## Actions. 

Implementation of web based ordering requires development of standard
data elements, business rules and common import and export file formats.
Modified A0\_, AE1, LPS and AOE/YRZ formats will be used in conjunction
with ANSI X12 EDI formats. Overview of requirements is contained in
Concept of Operations for Implementation of LIDS & ECAT. The ECAT
project will serve as a prototype for developing an automated interface
between logistics systems and other commercial web-based catalogs and
order-entry systems. It will also serve as a prototype for an automated
bill payment process for commercial vendors using ANSI X12 and
MILSBILLS. Benefits include:

-   Eliminating labor intensive manual efforts required to sign onto the
    web and re-key data elements already resident in existing systems.

-   Eliminating labor intensive manual efforts required to update
    existing inventory management systems with order confirmations.

-   Eliminating errors in re-keying information between systems.

-   Providing significant savings to other DLA customers who use DLA's
    E-Mall to order via web based catalogs/order entry systems.

-   Streamlining the bill payment process for web-based ordering using
    existing systems, MILSBILLS and ANSI X12 formats.

[The project has potential application across DoD's logistics
function.]{.underline}

######## Milestones. 

The Customer Area Inventory Management (CAIM) module of DMLSS, along
with existing retail medical logistics systems (Army TAMMIS and Air
Force MEDLOG) will begin prototyping the ECAT order, confirmation and
bill payment processes during second quarter, FY-99.

######## Contact Point. 

COL John H. Clarke, DMLSS Program Manager, (703) 575-2392

Email: <john.clarke@tma.osd.mil>

####### Reengineering Medical Logistics Support to Deploying Forces -- Defense Medical Logistics Standard Support (DMLSS) - Electronic Commerce Project. 

######## Description. 

This continuing project reengineers the process of planning, acquiring
and distributing medical materiel in support of deployable units and
force readiness. With the implementation of Prime Vendor and
Just-In-Time (JIT) inventory practices, DoD is now almost totally
dependent on the commercial sector for consumable medical materiel.
While these better business practices result in millions of dollars in
savings for decreased acquisition and storage, they have virtually
eliminated DoD medical inventories. This reliance on the commercial
sector complicates contingency planning and mission execution. The
Tri-Service medical community therefore requires electronic commerce
materiel acquisition capabilities integrated with commercial asset
visibility to rapidly plan acquire and distribute materiel to deploying
forces. The project has potential application across the DoD. The
project has three Electronic Commerce objectives: (1) Generate
electronic orders to vendors based on shortages in deploying units. (2)
Develop a leading edge electronic commerce business practice: Submit
orders once commercial assets are known to be available through asset
visibility. (3) Integrate Electronic Commerce with asset visibility of
contracted and non-contracted commercial peacetime and wartime stocks.

All of the above will enable a reengineering of DoD business practices
to: (1) Greatly reduce DoD owned inventory in tactical units. (2)
Greatly increase the availability of commercial materiel integrated with
electronic commerce ordering to support deploying units. (3) Provide
healthcare providers the most modern medical materiel available for use
on the battlefield. FY 98 funding by DoD HA of \$300K has provided the
seed money to start the prototype development. Requirements have been
captured and data sources identified.

######## Actions. 

This project is supported by the Deputy Under Secretary of Defense
(Logistics) and the Assistant Secretary of Defense for Health Affairs.
The office of the Assistant Deputy Under Secretary of Defense
(Logistics)/Logistics Reinvention and Modernization has reviewed and
endorses this project and its reengineering potential across DoD.

This project has three objectives: Reengineer DoD business practices to:
(1) Greatly reduce DoD owned inventory in tactical units. (2) Greatly
increase the availability of commercial materiel integrated with
electronic commerce ordering to support deploying units. (3) Provide
healthcare providers the most modern medical materiel available for use
on the battlefield. The benefits of this project are:

-   Reengineers electronic commerce: Customer confirms materiel
    availability prior to placing electronic orders.

-   Greatly reduces acquisition and sustainment costs for tactical
    medical materiel.

-   Compares commercial sales and trends against tactical requirements
    to ensure planning is for the right commercially available item.

-   Supports the shift from a requirements-based system to a real-world
    commercial capabilities based system.

-   Provides wholesale, retail and commercial asset posture of both
    government contracted and commercially available items.

This same reengineering effort can provide enormous savings as these
procedures are implemented in other logistics commodities across DoD.

######## Milestones. 

Prototype efforts on the initial phase of this project are scheduled for
delivery by October 98. This will provide a proof of concept on a small
scale within the medical commodity. Full project development is
scheduled for 99-00 to integrate with the DMLSS' Stock Room and
Readiness Inventory Management (SRRIM) module, scheduled to be deployed
for testing in Jan 00.

######## Contact Point. 

COL John H. Clarke, DMLSS Program Manager, (703)575-2392

Email: john.clarke@tma.osd.mil

####### DMLSS (Defense Medical Logistics Standard Support) -- Universal Product Number (UPN) Repository.

######## Description. 

Today, a medical surgical product may have many different catalog
numbers and nomenclatures. This makes ordering and conducting price
comparisons of products a labor intensive and costly nightmare.
Implementation of a single, standards based product number for each
product for use throughout the supply chain, to include ordering,
receiving, distribution, and inventory management, will significantly
reduce costs and facilitate EC/EDI throughout the healthcare industry.

The UPN promises to be a key enabler in conducting electronic commerce.
It will facilitate the use of EC/EDI by increasing the ease, speed and
accuracy of ordering, receiving and distribution of products. The UPN
and EDI are the cornerstones of the Defense Personnel Support Center's
re-engineered business practices, which have already improved customer
support and reduced costs. Suppliers, buying groups and standards
organizations within the healthcare industry have already indorsed the
UPN.

A UPN Repository is critically needed to provide a single source for
collection and redistribution of UPNs, along with basic descriptive data
elements such as packaging and manufacturer information. The proposed
repository will serve as an electronic master catalog of medical
surgical products that can be accessed by customers, group purchasing
organizations, manufacturers and distributors throughout the healthcare
industry.

######## Actions. 

Standard data elements and business rules have been documented and
coordinated within DoD and with various standards organizations, to
include the Health Industry Business Communications Council, which
represents manufacturers, distributors and buying organizations. A
Health Care Industry Study on the benefits of the UPN conducted by ECRI
estimates that the UPN will reduce costs within the nation's healthcare
supply chain by \$11B. UPN also has the potential to reduce Medicare
costs by \$1B. DoD benefits from implementing the UPN have been
estimated at \$3.6B. Benefits will be significantly larger if applied to
other commodities. The UPN concept may be applied to other commodities.
Specific Benefits:

-   Eliminate cataloging resources throughout industry and government.

-   Eliminate labor intensive, manual efforts required to research
    products.

-   Reduce product costs by facilitating price comparisons by educated
    shoppers.

-   Serve as a model for implementing standards based product numbers
    within an industry.

-   Facilitate EC/EDI by increasing the ease, speed and accuracy of
    placing orders, receiving, and distributing products.

######## Planning Relationships. 

This project has potential application for other commodities within DoD
logistics. This project will make a significant contribution to the
paperless acquisition life cycle by facilitating EC/EDI.

######## Milestones. 

Development of a UPN database will begin in second quarter, FY-99.
Population of the database is anticipated beginning third quarter,
FY-99.

######## Contact Point. 

COL John H. Clarke, DMLSS Program Manager, (703) 575-2392.

Email: john.clarke@tma.osd.mil

###### Annex III: Military Personnel and Readiness

####### Background

The Under Secretary of Defense for Personnel and Readiness (USD (P&R))
is the Principal Staff Assistant for the human resources (HR) functional
area. The USD (P&R) recognized the need to improve information
management mechanisms supporting military personnel and readiness and
initiated a business process-reengineering program in 1992. A functional
strategic plan was prepared and has been updated periodically.
Traditional methods of supporting military personnel in all the
components and their family members have deficiencies that impact both
on the individuals concerned and on the resources required meeting
command and managerial responsibilities. Studies documented that
management information within the P&R enterprise are labor and paper
intensive, error-prone, and not timely.

To remedy these deficiencies, the Deputy Secretary of Defense
established the DIMHRS program in July 1997, and established the Joint
Requirements and Integration Office (JR&IO) within P&R to provide
functional leadership. The Department of the Navy will support
acquisition requirements, and has established a Systems Executive Office
for Manpower and Personnel (SEO/MP) to fulfill these responsibilities.

Lessons learned from operational deployments are incorporated into the
Mission Needs Statement (MNS) approved by the USD in February 1998.

The Defense Integrated Military Human Resources System (DIMHRS) will
address the following concerns:

-   CINC\'s do not have access to accurate or timely data on personnel
    needed to assess operational capabilities

-   OSD and joint managers and other users of data are hindered by lack
    of standard data definitions and cannot make necessary comparisons
    across Services.

-   Reservists who are called up are sometimes \"lost\" in the system,
    impacting their pay, their credit for service, and their benefits.

-   Active duty personnel (and reservists) are not tracked into and
    within the theater.

-   Linkages between the personnel and pay functions differ among the
    Services resulting in multiple data entry, complex systems
    maintenance, and pay discrepancies.

DIMHRS build upon six years of business process reengineering
activities, which has established the methodology for the future and
identified business process improvements implemented in the Department.
Through process improvement, data standardization, and the application
of new technology the community has realized significant benefits. An
example is the implementation of a new Uniformed Services Identification
(ID) Card, which had significant cost savings as well as improved
service to Service members and their families.

Until DIMHRS is operational, the Services are operating their legacy
systems. These systems embody electronic interfaces extensively to
connect field activities to headquarters and the Defense Finance and
Accounting Service. Interfaces also exist with the Defense Manpower Data
Center (DMDC) which is the Departmental information warehouse for HR. ID
cards rely on a DMDC supported communications network; DMDC also
supports electronic interfaces with the health community, including
fiscal intermediaries. These electronic interfaces increase in number
and functionality over time. Standardization will increase with the
implementation of DIMHRS.

The Services also utilize facsimile, e-mail, and the Internet to perform
key processes, such as recruiting, and rapidly disseminate and collect
administrative and managerial data. DIMHRS will implement a DII/Joint
Technical Architecture, enabling electronic interfaces wherever
feasible. These interfaces will be documented in preparation for future
life cycle management reviews.

The FY 1999 Appropriations Act and Report directed the Department to
expand DIMHRS to incorporate an Enterprise view. Congress directed that
a revised and expanded strategic overview be provided in May 1999. In
addition to the Military Personnel and Pay Management capabilities,
additional functional areas will be included in the DIMHRS Enterprise:
Manpower and Training. Expanding the scope of DIMHRS will identify
additional electronic interfaces.

A key issue in expanding electronic access, including access by a
Service member to his/her own record data, is the implementation of
security features such as a Public Key Infrastructure (PKI). Military
Personnel will use the DoD wide security capabilities when available,
avoiding the cost and inconvenience of duplicate certification and
maintenance processes. The Defense Travel System as well as other
financial systems could ultimately result in every DoD employee and
Service member having access, using secure methods appropriate to the
individual and type of data, to information using electronic media.

####### Milestones

####### DIMHRS received Milestone 0 approval in February 1998. Milestone I is scheduled for the third quarter of FY 1999 and Milestone II for the third quarter of FY 2000. In addition, the FY 1999 Defense Appropriations Act established a reporting milestone to the Congress: by May 1, 1999, the Department will provide a report on the revised enterprise DIMHRS, and how the program will be changed to comply with the Act as well as the Clinger Cohen and Government Performance and Results Act. {#dimhrs-received-milestone-0-approval-in-february-1998.-milestone-i-is-scheduled-for-the-third-quarter-of-fy-1999-and-milestone-ii-for-the-third-quarter-of-fy-2000.-in-addition-the-fy-1999-defense-appropriations-act-established-a-reporting-milestone-to-the-congress-by-may-1-1999-the-department-will-provide-a-report-on-the-revised-enterprise-dimhrs-and-how-the-program-will-be-changed-to-comply-with-the-act-as-well-as-the-clinger-cohen-and-government-performance-and-results-act. .unnumbered}

####### Points of Contacts:

Ms. Norma J. St. Claire, Director, Joint Requirements and Integration
Office, OUSD (P&R), (703) 696-9710.

Mr. Dale Galloway, Chief of Staff, Systems Executive Office, Department
of the Navy, (504) 678-6747.

###### Annex IV: Reserve Affairs

####### Purpose.

The Assistant Secretary of Defense for Reserve Affairs, ASD (RA)
envisions Electronic Commerce (EC) and Electronic Business
Operations(EBO) as a seamless, paperless system that meets the mission
and mobilization requirements of the Reserve component (RC) members in
support of the Total Force. It is DoD policy that the RC will be
included in the design and implementation of emerging technologies in
support of the DoD Total Force. Under the leadership of the Under
Secretary of Defense for Personnel and Readiness, USD (P&R), ASD (RA)
will coordinate with the other Assistant Secretaries to provide for the
identification of, and efficient use of EC technologies to support the
warfighter. Execution of this plan requires leadership and a commitment
to achieving common goals throughout the Total Force.

A dynamic EC and EBO strategy for the Total Force will further SecDef\'s
Total Force Integration goals, as stated in his September 4, 1997
memorandum. Specifically, well structured EC and EBO will facilitate an
environment that eliminates residual barriers \-- structural and/or
cultural \-- to effective integration within the Total Force.
Integration is defined as the conditions of readiness, trust, and
infrastructure needed to ensure RC units are trained and equipped to
serve as an efficient and effective part of the joint and combined force
\-- in peace and war. One of SecDef\'s four stated basic principles for
Total Force integration is:

-   The commitment to provide the resources needed to accomplish
    assigned missions.

EC and EBO technologies must support SecDef\'s goal, as we move into the
21st Century, to facilitate a seamless Total Force that provides the
National Command Authorities the flexibility and interoperability
necessary for the full range of military operations.

####### Strategic Vision.

**[ASD (RA) EC Strategic Vision]{.underline}**

**By 2010, under the leadership of USD (P&R), an electronic environment
will exist where best business practices and enabling technologies are
used to facilitate the most secure, streamlined, and rapid Peacetime
Support and/or Mobilization of Reserve component (RC) assets to the
Total Force in support of the National Military Strategy. B.4.4.4.3.**

####### Guiding Principles.

**ASD (RA) EC Guiding Principles**

**WE SUPPORT** the various lead agency efforts to promote Total Force
Integration through the application of Electronic Commerce (EC) and
Electronic Business Operations (EBO).

**WE PARTICIPATE** in the various agency efforts to achieve efficient
and effective exploitation of EC and EBO technologies to facilitate
improved Total Force Integration and Reserve component (RC)
mobilization.

**WE MONITOR** the development and application of EC and EBO and ensure
that the RC are included:

-   From Inception

-   Through Development

-   Through Prototype

-   To Initial Operational Capability (IOC) / Fielding

####### Strategic Goals.

**[ASD (RA) EC Strategic Goals]{.underline}**

**The Electronic Commerce (EC) / Electronic Business Operations (EBO)
policy of Total Force inclusion will provide Reserve Component (RC)
involvement from system design through development and fielding
culminating in the improved future effectiveness of the DoD Total Force.
ASD (RA) will promote Total Force Integration and improved RC
mobilization by leveraging the application of EC and EBO to include:**

1.  Public Key Infrastructure Digital Signature Certification

2.  Servicemember Health Information System

3.  Personnel Finance and Accounting Systems

4.  Personnel Systems

5.  Defense Travel Service

6.  Personal Security and Privacy

7.  Physical (Plant) Security (Building Access)

8.  Training and Distance Learning

9.  Information Assurance and Standardization for DoD Information
    Architecture and Infrastructures

10. Smart card technologies (e.g. Improved/Smart ID Cards)

####### Discussion.

Today, with over half of the military force in the Guard and Reserve, it
is DoD policy to promote the effective integration of the Total Force.
The RC must be integrated from the outset in planning and developing any
EC / EBO initiatives to build these technologies into their parent
service and Total Force management information technologies systems. The
Reserve Affairs vision foresees total inclusion of the RC in all
appropriate management systems and technologies developed or operated by
their parent service and the Total Force.

Besides many of the same issues affecting the Active components (AC),
the Guard and Reserve have some unique operating features (drill
attendance accounting, various duty categories, etc.) that must be
considered in developing new information technologies. These features
need to be incorporated beginning with the early design stages of new
technologies. One particularly exciting technology is the \"smart card\"
technology. Potentially, there are many valuable uses for this device in
managing the Total Force. However, the linkages between Active and
Reserve components need to be strong and equally supported in order to
establish a seamless Total Force. Prototype programs, such as the
\"smart card\" test currently underway in Hawaii, must include RC units
and Individuals Mobilization Augmentees (IMAs) assigned to related
units. Lack of RC involvement in such tests will serve to weaken overall
future capabilities of the Total Force.

Therefore, Total Force electronic commerce must include Reserve
component participation in the execution of information-laden
transactions between two or more parties using inter-connected networks.
The parties may include a government organization and its industrial
contractors or civilian customers; two or more members of the same
governmental organization; or members of two or more different
governmental organizations. The \"inter-connected networks\" may be
Internet, Intranet, or any combination of telephone system, cable TV,
leased lines, and wireless.

Reserve Affairs should be included in any ongoing DoD efforts to use EC
in a paperless environment for business information using Electronic
Data Interchange (EDI), Electronic mail (E-mail), electronic bulletin
boards, Electronic Fund Transfer (EFT), and multiple military
applications to improve efficiency, save time, and reduce costs. The RC
should participate in DoD-wide EC initiatives to integrate Active and
Reserve components in the area of security, training, readiness,
personnel, finance, medical, logistics, and mobilization to support the
warfighting CINCs. Future EC/EDI reengineering initiatives should
address all such areas such as electronic business operations to ensure
RC members are paid when their status change from weekend drills through
mobilization.

RC members must meet Active Duty requirements as well as meet the unique
RC requirements such as frequent status change (two days, two weeks, two
months, or two years). Reserve component members will need such
information as clearances, some form of Public Key Infrastructure (PKI)
certificate, and Personal Identification Number (PIN) plus biometrics to
attach the person and the card just like the Active Duty.

If the AC have a requirement to function within a secure and portable
network computer environments to authenticate Total Force users for
telephone, computer, and Internet-related communication activities as
well as building security access with several other associated Service
applications, then the RC should be included in those requirements.
Total Force system processes should also provide personal network
safeguards by using digital certificates for accessing intranets,
extranets, web sites and electronic mail systems through a user\'s
digital identity and other security information. This progress toward
security identification (knowing who is being dealt with),
authentication (knowing that the person using the devise has the
requisite authority) and certification (keeping a record of the
transaction or operation) will be invaluable. This EC system must be
compatible in global environments for Total Force members to support the
requirements of the CINCs.

Electronic signature capability, the validation of software enablers and
educating managers and training users about their responsibilities under
the new electronic system will have to be addressed by both Active and
Reserve components.

The value of including the RC\'s in any modeling process is that it will
provide DoD with a more accurate baseline of Total Force
applications-functional needs. From this, DoD will be better able to
assess the impact of any change that could be implemented across DoD. RC
participation in any modeling process or pilot program will also serve
as the means by which DoD could establish proof of concept and measure
direct costs, indirect costs, and mission accomplishment, and customer
satisfaction.

The total expected RC monetary investments in technology and training to
achieve a fully automated and integrated DoD-wide common EC system and
EBO have not been established. Therefore, in light of DoD policy for
Total Force integration, all components should include RC costs and
participation as part of the normal EC and EBO acquisition planning
process.

####### Contact Points. 

CAPT Scott Beaton, OASD/RA, (703) 695-4125, Email: sbeaton@ra.osd.mil

CAPT Craig Howerter, OSD/RFPB, (703) 697-4486, Email:
chowerte@ra.osd.mil

##### Appendix B, Tab 5: OASD (C3I): Information Management

The primary Information Technology Management functional plan was
published March 10, 1997 under OASD (C3I) memorandum, subject:
Information Technology (ITM) Strategic Plan. This (ITM) Strategic Plan
provides the vision and strategies and serves as a road map for leading
ITM into the next century. Future versions of the ITM plan will
incorporate themes from the DoD EB/EC Strategic Plan and integrate the
DoD EB/EC Strategic Plan into the DoD Information Management Planning
hierarchy. An extraction consisting of the OASD(C3I) Memorandum,
Foreword and the Executive Summary to the ITM Strategic Plan follow. A
complete copy of the plan is available on the OASD (C3I) web site at:
http://www.c3i.osd.mil.

**ASSISTANT SECRETARY OF DEFENSE**

**6000 DEFENSE PENTAGON**

**WASHINGTON, DC 20301-6000**

March 20, 1997

![](media/image6.png){width="1.679861111111111in"
height="2.2159722222222222in"}

MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS

CHAIRMAN OF THE JOINT CHIEFS OF STAFF

UNDER SECRETARIES OF DEFENSE

DIRECTOR, DEFENSE RESEARCH AND ENGINEERING

ASSISTANT SECRETARIES OF DEFENSE

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE

INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE

DIRECTOR, OPERATIONAL TEST AND EVALUATION

ASSISTANTS TO THE SECRETARY OF DEFENSE

DIRECTOR, ADMINISTRATION AND MANAGEMENT

DIRECTORS OF THE DEFENSE AGENCIES

DIRECTORS OF THE DOD FIELD ACTIVITIES

SUBJECT: Information Technology Management (ITM) Strategic Plan

The attached strategic plan is the road map for information technology
management into the next century. It provides an overarching vision and
specific strategies to guide DoD information technology (IT) planning
and resource decision making in compliance with the Information
Technology Management Reform Act of 1996 (ITMRA). DoD Component Chief
Information Officers (CIOs), Military Departments, as well as Defense
Agencies and Field Activities, will use the plan as a basis for
developing supporting strategic plans and IT investment portfolios.

This plan was developed with extensive Department participation and
coordination. Changes in format and content were required to accommodate
comments and to ensure alignment with emerging Federal guidance and
industry CIO experience. Actions recommended by Component CIOs have been
addressed by including additional strategies and by adding an appendix
that addresses near term actions.

The ITM Strategic Plan is approved for pilot implementation in
accordance with the strategic planning cycle defined in the Section V of
the Plan. DoD Component CIOs will prepare supporting ITM strategic plans
and forward them to this office by July 15, 1997. These plans should
include a description of your IT investment portfolio process and
criteria. To the degree possible, Component strategic plans should be
incorporated with the planning, programming and budgeting processes.

The DoD CIO staff will work with designated primary performance
evaluation offices and offices of primary responsibility to develop
performance measurements and implementation plans for each goal and
strategy in the ITM Strategic Plan by June 13, 1997, for presentation to
the CIO Council. Working groups will be convened to address specific
issues identified by the CIO Council. These activities will provide a
basis for preparing the annual report required by IT and lead to full
participation in the planning, programming, and budgeting processes at
all levels.

Your involvement and assistance are critical to the success of the
strategic planning process. We must all work as a team to define the
direction of the planning process and communicating that guidance
throughout our respective organizations. When you have had an
opportunity to digest the content and impact of the Plan, I will have my
Information Management staff meet with you and your staff to discuss
your views on further improvements to the Plan so that we can move
forward together.

My point of contact for the ITM Strategic Plan is Dave Norem, who is
assigned to my Deputy Assistant Secretary of Defense (Command, Control
and Communications), telephone: (703) 697-3243, e-mail:
Dave.Norem@osd.pentagon.mil, or Dan Grulke, telephone: (703) 693-4512. A
copy of the ITM Strategic Plan can be viewed at and downloaded from
\"http://www.dtic.mil/c3i/cio/.\"

![](media/image7.png){width="24.35972222222222in"
height="2.5145833333333334in"}

Attachment

Department of Defense

![](media/image8.wmf){width="1.4256944444444444in"
height="1.4256944444444444in"}

[Information Technology Management (ITM):]{.mark}

[Supporting National Defense]{.mark}

( ITM Strategic Plan )

Version 1.0

**Office of the Assistant Secretary of Defense**

**(Command, Control, Communications, and Intelligence)**

March 1997

Foreword

We are all working to find better ways of bringing available information
technologies into our operational and support missions. We have
successes, such as the Global Command and Control System (GCCS), and we
strive for more.

The Information Technology Management Reform Act of 1996 (ITMRA)
mandates that we improve our day-to-day mission processes and properly
use information technology to support those improvements. Technology
must be fielded in an orderly, fast, and efficient way. We must use
streamlined acquisition processes, commercial off-the-shelf products and
services, and outsourcing, as appropriate, to take advantage of industry
capabilities. The information technology investment portfolio concept,
as put forth in ITMRA, emphasizes the need to do a better job of
prioritizing information technology capital investments and being
accountable for results \-- from each person individually up to mission
commanders and Congress. Keeping our workforce, military and civilian,
trained in new technologies and improved processes is critical to
achieving savings. The law recognizes all this is in vain if our
information is not being protected.

It is our job to implement management processes that speed up
development and acquisition programs, be mindful of costs, and provide
the best support to DoD's mission that we possibly can.

We are institutionalizing processes reflecting the full spirit and
intent of the law. Senior management \-- including civilian, military
and political appointees \-- understands implementation will take time,
but we must proceed without hesitation.

All of us \-- the OSD staff, the Joint Staff, Military Services and
Defense Agencies \-- need to change the way we do our jobs and improve
mission accomplishment, fully exploiting information technology.

This strategic plan introduces a roadmap for pursuing improvements well
into the next century. However, the execution of this plan requires the
commitment to work together toward our common goals. It is in this
context that DoD Component Chief Information Officers will develop
individual plans that

-   include specific initiatives and actions that reflect a jointness of
    purpose,

-   provide a sound foundation for improving processes, and

-   ensure resources are in the right place to support our mission.

    This strategic planning process will be a trailblazing effort, but
    together we can get there. Success will require continued
    cooperation, accountability, and refinements. Our best efforts
    depend upon a strong commitment to openness and trust. We have the
    opportunity to make a difference. I urge your continued support.

#  {#section-6 .unnumbered}

Executive Summary

Information has a central role in national defense. Joint Vision 2010
\-- "*America's Military: Preparing for Tomorrow*", the joint
warfighting strategic plan, recognizes information superiority as the
foundation for joint warfighting doctrine and concepts as we move
towards 2010. Similarly, DoD corporate level goals 4 and 5 reveal a
prominent strategic role for information as follows:

*"4. Maintain U.S. qualitative superiority in support of national
defense in key warfighting capabilities (e.g., information warfare,
logistics)*

*5. Employ modern management tools, total quality principles, and best
business practices to reduce costs and eliminate unnecessary
expenditures, while maintaining required military capability across all
DoD mission areas."*

To meet this vast responsibility, the Department must have a strategic
plan that addresses the management and use of information technology
capabilities. Thus this Information Technology Management (ITM)
Strategic Plan provides overall direction and guidance for managing the
Department's information resources. It establishes the DoD shared vision
for ITM, top goals and objectives, measures of performance, and
strategies to accomplish the goals. Specifically, it:

-   Links ITM to joint warrior operational needs and mission support
    needs.

-   Helps coordinate and integrate ITM activities across functional
    areas and organizations.

-   Creates broad mechanisms to systematically manage DoD ITM resources
    and programs.

-   Complies with the Information Technology Management Reform Act of
    1996 (ITMRA).

-   Serves as a model plan for ITM strategic plans at other levels and
    in other functions.

Strategic plans create a common expectation of an integrated IT
environment where IT components work together for customers. By the same
token, active participation and cooperation of the various functional
areas and organizations will magnify the benefits that derive from IT.
To this end, the ITM Strategic Plan focuses on two critical success
factors: the joint and coordinated activity of the Components, and the
customer.

The customer orientation is part of the Department's priority to realign
the way it does its business. This is clearly reflected in the ITM
mission and vision statements.

> **Mission:** Provide the right information, at the right place and
> time from the right sources, in a form that users can understand and
> reliably use to accomplish their missions and tasks, effectively and
> efficiently**.**
>
> **Vision:** Information superiority achieved through global,
> affordable, and timely access to reliable and secure information for
> worldwide decision-making and operations.

To help realize the ITM mission and vision, Section IV of the ITM
Strategic Plan describes the strategic direction. (Sections I, II, and
III provide the purpose, scope, introduction and structure.) Four goals
describe areas of major change. Each goal statement is followed by a
description and conceptual diagram to outline the context for the goal
together with "outcome performance" and "models of excellence" to
address ITMRA performance and benchmarking requirements. Objectives and
strategies characterize broad actions needed to pursue each goal. In
general this plan will capitalize on DoD Component programs and projects
to accomplish the strategies under the direction of an office of primary
responsibility (OPR) and with resource reporting aligned with OSD level
Planning, Programming, and Budgeting System (PPBS) criteria.

Four goals characterize fundamental DoD critical success factors for ITM
to realize the vision.

> **Goal 1**, "***Become a mission partner**",* grounds ITM in our
> national defense mission using joint mission planning and analysis
> processes as the basis for defining information service and
> performance requirements.
>
> **Goal 2,** "***Provide services that satisfy customer information
> needs**",* builds on Goal 1 requirements by using the
> customer/supplier model to meet mission service requirements.
>
> **Goal 3,** "***Reform IT management processes to increase efficiency
> and mission contribution**",* captures the essence of ITMRA
> emphasizing the management process improvements that are needed to
> more effectively deliver information and services to DoD mission
> customers.
>
> **Goal 4,** "***Ensure DoD's vital information resources are secure
> and protected**",* reflects the pervasive impact of information
> assurance on DoD.

Section V defines the update cycle for this strategic plan, establishes
requirements for DoD Component-level ITM Strategic Plans, and describes
how this plan interfaces with the DoD PPBS. Appendices provide detailed
guidelines for preparing DoD Component plans, programs, and performance
measures as well as critical, near-term actions to advance each
strategy.

This strategic plan provides a roadmap to capitalize on these
developments to realize more efficient and effective mission support.
The execution of this plan requires leadership and commitment to work
together toward our common goals. It is in this context that DoD
Component CIOs need to develop individual plans that include specific
initiatives and actions that reflect a jointness and commonality of
purpose and provide a sound foundation for improving processes and
ensuring that resources are in the right place to support our mission.
The top-level ITM Strategic Plan does not address specific programs or
budgets. It serves as a framework for the development of more detailed
DoD Component plans that identify specific programs and initiatives, and
relate them back to the overall DoD mission.

The plan conforms to Government Performance and Results Act (GPRA),
Information Technology Management Reform Act (ITMRA), Paperwork
Reduction Act (PRA), and Office of Management and Budget (OMB) mandates
and guidelines. This body of laws and regulations has created the
opportunity to move from budget and acquisition centric decision making
to mission, architecture, service and performance decision making.

The DoD CIO is the agency executive responsible for ensuring that the
ITMRA mandate is executed within the full spirit and intent of the law.
The extensive experience and talent of DoD information technology
support personnel, the emerging private information capabilities, and
strong Congressional guidance provide a wealth of new opportunities for
improvement. All of DoD, the OSD staff, the Joint Staff, Military
Services and Defense Agencies need to change the way we do our jobs to
improve mission accomplishment and fully exploit information technology.

##### Appendix B, Tab 6: DOT&E, Test and Evaluation

The Test and Evaluation EB/EC functional plan was not available at
publication. It will appear in future editions of this Strategic Plan.

**CURRENTLY ONLY A CONTENT, NOT FORMAT, EXAMPLE ONLY. NOT APPROVED AS
TAB BY DoD IG**

##### Appendix B, Tab 7: DoD Inspector General[^19]

The DoD Inspector General (DoDIG) plans to use electronic mail (E-mail)
to communicate audit announcements and results more efficiently, reduce
printing and distribution costs, and comply with DepSecDef initiatives
to achieve a more paper free business environment. Electronic
transmission of documents will improve information flow by providing
audit clients with the announcement letters and reports in a more timely
manner. This will provide more time to prepare for a DoDIG audit, or to
provide comments to an audit report. The use of electronic means to
transmit these documents will allow audit clients to quickly and
efficiently distribute the documents throughout their organizations as
needed.

The electronic transmission of final audit reports will necessitate a
change in the procedures for issuing these documents. Instead of a large
number of both action and information addressees receiving a copy of the
entire report, only those organizations asked to respond to the report
recommendations and those organizations directly involved with the
report will receive copies of the entire report. All others currently
receiving copies of entire reports will be E-mailed the executive
summary. The entire final report will be available to interested parties
on the DoDIG Internet site, provided it is not classified or otherwise
protected. Detailed procedures for the electronic transmission of
announcement letters, draft audit reports, and final audit reports are
discussed below.

**Announcement Letters.** Most DoDIG announcement letters are
unclassified. In September 1997, the DoDIG started to E-mail our
announcement letters to the Assistant Secretary of the Air Force
(Financial Management and Comptroller), Army Audit Agency, Naval Audit
Service, Air Force Audit Agency, Defense Finance and Accounting Service,
and Defense Logistics Agency on a trial basis. The participants in the
test group found that this is an effective and beneficial method of
notifying them of our planned audits. The DoDIG would like to expand
this capability to other DoD components that receive our audit
announcements. Offices that would like to receive announcements letters
via E-mail will need to provide us with a point-of-contact (POC) or a
common E-mail address within their organization that will be responsible
for receiving and distributing the electronically transmitted
announcement letters. After receipt of an announcement letter the DoDIG
requests an E-mail confirming that the POC received it. This will
eliminate phone calls to inquire whether or not the announcement letter
was received.

**Draft Audit Reports.** DoDIG draft audit reports are For Official Use
Only (FOUO) documents unless security classifications (i.e.
Confidential, Secret, or Top Secret) are required. FOUO documents are
unclassified, but sensitive, thus requiring us to transmit these
documents through encrypted means. The DoDIG has identified a method
that allows the transmission of FOUO reports with the use of E-mail. The
Defense Information Systems Agency (DISA) is currently testing an
application that will permit DoD offices to send encrypted messages to
one another through regular E-mail over the Internet. The DISA system,
the PKI, will require audit clients to obtain a PKI certificate from
DISA and must use the Netscape Browser 4.02 or newer. The PKI
certificates can be obtained from DISA at no cost. The DoDIG plans to
obtain PKI certificates by the beginning of the Fiscal Year 1999. Audit
clients that are interested in obtaining our draft reports
electronically need to provide us with a POC that will have the PKI
certificate within their organization. If the audit client decides that
receiving draft audit reports electronically is not in his/her best
interest, the DoDIG will provide paper copies of the reports if
requested.

**Final Reports.** Those organizations asked to respond to report
recommendations and other organizations directly involved in the audit,
including requestors, will receive copies of the report in its entirety.
Other organizations can obtain copies of unclassified and non-FOUO
reports from the DoDIG web site http://www.dodig.osd.mil*.* This web
site lists all final audit reports issued. The web site allows a visitor
to view or download an unclassified report in its entirety or an
unclassified summary for FOUO and classified audit reports. Classified
and FOUO reports are not available for viewing or downloading.
Organizations can also obtain copies of final reports by contacting the
Secondary Reports Distribution POC at (703) 604-8937, or by E-mailing a
request to \<auditnet@dodig.osd.mil\>.

##### Appendix B, Tab 8: Office of the General Counsel (OGC)

The Office of the General Counsel's EB/EC functional plan was not
available at publication. It will appear in future editions of this
Strategic Plan.

#### DoD Participation in Groups and Initiatives Outside the Department 

This appendix provides additional descriptions of the groups and
initiatives outside DoD.

##### Agency Participation Within the Federal Arena

-   [ANSI ASC X12 Steering Committee]{.underline}. The American National
    Standard Institute (ANSI) is the official agency that acts as the
    clearinghouse for standards. ANSI classifies EDI data format
    standards in the X12 category. EDI standards are, in essence,
    agreements between users on both what and how information is to be
    transmitted between trading partners. There are two types of EDI
    Standards: formatting standards and communication standards. The
    Accredited Standards Committee chartered by the American National
    Standards Committee developed a cross industry standard (ANSI X12).

-   [CFO Council]{.underline}. The CFO Council is an organization of the
    CFOs and Deputy CFOs of the largest Federal agencies, senior
    officials of OMB, and Department of the Treasury officials who work
    collaboratively to improve financial management in the Federal
    Government. The CFO Council\'s mission is to influence the future of
    the Federal Government through ethical and effective leadership;
    serve as a catalyst for constructive change to ensure the integrity
    of financial information needed for decision making; and measure
    program and financial performance to achieve desirable results[^20].

-   [CIO Council]{.underline}. The CIO Council is the principal
    interagency forum to improve the design, modernization, use,
    sharing, and performance of resources. The Council\'s role includes:
    developing recommendations for IT management policy, procedures, and
    standards; identifying opportunities to share information resources;
    and assessing and addressing the needs of the Federal Government for
    an information technology workforce. The standing CIO Council
    committees are: Capital Planning; Education and Training;
    Interoperability; Outreach; Security; and Year 2000.[^21]

-   [Electronic Processes Initiatives Committee (EPIC)]{.underline}.
    EPIC is a subcommittee of the President\'s Management Council (PMC).
    EPIC is comprised of PMC representatives from OMB, DoD, Treasury,
    and GSA. EPIC\'s purpose is to harness interest and latent energy to
    ensure a consistent vision for improving electronic processes
    support in EC. EPIC has created two temporary task forces to address
    high-interest, high-return areas: the Card Services Task Force and
    the Buying and Paying Task Force[^22].

-   [Federal EC Program Office (ECPO)]{.underline}. The ECPO 
    coordinates, monitors, and reports on the development of EC within
    the Federal Government. DoD provides the co-chair to the ECPO.[^23] 

-   [Federal EDI Standards Management Coordinating Committee
    (FESMCC)]{.underline}. FESMCC was established to support the goal of
    a single face for the Federal Government to its trading partners in
    the use of EDI. A responsibility of the FESMCC is the selection of
    implementation conventions (ICs) to be used with EDI interchanges
    between the Federal Government and its trading partners. Standards
    committees approve EDI messages (also called transaction sets), with
    allowances for format options in order to widen the applicability of
    the standards to different uses. The purpose of ICs is to select
    specific options in EDI standards so that format interchanges are
    completely determined in advance of use.[^24]

-   [Procurement Executives Council]{.underline} (formerly Federal
    Procurement Council[)]{.underline}. Principal forum to exchange
    information concerning procurement among Federal agencies.
    Comparable to the CIO Council and CFO Council, the Procurement
    Executive Council membership is comprised of the senior acquisition
    official in the agencies.

-   [Financial Implementation Team for Electronic Commerce
    (FITEC)]{.underline}. The CFO Council\'s Electronic Commerce
    Committee chartered FITEC in August 1995. Its objective is to
    increase the use of technology to streamline financial
    services[^25].

-   [Inter-Agency Acquisition Internet Council (IAIC]{.underline})[^26].
    IAIC was established to seek and promote ways to optimize use of the
    Internet in streamlining the Federal acquisition process and
    increasing communications of Federal acquisition-related information
    to private industry and Federal managers. The goal of the IAIC is
    that its efforts will result in making federal acquisition programs,
    despite workforce reductions, more friendly and accessible;
    establish a single face to industry; reduce paperwork; shorten the
    acquisition cycle; and increase competition.

-   [Inter-Agency Electronic Grants Committee (IAEGC)]{.underline}.
    Under the aegis of the National Performance Review (NPR), the
    Government Information Technology Services Board (GITSB) released
    its report Access America, on February 3, 1997, and in it,
    recommended establishing the IAEGC. This Committee was established
    to coordinate, promote, and facilitate the effective use of EC
    throughout the Federal grant community[^27].

-   [Smart Card Program Managers Users Group]{.underline}. This is an
    informal group of Agency smart card mangers hosted by GSA\'s Smart
    Card Initiative.[^28]

##### Industry/Private Sector Groups.

The list which follows is representative of the many industry and
private sector groups in which DoD participates.

-   [American National Standards Institute (ANSI)]{.underline}. ANSI has
    served in its capacity as administrator and coordinator of the
    United States private sector, voluntary standardization system for
    80 years. Founded by five engineering societies and three government
    agencies, the Institute remains a private, nonprofit membership
    organization supported by a diverse constituency of private and
    public sector organizations. The Institute represents the interests
    of its nearly 1,400 company, organization, government agency,
    institutional, and international members[^29].

[CommerceNet]{.underline}. CommerceNet is a unique, not-for-profit
market and business development organization. Launched in Silicon
Valley, California in April 1994, CommerceNet\'s membership has grown to
nearly 500 companies and organizations worldwide. Membership includes
the leading banks, telecommunications companies, Value Added Networks
(VANs), Internet Service Providers (ISPs), online services, software and
services companies, as well as major end-users. Its mission is to make
EC easy, trusted, and ubiquitous. CommerceNet focuses on pre-competitive
global and industry-wide issues so those members can benefit from
economies of scale and avoid competing on the wrong things. It
approaches all issues from a multi-disciplinary perspective encompassing
technology, business processes, and regulatory policies.[^30]
CommerceNet has entered into a comprehensive partnership with the
RosettaNet Consortium to expand and accelerate the adoption of open
electronic commerce in the Information Technology (IT) industry.
RosettaNet is a global, business-driven consortium formed by the key
players of the IT industry. It is designed to develop common, open
business interfaces, and is expected to have a dramatic impact on
electronic commerce.[^31]

-   [Health Industry Federal Advisory Council (HIFAC).]{.underline} This
    Council was established for the purpose of improving communications
    and coordination between the Federal medical logistics community and
    civilian distributors, manufacturers, and service organizations. The
    Council is chartered under the auspices of the Association of
    Military Surgeons of the United States (AMSUS), which fosters
    associations between military medicine and industry leaders through
    its corporate sponsorship programs.

-   [Internet Engineering Task Force (IETF)]{.underline}. The IETF is a
    large open international community of network designers, operators,
    vendors, and researchers concerned with the evolution of the
    Internet architecture and the smooth operation of the Internet. It
    is open to any interested individual. The actual technical work of
    the IETF is done in its working groups, which are organized by topic
    into several areas (e.g., routing, transport, and security). The
    IETF working groups are grouped into areas, and managed by area
    directors (ADs). The ADs are members of the Internet Engineering
    Steering Group (IESG). Providing architectural oversight is the
    Internet Architecture Board, (IAB).[^32]

-   [United Nations/Electronic Data Interchange for Administration,
    Commerce, and Transport (UN/EDIFACT)]{.underline}. UN/EDIFACT
    comprises a set of internationally agreed standards, directories and
    guidelines for the electronic interchange of structured data, and in
    particular that related to trade in goods and services between
    independent, computerized information systems.

-   [World Wide Web Consortium (W3C)]{.underline}. The W3C, an
    international industry consortium, was founded in October 1994 to
    lead the World Wide Web to its full potential by developing common
    protocols that promote its evolution and ensure its
    interoperability. Services provided by the Consortium include: a
    repository of information about the World Wide Web for developers
    and users; reference code implementations to embody and promote
    standards; and various prototype and sample applications to
    demonstrate use of new technology. W3C is funded by member
    organizations, and is vendor neutral, working with the global
    community to produce specifications and reference software that is
    made freely available throughout the world.[^33]

#### ![](media/image11.png)EB/EC Guidance and Policy Memorandum

**Guidance and Policy for the Defense-wide**

**Electronic Business/Electronic Commerce (EB/EC) Program**

**1. PURPOSE**

This policy guidance:

1.1. Provides implementation direction for the Joint Department of
Defense (DoD) EB/EC Program, as established by the Defense Reform
Initiative Directive #43. This direction identifies the actions to
support, facilitate, and accelerate the application of electronic
business practices. EB/EC and associated information technologies will
improve DoD business processes across all functional areas to include
those processes that support weapons and combat support systems
throughout their life cycles.

1.2. Establishes policy and assigns responsibilities for the direction,
management, coordination, and control of EB/EC activities within the
DoD.

1.3. Authorizes the publication of a DoD-wide strategic plan and
subsequent implementation plan designed to coordinate a DoD-wide EB/EC
capability.

**2. APPLICABILITY**

This policy guidance applies to the Office of the Secretary of Defense
(OSD), Department of Defense Inspector General, the Military
Departments, the Chairman of the Joint Chiefs of Staff, the Combatant
Commands, the Defense Agencies, and the DoD Field Activities (hereafter
referred to collectively as "the DoD Components").

**3. DEFINITIONS**

3.1. Electronic Commerce (EC): The interchange and processing of
information using electronic techniques for accomplishing transactions
based upon the application of commercial standards and practices.
Further, an integral part of implementing Electronic Commerce is the
application of process improvements to enhance business processes,
normally but not necessarily, prior to the incorporation of technologies
facilitating the electronic exchange of business information.

3.2. Electronic Business (EB): The application of Electronic Commerce
techniques and solutions to the business processes of the DoD to include
the entire range of the DoD functional areas. For the purpose of this
document, functions are those defined in Joint Pub 1-02, i.e.,
appropriate or assigned duties, responsibilities, missions, tasks,
functions, powers or duties of an individual, office or organization.

A functional area is comprised of one or more functional activities,
each which consists of one or more functional processes.

3.3. Executive Agent (EA): The individual or component designated by
position to have and to exercise the assigned responsibility.

3.4. Interoperability: The ability of the systems, units, or forces to
provide and receive services from other systems, units, or forces, and
to use the services so interchanged to enable them to operate
effectively together. The conditions achieved among
communications-electronics systems or items of communications-electronic
equipment when information or services can be exchanged directly and
satisfactorily between them and/or their users (Joint Pub 1-02,
DoD/NATO).

3.5. Trading Partner: A trading partner is an organization or individual
with whom information or data is accessed or exchanged. The term trading
partner includes private industry, academia, and government entities.

3.6. OSD Principal Staff Assistants (PSAs): Under Secretaries of
Defense; Director of Defense Research and Engineering; Assistant
Secretaries of Defense; Director Operational Test and Evaluation;
General Counsel of the Department of Defense; Inspector General, DoD;
Assistants to the Secretary of Defense; and other OSD Directors or
equivalents who report directly to the Secretary or Deputy Secretary of
Defense.

**4. POLICY**

It is the policy of the DoD to:

4.1. Employ EB/EC concepts and technologies in the conduct of all
business process improvements and reengineering efforts. This will
permit incorporation of proven commercial market approaches to
disseminate information in an electronic form to the right
person/activity, at the right time, with the objective of reducing
process cycle times. The DoD will:

Implement EB/EC initiatives that incorporate "best business practices"
to garner efficiencies, and to promote operational effectiveness through
significant response cycle time reduction.

Facilitate global data sharing and integration of cross-functional
business processes between the Department and its business partners.

Implement flexible, interoperable open solutions that do not prohibit or
impede the use of new or competing technology solutions to the maximum
extent practical.

Use industry EB/EC standards and commercial-off-the-shelf (COTS)
solutions to the maximum extent practical.

Implement EB/EC security solutions that will afford data security based
upon user and statutory requirements, without degradation of the current
processes that they replace.

4.2. Establish and use electronic business operations that employ EB/EC
principles, concepts and technologies in the conduct and administration
of its military and business processes.

4.3. Plan, develop, and implement EB/EC from a DoD-wide perspective to
provide consistent program direction and planning.

4.4. Facilitate and support DoD Components' efforts to implement EB/EC
consistent with the Department's strategic goals and objectives.

4.5. Apply EB/EC processes to interoperate with DoD's trading partners
to achieve integration within and among the DoD Components and the
private sector.

4.6. Ensure all EB/EC operations employ continuous process improvement
including employment of the best applicable business practices using
national, international or commercial standards, a common information
infrastructure, and best "fit" security solutions. EB/EC will use the
DoD common information infrastructure, security solutions and a common
set of best business practices for interactions across DoD's functional
areas.

4.7. Protect intellectual property rights; guarantee data integrity and
privacy rights, and foster interoperability.

4.8. Cooperate with other Federal Government departments and agencies to
develop and implement an EB/EC operational architecture in support of a
Government-wide EB/EC program.

4.9. Utilize end-to-end standards-based solutions for EB/EC security
that are compatible and interoperable with publicly available security
solutions. Ensure transaction confidentiality is maintained, audit
trails are established commensurate with business needs and current
practices, and system resources are protected from disruption or
exploitation. EB/EC information must be exchanged, processed, stored,
manipulated, and disseminated with the assurance that it is not being
exploited, modified, or disrupted by adversaries, interlopers or
competitors. Comply with established National and DoD policies and
directives for the protection of classified information (DoDD 5200.28,
DoDD 5300.1-R).

4.10. Describe and adhere to an EB/EC architecture (including
operational, systems and technical views) developed in accordance with
DoD's Communications, Command, Control, Computers, Intelligence,
Surveillance, and Reconnaissance (C4ISR) Architecture and Framework.

4.11. Comply with the standard DoD Acquisition Policies as stated in DoD
Directives 5000.1 and 5000.2 in all EB/EC acquisitions required by this
memorandum.

**5. RESPONSIBILITIES**

Responsibilities herein are intended to complement approved individual,
office and organizational responsibilities and relationships.

5.1. The DoD Chief Information Officer (CIO) shall:

5.1.1. Serve as the Department's Principal Staff Assistant (PSA)
responsible for Joint EC Program development, technical integration,
uniform implementation of approved DoD-wide EB/EC initiatives across all
organizational and functional boundaries, and oversight.

5.1.2. Provide policy direction and oversight to the Joint Electronic
Commerce Program (JECP) and to the Joint Electronic Commerce Program
Office (JECPO) which supports the JECP and common EB/EC elements
employed by the DoD Components.

5.1.3. Approve the charter of the DoD JECPO.

5.1.4. Prepare a DoD EB/EC Strategic Plan, with DoD Component input,
that sets forth the DoD EB/EC vision, goals, objectives, and strategies.

5.1.5. Oversee the development and updates of the DoD EB/EC
Implementation Plan.

5.1.6. Review and approve the JECPO developed overarching architectures
for EB/EC and ensure that EB/EC architectures adhere to and are
integrated with the overall DoD information technology architecture
(e.g., Joint Technical Architecture (JTA)).

5.1.7. Oversee the development and maintenance of a cost effective,
efficient, and integrated information infrastructure (e.g., DII) that
will ensure security and interoperability of DoD EB/EC.

5.1.8. In coordination with other PSAs, deconflict, integrate, and
coordinate information technology requirements to optimize investments
in infrastructure, functional EB/EC applications, and improved business
processes.

5.1.9. Structure and prioritize EB/EC initiatives to promote
efficiencies and interoperability in all functional areas throughout
DoD.

5.1.10. Review and coordinate periodic EB/EC reports from the JECPO and
Components to the Deputy Secretary of Defense.

5.1.11. In coordination with other PSAs, serve as the DoD's principal
point of contact with the private sector, contractors and Federal
Government Agencies for DoD-wide EB/EC policy matters.

5.1.12. Ensure that reengineered or improved business processes and
EB/EC technologies are integrated across functional areas.

5.2. The DoD Components shall:

5.2.1. Promote and promulgate the application of EB/EC principles and
practices, based on generally accepted commercial practices, in
accordance with overarching DoD architectural guidance and the DoD EB/EC
Strategic and Implementation Plans.

5.2.2. Apply EB/EC best practices to the maximum extent practical to
improve both combat support capabilities and DoD business operations.

5.2.3. Establish single focal points for EB/EC activities. In the case
of the Military Departments, this focal point shall be a single EB/EC
office. This office or focal point shall be responsible for interfacing
and coordinating EB/EC activities with other Components including the
JECPO. This office shall insert DoD EB/EC policies into relevant
component policies and plans; develop Component EB/EC policy, planning,
and performance metrics; and oversee EB/EC implementation and execution
within their organization.

5.2.4. In coordination with the DoD CIO Council, resolve EB/EC issues
impeding cross-functional/cross-organizational integration of commonly
used information and business processes.

5.2.5. Develop strategic and/or implementation plans, as appropriate and
incorporate the application of EB/EC and business process improvement
into these plans.

5.2.6. Ensure the insertion of EB/EC capabilities into the development,
modernization, expansion or prototype of systems that interface with DoD
trading partners or interface with other functional areas.

5.2.7. Support the DoD CIO in the development and updating of the DoD
EB/EC Strategic and Implementation Plans.

5.2.8. Participate on DoD, national, international and interdepartmental
boards, committees, and other organizations involving EB/EC as
necessary.

5.2.9. Work as a team to develop EB/EC operational architectures for
each functional area. The appropriate PSA or Joint Staff will approve
the preferred view for their area of responsibility. These operational
architectures will be provided to the DoD CIO and the JECPO.

5.3. The Directors, Defense Information Systems Agency and Defense
Logistics Agency will:

5.3.1. Under the direction of the CIO, organize, staff, and support a
DoD Joint Electronic Commerce Program Office.

5.3.2. Provide the computer and communication infrastructure and related
services to JECPO in support of PSA and Component common EB/EC
requirements.

5.4. The Joint Electronic Commerce Program Office (JECPO) shall:

5.4.1. Serve as the DoD Executive Agent to promote and coordinate
implementation planning, implementation execution, and integration of
common EB/EC services throughout the Department.

5.4.2. Perform its mission under the oversight and guidance of the DoD
CIO. Prepare periodic progress reports for DoD CIO and DepSecDef review.

5.4.3. Develop and maintain, with Component assistance, an overarching
DoD EB/EC Implementation Plan. Submit these plans to the DoD CIO for
approval.

5.4.4. Develop for DoD CIO approval an overarching EB/EC Architecture to
include operational, system and technical views in accordance with the
C4ISR Framework. The architecture views must reflect improved,
reengineered and integrated business processes.

5.4.5. Assist PSAs and other applicable components in the development of
consistent and integrated EB/EC architectures (with operational, system
and technical views) for their functional areas of responsibility to
ensure business processes and transaction exchanges are universally
understood, accepted and implemented.

5.4.6. Apply, develop, implement, and maintain common EB/EC capabilities
as identified by functional users.

5.4.7. Support, facilitate, and accelerate the application of EB/EC
common data and consistent information into interoperable systems that
support the Defense Components' EB/EC processing requirements.

5.4.8. Assure consistent implementation in the JECP based on open
standards for interoperability. The JECPO shall be responsible for
providing updates to the DoD Joint Technical Architecture for emerging
Federal and commercial standards related to EB/EC.

5.4.9. Identify and promulgate DoD EB/EC requirements to industry and
Standards developers.

**6. [EFFECTIVE DATE]{.underline}**

This Policy and Guidance for the EB/EC Program is effective immediately.

#### EB/EC Strategic Planning and Performance Guidelines

##### Introduction

These guidelines are extracted from the DoD ITM Strategic Plan of March
10, 1997, but apply increasingly to DoD EC planning as well. As the DoD
Components develop their implementation plans in support of this
Strategic Plan, it is critical that a common understanding exists so
that effective planning can be done at all levels across all functions
within DoD. These guidelines will help the DoD EC community reach its
common vision. These planning and performance guidelines will facilitate
the programmatic coordination that will be the subject of a review by
the EC management structure.

##### Planning Guidelines

###### Build on Current Programs and Capabilities

The seeds for achieving the strategic goals are now emerging. These
seeds should be exploited whenever possible. Examples include:

-   Joint Vision 2010 and other Strategic Plans

-   Defense Information Infrastructure (DII)

-   Common Operating Environment (COE)

-   Global Command and Control System (GCCS)

-   Global Combat Support System (GCSS)

-   Total Quality Management (TQM) efforts

-   Government Performance and Results pilots

-   Modeling and Simulation

-   Migration Systems

-   Information Assurance Program

###### Maintain Current Program and Operations Assessments

Linking projects and programs to strategies and measures provides a
basis for determining funding levels and go/no-go decisions.

###### Move to Product/Service/Performance Based Structures

Management techniques emerging from GPRA pilots and Clinger-Cohen
(ITMRA) policies describe our organizations and support structures in
terms of processes, outcomes, products and services, and customer
expectations. Customer decision cycles drive management decisions and
efficiencies are determined by comparing unit performance with the best
Government or industry benchmarks. Architectures, interoperability, and
acquisitions are measured in terms of end-to-end product/service rather
than infrastructure component performance.

###### Help People Adapt

Performance based organization concepts emphasize collaboration,
teamwork, customers, and services/production. This is a major change for
the DoD. Jobs are defined by tasks depending on a mix of knowledge and
skills as much as organizational position. Basic values such as
identity, loyalty, security, and interpersonal relationships change and
need to be reinterpreted. Education and training move to incremental and
"just in time" strategies. These "cultural" transitions often dictate
the pace of accomplishing the other objectives.

###### Promote Senior Management Involvement

Senior managers must understand, adopt, and promote strategic
objectives. Performance based organizations assume agility and change
based on trust and openness to discover how organizations work together
to provide end-to-end service to customers. Current systems reward
building and maintaining stove-piped organizations that can stalemate
innovation and destroy teamwork.

###### Couple Mid-Term and Long-Term Goals with Near-Term Actions

Strategic plans must set longer term goals to guide and synchronize
major efforts but also identify near-term actions, start transitions,
and gain credibility.

##### Performance Guidelines

Just as common vision and principles drive DoD EC planning, common
objective strategies allow achievement of those visions and common
measures of success reinforce results oriented outcomes. The following
performance guidelines first presented in the DoD ITM Plan are pertinent
and usable as DoD components plan their EC strategies.

###### Link to Strategic Planning

Whenever possible, performance measures should be linked to strategic
planning vision goals, objectives or strategies. Strategic plans provide
the context to define individual measures and interaction between
measures.

###### Engage Stakeholders

Stakeholders are evident at each organizational level and can include:

-   Customers and suppliers -- current or future,

-   Employees and support contractors -- current or future,

-   Higher order management (e.g., headquarters, OSD, OMB, Congress),

-   Subordinate organizations seeking guidance (e.g.,
    headquarters-field, OMB-OSD, OSD-MILDEPs, etc.)

###### Empower the Field

Empowerment means making the factors for incentives and disincentives of
actions and decisions visible to all parties, precluding the need for
oversight. Performance measures are a key methodology. Strategies and
tools must allow local managers to define and measure performance and
results against stakeholder expectations.

###### Measure Outcomes Wherever Possible

Measures are typically categorized as input, output, and outcome. Input
measures are relatively easy to quantify and capture, e.g., resources,
requests, students, etc. Output measures can be quantified for
organizations with formal product service descriptions but difficult for
those with broader definition statements such as EC. Outcome measures of
the vision or stakeholder satisfaction with products and services are
multi-dimensional and hard to identify and quantify. However complex,
outcome measures are the most valuable for decision making.

###### Focus on Achievement

Measures are applied at many levels. A few, well chosen,
outcome-oriented measures are better than multiple, potentially
conflicting, and sub-optimal measures. All efforts should be focused on
one or more measures mutually arrived in consultation with stakeholders.

###### Find Trend Indicators

Indicators will be selected to measure progress towards a particular
goal or target. The user should be able to graph value with respect to
time for quality, quantity, etc. For complex environments such as EB/EC,
values will typically be represented as "high-, low-, most likely" to
represent the range of responses and preclude excessive description
necessary to defend a single value. Note that completion of an action is
not a trend.

###### Use widely accepted methods

The Baldridge Criteria and Capability Maturity Models (CMM) are
comprehensive, long-term, proven methodologies for improving
organizational effectiveness, including performance. They benefit from
extensive discussion, application in a variety of environments, and
frequent review and refreshment. Robust infrastructures of information,
benchmarks, training, and experience are augmented by a culture of
openness and sharing. Participation reduces personal and financial
investments and also lead-time. International Standards Organization
(ISO)-9000 standards and various customer survey instruments are also
available.

###### Make the "Business Case" for Each Measure

Performance measurement procedures have matured over time. Initial
efforts often created apparently useful measures that proved ineffective
because the processes for gathering and using performance information
were inadequately defined, the cost of gathering information outweighed
the benefits, and user responses to the measure detracted from achieving
the goal. Practitioners have identified templates to ensure effective
measures are defined. Common questions that must be addressed include

-   What is the measure supposed to show?

-   Who measures and how?

-   Who uses and for what?

-   How could the measure be used to subvert or be misinterpreted
    (unintentional consequences)?

-   How much will it cost to measure?

-   What is the estimated value to the user?

-   Are there any provisions such as tools and assistance that could
    help?

-   Are there any critical factors that need to be considered?

#### The DoD EB/EC Strategic Planning Team

##### OSD and Component Representatives

+------------+--------+------------+-------+--------+----------------+
| **Name**   | **Ag   | **Title**  | **Ph  | *      | **E-mail**     |
|            | ency** |            | one** | *FAX** |                |
+============+========+============+=======+========+================+
| \*A        | MITRE  | Project    | 703   | 703    | <Jan           |
| ndrukonis, |        | Leader,    | 883   | 88     | dru@mitre.org> |
| John       |        | EC/EDI     | -7677 | 3-3383 |                |
|            |        | Systems    |       |        |                |
|            |        | E          |       |        |                |
|            |        | ngineering |       |        |                |
+------------+--------+------------+-------+--------+----------------+
| \*         | DLA    |            | \(    |        | shelly_brouss  |
| Broussard, |        |            | 703\) |        | ard@hq.dla.mil |
| Shelly Y.  |        |            | 767   |        |                |
|            |        |            | -3132 |        |                |
+------------+--------+------------+-------+--------+----------------+
| \*Clarke,  | OA     |            | 703   | 703    | <John.clark    |
| John Col   | SD(HA) |            | 681   | 68     | e@tma.osd.mil> |
|            |        |            | -6733 | 1-8918 |                |
+------------+--------+------------+-------+--------+----------------+
| \*Dean,    | USA    | Dir, Army  | 703   | 703    | <Deanls@       |
| Linda      |        | EC         | 695   | 69     | hqda.army.mil> |
|            |        |            | -6089 | 7-4235 |                |
+------------+--------+------------+-------+--------+----------------+
| \          | O      | Dep Dir of | 703   |        | <Jac           |
| *Farmerie, | USD(P) | Policy     | 697   |        | k.farmerie@osd |
| Jack       |        | Info Sys   | -5495 |        | .pentagon.mil> |
+------------+--------+------------+-------+--------+----------------+
| \*Fox,     | DTIC   | Program    | 703   | 703    | <              |
| Katherine  | (DUSD  | Analyst    | 767   | 76     | kfox@dtic.mil> |
|            | (S&T)) |            | -9123 | 7-9174 |                |
+------------+--------+------------+-------+--------+----------------+
| \*Grant,   | OA     | EB/EC      | 703   | 703    | <              |
| Paul       | SD(C3I | Executive, | 604   | 60     | Paul.grant@osd |
|            | P&I)   | Office of  | -1477 | 4-1493 | .pentagon.mil> |
|            |        | the DoD    |       |        | or             |
|            |        | CIO and    | 20    |        |                |
|            |        | Co         | 2-501 |        | Paul           |
|            |        | -Director, | -6998 |        | .Grant@gsa,gov |
|            |        | Federal EC |       |        |                |
|            |        | Program    |       |        |                |
+------------+--------+------------+-------+--------+----------------+
| \          | BMDO   | Deputy     | 70    | 703-60 | <              |
| *Gronberg, |        | Director,  | 3-604 | 4-0690 | Larry.Gronberg |
| Larry      |        | I          | -3469 |        | @bmdo.osd.mil> |
|            |        | nformation |       |        |                |
|            |        | Systems    |       |        |                |
|            |        | (          |       |        |                |
|            |        | Alternate) |       |        |                |
+------------+--------+------------+-------+--------+----------------+
| \*         | DCAA   | Dep Asst   | 703   |        | [              |
| Hernandez, |        | Dir,       | 767   |        | Shernandez@hq1 |
| Steve      |        | Operations | -2236 |        | .dcaa.mil](mai |
|            |        |            |       |        | lto:Shernandez |
|            |        |            |       |        | @hql.dcaa.mil) |
+------------+--------+------------+-------+--------+----------------+
| \*Hinton,  | DFAS   |            | 703   |        | <Jhinton@cleve |
| Jerry      |        |            | 607   |        | land.dfas.mil> |
|            |        |            | -0328 |        |                |
+------------+--------+------------+-------+--------+----------------+
| \          | JECPO  | EC Strat   | 703   |        | <Miles_holtzm  |
| *Holtzman, |        | Plan Lead  | 275   |        | an@hq.dla.mil> |
| Miles      |        |            | -5332 |        |                |
+------------+--------+------------+-------+--------+----------------+
| \          | OS     | OUSD       | 70    |        | chowe          |
| *Howerter, | D/RFPB | (P         | 3-697 |        | rte@ra.osd.mil |
| CAPT.      |        | &R/Reserve | -4486 |        |                |
| Craig USNR |        | Affairs)   |       |        |                |
+------------+--------+------------+-------+--------+----------------+
| \*Kerrins, | OUS    | Dep Dir    | 703   | 703    | <Kerrin        |
| Dave COL   | D(A&T) | for        | 695   | 69     | d@acq.osd.mil> |
|            | DDP    | Defense    | -7146 | 3-1142 |                |
|            |        | P          |       |        |                |
|            |        | rocurement |       |        |                |
+------------+--------+------------+-------+--------+----------------+
| \*Kim, Hun | USN    |            | 703   | 703    | Kim.h          |
|            |        |            | 602   | 60     | un@hq.navy.mil |
|            |        |            | -3175 | 2-4668 |                |
+------------+--------+------------+-------+--------+----------------+
| \          | OUSD   |            | 70    |        | Kimber         |
| *Kimberly, | (A&T)  |            | 3-681 |        | jf@acq.osd.mil |
| Jim        | (L)    |            | -8474 |        |                |
+------------+--------+------------+-------+--------+----------------+
| \*Laufer,  | DTRA   |            |       |        | Tom.l          |
| Thomas     |        |            |       |        | aufer@osia.mil |
+------------+--------+------------+-------+--------+----------------+
| \*         | USMC   |            | 703   |        | matsumoto      |
| Matsumoto, |        |            | 695   |        | c@hqi.usmc.mil |
| Cynthia    |        |            | -6122 |        |                |
+------------+--------+------------+-------+--------+----------------+
| \          | USAF   | Chief,     | 703   | 703    | geor           |
| *Mihalcik, |        | Support    | 588   | 58     | ge.mihalcik@pe |
| George Lt  |        | Sys        | -6111 | 8-7526 | ntagon.af.mil. |
| Col        |        |            |       |        |                |
+------------+--------+------------+-------+--------+----------------+
| \*Mounts,  | OUSD   | Dir., Int. | 703   | 703    | <Mounts        |
| William    | (AR)   | & Com Sys  | 614   | 61     | w@acq.osd.mil> |
|            |        | Acq.       | -3882 | 4-1690 |                |
+------------+--------+------------+-------+--------+----------------+
| \*Pencek,  | NSA    |            | 410   |        | <dpencek@rom   |
| Darlene    |        |            | 684   |        | ulus.ncsc.mil> |
|            |        |            | -7595 |        |                |
+------------+--------+------------+-------+--------+----------------+
| \*Perry,   | DeCA   |            | 804   | 804    | <Perryjc@h     |
| Jeffrey    |        |            | 734   | 73     | qlee.deca.mil> |
|            |        |            | -8482 | 4-8450 |                |
+------------+--------+------------+-------+--------+----------------+
| \*Shaw,    | DoD IG | Project    | 70    | 703-60 | kshaw          |
| Kent       |        | Manager    | 3-604 | 4-9204 | @dodig.osd.mil |
|            |        |            | -9228 |        |                |
+------------+--------+------------+-------+--------+----------------+
| \          | DIA    | Program    | 202   |        | <Aq            |
| *Sherwood, |        | Manager    | 231   |        | sheke@dia.mil> |
| Kenneth    |        |            | -2170 |        |                |
+------------+--------+------------+-------+--------+----------------+
| \          | OUSD   |            | 703   | 703-60 | [Jerry.w       |
| *Williams, | (C)    |            | 602   | 2-0777 | illiams@osd.pe |
| Jerry      |        |            | -0369 |        | ntagon.mil](ma |
|            |        |            |       |        | ilto:Williamj@ |
|            |        |            |       |        | ousdc.osd.mil) |
+------------+--------+------------+-------+--------+----------------+
| \*Wix,     | DISA   |            |       |        | <Wixg          |
| Gayle      |        |            |       |        | @ncr.disa.mil> |
+------------+--------+------------+-------+--------+----------------+
| \*Yff,     | J4     |            |       |        | <Yffpn@js      |
| Phillip    |        |            |       |        | .pentagon.mil> |
| N., COL    |        |            |       |        |                |
+------------+--------+------------+-------+--------+----------------+

\* Principal organizational representative.

##### DoD and Component Participants

  -------------------------------------------------------------------------------------------------------------------------------------
  **Name**      **Agency**   **Title**      **Phone**      **FAX**        **E-mail**
  ------------- ------------ -------------- -------------- -------------- -------------------------------------------------------------
  Bailey, Will  DLA                         703-275-5184                  Wilbert_bailey@hq.dla.mil

  Beaton, CAPT. OSD/RA                      703-695-4125                  Sbeaton@ra.osd.mil
  Scott USNR                                                              

  Bonner,       OASD(HA)                    703 681-8791   703 681-8918   <Debra.bonner@tma.osd.mil>
  Debbie                                                                  

  Brown, Judy   MITRE        JECPO EC Team                                <Brownj@ncr.disa.mil>

  Buttrey,      DFAS                                                      Dbuttrey@dfas.mil
  Diana                                                                   

  Cake, Spencer USAF                        703 588-6130   703 588-6368   Scake@af.pentagon.mil

  Conrad,       J4                                                        [Conradml@js.pentagon.mil](mailto:Conradme@js.pentagon.mil)
  Michael, COL                                                            

  Crawford,     LMI/USN                     703-917-7177   703 917-7518   [mcrawfor@mail.lmi.org](mailto:Mcrawfor@lmi.org)
  Mark                                                                    

  Curtis, Judy  ODUSD(AR)    Action Officer 703-614-3882   703-614-1614   [Curtisj@acq.osd.mil](mailto:Brasheta@acq.osd.mil)

  DePalma,      JECPO                       275-5276                      depalmae@ncr.disa.mil
  Evelyn                                                                  

  Forbes, Mary  J6V                                                       <Forbesme@js.pentagon.mil>

  Gershman,     DoDIG        Program        703-                          
  Anna                       Officer                                      

  Haggerty,     LOGICON                     703 998-4709   703 820-3911   Haggertj@ncr.disa.mil
  Jerry                                                                   

  Herbst, Mark  OUSD (A&T)                                                herbstm@acq.osd.mil

  Hill, Anita   USAF SAF/AQ                 703-588-7052                  <Anita.hill@af.pentagon.mil>

  Hughes        DISA (D7)    Requirements   703-681-3482                  Hughes2d@ncr.disa.mil
  Deborah                    Analysis                                     
                             Officer                                      

  Kent, Evelyn  DDRE         EC Lead for    703-696-0368   703-696-0569   kentew@acq.osd.mil
                             Grants                                       

  Knieff,       USA                         703 697-4674   703 697-4235   [Kniefbl@hqda.army.mil](mailto:Knieffb@hqda.army.mil)
  Barbara                                                                 

  Lesser, Marc  BMDO         Contracting    703 604-4242                  <Marc.lesser@bmdo.osd.mil>
                             Officer                                      

  Lewis, Ray    JECPO        Finance Team   703-275-5605   703-275-5610   <Lewis2r@ncr.disa.mil>
                             Lead                                         

  Newman, Earl  DCAA         Asst Dir,      703 767-2236                  [ENewman@hq1.dcaa.mil](mailto:*O@hq1.dcaa.mil)
  J.                         Operations                                   

  Paysan, Mike  J8                                                        <Paysanma@js.pentagon.mil>

  Pendleton,    DIA                         202 231-2454                  <Afpenjr@dia.osis.gov>
  John R.                                                                 

  Poff, Debbie  USA                         703 697-6158   703 697-4235   <Poffde@hqda.army.mil>

  Pontius,      CALIBRE                     703 845-1000   703 845-1001   <Hpontius@calibresys.com>
  Harry                                                                   

  Rhodes,       DCAA         Program        703-767-2267                  crhodes[\@hq1.dcaa.mil](mailto:Dkaiser@hq1.dcaa.mil)
  Cheryl                     Manager                                      
                             Operations                                   

  Richardson,   BMDO         Dep Dir of     703 604-4263                  <Barry.richardson@bmdo.osd.mil>
  Barry                      Contracts                                    

  Robinson,     DISA (D7)    Requirements   703-681-0183                  Robins1c@ncr.disa.mil
  Clay                       Analysis                                     
                             Officer                                      

  Russell, Tom  CALIBRE                     703 845-1000   703 845-1001   <Trussell@calibresys.com>

  Sosdian,      DARPA        Deputy CIO     703-696-2418   703-696-7597   <Bsosdian@darpa.mil>
  Brian                                                                   

  Stanford,     ONR          ONR CIO        703-696-5420   703-696-2786   Stanfob@onr.navy.mil
  Brad                       Assistant for                                
                             EC & Co-chair,                               
                             IAEGC                                        

  Sullivan, Dee OASD(C3I     DoD EC Office  703 604-1585   703 604-1493   <Sullivad@osd.pentagon.mil>
  Ann           P&I)                                                      

  Sweet, Tip    JECPO                       703-275-5035                  SweetT@ncr.disa.mil

  Thompson,     DARPA        CIO                                          <Dthompson@darpa.mil>
  David                                                                   

  Thompson,     OUSD(P)      GNS Special    703-695-3389                  <Thompsonre@comm.hq.af.mil>
  Reinaldo                   Assistant                                    

  Tuohy, Bob    OUSD (A&T)   Dir, Program   703 693-2973                  [Tuohyrv@acq.osd.mil](mailto:Touhyrv@acq.osd.mil)
                DUSD (S&T)   Analysis                                     

  Williams,     DTIC (DUSD                  703 767-9129                  <Lwilliams@dtic.mil>
  Lorraine      (S&T))                                                    

  Wotring, Tom  DTRA                                                      <Tom.wotring@osia.mil>

  Yochim, Rick  LOGICON                     703 318-1074                  <Yochimr@ncr.disa.mil>
                                            ext 248                       

  Zurcher, John OASD(HA)     BPR Lead for   703-575-9771                  <john.zurcher@tma.osd.mil>
                             EC                                           
  -------------------------------------------------------------------------------------------------------------------------------------

##### Previous Participants

  ---------------------------------------------------------------------------
  **Name**      **Agency**   **Title**             **Period of
                                                   Participation**
  ------------- ------------ --------------------- --------------------------
  Banks, Sharon DFAS                               October -- November 1998

  Barnes, Ann   OUSD (A&T/L)                       Beginning to September
                                                   1998

  Barnette,     JECPO        Interface to Service  Beginning to October 1998
  Mary                       EC Offices            

  Brashear,     OSUSD(AR)    Action Officer        Beginning to December 1998
  Troy Capt.,                                      
  USAF                                             

  Fallanee,     ODCFO(FC)    One-time stand-in for September 1998
  Harry CWO,                 J. Williams           
  USA                                              

  Fonash, Dr.   OASD(C3I     DoD EC Office         Beginning to October 1998
  Peter         P&I)                               

  Jagim, Gena   NIMA                               Beginning to August 1998

  Kaiser, Dave  DCAA                               Beginning to October 1998

  Karpovich,    JECPO                              Beginning to November 1998
  John                                             

  Ziegler, Lt   USAF         Chief, Support        Beginning to October 1998
  Col Fred                   Systems               
  ---------------------------------------------------------------------------

#### References

Defense Reform Initiative #32: Paperless Contract Closeout; John S.
Hamre, Deputy Secretary of Defense; 13 April 1998.

Defense Reform Initiative #39: Travel Reengineering; John S. Hamre,
Deputy Secretary of Defense; 11 May 1998.

Defense Reform Initiative #43: Defense-wide Electronic Commerce; John S.
Hamre, Deputy Secretary of Defense; 20 May 1998.

Defense Reform Initiative #44: Paper-free Program Objectives Memorandum
(POM) Submission; John S. Hamre, Deputy Secretary of Defense; 2 June
1998.

*Defense Reform Initiative Report*, William S. Cohen, Secretary of
Defense, November 1997.

*Electronic Commerce for Buyers and Sellers -- A Strategic Plan for
Electronic Federal Purchasing and Payment*, President's Management
Council's Electronic Processes Initiatives Committee, March 1998.

*Joint Vision 2010*, John M. Shalikashvili, Chairman Joint Chiefs of
Staff, 1997.

Management Reform Initiative #11: Adoption of Commercial Identifiers in
DoD Business Systems by January 1, 2000; John S. Hamre, Comptroller;
June 16, 1997.

Management Reform Initiative #12: Expanding the Use of Prime Vendor
Contract Instruments; John S. Hamre, Comptroller; June 17, 1997.

Management Reform Initiative #13: Adopting Standard Commercial Products
for Registration Files; John S. Hamre, Comptroller; June 20, 1997.

Management Reform Initiative #14: Reengineering Permanent Change of
Station (PCS) and Inactive Reserve Travel; John S. Hamre, Comptroller,
June 23, 1997.

Management Reform Initiative #15: Reengineer Defense Transportation
Documentation and Financial Processes; John S. Hamre, Comptroller, July
7, 1997.

Management Reform Initiative #16: Identifying Requirements for the
Design, Development and Implementation of a DoD Public Key
Infrastructure; John S. Hamre, Comptroller, August 8, 1997.

Management Reform Initiative #2: Moving to a Paper-Free Contracting
Process by January 1, 2000; John S. Hamre, Comptroller, May 21; 1997.

Management Reform Initiative #6: Streamlining and Simplifying
Member-arranged Movement of Household Goods; John S. Hamre, Comptroller;
June 4, 1997.

Report of the Quadrennial Defense Review (QDR), William S. Cohen,
Secretary of Defense, May 1997.

Strom Thurmond National Defense Authorization Act for Fiscal Year 1999.

#### Acronyms

  -----------------------------------------------------------------------
  **Acronym**        **Meaning**
  ------------------ ----------------------------------------------------
  AD                 Area Director

  ANS                American National Standards

  ANSI               American National Standards Institute

  ASC                Accredited Standards Committee

  ASD (HA)           Assistant Secretary of Defense (Health Affairs)

  ASD(C3I)           Assistant Secretary of Defense (Command, Control,
                     Communications, and Intelligence)

  AUTODIN            Automatic Digital Network

  BPR                Business Process Reengineering

  CAIM               Customer Area Inventory Management

  CCL                Commodity Control List

  CFIUS              Committee on Foreign Investment in the U.S.

  CFL                Cleared Facilities List

  CFO                Chief Financial Officer

  CIO                Chief Information Officer

  CMD                Communications Management Division

  CMI                Classified Military Information

  CNS                Center for Nonproliferation Studies

  COCOM              Coordinating Committee for Multilateral Exports
                     Controls

  COTS               Commercial-off-the-shelf

  CY                 Calendar Year

  DAE                Defense Acquisition Executive

  DARPA              Defense Advanced Research Program Agency

  DBMS               Database Management System

  DDR&E              Director, Defense Research and Engineering

  DGSA               Defense Goal Security Architecture

  DII                Defense Information Infrastructure

  DISA               Defense Information Systems Agency

  DLSS               Defense Logistics Standard Systems

  DMLSS              Defense Medical Logistics Standard Support

  DMS                Defense Messaging System

  DoD                Department of Defense

  DoD OGC            Department of Defense Office of General Council

  DoDIG              Department of Defense Inspector General

  DOT&E              Director, Operational Test and Evaluation

  DRID               Defense Reform Initiative Directive

  DRIR               Defense Reform Initiative Report

  DROLS              Defense RDT&E On-line System

  DTIC               Defense Technical Information Center

  DUSD (AR)          Deputy Undersecretary of Defense (Acquisition
                     Reform)

  DUSD (L)           Deputy Undersecretary of Defense (Logistics)

  EB/EC              Electronic Business/Electronic Commerce

  EBO                Electronic Business Operations

  ECAC               Electronic Commerce Advisory Council

  ECPO               Electronic Commerce Program Office

  EDI                Electronic Data Interchange

  EDIIC              Electronic Data Interchange Implementation
                     Conventions

  EDISMC             Electronic Data Interchange Standards Management
                     Committee

  EFT                Electronic Funds Transfer

  E-mail             Electronic Mail

  EPIC               Electronic Process Initiatives Committee

  ESC                Executive Support Center

  EWG                Electronic Working Group

  FASA               Federal Acquisition Streamlining Act

  FDS                Foreign Disclosure System

  FESMCC             Federal Electronic Data Interchange Management
                     Coordinating Committee

  FITEC              Financial Implementation Team for Electronic
                     Commerce

  FMS                Foreign Military Sales

  FOCI               Foreign Ownership, Control, or Influence

  FOUO               For Official Use Only

  FVS                Foreign Visits System

  FY                 Fiscal Year

  GCCS               Global Command and Control System

  GCSS               Global Combat Support System

  GII                Global Information Infrastructure

  GPRA               Government Performance and Results Act

  HIFAC              Health Industry Federal Advisory Council

  HIPPA              Health Insurance Portability and Accountability

  IAB                Internet Architecture Board

  IAEGC              Inter-Agency Electronic Grants Committee

  IAIC               Inter-Agency Acquisition Internet Council

  IANA               Internet Assigned Numbers Authority

  IESG               Internet Engineering Steering Group

  IETF               Internet Engineering Task Force

  IGOTS              Intergovernmental Transfers

  INRIA              Institut National de Recherche en Informatique et en
                     Automatique

  IPT                Integrated Product Team

  ISOC               Internet Society

  ISPs               Internet Service Providers

  ITM                Information Technology Management

  ITMRA              Information Technology Management Reform Act

  JCS                Joint Chiefs of Staff

  JECP               Joint Electronic Commerce Program

  JECPO              Joint Electronic Program Office

  MEDLOG             Medical Logistics

  MIIS               Monterey Institute of International Studies

  MILDEPs            Military Departments

  MILSTRIP           Military Standard Requisitioning and Issue
                     Procecures

  MIT/LCS            Massachusetts Institute of Technology Laboratory for
                     Computer Science

  MLS                Multi-level security

  MoU/DEA            Memorandum of Understanding/Data Exchange Agreement

  MRM                Management Reform Memorandum

  MTF                Medical Treatment Facilities

  MUN                Munitions Database

  NCA                National Command Authorities

  NDPA               National Disclosure Policy, Annex A

  NDPE               National Disclosure Policy Exceptions

  NII                National Information Infrastructure

  NIS                Newly Independent States

  NPR                National Performance Review

  NSA                National Security Agency

  OAD                OUSD (P) Administrative Database

  OCC                Operations Control Center

  ODD                OUSD (P) Documents Database

  OMB                Office of Management and Budget

  OSD                Office of the Secretary of Defense

  PCDP               Policy Career Development Planning Database

  PIMS               Policy Intranet Management System

  PKI                Public Key Infrastructure

  PMC                President\'s Management Council

  POC                Point of Contact

  POLYNET            Policy Network

  POM                Program Objective Memorandum

  PSA                Principal Staff Assistant

  QDR                Quadrennial Defense Review

  RBA                Revolution in Business Affairs

  S&T                Science and Technology

  SBU                Sensitive but unclassified

  SIPRNET            Secure Internet Protocol Router Network

  SITD               SO/LIC Issues Tracking Database

  SNS                Secure Network Servers

  SO/LIC             Special Operations/Low Intensity Conflict

  SPAN               Security Policy Automation Network

  SRRIM              Stock Room Readiness Inventory Management

  STS                Suspense Tracking System

  TPS                Technology Protection System

  TQM                Total Quality Management

  UN/EDIFACT         United Nations Rules for Electronic Data Interface
                     for Administration, Commerce and Transport

  UNSC               United Nations Security Council

  UPN                Universal Product Number

  USD (A&T)          Undersecretary of Defense (Acquisition and
                     Technology)

  USD (C)            Undersecretary of Defense (Comptroller/Chief
                     Financial Officer)

  USD (P&R)          Undersecretary of Defense (Personnel and Readiness)

  USD (P)            Undersecretary of Defense (Policy)

  USVISITS           U.S. Visitor International technology System

  UTP                Unshielded Twisted Pair

  VANs               Value Added Networks

  W3C                World Wide Web Consortium

  WAN                Wide Area Network

  WIPT               Working-level Integrated Product Team

  WWW                World Wide Web
  -----------------------------------------------------------------------

#### JECPO Charter

Office of the Assistant Secretary of Defense

**(Command, Control, Communications and Intelligence)**

> Date: [November 24, 1998]{.underline}

MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS

> CHAIRMAN OF THE JOINT CHIEFS OF STAFF
>
> UNDER SECRETARIES OF DEFENSE
>
> DIRECTOR, DEFENSE RESEARCH AND ENGINEERING
>
> ASSISTANT SECRETARIES OF DEFENSE

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE

> INSPECTOR GENERAL OF THE DEPARTMENT OF
>
> DEFENSE
>
> DIRECTOR, OPERATIONAL TEST AND EVALUATION
>
> ASSISTANTS TO THE SECRETARY OF DEFENSE
>
> DIRECTOR, ADMINISTRATION AND MANAGEMENT
>
> DIRECTORS OF THE DEFENSE AGENCIES
>
> DIRECTORS OF THE DOD FIELD ACTIVITIES

SUBJECT: Joint Electronic Commerce Program Office Charter

In accordance with the Department of Defense Reform Initiative Directive
#43, attached is the approved Joint Electronic Commerce Program Office
Charter.

Since DRID #43 was issued in May 1998, our analysis of Electronic
Commerce (EC) is broader. Accordingly, I am assigning Electronic
Business (EB) to the function. Electronic Business/Electronic Commerce
(EB/EC) will identify a larger scope of the program.

Further EC guidance memorandums and directives will be issued over the
next few months.

If you have any questions, please direct them to Mr. Paul Grant of the
Information Policy Directorate. He can be reached at (703) 604-1477, or
e-mail: <paul.grant@osd.pentagon.mil>.

> Arthur L. Money

Senior Civilian Official

Attachment

**Joint Electronic Commerce Program Office (JECPO)**

**Charter**

References:

a)  Deputy Secretary of Defense (DEPSECDEF) Memorandum, May 20, 1998,
    Subject: Department of Defense Reform Initiative Directive #43,
    Defense-wide Electronic Commerce

> b\) Defense Reform Initiative, November 1997

A.  Purpose: This Charter establishes the Joint Electronic Commerce
    Program Office (JECPO) in accordance with reference (a). JECPO will
    serve as the DoD Executive Agent to support, facilitate, and
    accelerate the application of electronic business practices and
    associated information technologies to improve DoD processes and
    support weapons and combat support systems throughout their life
    cycles.

B.  Scope: Electronic Commerce (EC) is an evolving business strategy for
    enterprise-wide conduct of secure business transactions via
    electronic means.

C.  Mission: Under the overall policy guidance and oversight of the
    Department of Defense Chief Information Officer (CIO), the JECPO
    will serve as the primary entity to integrate EC in the full DoD
    business cycle and to manage the DoD EC Program. The JECPO will:

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1)  Provide shared EC services to the Department.

2)  Champion and partner with the Services, Defense Agencies, Principal
    Staff Assistants (PSAs), and DoD Customers as they transition to EC
    strategies and techniques in their respective business practices.

3)  Leverage existing EC initiatives to promote efficiencies and
    interoperability throughout DoD to eliminate duplication of effort.

4)  Recommend appropriate technology for EC to the DoD Chief Information
    Officer (CIO) and assist with implementation throughout the
    Department.

5)  Provide architectural, technical, and operational support for issues
    that arise during the engineering or reengineering of EC processes.

6)  In coordination with the DoD CIO, Military Services, Defense
    Agencies, and appropriate PSAs, represent DoD on EC matters with
    other federal executive agencies and ensure implementation of DoD EC
    policies and agreements reached with international and federal
    partners.

7)  Provide program oversight for all JECPO funded EC projects.

8)  On matters related to execution of the DoD EC program, coordinate
    with the designated EC points of contact.

9)  Ensure consistent planning and implementation of EC based upon open
    standards for interoperability in a common business environment.

10) Assist the Services and Agencies in their EC Outreach Programs in
    coordination with the Electronic Commerce Resource Centers (ECRCs).

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```
D.  Resources:

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```
1)  For FY 1999, mission funding will be jointly shared; the JECPO will
    manage a joint budget with funds provided by the Defense Information
    Systems Agency (DISA) and the Defense Logistics Agency (DLA).
    Beginning in FY 2000, DISA will provide PM and Budget support for
    the EC program.

2)  DISA and DLA will jointly staff the JECPO. Personnel, facilities,
    administrative, accounting, and logistical support will be provided
    to employees by their respective home agencies.

```{=html}
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```
E.  Revisions: This Charter will be reviewed at least annually, and may
    be revised at any time by the DEPSECDEF and the DoD CIO.

[^1]: The OSD PSAs are Under Secretaries of Defense; Comptroller of the
    Department of Defense; Director of Research and Engineering;
    Assistant Secretaries of Defense; Director of Operational Test and
    Evaluation; General Counsel of the Department of Defense; IG, DoD;
    assistants to the Secretary of Defense; and other OSD Directors or
    equivalents who report directly to the Secretary or Deputy Secretary
    of Defense.

[^2]: Where Due Date is marked "TBD" (to be determined), the responsible
    office had not yet published a due date corresponding to this
    initiative's milestone(s).

[^3]: Where Due Date is marked "TBD" (to be determined), the responsible
    office had not yet published a due date corresponding to this
    initiative's milestone(s).

[^4]: Defense Authorization Act, Division A: DoD Authorizations, Title
    III: Operations and Maintenance, Subtitle D: Information Technology
    Issues, Section 332: Defense-wide Electronic Mall System for Supply
    Purchases.

[^5]: http://www.acq.osd.mil/dp/dars/pubcmts/97304.txt

[^6]: http://epls.arnet.gov/cgi-bin/WebObjects/ecstat/ECStatsPub.woa/

[^7]: http://ccr.edi.disa.mil/ccragent/plsql/ccr.welcome

[^8]: http://ec.fed.gov/

[^9]: http://www.fms.treas.gov/cardtech/pcn.html

[^10]: http://cio.gov/

[^11]: http://gopher.financenet.gov/financenet/fed/cfo/cfo.htm

[^12]: http://ec.fed.gov/

[^13]: http://www.financenet.gov/financenet/fed/cfo/cfocrpt.htm

[^14]: http://www.arnet.gov/References/virtual_lib_5.html

[^15]: [^http://policyworks.gov/org/main/mt/homepage/mtc/smartgov/cards/managers.html^](http://policyworks.gov/org/main/mt/homepage/mtc/smartgov/cards/managers.html)

[^16]: Kimberly, James\[[kimberjf@acq.osd.mil]{.underline}\]

[^17]: DoD Manual 4000.25-M, *Defense Logistics Management System*,
    December 1995

[^18]: Egan, Don and Crawford, Mark, *A Business Case and Strategy for
    Defense Logistics Electronic Data Interchange,* Logistics Management
    Institute Report LG802T1, October 1998.

[^19]: Assistant Inspector General For Auditing memorandum dated 13 July
    1998, Subject: Electronic Transmission of Announcement Letters,
    Draft Audit Reports, and Final Audit Reports

[^20]: http://gopher.financenet.gov/financenet/fed/cfo/cfo.htm

[^21]: http://cio.gov/

[^22]: http://ec.fed.gov/manage.html

[^23]: http://ec.fed.gov/manage.html

[^24]: http://snad.ncsl.nist.gov/fededi/161-2.html

[^25]: http://www.financenet.gov/financenet/fed/cfo/cfocrpt.htm

[^26]: http://www.arnet.gov/References/virtual_lib_5.html

[^27]: http://ec.fed.gov/gcharter.htm

[^28]: http://policyworks.gov/org/main/mt/homepage/mtc/smartgov/cards/managers.html

[^29]: http://web.ansi.org/public/about.html

[^30]: http://www.commerce.net/about/

[^31]: http://www.commerce.net/news/press/19980608.html

[^32]: http://www.ietf.cnri.reston.va.us/overview.html

[^33]: http://www.w3.org/Consortium/