# Presentation: 541014

## Report Tile

**Federal Financial Management Conference  **
**Financial Management Lines of Business:**
**Building a Roadmap Through Practical Lessons Learned **
***March 10, 2006***

- UNITED STATES OFFICE OF PERSONNEL MANAGEMENT

## U.S. Office of Personnel Management (OPM) OPM at a Glance

**OPM’s Mission:  **Our mission is to ensure the Federal Government has an effective civilian workforce.
**Organization:  **OPM operates from its headquarters in the Theodore Roosevelt Federal Office Building in Washington, DC.  OPM delivers a variety of products and services with the help of its 4,800 employees in the District of Columbia and in 14 locations across the country**.**
**  ****FY 2005 Total Assets and/or Liabilities and Net Position:  $716,385,000,000.**
**  ****Retirement Program**
**  ****Health Benefits Program**
**  ****Life Insurance Program**
**  ****Revolving Fund Programs**
**  ****Salaries and Expenses**
**  ****FY 2005 Audit Opinion:  **Unqualified, no material weaknesses.

## U.S. Office of Personnel Management (OPM) Rationale 

**OPM’s financial system was not capable of meeting OPM current and future business needs **
**Business Objectives   *** *
- Adhere to federal mandates requiring the use of JFMIP-certified COTS software
- Obtain recent JFMIP enhancements including Section 508 compliance and other improvements such as an integrated acquisitions process, security screen classifications, and advanced workflow capabilities
- Comply with current Federal mandates. These mandates include making payments to contractors using the EFT information contained in the Central Contractor Registration and using Dunn and Bradstreet Universal Number (DUNS) conversion to assist with intra-agency eliminations
- Ensure that OPM continues to receive vendor upgrades to the COTS package

## U.S. Office of Personnel Management (OPM) Alternatives Analysis 

**  **

**OPM completed an Alternatives Analysis as a part of Exhibit 300 **
**Alternative 1 - **Maintain Status Quo
**Alternative 2 - **Upgrade existing in-house core financial system
**Alternative 3 - **Cross service with an OMB Center of Excellence (COE**) **and keep existing core financial system
**Alternative 4 - **Cross-service with the Department of Treasury’s Bureau of Pubic Debt Administrative Resource Center, another COE

## U.S. Office of Personnel Management (OPM) OPM’s Decision 

- Selected the alternative to cross-service its financial systems with BDP. Compared against other alternatives, BDP’s proposal demonstrated
- Highest NPV
- Positive ROI; and
- Shortest payback time for the investment
- Other
- Customer feedback was favorable

## U.S. Office of Personnel Management (OPM) Things to Do: The Alternative Analysis 

** **

- Secure skill sets needed prior to conducting the Alternatives Analysis.  For example, if you need contractor assistance, consider bringing them on board prior to reviewing proposals
- Identify/revalidate requirements prior to requesting proposals
- Ensure contractors have financial/accounting backgrounds to assist in preparing the Business Case Analysis

## U.S. Office of Personnel Management (OPM) Things to Do: Working with a COE 

**Background:**  OPM was the first agency to enter into a cross servicing arrangement with a COE under the Financial Management Lines of Business (FMLOB)
**Challenges:**
- Governance structure not well defined
- Performance metrics not well defined
- Limited guidance available to assist agencies in the transition to a COE

## U.S. Office of Personnel Management (OPM) Things to Do: Change Management  

- Secure senior management by-in
- Communicate with program offices, customers and employees early and often
- Establish transparent goals and objectives
- Keep stakeholders informed and communication flowing about status and progress of the transition
- Notify union officials, as appropriate
- Look for early wins

## U.S. Office of Personnel Management (OPM) Specific Actions That OPM Took to Minimize Risk 

- Established the ***Financial Management Project Office*** (FPMO) to provide Project Management expertise, ownership and accountability for critical efforts associated with the financial modernization initiative; instill discipline throughout the life cycle of the project to control costs, ensure quality, and timeliness of key deliverables; and ensure that the initiative is aligned with OPM’s financial management strategic goals.
- Established the **Executive Steering Committee** which is comprised of OPM senior management and key program office stakeholders who meet monthly to assess progress and concur on key “go or no go” decision points.
- Acquired ***contractor support*** to provide systems integration and project management support. *    *

## U.S. Office of Personnel Management (OPM) Contact Information 

- Clarence C. Crawford
- Chief Financial Officer
- 202-606-1918
- clarence.crawford@opm.gov