# Presentation: 482517

## Department of Energy

**Office of Management, Budget and Evaluation**
**Competitive Sourcing/A-76 Office (ME-2.1)**
**Denny O’Brien (202-586-1690)**
**August 7, 2002**

- A-76 Orientation/Status

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Agenda

**A-76 Mandate**
**A-76 is a Management Tool**
**The A-76 Process**
**What it is**
**Keys for Success**
**DOE **
**Background**
**Functional Area Studies**
**Executive Steering Group**
**Current Status**
**Challenges**

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## A-76 Mandate

**	****“****Government should be market-based--we should not be afraid of     competition, innovation, and choice.  I will open government to the discipline of competition”**
**	****	****	****	****	****	****George W. Bush**
**Part of The President's Management Agenda**
**A Government Wide Initiative**
**Semi-annual Score Cards**

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## A-76 Directives from OMB

- The Bush Administration released three Office of Management and Budget (OMB) Memorandums outlining initiatives for competing commercial activities and identifying inherently governmental functions.
**February 14, 2001 –** OMB memorandum highlighted the objective to expand A-76 competitions and produce a more accurate Federal Activities Inventory Reform (FAIR)  Act inventory analysis. OMB also requested agencies to submit a separate inventory identifying all inherently governmental positions within agencies.
**March 9, 2001 –** OMB memorandum expanded the February 14 memo and directed all federal agencies to complete public private or direct conversion competitions (A-76) on not less than **5%** of commercial in nature positions listed in FAIR Act job lists in FY 2002.
**June 2001 –** OMB directed agencies to compete at least an additional **10%** of ”commercial in nature” positions in 2003.

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## A-76 is a Management Tool

**Competition provides opportunity for managers to:**
- Streamline organization
- Implement best business practices
- Increase productivity
- Enhance quality
- Increase efficiency of operations
- Lower operational costs

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## The A-76 process 

**The Process focuses on :**
- Government/customer requirements
- Organizational structure
- Work processes
- Defined outcomes
**Competition**

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## What is A-76? 

- A-76 **is** **not** contracting out or outsourcing
- A-76 **is** a competition resulting in increased efficiency and lower costs
- The taxpayer wins
**Historical competition results:**
- Government wins 50 - 60% of competitions
- 30 - 40+% savings achieved (regardless of who wins)

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Keys for a Successful A-76 Study

- Start with a well organized approach
**Effective communications** strategy and planning is critical
**Top-down commitment is essential** to set the tone and stay the course
- Studies are **resource intensive**
- Set realistic timelines and milestones
- Focus on **customer requirements**

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## DOE Background

- President’s/OMB requirement to study 15% of FAIR Act commercial inventory by end of FY 2003
- DOE listed 9,889 FTE of 14,717 FTE as “not inherently governmental” on 2001 FAIR Act inventory (6/2001)
- Reduced by removing the PMAs (3409) leaving 6480
- 15% of 6480 = 972 FTE to be studied
- March 22, 2002 DOECAST Announcement commencing the competitive Sourcing Initiative stems from the DOE FY03 budget commitment to competitively source approximately 1,000 FTEs
- Dr. Bruce Carnes, Director OMBE/CFO, has the lead responsibility as Chair of the Competitive Sourcing Executive Steering Group (ESG)
- ESG corporately oversees the imitative, the Department's Competitive Sourcing A-76 Office, led by Denny O’Brien, provides overall guidance on policies and procedures and day-to-day management of the initiative

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## DOE Background

- Functional area study targets are a mix of Department-wide and specific organizations– primarily “administrative” activities.
- Team Chiefs of the study areas and initial plans of actions have been approved by the ESG
- Initial validation of numbers and functions (completed)
- Opportunity to modify FAIR Act codes and recommend changes (completed)

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Functional Area Studies

| Function | Team Lead | Positions (HQ/Field) | Locations
(HQ/Field) |
| --- | --- | --- | --- |
| Information Technology | Karen Evans, CIO | 420 (224/196) | 14/19 |
| Human Resources | Claudia Cross, ME | 165 (82/83) | 24/19 |
| Financial Services | Helen Sherman, ME | 151 (60/91) | 1/13 |
| Logistics | Brian Costlow, ME | 200 (101/99) | 3/12 |
| Personnel Security Clearances
(deferred by ESG) | Rosalie Jordan, SO | 27 (0/27) | 0/3 |
| Paralegals (removed by ESG) |  | 21 (9/12) | 2/8 |
| Civil Rights Reviews
( Direct Conversion) | Frank Beserra, ED | 8 (8/0) | 1/0 |
| Graphics  | Brian Costlow, ME | 13 (all HQ) | 1/0 |

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## For handout insert worksheets from Excel file here

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## 2002 Functional Areas Studies Funding

- Estimated cost (excluding Federal time and travel) will be $5.4 million
- $3.5 million needed in FY 2002
- All DOE organizations share the cost of studies based on staffing levels.

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Executive Steering Group (ESG)

**Oversight of Competitive Sourcing**
- Ensure funding and resources are provided and appropriately utilized
- Functional Area Study Team (FAST) Leaders report to the Executive Steering Group
- Review and provide final Departmental approval for all Competitive Sourcing Study Action Plans, Performance Work Statements, Management Plans and related information
- Approve cost comparison waivers, study modifications and study cancellations
- Appoint officials for the Independent Review Organization, source selection activities, appeals process, transitional and post transition activities
- Provide for arbitration and resolution of cross organizational issues

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Executive Steering Group (ESG)

**Advise the Secretary on what is necessary to accomplish the Department’s and the President’s Competitive Sourcing Goals**
**Members**
- Deputy Secretary of Energy
- Director, Office of Management, Budget and Evaluation/CFO
- Under Secretary of Energy, Science and Environment
- Under Secretary for Nuclear Security
**Advisors**
- The General Counsel
- Director, Public Affairs
- Assistant Secretary for Congressional and Intergovernmental Affairs
- National Representatives
- American Federation of Government Employees
- National Treasury Employees Union

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Operational Roles

**Group**

- Oversight
- Compliance
- Funding  &
-   Resources
- -Study Investigation
- Direction
- Study Approval
- Study Changes
- Appointments
- Mitigation

**6 Study Teams**

- Provides Advice,
- support & assistance

**Competitive Sourcing/A-76 Ofc.**

**Support Contractor**

**Support Contractor**

**Jupiter**

**Operational Roles**

- Monitor (contractual)
-  & day-to-day operation

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Current ESG Status

- _ESG DECISIONS – JUNE 17, 2002_
**Approved Financial Services, Information Technology, Logistics and Human Resources Studies Actions Plans**
**	**(IT, Financial Services, HR, Logistics Study Action Plans on _[www.ma.mbe.doe.gov/a-76](http://www.ma.mbe.doe.gov/a-76)__)_
**IT Study:**
- Approved the one study of all IT FTEs concept including the potential addition of FTEs (beyond the 420 initially selected)
- Requested a reevaluation of the four year study time frame
**Logistics Studies:**
- Requested a review of all logistics type FTEs, to include positions that may have been coded under inventory function codes not originally targeted
**Human Resources Study:**
- Requested that all training FTEs, including those located in program offices, be reviewed for inclusion in the study

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Current ESG Status

**Two Teams appealed to ESG for removal of FTE from study**
- Paralegal - remove all 21 FTE from study - ESG agreed
- Personnel Security Investigators - remove all 27 FTE from study - ESG agreed to suspend study subject to further review
**ESG has been provided Graphics and Civil Rights Study Team Action Plans for approval**
**ESG will approve any additional studies or change in the numbers of positions in existing studies**
- OMB may require study of more FTEs in 2004 (depends on impact of Congressional legislation restricting use of numerical quotas)

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Full A-76 Cost Comparison Study Process Flow

**Performance**
**Work Statement**

**Procurement/**
**Solicitation**
**Issued**

**Source**
**Selection**

**           **_**Management Plan**_
**Most Efficient Organization**
**Transition Plan**
**Technical Performance Plan**
**In-House Cost Estimate**

**Transition**
**to**
**MEO **
**or **
**Contract**

**P**
**R**
**E**
**-**
**P**
**L**
**A**
**N**
**N**
**I**
**N**
**G**

**COST **
**COMPARISON**

**APPEALS **
**PROCESS**

*Full A-76 Cost Comparison Study Process Flow*

- Independent
- Review

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Typical A-76 18 Month Timeline 

**1.**

- Typical A-76 18 Month Timeline** **

**2.**

**3.**

**4.**

**10.**

**11.**

**12.**

**13.**

**14.**

**15.**

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Current Study Status

**Study teams are organized or are organizing**
**Bi-monthly Functional Area Study Team Leaders meetings**
**Study Support contractors**** ****selected**
**Overview training/VTC - Over 150 trained**** **
**Detailed study team member training identified**
**A-76 management systems selected [Commercial Activities Management Information System (CAMIS), Wincompare****2****]**
**Roles & responsibilities in the A-76 process under development**
**Appeals, SSA, TEP, MEO and PWS approvals**
**Will submit to ESG for approval**
**DOE Inherently Governmental and Commercial Activities Inventory submitted by the Secretary to OMB on 6/27/02**

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## Future Actions

- Executive Steering Group approves all A-76 Study Team Action Plans
- Management Council assistance in helping identify study positions for 2003/04/05
- Expect to study more positions in 04/05
- Current ongoing studies may increase by additional 200 FTEs
- Council to consider
- Studies designed to help an organization achieve its end state
- Additional other Department –wide functional areas
- Potential insourcing
- Executive Steering Group will approve additional studies positions

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## A-76 Challenges

**A-76 studies have numerous challenges**
- Managerial
- Balancing study and mission priorities
- Allocating and managing resources
- Meeting study milestones
- Minimizing adverse impact on employees
- Adverse personnel actions
- Cultural
- Managing employee fear and resistance
- Maintaining union partnership
- Managing organizational overload
- Educating other stakeholders
**Effective up front planning and a strong communications strategy can minimize risk**
- Ensure successful completion
- Sustain or improve mission accomplishment
**Effective contractor competition**
- Quality of solicitation package
- Source selection evaluation process

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## HR Critical Role

- HR Assistance/Help=Employee Morale
- Employees CANNOT know enough about the
- 	A-76 process and THEIR RIGHTS
- A-76 process does not change or eliminate ANY employee OPM processes or procedures
- Federal Employees win 60% of the studies
- Information is the Key
- Labor relations and Unions must be involved and knowledgeable

- Presented By: Jupiter Corporation and Booz Allen Hamilton

- “Is My Position in the A-76 Study?”
- “When is the RIF?”
- WHERE IS THE HR 	OFFICE ?????

- Presented By: Jupiter Corporation and Booz Allen Hamilton

## For Further Information

- _[www.ma.mbe.doe.gov/a-76](http://www.ma.mbe.doe.gov/a-76)_
- Email a76@hq.doe.gov
- Competitive Sourcing/A-76 Office
- Denny O’Brien (202-586-1690)
- Mark Hively (202-586-5655)
- Steven Apicella (202-586-4071)
- Robin Mudd (202-586-8829)
- YOUR LOCAL HR ORGANIZATIONS

- Presented By: Jupiter Corporation and Booz Allen Hamilton