# Presentation: 374477

## Department of CommerceInformation Technology ConferenceThe Future of Acquisition:DOC and Government-wide

*By*
**Michael S. Sade**
**DOC Procurement Executive**
***April 14, 2005***

## ACQUISITION at DOC

- Acquisition is much broader than “procurement” or “contracting.”
- As Business Brokers for Program Success, acquisition is critical to DOC’s ability to achieve its mission.

## Balanced Scorecard 6-Year Trends (1999-2004)

- (Quality)

**Customer Perspective**

- (Timeliness)

- (Responsiveness, Cooperation and Communication)

## Balanced Scorecard 6-Year Trends (1999-2004)

- (% of Employees Meeting Mandatory Qualification Standards)

- (% of Employees Satisfied with the Work Environment)

- (% of Employees Satisfied with the Professionalism, Culture, Values, and Empowerment)

- Learning and Growth Perspective

## The New Acquisition Model

**The New Acquisition Model**

- Budget/
- Strategic
- Plan

- Requirements
- Definition

- Strategic Sourcing/
- Acquisition Strategy

- Performance
- Management

- Procurement/
- Contract Award

- Where the Acquisition Community is currently engaged

- Acquisition Community engagement under the New Model

## Strategies for Transformation

**Improved CFO/CIO/Acquisition Partnership for DOC Community**
- Convey benefits of Acquisition community as business partners
- Improve real time communications
- Use Councils (CIO/CFO/HR) as tools for increased communications, planning and performance and risk management
- Acquisition strategy
- Strengthen relationships with program offices
**Converting to a Performance Based Service Acquisition (PBSA) environment**
- Extensive Educating and Training to bridge skills gap
- Program Manager (PM) /Contracting Officer’s Representative (COR) /Contracting Officer (CO)  training
- Comprehensive communications strategy
- Extensive Partnering with customers and private industry
- Use of best practices and outreach
**Creating a Performance Based Organization**
- Constant feedback through Balanced ScoreCards (BSC)
- Portal and best practices postings
- Consistent participation and membership in acquisition forums
- Partnership within acquisition community (e.g. PM/COR/CO)
- Full implementation of acquisition workforce training program
- PM/COR/CO
**Optimal Use of Resources**
- Realignment of staffing and/or workload
- Skills gap analysis and implementation plan
- Centers of Excellence
- Enterprise licensing
- Integrated Solutions Team
- Manage cultural change for Acquisition Community
- Full leveraging of technology

**Notes:**
So what?
Continued trends may result in eventual program failure
	- too few people and too many requirement s= one will fall through the cracks

## Commerce Business Environment (CBE)(Achieved through the Case for Change - March 2005)

**Communications Management**

**Human Capital Planning and Workforce Issues/Policy**

**Commerce Business Environment (CBE)*****(******Achieved through the Case for Change - ******March 2005******)***

**Technology**

**Resource and Financial Management**

**Operations - Grants**

**Operations - Acquisitions**

**Enterprise - Grants**

**Enterprise - Acquisitions**

**Outreach and Education**

**Competitive Sourcing**

**Interagency Agreements**

**OAM Key Initiatives**** ****– EARS, Nex Gen, GOES-R, CBE Interface, Grants Re-engineering**

**Reporting**

**Business Processes**

**OAMFA Portfolio for FY 2005**

_**VISION**_**:**
**Business **
**Brokers**
**For**
**Program **
**Success**

_**VISION**_**:**
**Business **
**Brokers**
**For**
**Program **
**Success**

## Key FY05 Case for Change Initiatives

- Technology

- Human Capital/ Workforce
- and Policy

- Communications Management

- Resource and Financial Management

- Business Process

- Complete Human Capital Plan
- Implement COR Program
- Monitor GOES-R and Census
- Issue Guidance on Acquisition Planning and Acquisition Review Board & Manage Board
- Enhance the Balanced ScoreCard Program

- Update Case for Change/Expand to Grants
- Prepare Annual Report for Grants and Acquisitions
- Design & Roll-out OAMFA Communication Plan for Grants/ Acquisitions
- Improve OAMFA Internal Communication
- Maintain Website and Operating Plan

- Set-up Operational Management Team for OAMFA
- Implement OAMFA  Specific Business Processes
- Centralize OAMFA Budget
- Improve Opportunities for Admin. Support Staff
- Improve Effectiveness of ASI Contract

- Competitive Sourcing
- Business Re-engineering Initiatives for Acquisition and Grants
- IAAs
- NexGen
- Commodity Sourcing

- Roll-out EARS
- Complete CSTARS/ORSI Interface
- Implement  IT Governance Plan
- Achieve Data Standardization Goals for  DOC Acquisition Business Processes
- Maintain IT Security for OAMFA Systems

**Operating Plan**
- Initiatives align to and drive the Case for Change

**Key FY05 Case for Change Initiatives**
**March 2005**

## Slide 9

## HUMAN CAPITAL

- Expanding the Contracting Officer’s Representative (COR) program
- Database on CORs’ qualifications
- Data entry has begun with CFO/ASA CORs.
- Acquisition’s Human Capital Plan development has begun and will include:
- Rollout of database
- Workforce assessment
- Standardization of 1102, 1105, 1106 position description.

## COR Certification Program:Major Changes

**COR Concept**
- 4 Designations
- POC
- COR Level 1
- COR Level 2
- COR Level 3
**Competency Based**
- Business/Industry
- General Management
- Project Management
- Procurement Knowledge
**Training**
- Project Management
- Procurement Knowledge
**Performance Plan** - COR functions are part of an individual’s performance plan

## COR:Levels of Certification

- $25,000 to $100,000:
-   Point of Contact
- Up to $1 million:
-   Level 1
- $1million up to $10 million:
-   Level 2
- $10 million and above:
-  Level 3

## Competitive Sourcing

- Competitive Sourcing, used wisely, can yield significant results
- Flexibility: management tool, not automatic outsourcing
- Savings ($1 billion for all agencies so far) for reprogramming
- $22,000 in savings per FTE (up from $12,000 in FY03)
- Better use of resources
- How DOC is making competitive sourcing work
- Better inventories
- Feasibility study approach
- Helps provide the answer: will the effort of conducting a competition exceed the return on investment?
- Consider at a minimum:
- Efficiency of and customer satisfaction with current operations,
- Annual rate of staff turnover,
- Long-term demand for the function,
- Private sector capability and interest in providing services; and
- Obtaining high-level management and leadership support for competitions prior to announcement.
- Final outcome should be analysis weighing the cost and benefits

## Government-wide Initiatives

- Integrated Acquisition Environment (IAE)
- IT Security
- Performance Based Contracting
- Acquisition Workforce
- Grants Automation
- SMART Buy
- Commodity Sourcing