# Presentation: 632543

## Acquisition Domain: Leading Transformation

**Acquisition Domain: Leading Transformation**
**Presented to FACE  Conference & Exposition**
**Dayton, OH**
**22 June 2004**

***J. Lisa Romney***
*Senior Procurement Analyst*
*Defense Procurement & Acquisition Policy,*
*Electronic Business *
*Office of the Under Secretary of Defense for **Acquisition, Technology and Logistics*
*703-614-3883*
*Lisa.Romney@osd.mil*

## Acquisition Domain: Strategic Direction

**Govern acquisition and                                                                   procurement solutions throughout                                                               DoD**
**Transform the way we do business**
**Deploy approved acquisition                                                                          and procurement solutions**

**DoD investing $230M for 123 procurement systems annually**

**Notes:**
Strategic direction will position us to make intelligent business decisions for POM-06
Based on what the Services reported through the Acquisition Data Call, DoD is investing $230 million each year to maintain 123 procurement systems

## Acquisition Domain: Vision & Mission

| DoD Business Management Modernization Program |
| --- |
| The Department of Defense will be managed in an efficient, business-like manner in which relevant, reliable and timely management information is available on a routine basis to support informed decision-making at all levels throughout the Department. |

| Acquisition, Technology & Logistics Goals |
| --- |
| 
Acquisition Excellence with Integrity
Logistics: Integrated and Efficient
Systems Integration & Engineering for Mission
Technology Dominance
Resources Rationalized
Industrial Base Strengthened
Motivated, Agile Workforce |

| Acquisition Domain |
| --- |
| Vision:An innovative and strategic Acquisition enterprise focused on efficient and cost-effective delivery of the best possible capabilities that enable the Warfighter to succeed.
Mission:Lead the transformation to strategic acquisition by integrating the people, processes and technologies required to implement a modern acquisition environment that supports the Warfighter’s needs. |

| Department of Defense  |
| --- |
| The mission of the Department of Defense is to provide the military forces needed to deter war and to protect the security of our country  |

**Notes:**
Vision and Mission works in conjunction with AT&L goals, BMMP vision, and overall mission of DoD
Aligned with President’s Management Agenda and E-Gov initiative
Guided by DPAP (the Acquisition Domain owner), our vision and completely support DoD, AT&L goals and BMMP  
Want motivated, agile workforce that has the right tools to do their job.
Focusing on having reliable, timely info at all levels to support informed decision making
Procurement supports entire acquisition process/domain. Critical support function for Warfighter. 

## Acquisition Domain: Governance

**Business ****Management****Modernization ****Program**

**OMB **
**Integrated****Acquisition****Environment**

**Networks ****& Information ****Integration**

**Joint Acquisition****Electronic Business****Oversight Board**

- Providing the framework for Federal Acquisition Solutions

- Integration of financial management and business processes into a joint Business Enterprise

- Building the foundation for a net-centric DoD

**Acquisition Domain: Governance**

**Acquisition Governance****Board**

**Domain ****Data Forum**

**Business Process**
**Working Group**

**Domain Portfolio ****Management ****Working Group**

**Program Joint ****Requirements ****Boards**

-    **Services                             Components**** **

**Notes:**
Define enterprise: we’re part of a Federal and DoD Business Enterprise. If this were a commercial enterprise: BMMP = CFO; NII = CIO; OMB IAE = President. 
DoD Business Management Modernization Program has led to creation/integration of six functional domains
Log, Acq, HR, Acc/Fin, SPB, I&E 
Our Domain has established fully engaged governance boards with component representation
AGB recently re-chartered to include wider scope (acquisition process vs. procurement process)  
Your voice can be heard at many levels, particularly SPS and WAWF JRBs
Linkages to Logistics and Financial systems through BMMP
YOU provide the requirements for solutions. 
What do you need to do your job better? TELL US.

## Acquisition Domain: Transforming the Way We Do Business

| PAST | FUTURE |
| --- | --- |
| Transaction-oriented | Strategic, enterprise approach |
| Isolated workers | Knowledge-based, collaborative workers |
| Local information | Shared business intelligence |
| “Silos” of data | Integration with Logistics, Finance & other   Communities |
| No Common Architecture | Enterprise Architecture |
| Stand alone applications that lack   interoperability | Net-centric, interoperable applications |
| Redundant systems; capability gaps | Rationalized systems |
| Tactical utility to individual programs | Strategic value to the Department |
| Long cycle times and transaction costs | Decreased cycles times and transaction costs |

**Acquisition Domain**
**Transformation**

**Modernize DoD Acquisition business processes and systems**
**Enable data interoperability throughout the Acquisition enterprise**
**Manage the acquisition IT portfolio**

**Govern Acquisition at the enterprise level**
**Create a collaborative and efficient Acquisition enterprise **
**Train, recruit, and retain a motivated, agile, and knowledgeable Acquisition workforce  **

**Acquisition Domain Strategic Goals & Objectives**

**Notes:**
Modernize DoD Acquisition business processes and systems
Manage the acquisition IT portfolio
Govern Acquisition at the enterprise level 
Enable data interoperability throughout the Acquisition enterprise
Create a collaborative and efficient Acquisition enterprise 
Train, recruit, and retain a motivated, agile, and mobile acquisition workforce
Six primary strategic goals and objectives for Acq Domain 
Transformation focuses on strategic enterprise approach, shared business intelligence, interoperable applications, decreased cycle times/transaction costs, collaborative workers

## The Scope of Acquisition Modernization

- DoD Acquisition includes several functional areas:

- A

- B

- C

- Pre-Systems Acquisition

- Systems Acquisition

- Sustainment

**Financial Management**

**Procurement**

**Program Oversight**

**Concept**
**Refinement**

**Technology**
**Development**

**System Development****& Demonstration**

**Operations****& Support**

- Design
- Readiness
- Review

- Concept
- Decision

- FRP
- Decision
- Review

- LRIP/IOT&E

**IOC**

**FOC**

**Production****& Deployment**

**Service Engineering**

**Logistics**

**Sustainment**

**Training**

**System Engineering**

**Science and Technology**

**Test and Evaluation**

**Program Management**

**Planning**

**Development**

**Production**

**CURRENT FOCUS**

**EXPANDED FOCUS**

**Phase 1**

**Phase 2**

## Acquisition Domain Future Concept of Operations

**Acquisition Domain is a Critical Cog to Effectively Link with Industry**

## Acquisition Domain Transformation Initiatives

- The Acquisition Domain is transforming each layer of the enterprise:
**Governance**
*Comprises the *_*policies and procedures*_* through which the Acquisition Domain Components will articulate their interests, exercise their rights, meet their obligations, and mediate their differences as they relate to IT management within the Acquisition Domain. *
-  **Architecture**
*Represents the *_*framework that will enable tightly coupled business and IT planning*_*.  The architecture will support new and legacy application integration, a common understanding of the enterprise, interoperability, and the ability to identify gaps between business requirements and IT capabilities. *
**Transition Planning**
_*Analyzes where an organization is and where it would like to be, then determines the roadmap to get there.*_*  Transition planning ensures that an enterprise's technology investments are aligned with its strategy--and the processes and organizational structures needed to realize that strategy.  *
**Portfolio Management**
_*Reviews and certifies that IT investments*_* are aligned with strategic objectives, the Acquisition architecture and associated technical standards, and the Domain transition plan and represents a sound economical investment in light of the Domain portfolio of investments. Portfolio Management identifies opportunities to reduce redundancy, create economies of scale, and identify & fill capability gaps.  *

- Strategy

- Business

- Information
- Data Strategy

- Applications

- Technology

- Portfolio
- Management

**Architecture**

**Transition Planning**

- Governance

## Acquisition Domain: Managing for a Future Acquisition Environment

- Transform procurement professionals to “business brokers”
- Establish strategic sourcing relationships
- Improve integration of acquisition & procurement information
- Manage supplier relationships
- Align DoD processes and systems
-     with Industry
- Control funds management
- Enable clean audit opinion

**Notes:**
Acquisition Domain is providing tools to enable the transformation of the workforce
Part of our strategic direction is transforming the workforce to “business brokers”
Business won’t be the same tomorrow as it is today... you’ll be business brokers
Access to info to make smarter buying decisions
Tools available to build supplier relationships
Leverage relationships to benefit DoD

## Acquisition Domain: Procurement Solutions 

**Acquisition Domain: Procurement Solutions **

**Logistics Systems**

**Financial Systems**

**Standard Procurement **
**System (SPS)**

**Electronic Document **
**Access (EDA) **

**Wide Area Workflow **
**(WAWF)**

_**Department of Defense (DoD)**_

_**Federal - Integrated Acquisition Environment (IAE)**_

**Federal Business **
**Opportunities **
**(FedBizOpps)**

**Federal Technical Data Solution (FedTeDS)**

**Wage Determinations Online (WDOL)**

**Past Performance **
**Information Retrieval **
**System (PPIRS)**

**Federal Procurement **
**Data System – **
**Next Generation **
**(FPDS-NG)**

_**FEDERAL SOLUTIONS**_

_**DOD SOLUTIONS**_

**Intragovernmental **
**Transaction ****Exchange (IGTE)**

**DoD EMALL**

**Online Representations and Certifications Application (ORCA)**

**Inter-Agency **
**Contracts Directory ****(ICD)**

**Central Contractor ****Registration (CCR)**

**Business Systems Modernization (BSM)**

**Excluded Parties ****Listing System ****(EPLS)**

**Federal Agency **
**Registration ****(FedReg)**

**Electronic ****Subcontractor ****Reporting ****System (eSRS)**

**Acquisition Spend Analysis Pilot****(ASAP)**

**Notes:**
Main point: the Acquisition Domain has put a stake in the ground: these are the systems that we are transitioning to. Briefed to AGB and BMM Steering Committee.
Several legacy contract writing systems will cease to exist in FY06.
IAE: majority of systems came from DoD. We’re a leader in developing innovative processes and systems. DoD is managing several of these (CCR, FedTeDS, BPN) systems today.
Both FedTeDS and SPS have won numerous awards and recognition, but I’d like to highlight two recent success stories: this week, WAWF will receive the Gov’t Solutions Center Pioneer Award. Trailblazing, pioneering... all words that describe the direction of the Acquisition Domain. 
Introduce web-site for more info. on these solutions
IAE:  Federal Procurement Data System – Next Generation (FPDS-NG) – will replace traditional submission of DD350s/1057s with direct contact action reports from contract writing systems over the Internet; DoD complete migration in FY05
On-line Representations and Certifications (ORCA)* – moves vendor completion and maintenance of most Section K provisions onto the Internet; FAR final rule expected this summer
Federal Technical Data Solution (FedTeDS)* – secure on-line location for posting sensitive but unclassified acquisition related information; FAR proposed rule expected this summer
Intra-governmental Transactions Exchange (IGTE) – clearinghouse for processing intra-governmental transactions (IGTs); DoD is currently piloting the data exchanges and also defining requirements for the Standard Procurement System (SPS) to process IGTs
DoD: EMALL: The DoD EMALL is the single entry point for DoD and other federal customers to find and acquire off-the-shelf, finished good items from commercial marketplace. The DoD EMALL offers cross-store shopping for the purpose of comparison pricing and best value decision-making. The DoD EMALL is primarily composed of three corridors: parts and supplies, information technology, and training. 
BSM:
Spend Analysis (ASAP) Business Problem
Spend Analysis Pilot will demonstrate the ability to gather contract information from contract writing systems to support strategic sourcing decisions
Spend Analysis team composed of all DoD Components, led by the Army
DoD has limited insight into what it buys and from whom it buys at the enterprise level
Each military service and agency procures goods and services across Department with little coordination between procurement offices purchasing same/similar services
Existing spend information resides in numerous disparate applications throughout  DoD 

## Acquisition Domain Standard Procurement System

-  **Joint, automated contracting system that standardizes procurement processes across DoD... used by all Military Services and 13 Defense Agencies**
- Current:
-  23,000 users
-  800 locations, 50 states, 15 countries
-  $48B in goods/services procured through SPS through 681,037 actions
-    (FY03)
-  21 users, $30.5M in purchases in Kabul, Afghanistan through 597 contracts (Nov-Apr)
- Future:
-  Target deployment V4.2.3 in FY06
- Web-based
- Move from standard forms to formless  contracting
-  44,000 users

***Focus: Deploy v4.2.2 in  FY05***

## Acquisition Domain Wide Area Workflow (WAWF)

**Enables electronic processing of invoices and receiving**
**reports to increase accurate document processing for**
**financial, logistics and procurement communities**
- Current:
- Q2 FY04: Processed over 138,000 invoices and receiving reports accounting for over $5.5B in payments for all Services
- Web based
- Uses PKI technology for secure
-     identification
- Capture Unique Identifiers (UIDs)
- Future:
- Single point of entry for invoices and
-     receiving reports

***Focus: Process 51% of transactions in WAWF in FY05 ***

## Acquisition Domain Federal eGov Integrated Acquisition Environment (IAE) Programs

**Federal Procurement Data System – Next Generation (FPDS-NG)**
- Single collection point for all Government contract information
- Goal: Process contract data directly to FPDS-NG
**On-line Representations and Certifications Application (ORCA) **
- Provides the ability to update & post Section K provisions
- Goal:  Access representations and certifications at single web location
**Intra-governmental Transactions Exchange (IGTE)**
- Processing of all Intra-governmental acquisition activities
- Goal: Pilot transmission of IGT information through SPS
**Federal Technical Data Solutions (FedTeDS)**
- Enables the distribution and dissemination of Sensitive But Unclassified (SBU) acquisition material
- Goal: Post sensitive procurement related information to central web location

**A portfolio of programs that focus on common Federal procurement processes**

***Focus: Deployment and Use of IAE Programs***

## Acquisition Domain Spend Analysis Pilot

**Spend Analysis Pilot will demonstrate the ability to gather contract information from contract writing systems to support strategic sourcing decision.**
- Current:
-  Spend Analysis team composed of all DoD Components, led by the Army
-  Incorporating net-centric spend analysis capability scalable across DoD
- Future:
-  Demonstrate data integration
-    across DoD
-  Increase amount of information
-    used to support DoD-Wide Services
-    Sourcing Program
-  Provide procurement professionals
-    insight to analyze spend information

***Focus: Demonstration of Pilot Capability 1 Oct 04***

## Acquisition Domain Sourcing Analysis of Alternatives (AOA)

**Acquisition Domain is planning for the future sourcing environment by conducting a Sourcing Analysis of Alternatives**
- Current:
-  All Components are participating in the AOA process, led by
-    Air Force
-  Initiated AOA in November 2003
-  Initial Capabilities Document finalized
-    April 2004
-  Request for Information published
-    May 2005
- Future:
-  Provide the functionality to support
-    strategic sourcing capabilities

***Focus: Identify sourcing capabilities and analysis by FY06***

## Key Goals and “Take Aways” from the Acquisition Domain

- Govern the business of acquisition at the enterprise level
- Enable data interoperability throughout the enterprise
- Modernize and streamline DoD acquisition business processes and systems
- Manage the acquisition IT portfolio
- Create a collaborative and efficient Acquisition enterprise
- Train, recruit, and retain a motivated, agile and knowledgeable workforce.

## www.acq.osd.mil/dpap/ebiz/

**www.acq.osd.mil/dpap/ebiz/**