# Presentation: 187004

## FAA Acquisition Reform

**Briefing for**
**The FAA Management Board**
**December 11, 1995**

## Procurement Reform Language from Appropriations Bill

**SEC. 348.  (a)  In consultation with such non-governmental experts in acquisition management systems as he may employ, and notwithstanding provisions of Federal acquisition law, the Administrator of the Federal Aviation Administration shall develop and implement, not later than January 1, 1996, an **_**acquisition management system **_**for the Federal Aviation Administration that addresses the unique needs of the agency and, at a minimum, provides for more timely and cost-effective acquisitions of equipment and materials.**

## Exemptions and Effective Date

**(****b)  The following provisions of Federal acquisition law shall **_**not**_** apply to the new acquisition management system developed and implemented pursuant to subsection (a):**
**	****(1)  Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 252-266).**
**	****(2)  The Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.).**
**	****(3)  The Federal Acquisition Streamlining Act of 1994 (Public Law 103-355)**
**	****(4)  The Small Business Act (15 U.S.C.  631 et seq.), except that all reasonable opportunities to be awarded contracts shall be provided to small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals.**
**	****(5)  The Competition in Contracting Act.**
**	****(6) Subchapter V of chapter 35 of title 31, relating to the procurement protest system.**
**	****(7)  The Brooks Automatic Data Processing Act (40 U.S.C. 759).**
**	****(8)  The Federal Acquisition Regulation and any laws not listed in (a) through (e)  *****[1 through 8]  *****of this section providing authority to promulgate regulations in the Federal Acquisition Regulation.**
**(c) This section shall take effect on April 1, 1996.**

## Procurement Reform vs. Acquisition Management

***Procurement Reform vs. Acquisition Management***

**The legislative relief in the FY 1996 Appropriations Bill is focused on procurement reform, but a new system for overall acquisition management is the direction **
**Procurement changes will have only limited impact on overall FAA system acquisition process**
- Most acquisition improvements will come within the FAA
- FAA and DOT own their acquisition processes

- Mission Need

- Alternatives
- Analysis

-   Procurement

-   Development

-   Operations

-   Testing

- Maintenance/Support

-   Improvements

-  Disposal

## Phased Approach to Procurement Reform

**January 1, 1996 is an impossible target**
**Feasible to begin implementation of a revised process for large, competitive contracts by April 1996**
**FASA addressed small contracts and procurements**
**Mid- February for quality draft for internal FAA coordination**

## Reengineering of Full Life Cycle Acquisition Process is Already Underway

**Impacts overall ability of FAA to acquire, field, and support new technology in a timely and efficient manner (life cycle approach)**
- Goal to reduce acquisition cycle time by 1/3
**Acquisition Management Philosophy**
- Corporate Decision Making
- Right thing with reduced dollars
**Schedule**
- Accelerated reengineering of NDI and other processes as a first phase by 4/1/96
- Full implementation by 11/96

- Mission Need

- Alternatives
- Analysis

-   Procurement

-   Development

-   Operations

-   Testing

- Maintenance/Support

-   Improvements

-  Disposal

## Groups Currently Working on Acquisition Reform

**New Process Team**
- Working on development of new procurement processes
- Initial phase is on competitive MSA’s
**Current Process Team**
- Identifying boundaries that exist and defining performance metrics
**Acquisition Process Reengineering Team**
- Focused on overall acquisition process -- NOT just procurement
- Includes members from ATS/ARA/ABA that are developing team solutions
**Tools and Training Team**
- Identifying and developing tools and training needed for implementation of new processes
- Training is for the entire FAA acquisition community

## Outreach Efforts

**Current plans include significant involvement on steering and working groups by external representatives (Blue Ribbon Committee)**
**Outreach to FAA employees**
- Working Group membership
- Training and implementation planning
**Steering Committee includes representatives from: industry, OST, OFPP, OMB, ATS, AUA, ASD, ASU, ABA and AGC**

## External Representation on Blue Ribbon Committee

**Office of the Secretary of Transportation**
- Melissa Spillenkothen, Assistant Secretary for Administration
- Luz Hopewell, Director of Small and Disadvantaged Business Utilization
**Office of Federal Procurement Policy**
- Steve Kelman, Administrator

## External Representation on Blue Ribbon Committee

**Other Government Organizations**
- Darlene Druyun, Acting Assistant Secretary of the Air Force for Acquisition

## External Representation on Blue Ribbon Committee

**Subject Matter Experts**
- Dr. Ralph Nash, Professor Emeritus of Law, George Washington University
- Philip K. Howard, Esq., Howard, Darby & Levin

## External Representation on Blue Ribbon Committee

**Members of Industry**
- Dr. Jacques Gansler, Executive Vice President, TASC, Inc.
- LeRoy Haugh, Vice President, Procurement and Finance, Aerospace Industries Association
- Bert Concklin, President, Professional Services Council
- Dr. Robert Roll, Director, Resource Management and System Acquisition Program, Rand Corporation
- Steve Kalish, Vice President, Systems Sciences Division, Computer Sciences Corporation

## FAA Representation on Blue Ribbon Committee

**Dennis DeGaetano, Director of Acquisitions**
**John Turner, Regional Administrator, Central Region**
**Pat McNall, Assistant Chief Counsel for Procurement Law**
**Stanley Rivers, Deputy Director, Airway Facilities Service**
**Marty Phillips, Director of Independent Operational Test and Evaluation**

## Acquisition Reform Accomplishments in FY 1995

**Reduced FAA Acquisition Regulations by 55%**
**Reduced Internal FAA Acquisition pages by 53%**
**Exceeded National Performance Review (NPR) FY 1996 goal of 50% reduction by end of FY 1995**
**Now focusing on consolidation and simplification of the remaining procedures**

## Acquisition in the FAA:A New Approach

## Mission Need and Requirements Analysis:  Current Structure

***Mission Need and Requirements Analysis:  Current Structure***

- Airports

- Regulation
- and
- Certification

- Research
- and
- Acquisition

- Air Traffic
- Services

- ATR
- Requirements

- ASD
- System
- Architecture