# Presentation: 107520

## The NIH Business System (NBS):  An Update 

***Presented to NIH Acquisition Management Committee Symposium***
***October 25, 2006***

## Today’s Agenda

- 	NBS & Contracting: Where Have We Been?
- 	NBS & Contracting: Where Are We Now?
- 	NBS & Contracting: Where Are We Going?
- Role Mapping
- User Acceptance Testing
- Data Conversion
- Training
- 	Changes in Contracting

## NBS & Contracting: Where Have We Been?

- We decided to replace not repair the ADB and chose to replace it with Commercial Off-the-Shelf products rather than customization
- We established our requirements, selected our vendors, and designed and validated our processes
- We tested our solutions and noted the changes and the training needs.
- We deployed Tracks 1 & 2 in 2003

## NBS & Contracting: Where Are We Now?

- We are conducting final internal NBS testing of our integrated solution
- We are mapping our users into their new roles
- We are alerting our stakeholders about the changes to expect

## How do we communicate to the stakeholders?

- Organizational Impact Assessments (OIAs) are ***anticipated changes*** to the manner in which NIH administrative staff will conduct business upon the deployment of  NBS Tracks 3 & 4.
- OIAs result from a comparison of the manner in which NIH administrative staff conduct business today with the manner in which administrative staff will conduct business upon deployment of NBS Tracks 3 & 4 (Acquisition, Contracts, Finance, Inter/Intra-Agency Agreements, Property, and Supply).
- OIAs reflect analysis at the ***NIH-wide or “generic” business level*** and may not necessarily reflect local Institute, Center, or Office of the Director specific ways of conducting business.

## How are Organizational Impact Assessments Used? 

- OIAs are considered to be critical information to be shared with NIH management and, ultimately, NBS user communities in order to facilitate communication, understanding, business transformation, role mapping, and training.
- Communication
- Sharing of OIAs through targeted NBS communication efforts improves understanding and acceptance of the changes in advance of deployment with the goal of improving NIH’s transformation to the new ways of conducting business.
- Role Mapping
- Inclusion of OIAs in the role mapping process enhances understanding necessary to select appropriate staff for each role.
- Training
- Inclusion of OIAs in training ensures that NIH staff fully appreciate the impact of upcoming changes to business processes in the context of the role in which they are being instructed.

## OIAs have been categorized by business area and have been vetted with the Business Owner and Process Owner for each area to ensure knowledge of current business practices is current, accurate, and complete when comparing those practices to the anticipated new ways of doing business.

Business Owner Diane Frasier and her Process Owners have reviewed 30 changes in the Acquisitions and Contracts areas

- Business Owner Diane Frasier and her Process Owners have reviewed 30 changes in the Acquisitions and Contracts areas

- What Organizational Impact Assessments have been Identified?

## Why are there so many changes?

- The design and development of the NBS is impacted by a number of different factors including:
_**New OMB Requirements**_**.  The OMB has established substantial guidelines and directives related to financial system development efforts.**
_**Policy Changes**_**.  Due to material weakness, A-123 directives, a changing business environment and various legal changes, policy changes have been necessitated from HHS, OFM and OA.**
_**Use of Commercial Off-the-Shelf software**_**.  One of the key tenets of the NIH Business System program is the use of commercial software.  **
**With this type of software, the government is able to take advantage of embedded “best practices” that have been developed for, and used by, thousands of businesses and up to 100 federal agencies.  **
**NBS has also sought to limit customizations to only those considered mandatory and to leverage development by the software vendors.  Where customizations or extensions are not possible or practical, it will be necessary to work with the vendor on future enhancements.**

## Acquisition Impacts

**Change:  Single Source for Vendors**
**Impact(s)**
**Vendor must exist in the vendor table.  If not available, IC/OD will need to submit a New Vendor Request**
**Most commercial vendors in NBS will be sourced from the Central Contractor Registry (CCR).  Government Accounting will not be able to make changes to CCR vendors.   Commercial vendors that meet the criteria for CCR will need to establish and maintain their records before orders/agreements can be executed.**
**Reason(s) for change**
**OMB mandated that all federal agencies must use CCR for vendor registration (10/1/2003, Circular 2003-016)**
**Oracle Software requires and best practice dictates a single source for this information**

## Acquisition Impacts

**Change:  Elimination of existing processes**
**Impact(s)**
**NBS Will Not Integrate with Any Local Legacy Purchasing Systems (AMBIS, PERT, Intramall, POTS, etc.)**
**ADB Order Types Going Away**
**Elimination of Easy Pay**
**Professional Service Orders will become Purchase Orders**
**Reason(s) for change**
**Financial system consolidation principle outlined by OMB, HHS UFMS and NIH AMSSC**
**Replacement of legacy concepts, terminology and functionality as required by adoption of Commercial Off The Shelf software packages, e.g. Oracle eBusiness Suite and Compusearch Prism**

## Acquisition Impacts

**Change:  introduction of standard requisition processes**
**Impact(s)**
**Requisition required as first step in Award**
**Requisitioners can self-approve a requisition or forward for approval**
**Requisitioners will be required to select a buyer**
**Requisitioners will determine accounting info not the buyer**
**Requisitioners will need to specify property related info, e.g. custodial code, property standard description, at time of requisition**
**Requisitioners will now be able to attach supporting documentation to their requisitions which will be forwarded electronically to approvers and buyers**
**Reason(s) for change**
**Policy requirement that there be a commitment of funds at time of requisition**
**Information requirements deemed necessary to support follow-on business processes**
**Additional functionality that could be made available**

## Acquisition Impacts

**Change:  new processing of awards**
**Impact(s)**
**All awards will be generated in Prism, although document generation will be done using current tool set**
**Consolidation of multiple requisition lines onto single award with multiple ship-to and payment accounts**
**There will be no self approval of Awards**
**Use of Milestone template for all Simplified Acquisition buys**
**Reason(s) for change**
**System functionality as provided in Commercial off the Shelf software**
**NIH HCA policy**

## Acquisition Impacts

**Change:  ****required use of Electronic Log**** for Purchase Card transactions**
**Impact(s)**
**All purchase card activity must be logged electronically via iProcurement**
**ICs will know their total Purchase card obligations throughout the month**
**Reason(s) for change**
**NIH policy**
**Will allow for a match to the US Bank credit card transactions to streamline Purchase card monthly reconciliation**

## Acquisition Impacts

**Change:  ****Inter/Intra-Agency Agreement process**
**Impact(s)**
**Reimbursable Agreements**
**Before establishing a reimbursable project, the customer must exist in the Customer table in NBS**
**Invoices will not be generated that would exceed the agreement amount nor will costs be billed that exceed the agreement amount**
**Related invoices and receipts will be readily tracked with the agreement**
**Purchasing Agreements**
**Requisitions will be entered to initiate the setup of an agreement and commit funds **
**IC/OD will be able to enter agreements directly into NBS instead of filling out Word document and sending to OFM**
**Agreement numbers will be generated by Prism so IC/OD will not have to assign internal numbers to their agreements**
**Reason(s) for change**
**Financial and Procurement integrity in commitment and obligation of funds**
**Use of standard functionality as provided by Commercial off the Shelf software**

## NBS & Contracting: Where Are We Going?

- We must demonstrate through end user testing that the system will perform as designed
- We must clean, collect, and convert the data needed to continue current transactions
- We must train users in their new roles

## Role Mapping: 10/06 through 12/06

- 	_Role_:  Answers the question...What do I do in the NBS?
- NBS has oriented the IC/OD Advocates to the Role Mapping process.
- The IC/OD Advocates have selected staff within each IC/OD office to serve as Role Mapping Teams (one Team per IC/OD office).
- NBS has conducted Role Mapping workshops for the Role Mapping Teams to provide specific instructions for Role Mapping.
- The IC/OD Advocates are coordinating and monitoring Role Mapping.
- Who is my advocate and who is on my role mapping team? – See the PORTAL (slide 11)

-               IC/OD Advocates with NBS

- You with NBS

## User Acceptance Testing: 11/06 – 12/06

- User Acceptance Testing is:
- Formal testing of a new computer system by prospective users
- A chance to ensure that the system performs at an acceptable level for the customer
- An acknowledgement that the system functions according to design
- A chance to test the business processes and software
- A scaled-down or condensed version of the system
- The last chance to perform the above in a test situation

## Data Conversion : Now through 2/07 and 5/07

- NBS will orient the IC/OD Advocates to the Data Conversion process.  The IC/OD Advocates and the community will be involved in the data collection and data reconciliation aspects of the data conversion process.
- The IC/OD Advocates will select resources within each IC/OD office to serve as Data Conversion Teams (one Team per IC/OD office).
- NBS will conduct Data Conversion workshops for the Data Conversion Teams to provide instructions on the data collection and reconciliation processes.
- NBS will provide each IC/OD Advocate with a list of the records requiring collection and reconciliation.
- The IC/OD Advocates will distribute the lists to the Data Conversion Teams.
- The IC/OD Advocates will coordinate and monitor data collection.

**                      **IC/OD Advocates with NBS

- You with NBS

## Training: Now through 2/07 and 5/07

- Training includes:
- Pre-Requisite Knowledge:
- Each users must possess basic job knowledge to gain access to the NBS.
- NBS Pre-Training:
- NBS will provide on-line training tutorials on how to navigate in the different NBS software packages.
- Users must complete Pre-training to gain access to the NBS.
- NBS Training:
- NBS will provide just-in-time training on how to accomplish your work in the NBS.
- Users who miss the NBS training will need to take for-fee training through the NIH Training Center.
- Users must attend Training in order to gain access to the NBS.

## Contracting Changes to Expect

**NBS Will Not Integrate with Any Local Legacy Systems (AMBIS, PERT, Intramall, POTS, etc.)**
**Awards are Created in PRISM but NCI work forms remain in use for contract solicitations and awards**
**No Self-Approval of Awards**
**Vendors Must Be Valid in the NBS Vendor Table**

## Training and Communications Community Portal (TCCP)

- The TCCP provides one source for all NBS information:
- Updates and Communications
- System Features
- System Demos
- Advocate Communication
- Provides NBS Mail Box for your Questions, Comments & Concerns
- And much more...
- _To access the TCCP_:
- Log on to **my.nih.gov**
- Select ***My Communities*** at the top of the page.
- Choose ***Training and Communications*** from the drop-down menu.
- If you need help logging on, contact the NIH Help Desk: helpdesk@mail.nih.gov *or* 301-496-HELP.

## APPENDICES

- The NBS Wheel
- The NBS Tracks
- The Data Warehouse & nVision
- The NBS is an Integrated System
- Oracle i-Procurement Features
- Compusearch PRISM Features
- The NBS Tracks 3 & 4 Time Line
- The NBS Software Packages
- Acquisition/Contract & P-Card Work Flows

## The NBS 

**Property**** **

**Travel**

**Purchasing / Agency **
**Agreements**

**Supply**

**Projects / Agency **
**Agreements**

**Contracts**

***(Gelco)***

**(*****Sunflower*****)**

***(Compusearch PRISM)***

***(Oracle & Compusearch ***
***PRISM)***

***(Oracle)***

***(Oracle)***

**  ****Accounts**** ****Payable / **
**Accounts Receivable  **

***(Oracle)***

**Budget Execution**

**General Ledger**

***(******Oracle******)***

## NBS Tracks

**           **
**	****	**** ****	****    ****	****             **
**	**
**	****	**
**	****	****	****	**

- Travel

- General Ledger

- Supply

- Agency Agreements

** **Acquisitions

- Property

**Track III & IV**
**(2007):**

**Tracks I & 2 **
**(2003):**

- Contracts

**Track V **
**(Future):**

- Service and Supply Fund

- Fellowship Pay

## The Data Warehouse & nVision

- NIH also decided to modernize the NIH administrative reporting tool, the Data Warehouse. nVision was chosen as the successor to the Data Warehouse.  nVision...
- Offers new, more robust reporting technologies based on COTS business
- 	 intelligence software.
- Offers easy, web-based access to integrated data to support improved reporting
- 	 and analysis of financial and administrative data.
- Is the reporting solution for the NBS and will be deployed along with the NBS.
- CIT coordinates nVision design, communications and training in a parallel process with NBS.
- For more information about nVision:
- Log on to my.nih.gov
- Select My Communities at the top of the page.
- Choose nVision Development Community  from the drop down menu.
- If you need help logging in, contact the NIH Help Desk:  helpdesk@mail.nih.gov or
- 	301-496-HELP.

## The NBS is an Integrated System

- In ***PRISM***, a Buyer creates a PO from the requisition.

- 	Based on receiving, ***Oracle ***automated 	processes send the property item 	information to ***Sunflower*** for the 	Property Custodial Officer to decal the  	microscope.

-               	When the microscope is
-               	delivered, the Requisitioner
-               	receives it in ***Oracle.***

-                   In ***Oracle***, automated financial
-                     processes create an obligation
-                     and commitment reversal.

**	**In** *****Oracle****,*** **budget entries are 	loaded 	and posted to the General Ledger.

- 	In ***Oracle***, automated financial 	processes commit funds and 	send 	the requisition to ***PRISM***.

- In ***PRISM***, the PO is electronically routed to an Approver and after approval, automated processes send the PO to ***Oracle***.

- 	In ***Oracle***, an invoice is received for 	the item, matched to the receipt and 	paid. Automated processes post the 	transaction to the General Ledger.

- 	Assets are managed, capitalized 	and depreciated  in ***Sunflower*** and 	automated processes send this 	financial information to ***Oracle*** for 	General Ledger posting.

-                     	Receiving initiates automated
-                     	financial processes in ***Oracle*** which
-                    	 record the expense and the
-                     	expenditure unpaid.

- Each piece of NBS software is connected to one or more other pieces.  Let’s purchase a microscope to see the integration:

## Oracle i-Procurement Features

-  i-Procurement is short for internet procurement
- Offers a single point of entry for acquisitions
- Convenient and simple online shopping cart format, similar to Amazon.com
- Allows you to create, manage and track your orders
- Allows creation of a single requisition with multiple line items
- Provides an electronic P-Card log
- Allows Buyers to consolidate orders from many different users onto a single purchase order within Compusearch PRISM
- Captures item property information (custodial codes and property standard descriptions) and integrates with the property system

- 	 Gateway to:
- Internal inventories
- Non-catalog buys (Purchase Orders, BPA Calls, Task/Delivery Orders, Contracts)
- Purchase cards
- Interagency agreements
- Work requests

## Compusearch PRISM Features

- An Advance Procurement Plan providing attachment functionality for incorporating the Acquisition Plan/Request for Contract
- Milestone functionality
- Posting of presolicitation and award synopsis to FedBizOpps
- Single integrated document generation system for creation of solicitation and award documents
- Commitment and obligation of funds in ‘real-time’ through interface with Oracle Financials
- Interface with DCIS/FPDS-ng for reporting of acquisition data

## NBS Tracks 3 & 4 Timeline

**6/07**

**4/07**

**1/06**

**5/06**

**3/06**

**7/06**

**2/07**

**9/06**

**Training**

**11/06**

**1/07**

**Design NBS:  AMSSC, Business Owners, Acceptance Board, Process Owners, Acceptance Team (AT)  with NBS  Functional Team (FT)**

**CRP3**
**AT/**
**FT**

**User Acceptance Testing**
**Acceptance Team**

**7/07**

**5/07**

**2/06**

**6/06**

**4/06**

**8/06**

**3/07**

**10/06**

**12/06**

**Data **
**Collect **

**Data **
**Reconcile**

**Role  Mapping                                               **

**User Support:  NBS**

**Communication:  NBS to AMSSC, Business Owners, Acceptance Board/Teams, Process Owners, IC/OD Advocates, Community**

**CRP 3 Follow-up:  Defect Resolution****  **
**                ****NBS**
**               **

**Data**
**Reconcile**

**Final Data Conversion**

**NBS Accepted**

**Go-Live**

**                 **

** **

**Supply, Internal Orders, Agency Agreements**
**NBS w/ Community  **

**Acquisitions, Contracts, Property**
**NBS w/ Community**

**Data**
**Collect**

**Training **

**Role ****Mapping                                                                                          **

**Hardware ****Readiness **

**Hardware**
**Readiness**

## Slide 30

## Requisitioner and Buyer: Workflow to Request and Purchase Goods or Services

## Purchase Card Holders (PCH), Card Approving Officials (CAO):Workflow to Purchase Goods and Services with a Purchase Card

- 1. Product request

- 3.  PCH enters purchase** **into Card Log (Oracle iProcurement).

- 2.  Request to PCH who orders goods or services & pays with a Purchase  Card.

**NBS**

- 4.  Vendor fills order and delivers to the area with a packing slip. Area hands the bill to PCH.

- 7.  CAO approves monthly reconciliations (Oracle iProcurement).

- 8.  OFM receives NIH reconciliation file (Oracle Accounts Payable).

**NBS**

**NBS**

**Commitment/**
**Obligation of **
**Funds**

- 	6.  PCH matches and verifies Log entries to bank invoices (Oracle iProcurement).

**NBS**

**NBS**

-        9. OFM  pays transaction monthly (Oracle Accounts Payable).

- 10.  OFM GL receives accounting data (Oracle General Ledger).

**NBS**

- 5.  Area physically receives goods or services and notifies the Requisitioner to electronically receive the order (Oracle iProcurement).