# Presentation: 887486

## DOE OMB Circular A-76 IT StudyPOC and Workforce Briefing 

**10 April 2003**

## 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**

- 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

## DOE Competitive Sourcing Program Organization

## Role of Executive Steering Group

- Oversight of Competitive Sourcing Process
- 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

## Key Question From Scope Review

**FAIR ACT Inventory:**
- The FAIR Act inventories were conducted individually by each Program Office
- The original announcement included 224 positions in HQ and 196 positions in the Field
- The ESG granted permission for one inclusive Study of all IT Functions
- Studying the function does not necessarily mean inclusion in the PWS
- Study is based on functions not individual positions
- Some positions contain inherently governmental and commercial activities
- Inherently governmental functions from positions may be combined
- PWS will not contain any inherently governmental positions

## Scope Review Methodology

## Role of DOE IT Competitive Sourcing POC

- Serve as the liaison between the IT Functional Team and the workforce
- Disseminate information to the workforce
- Serve as the initial contact for questions concerning the competitive sourcing process
- Respond to data calls sent by the IT Functional Team
- Coordinate completion of the Data Collection Template
- Provide and coordinate site/office input to the competitive sourcing products such as the PWS and the Management Plan

## Competitive Sourcing Consultant Support Organization

**Jupiter Corporation has teamed with Grant Thornton to bring world-class professionals with extensive experience and insight to the DOE IT competitive sourcing effort.**

**Joe Alexander**
**Jupiter Corporation**

**Diane Shute **
**Partner**
**Ramon Contreras**
**Senior Manager**
**Grant Thornton**

**Marc Berson **
**Program Manager**
**Grant Thornton**

**DOE IT **
**Functional Team**

**Chad Rheingans**
**Senior Consultant**
**Grant Thornton**

**Olivia Conroy**
**Consultant**
**Grant Thornton**

**Darrell Kent**
**Consultant**
**Jupiter Corp.**

**Mike Ishmael**
**Consultant**
**Grant Thornton**

## Consultant’s Role

- Perform as an integral part of the Study Team
- Provide independent and objective advice throughout the A-76 process
- Provide A-76 process expertise – “keeper of the process”
- Provide objective analysis
- Provide just-in-time training
- Assist Study Team in conducting the A-76 study
- Develop PWS/PRS/QASP
- Develop Management Plan
- Provide acquisition support

## Process Overview

## Competitive Sourcing Overview

- The President’s management agenda establishes Competitive Sourcing as a high priority for all federal agencies
- The framework for conducting these competitions is the Office of Management and Budget (OMB) Circular A-76
- The Circular is currently being revised by OMB and the changes may or may not impact the DOE IT Competitive Sourcing Study
- Competitive Sourcing is a process that compares private sector and government bids to determine the most cost effective way to “buy” commercial services
- Competitive Sourcing encourages competition, choice, and efficient business processes
- Savings realized from this process can be a funding “source” for modernization or other strategic objectives. Typically 30-40% savings are achieved
- In the past 20 years, the Government’s in-house personnel have won approximately 50 percent of the competitions

## Competitive Sourcing Process

## Team Responsibilities

| Performance Work Statement (PWS) Team | Management Study Team | Residual Organization (RO) Team |
| --- | --- | --- |
| Develop the PWS including the development of technical requirements, performance standards, technical exhibits, and contract data requirements 
Identify data collection requirements and collect data and help establish data collection systems as appropriate 
Develop the Quality Assurance Surveillance Plan (QASP) 
Help identify inherently governmental activities to be included in the Residual Organization (RO)
Determine Government-Furnished Inventories, Facilities and Equipment, Services and Utilities, Information Systems Support, and current Inter-Service Support Agreements  | Identify MEO data collection requirements and collect data 
Complete the Management Plan including consideration of re-engineering, process and productivity improvements, consolidation, personnel classification, and market analysis
Develop the MEO, Technical Performance Plan (TPP), Transition Plan (TP), and In House Cost Estimate (IHCE)  | Identify inherently governmental and exempt activities and functions to be included in the Residual Organization
Develop organizational structure 
Make recommendations toward the development of position descriptions
Ensure proper interfaces are in place between the Residual Organization and the Service Provider |

## Performance Work Statement (PWS) Phase

## Developing Acquisition Products

- Develop Performance Work Statement (PWS)
- Defines requirements, products, and services to be provided
- Provides a functional guide for operations
- Provides workload requirements/expected level of effort
- Develop Performance Requirements Summary (PRS)
- Establishes performance standards
- Timeliness
- Quality
- Develop Quality Assurance Surveillance Plan (QASP)
- Guide for oversight of the MEO’s / contractor’s performance
- Procedures / actions for identifying deficient performance

## Performance Work Statement (PWS)

- Describes:
**activities** (what is to be accomplished)
**workload **(how much is to be accomplished) and
- measurable **performance standards** (how well should it be performed)
- Presents performance-oriented requirements – **not how** to perform them
- Applies to **both** the MEO or a potential contractor (referred to as the “Service Provider” in the PWS)
- Is only one section of the entire solicitation
- Includes a Performance Requirements Summary (PRS)
- Is the **foundation** for the competition

## Quality Assurance Surveillance Plan

- The Quality Assurance Surveillance Plan (QASP) is used as a tool to monitor how well the service provider is meeting performance standards defined in the PWS
- The QASP describes:
- Key performance indicators
- Information sources
- Method of surveillance
- Organizational control and quality assurance
- Both the MEO or the contractor must adhere to the same performance standards

## Management Study Phase

## How do the Government Employees Improve their Chances to Win the Competition?

- Design the **Most** Efficient Organization that will accomplish the PWS with **minimum** resources

**This is the Workforce’s Opportunity!! **

## Management Plan

- Most Efficient Organization (MEO)
- Proposed organization of Government in-house personnel, designed to perform the PWS activities in the **most efficient** manner at the least cost
- Transition Plan (TP)
- Describes transition to contract and transition to MEO – “winner” is not yet known
- Contains a schedule of personnel actions
- Developed with assistance from Human Resources personnel

- Technical Performance Plan (TPP)
- Represents the Government’s proposal to the PWS
- Describes **“how”** the MEO will accomplish PWS   requirements
- In-House Cost Estimate (IHCE)
- Documents the **cost** of the MEO in strict accordance with OMB Circular A-76 guidelines
- Compared against contractor’s bid
- Must maintain detailed audit trail

## Residual Organization (RO)

- Not part of the MEO and outside the scope of the PWS.  Composed of:
- Quality Assurance Evaluators (QAEs)
- Contracting Officer’s Technical Representatives (COTRs)
- Upper Management Oversight
- Administers Quality Assurance Surveillance Plan (QASP)
- Monitors Service Provider’s (SP’s) compliance with ALL quality and timeliness standards
- Serves as government liaison to the SP

**Service Provider (PWS MEO or Contractor)**

**RO: Inherently Govt/CO/QA**

## DOE IT Study Specifics

## DOE IT Study Landscape

- Study Scope – All functions that are IT in nature
- To include IT contract support - specific scope to be determined
- One study/One MEO
- Corporate view of IT services
- Study Size
- Over 600 Government FTEs (not including contractor personnel)
- Geographically dispersed locations
- Study Visibility
- Largest IT study of this dimension and scope to date
- Interests from both the Government and private sector

## DOE IT Study Landscape

- “We are proceeding with one study which will result in "one bid" being accepted (whether it is the MEO (government bid) or a contractor bid).  This bid could have many contractors who have partnered to provide the service for the Department.  It does not mean that there is ONE contractor providing all the services for the Department.”
- This is not a OCIO effort, the Office of the CIO is leading the Functional Study for the Department.

## IT Study Status

- Completed Planning/Scoping Phase
- Currently in Data Gathering Phase
- Conducting pre-visit workshops
- Refining decomposition of IT functions
- Conducting Workforce Orientations, training, and interviews during site visits
- PWS Phase - June 02, 2003 thru January 30, 2004
- Study completion date June 10, 2005

## Site Visit Preparation

**Site Visit Preparation**

## HQ Site Visit Schedule (subject to change)

| Program Office | Schedule |
| --- | --- |
| Office of Civilian Radioactive Waste Management | 4/21-22 |
| Environmental Safety and Health | 4/23-25 |
| Energy Efficiency and Renewable Energy | 4/29-30 |
| Hearings and Appeals | 5/1 |
| Office of Science | 5/5-9 |
| Fossil Energy | 5/12-14 |
| Office of Independent Oversight and Performance Assurance | 5/2 |
| Office of Chief Information Officer | 5/19-6/6 |
| Nuclear Energy, Science and Technology | 5/13-14 |
| Counterintelligence | 5/27 |
| Economic Impact and Diversity | 5/28 |

| Program Office | Schedule |
| --- | --- |
| General Counsel | 5/29 |
| Intelligence | 5/30 |
| Energy Information Administration | 6/2-6 |
| National Nuclear Security Administration | 6/9-20 |
| Inspector General | 6/11 |
| Policy & International Affairs | 6/12 |
| Office of Scientific and Technical Information | 6/18 |
| Worker and Community Transition | 6/19 |
| Office of Management, Budget and Evaluation/Chief Financial Officer | 6/23-27
 |
| Environmental Management | 6/23-27 |
| Office of Security | 6/30-7/2 |

## Site Visit Requirements

- Briefings should be held in a space large enough to accommodate your groups
- Interviews should be held in a conference room that holds 6 to 8 people
- A separate room for work space with a phone and internet access or an analog line would be helpful
- Site visits will consist of an entrance briefing with management, Q&A on A-76 process, group interviews/work sessions, exit briefing, and next steps with POCs
- Agendas will be as fluid as necessary to accomplish our objectives
- Goal is to avoid disruption of your normal duties as much as possible

## Sample Interview Questions

** **
- What outputs are produced by the organization?  What tasks are required for each output?
- What is the acceptable level of performance for each output?
- Is historical workload data available? How many outputs are produced?  Do you anticipate any changes to the current workload?
- What are the facilities/equipment needed to perform the work?
- What are the relevant directives/requirements that dictate performance?
- Are there activities performed that are outside the DOE mission?

## Data Collection Needs

| Data Element | Purpose  |
| --- | --- |
| Organizational charts | Forms baseline understanding for strategic planning and how the IT organization is structured |
| Staffing list | Establishes baseline of authorized FTEs |
| Position descriptions | Helps identify activities and functions being performed |
| IT contracts and costs including BPAs, M&Os, ISSAs, MOUs, and SLAs | Used for in-house vs. contractor analysis |
| Mission/ Functional area statements | Indicates the purpose of the organization and what work is currently being performed |
| Any workload / requirement information (any information that is currently tracked and demonstrates the level of effort) | Helps quantify the level of effort for the requirements in the PWS |
| Budget Information (Schedule 53s and Exhibit 300s) | Assists in establishing baseline costs of the DOE IT organization |

## Data Collection Template

_**Overview of data sheets contained in template**_
**Site Demographics** – Details general site data such as program office
**Activity Dictionary** – Tool for workforce to use to complete worksheets
**Workload** – Matrix to indicate the historical workload of IT activities
**FTE Percentage** – Matrix collecting percent of time per IT activity
**Budget** – General information on labor, overhead, contract costs, etc.
**Facilities** – Information related to facilities used to perform IT activities
**Materials** – Items, quantity, costs, etc. of materials pertaining to IT
**Equipment** – Items, quantity, condition, location, leased or owned
**Applications** – Applications supported by the IT organization (Customer or COTS, platform, specification, licenses)

## Functional Decomposition	

-  Major functions were identified (i.e. Ops Support, Cyber Security) and a functional decomposition conducted
-  Functional decomposition details the breakdown of activities and sub-activities related to the major IT functions
-  Functional decomposition is used to collect workload and FTE percentage of time information
-  Functional decomposition needs to incorporate all activities being performed but it does not mean all activities will be a separate task in the PWS

_**Sample Functional Decomposition**_

## Task Descriptions

**C-5.3.1****	****Infrastructure Services**** **
- The SP shall plan, implement, maintain, and document information technology infrastructure design and services.  The SP shall analyze needs, review and seek approval of requests for information technology facilities, services, and equipment or modifications to existing facilities and equipment.  The tasks shall include, but are not limited to, voice and data communications, networking, video teleconferencing, satellite services, wireless services, and radio frequency management.  The SP shall also design, install, maintain, repair, and upgrade the appropriate telecommunication facilities i.e. ATM, DS3, T1, etc. /cable plant, equipment, software, and hardware for approved information technology.

-  Once the Functional Decomposition is complete, task descriptions can be written
-  Task descriptions must describe **what** needs to be done, not **how**

_**Sample Task Description**_

## Task Description Data	

**Data collected in relation to the activities performed includes:**
- User information
- Directives, orders, regulations, guidance, laws
- Training and certification requirements
- Workload drivers (unit of measure)
- Performance metrics
- Surveillance methods

## Workforce Issues

## Workforce Participation

- Workforce plays a CRITICAL role in developing the requirements to ensure all services are captured—participation is key to the success of the study
- Participates in PWS and QASP review
- Employees provide insight into the scope and level of service needed by customers
- Employee involvement includes identifying key performance standards
- In later phases, workforce will be solicited for innovative ideas and organizational improvements for MEO
- No one knows your job better than YOU!

## Employee Right of First Refusal

- “Right of First Refusal” contract clause
- “The contractor shall give Government employees who have been or will be adversely affected or separated as a result of award of this contract the ***right of first refusal*** for employment openings under the contract in positions for which they are qualified, if that employment is consistent with post-Government employment conflict of interest standards.”  (FAR  52.207-3)
- Safeguarding the “Right of First Refusal”
***Employees can participate in PWS***, “in workshops to develop the list of services to be competed, provide workload data either from existing data sources or technical estimates gathered through employee interviews, or provide expert opinions on suitable performance standards.”
- DOE Guidance still under development

## Employee Information Sources

- Employment Opportunities, Buy-out, etc.
- Contact _Human Resources_ to discuss your individual situation and potential options
- Right of First Refusal
- Contact the _General Counsel_ when seeking information concerning personal conflict of interest or organizational conflict of interest that may affect their eligibility to work for the contractor
- Do Not Rely on Your Co-Workers For Information Specific To You!!

## Useful Information

## Competitive Sourcing Sites

- DOE Competitive Sourcing Home Page at www.ma.mbe.doe.gov/a-76
- DOE IT Competitive Sourcing Page at http://cio.doe.gov/SProjects/ITa76.html
- The White House and links to Your Government at http://www.whitehouse.gov/
- OMB Circular A-76 at   http://www.whitehouse.gov/omb/circulars/a076/a076.html
- The A-76 Institute at  http://www.a76institute.com/
- The General Accounting Office Commercial Activities Panel at  http://www.gao.gov/
- The Federal Acquisition Institute at http://www.gsa.gov/
- Government Executive Magazine at http://www.govexec.com/outsourcing

## Points of Contact

_**Office of the CIO**_
- Karen Evans
- 202-586-0166
- _karen.evans@hq.doe.gov_

_**Program Office**_
- Denny O’Brien
- 202-586-1690
- _dennis.o’brien@hq.doe.gov_
_**Functional Team**_
- Lawrence Gross
- 202-586-2000
- _Lawrence.gross@hq.doe.gov_
_**Grant Thornton**_
- Marc Berson
- 703-637-2716
- _mberson@gt.com_

- Mark Hively
- 202-586-5655
- _mark.hively@hq.doe.gov_
- Kevin Cooke
- 202-586-6566
- _kevin.cooke@hq.doe.gov_

- Steven Apicella
- 202-586-4071
- _steven.apicella@hq.doe.gov_
- Rickey Hall
- 301-903-8022
- _rickey.hall@hq.doe.gov_

- Robin Mudd
- 202-586-8829
- _robin.mudd@hq.doe.gov_
- Jeff Vaughn
- 937-865-3022
- _jeff.vaughn@ohio.doe.gov_

- Chad Rheingans            Olivia Conroy	             Mike Ishmael	         Darrell Kent
- 703-637-2833                 703-637-2734	             703-637-4473	         301-946-8088
- _crheingans@gt.com_       _olivia.conroy@gt.com_     _mishmael@gt.com_         _darrell_kent@jupitercorp.com  _
- _  _