Breakout Session # 208 Chris Webster Anna Norris Nancy Gunderson Date 27 April 2005 Time 1030-1130

1. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

2. Acquisition Business Intelligence in the Department of Defense What it is and How We Achieve It Breakout Session # 208 Chris Webster Anna Norris Nancy Gunderson Date 27 April 2005 Time 1030-1130 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

3. Challenge • As the largest enterprise in the world, the Department of Defense must overcome tremendous hurdles to transform its business operations to better support the warfighter. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

4. Acquisition Visibility Material Trans. Visibility Common Supplier Base Common Asset Valuation Real Property Accountability Enterprise Finance Visibility Data Driven Transformation DoD Business Management and Modernization on Mission: “Transform business operations to achieve improved warfighter support while enabling financial accountability across the Department of Defense.” • DoD is transforming its business operations to become a more strategic enterprise in support of the warfighter • Transformation requires an incremental and business-focused approach to achieve success • A cornerstone of transformation is quality, interoperable, understandable data NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

5. Acquisition Data Visibility: Linchpin to Enterprise Supply Chain Management Strategic Sourcing Supply Planning INTEGRATED Supplier Relationship Mgmt Demand Planning Acquisition Visibility • Commodity-centric sourcing • Leveraged buying power • Enterprise structure for: * Strategic governance * Market intelligence * Commodity strategies Real-time demand planning Constrained supply plans Collaboration with suppliers Collaboration with customers Inventory Optimization Customer Supplier Performance-based contracts Supplier scorecards Supply base development Customer Relationship Mgmt Maintenance & Repair Integrated order fulfillment Customer self-service Proactive analytics Returns Mgmt Distribution Transportation NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

6. Net-Centric COI Activity Framework Establish & Evolve Implement & Integrate Promote Understanding Governance Promote Trust & Assurance PromoteVisibility Promote Accessibility Key Transformation Enabler: Organizational Collaboration via COI • Communities of Interest represent the organization’s operating structure (i.e. not chain of command) • Consist of the data owners, producers, and consumers from the Services and Components • Possess valuable functional or technical expertise • Best suited to identify common data and enterprise-wide capabilities • Provide way to institutionalize knowledge and mature data into wisdom NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

7. Discussion Point #1 • A net-centric data strategy enables Acquisition Data Visibility • Provides the ability to efficiently identify, access, understand, and integrate information sources NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

8. B A R R I E RB A R R I E R B A R R I E R B A R R I E R End-User Producer End-User Consumer Identifying, Accessing & Understanding DataDefining the data challenge “What data exists?“ “How do I access the data?” “How do I know this data is what I need?” “How can I tell someone what data I need?” “How do I share my data with others?” “How do I describe my data so others can understand it?” User knows data exists and can access it but may not know how to make use of it due to lack of under- standing of what data represents User is unaware this data exists User knows this data existsbut cannot access itbecause of organizational and/or technical barriers ? Organization “A” Organization “B” Organization “C” NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

9. Current LandscapeMany systems, limited integration Federal - Integrated Acquisition Environment (IAE) Federal Technical Data Solution (FedTeDS) Online Representations and Certifications Application (ORCA) Past Performance Information Retrieval System (PPIRS) Federal Procurement Data System – Next Generation (FPDS-NG) Central Contractor Registration (CCR) Federal Business Opportunities (FedBizOpps) FEDERAL SOLUTIONS Electronic Subcontractor Reporting System (eSRS) Intragovernmental Transaction Exchange (IGTE) Wage Determinations Online (WDOL) Inter-Agency Contracts Directory (ICD) Federal Agency Registration (FedReg) Excluded Parties Listing System (EPLS) Department of Defense (DoD) Acquisition Spend Analysis Pilot(ASAP) Standard Procurement System (SPS) Business Systems Modernization (BSM) Electronic Document Access (EDA) DOD SOLUTIONS Wide Area Workflow (WAWF) DoD EMALL Logistics Systems Financial Systems NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

10. Many Permutations of Acquisition Data NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

11. Solution:Net-Centric Data Strategy • The Net-Centric Data Strategy*, signed May 9, 2003, is a key enabler of the Department’s transformation by providing framework to: • Ensure data are visible, accessible, and understandable when needed and where needed to accelerate decision making • “Tag” of all data (intelligence, non-intelligence, raw, and processed) with metadata to enable discovery by known and unanticipated users in the Enterprise • Post of all data to shared spaces for users to access except when limited by security, policy, or regulations • Organize around Communities of Interest (CoIs) that are supported by Warfighter, Business, and Intelligence Domains. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise” http://www.defenselink.mil/nii/org/cio/doc/Net-Centric-Data-Strategy-2003-05-092.pdf

12. Producers of data maketheir data visible by advertising their data in catalogs Producers ensure data is accessible by posting data to a secure, shared storage space Producer Consumer Streaming video available. “Tagged” with discovery metadata; video available in “shared space” via data access service. Metadata added to catalog. Automated search of sources using discovery metadata. Pull data of interest. Using registered format, definitions, and core services, translate into needed structure. Security Services Consumers of data search catalogs to discovery what data assets are visible Data is accessed from shared storage space Consumer understands what the data is because its context and structure are described (e.g., PKI, SAML) Metadata Shared Data Catalogs Space Ubiquitous Enterprise & Global Community Network Services Application Services (e.g., Web) Metadata Registries The structure and semantics of certain data assets are provided by developers increasing the ability to understand and use the data asset Developer Understands the data format to build applications that post, process, exchange, and display information. Net-Centric Data StrategyCONOPS NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

13. Discussion Point #2 • Getting control of the data is half the battle • Data has to be matured into actionable information using business intelligence NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

14. Business Intelligence Data Utilization Mine Information to be Proactive and Analytic Distribute and Disseminate Information Knowledge Degree of Maturity Apply Analysis and Information Reporting Tools Data Service-Enable Data to Facilitate Analysis and Reporting Get Data Integration Layer Control of the Data SPS ERP $$$ WAWF LOG Capture Data NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

15. Discussion Point #3 • Acquisition Business Intelligence from abstraction to reality: • Acquisition Spend Analysis Pilot NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

16. Case Study: Acquisition Spend Analysis Pilot • Best in class strategic sourcing organizations demonstrate the following tenets: • Process:Collaboration internally and with suppliers • Organization:Shared service across enterprise • Information:Visibility into historical spend and demand data • Departmental net-centricity supports the realization of these tenets • Community of Interest formed to identify functional, data, and system requirements to enable strategic sourcing across Acquisition • Cross Component stakeholders & membership included: • Data users and producers: Contracting Officers, Commodity Councils • Developers: Army, Air Force • Data asset owners: Army, Air Force, Missile Defense Agency, Navy • Data Sources: Standard Procurement System (SPS) • Senior Leadership: DPAP-EB NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

17. Acquisition Spend Analysis Pilot COI • Pilot demonstrated key net-centric tenets • Implemented a Domain common data model (Making data understandable) • Aggregated data virtually (Only Handle Information Once) • Registered data and application as services (Making data visible and accessible) Acquisition Governance Board Acquisition Governance Coordination Council PILOTJOINT WORKING GROUP Pilot Executive Agent • Contained cross-Component subject matter experts in many disciplines • Collaborated to ensure service specific interests were satisfied thorough an enterprise-wide solution • Proved ability for enterprise-wide governance • Delivered functional and system requirements for a critical enterprise capability: spend analysis COI Pilot Oversight Missile Defense Agency DPAP Army Navy Air Force Contracting and Procurement IPT Data Management Board NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

18. Some data are posted to local web sites Difficult to find the right web site with the right information Army Data Source User Many point to point connections Air Force Data Source Limited data sharing & integration Local security limits cross Domain or cross Service access Numerous disparate applications Navy Data Source Other Data Sources Pre-Pilot Landscape NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

19. Solution Architecture Efficient use of the enormous amounts of information that is already available via integration NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

20. Acquisition Business Intelligence Data in Action 61% of DoD’s overall services spend and 47% of contract are concentrated in Facilities, Professional/Administrative Services, and Equipment Management categories The top 311 suppliers account for approximately 70 percent of overall services spend. Total Spend by Category Supplier Concentration Trending charts illustrate ‘spend analysis’ that can be performed based on adequate visibility into enterprise-wide acquisition data. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

21. Acquisition Business IntelligenceWhy Now? • With enormous fiscal pressures and a growing budget deficit, the DoD must in invest in technologies that enable better management of the more than $200 billion spent annually on goods and services • Governance is key to the achievement of business intelligence via policies for data standards, universal accessibility, and the selection of applications in the acquisition technology portfolio • Acquisition Business Intelligence provides the ability to: • Make more informed business decisions • Ensure operational and supplier compliance • Improve DoD’s ability to meet its socioeconomic goals • Increase efficiency of acquisition process • Better meet the Warfighter purchasing needs NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”